FAH President and CEO Chip Kahn issued the following statement after the Energy and Commerce Health Subcommittee’s hearing which considered several pieces of legislation, including one that would lift the prohibition on physician-owned hospitals (POHs) and another examining Medicare Advantage plan’s abuse of prior authorizations. 

“Hospital care in rural areas is in crisis and lifting the prohibition on physician-owned hospitals will only make it worse. Study after study, public and private, shows that physician-owned hospitals cherry-pick healthy and wealthy patients and provide limited emergency services and vital specialties – the exact care rural patients need most. POH’s are not the answer. Congress is better served focusing on real solutions that will increase access to the critical services small communities need most. 

“Abusive prior authorization by Medicare Advantage plans threatens the lives of patients by delaying or even denying vital, doctor-ordered care. It was clear during today’s hearing that there is bipartisan support for removing these roadblocks so the physicians and their patients – not insurance companies – can decide on the best course of treatment.”