Doctor-Owned Hospitals Prosper Under Health Law

KHN: APR 12, 2013

Doctor-owned hospitals are earning many of the largest bonuses from the federal health law’s new quality programs, even as the law halts their growth.

The hospitals, many of which specialize in heart or orthopedic surgeries, have long drawn the ire of federal lawmakers and competitors. They say physicians often direct the best-insured and more lucrative cases to their own facilities, while leaving the most severely ill patients to others.

Some researchers say the doctors’ financial interests encourage them to perform more tests and procedures, driving up the cost of care. The health law banned construction or expansion of these hospitals except in unusual circumstances. Read more