Should the Feds Lift the Ban on Physician-Owned Hospitals?

Grace-Marie Turner, president of the Galen Institute, a think tank that supports free-market ideas for healthcare delivery believes that "the punitive ban on physician-owned hospitals imposed by the ACA has to go." She made this statement in Forbes last week.

The Affordable Care Act placed a ban on the creation of physician-owned hospitals. This has been a contentious topic in Congress as larger hospital lobbying groups have urged Congress not to replace the ban that Turner wants overturned. Turner also believes that the reason why these bans are in place is because large hospitals are major employers in politicians states and districts.  

According to Fierce Health Finance physician referrals tend to increase dramatically when they own a stake in the facility. A report by the Government Accountability Office concluded that imaging self-referrals cost the federal government $109 million in 2010.

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