Restoring Rights of Physicians to Own Hospitals Act
The Restoring Rights of Physicians to Own Hospitals Act would amend Title XVIII of the Social Security Act (Medicare) by removing the carve-outs that currently allow physician ownership of hospitals in certain circumstances. Specifically, the bill targets the “rural provider and hospital exception” to the physician ownership prohibition (Section 1877, 42 U.S.C. 1395nn) and repeals the related provisions and subsection. The stated aim, per the title, is to repeal the Obamacare ban on provider-owned hospitals, thereby restoring physicians’ rights to own hospitals that participate in Medicare—though, in practice, the exact regulatory changes would occur through the removal of the exception provisions and related subsection. As introduced, the bill would go through the standard House committee process (Energy and Commerce and Ways and Means) and is not enacted into law at this stage. If enacted, it would remove the current pathways that allow certain rural hospitals to be owned by physician investors, effectively broadening or reinstating physician ownership of Medicare-participating hospitals beyond the existing limited exceptions.
Key Points
- 1Repeals the rural provider and hospital exception to the physician ownership/investment prohibition in Medicare (Section 1877 of the Social Security Act).
- 2Specifically amends subsection (d)(2) and (d)(3) to remove certain subparagraphs and to restructure the ownership rules.
- 3Strikes subsection (i) of Section 1877, eliminating the existing rural-exception pathway that allowed physician ownership under specific conditions.
- 4The bill’s stated purpose is to repeal the Obamacare ban on provider-owned hospitals, expanding opportunities for physicians to own hospitals that participate in Medicare.
- 5Procedural note: Introduced in the House by Rep. Spartz on April 24, 2025; referred to the Committee on Energy and Commerce and the Committee on Ways and Means.