In two recent congressional hearings, the American Hospital Association (AHA) highlighted the challenges faced by private physician practices and the budgetary effects of consolidation in health care. During the House Ways and Means Subcommittee on Health hearing, AHA emphasized that physicians encounter obstacles such as rising costs, inadequate reimbursements, and burdensome administrative tasks imposed by both public and private insurers.
The AHA urged Congress to streamline prior authorization requirements in Medicare Advantage plans and pass bills like the Value in Health Care Act and the Dr. Lorna Breen Health Care Provider Protection Reauthorization Act to support health care providers. They also expressed opposition to site-neutral payment cuts and changes that could expand the number of physician-owned hospitals or relax growth restrictions for existing facilities.
In contrast, during the House Budget Committee hearing, AHA explained how mergers can improve access to care, enhance quality, and lower healthcare costs for patients and communities. However, they also raised concerns about insurers using their market power to acquire physician practices. They emphasized that policies should be put in place to prevent this from happening while still allowing for consolidation that benefits patients, providers, and communities. Overall, AHA’s statements underscored the importance of addressing challenges faced by private physician practices and ensuring that consolidation in healthcare benefits all stakeholders involved.
