Doctors argue that physician-owned hospitals promote competition and lower costs.
Doctor Frustrated with Bureaucracy in Medicine
Dr. Terry Gerard became a doctor because he wanted to help people. However, he now feels that he spends more time helping insurance companies get paid than he spends with his patients. The emergency room physician from Durant, Oklahoma, shared his frustrations with The Epoch Times, highlighting the excessive bureaucracy and overregulation in the healthcare system. According to Dr. Gerard, these barriers hinder his ability to provide quality care.
Dr. Brian Miller, an assistant professor of medicine at Johns Hopkins University, believes that allowing physicians to own hospitals could be a simple solution to this problem. During a recent testimony before the House Committee on Small Business’s Subcommittee on Oversight, Investigations, and Regulations, Dr. Miller emphasized the importance of fair competition in the healthcare industry.
Ronald Pitkin (right) talks with Dr. John Matthew during an office visit in Plainfield, Vt., on June 6, 2013. (Toby Talbot/AP)
Physician-owned hospitals (POH) were once common until Congress restricted doctors’ ability to own hospitals in 2003. The intention was to lower costs by increasing competition, but a study by the Mercatus Center at George Mason University suggests that the opposite occurred. The study found that POHs provided higher-quality care at a lower cost and with greater efficiency. The researchers recommend reconsidering the restrictions on POHs to reinvigorate competition in hospital markets.
A sign on an insurance store advertises Obamacare in San Ysidro, San Diego, California, U.S., Oct. 26, 2017. (Mike Blake/Reuters)
Dr. Miller also highlighted the burdensome regulations imposed by the Centers for Medicare and Medicaid Services (CMS), private insurers, and state and federal laws. These regulations, combined with the prohibition on POHs, are driving up costs and making it increasingly difficult for doctors to run their own practices. Many doctors are forced to join corporate hospitals, reducing competition and decreasing the quality of care.
Subcommittee Chair Rep. Beth Van Duyne (R-Texas) expressed shock at the amount of time doctors spend on compliance and administrative tasks. She acknowledged that this situation is detrimental to both doctors and patients.
While administrative tasks do increase costs, Dr. Matthew Fiedler, a senior fellow at the Brookings Institution, cautioned against completely dismissing the current healthcare system. He acknowledged that healthcare providers incur substantial costs to interact with insurers. However, finding a balance between reducing administrative burdens and maintaining quality care is crucial.
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