Evidence

The Evidence Against the Ban

Peer-reviewed research, CMS data, and independent policy analysis all point in the same direction: physician-owned hospitals deliver better care at lower cost. The ban was never supported by evidence.

01 The Most Powerful Endorsement

“Congress should consider exceptions to restrictions on physician-owned hospitals”

Blue Cross Blue Shield Association

Letter to the Department of Justice

May 27, 2025

When the largest health insurance association in the United States tells the Department of Justice that the ban on physician-owned hospitals needs exceptions, the policy argument is settled. BCBSA represents 35 Blue Cross and Blue Shield companies covering more than 115 million Americans. Their endorsement of reconsidering Section 6001 is the single most powerful third-party validation that the ban harms, rather than protects, the healthcare market.

02 The Research

What the data actually shows.

17-34%

Lower Commercial Prices

BMJ, JAMA Network Open

Multiple peer-reviewed studies demonstrate that physician-owned hospitals charge significantly less than system-owned facilities for comparable procedures. The price differential ranges from 17% to 34% depending on procedure type and market.

3.9

Patient Experience Rating

CMS HCAHPS Data

Physician-owned hospitals consistently achieve patient experience scores of 3.9 out of 5, compared to the 3.2 average for system-owned hospitals. This gap persists across geographic regions and specialty types.

$1.1B

Potential Annual Medicare Savings

Policy Analysis

Expanding physician-owned hospital participation in Medicare could generate $1.1 billion in annual savings through competitive pricing pressure and more efficient care delivery models.

Lower

Complication Rates

Mercatus Center, George Mason University

Research from the Mercatus Center finds that physician-owned hospitals demonstrate lower complication rates and shorter length-of-stay metrics compared to non-physician-owned peers performing the same procedures.

Higher

Quality Scores Across Metrics

American Enterprise Institute

AEI analysis of CMS quality data shows physician-owned hospitals outperform on readmission rates, hospital-acquired infection rates, and overall quality composite scores. The ownership model itself appears to drive quality improvement.

The evidence is clear. The ban is not.

Read the full investigation into who wrote Section 6001 and why.