The Slow Death of
Physician-Owned Hospitals
In 2010, one sentence in the Affordable Care Act banned physician-owned hospitals. This is the complete record of what was built, what was lost, and what remains.
01 The Numbers
265
Physician-Owned Hospitals Before the Ban
104
Currently Operating
85
Eliminated Since Section 6001
16
Years of the Ban
02 The Attrition
265 before. 104 today.
2010: Before the Ban
2026: Today
The ban did not freeze competition. It created conditions for a slow-motion extinction.
Of the 161 that did not survive, 65% closed. 35% were acquired by the very systems that lobbied for the ban.
03 The Thesis
The Ban
Section 6001, March 23, 2010. One sentence. No sunset. No review mechanism. New physician-owned hospitals were permanently barred from Medicare and Medicaid. Existing ones were frozen, unable to add a single bed or operating room.
The Authors
The Federation of American Hospitals lobbied for it. Hospitals that competed with physician-owned facilities wrote the language. It was sold as patient protection. It was market protection.
The Result
55% of physician-owned hospitals gone. Survivors cannot add a single bed or operating room. The ban did not protect patients. It protected incumbents from competition.
04 The Breakthrough
ReCenter Hospital
Baton Rouge, Louisiana · Opened May 1, 2025
The first new physician-owned hospital in 15 years.
Founders
Dr. Luke Cusimano III, Dr. Taylor Theunissen
CMO
Dr. Everett Bonner
Specialty
Breast oncology and advanced reconstruction
Facility
43,000 sq ft · 10 inpatient rooms · 4 operating rooms · CIHQ accredited
Louisiana has no CON law. ReCenter navigated Section 6001 by initially operating outside Medicare. A narrow path. But physician entrepreneurship cannot be entirely legislated away.
05 The Evidence
The data does not support the ban.
17-34%
Lower Commercial Prices
BMJ, JAMA Network Open
3.9
Patient Experience Rating vs 3.2 System Average
CMS data
$1.1B
Potential Annual Medicare Savings
Policy analysis
“Congress should consider exceptions to restrictions on physician-owned hospitals”
Blue Cross Blue Shield Association, DOJ Letter, May 27, 2025
06 50-State Intelligence
32 states. Every physician-owned hospital tracked.
07 The Analyst
Dutch Rojas
Twenty years in healthcare markets. Founder of MedMerge, the physician transaction advisory. Managing Partner of PhyCap Fund, a physician-aligned investment vehicle. Board Member, Physician Led Healthcare for America.
The credentials are real. The agenda is transparent.
Ecosystem