Becker's Healthcare December 2, 2025
As Congress considers legislation that would ease restrictions on physician-owned hospitals, a new report from Dobson | DaVanzo warns that new POHs could significantly erode the financial stability of rural community hospitals.
The Physician Led and Rural Access to Quality Care Act, introduced in April, would create exceptions to the nationwide ban on new POHs in rural areas and lift expansion limits on existing physician-owned hospitals.
The Dobson | DaVanzo report modeled what could happen to a typical sole community hospital if a new POH opens nearby under the proposed law. Sole community hospitals already operate on thin margins, averaging a 2.5% overall margin and a negative Medicare margin of -11.8% before any new competitor enters the market.
The report...
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