Physician-owned hospitals have garnered growing attention as rural healthcare access faces worsening shortages and critical gaps in services.
In July, a bipartisan bill was introduced in the House of Representatives that would amend aspects of the Affordable Care Act passed to ease the ban on physician-owned hospitals.
Three physician-owned hospitals have announced plans to shutter services or close indefinitely in the last year:
1. Modesto, Calif.-based, physician-owned Stanislaus Surgical Hospital said it will suspend operations indefinitely and lay off employees after CMS terminated its provider agreement, a spokesperson for the hospital confirmed to Becker's. The temporary closure, which goes into effect Sept. 14, comes after CMS terminated its provider agreement in an Aug. 30 letter for noncompliance with various conditions of participation within the agency's Medicare and Medi-Cal programs.
2. Port Arthur-based Medical Center of Southeast Texas, an affiliate of Dallas-based Steward Health Care, closed its campus in Beaumont on Feb. 2. The closure includes its emergency department and all hospital-related services, which will be relocated to the center's Port Arthur campus.
3. The Hospital at Westlake Medical Center in West Lake Hills, Texas, abruptly closed its emergency department Dec. 29. The physician-owned hospital filed for Chapter 11 bankruptcy on Sept. 8, citing knock-on effects of the pandemic and the rising costs of labor and supplies as reasons for its decision. The hospital aims to restructure both financially and operationally.