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Hospital Acquisitions of Physician Practices Threaten Patient Access and Drive Up Health Costs, New Study Finds — OBFA Calls for Policy Action

January 15, 2026

Our Vision

The Office-Based Facility Association (OBFA) advocates for fair Medicare payment policies that allow independent, office-based physicians to continue providing high-quality, cost-effective care in their communities.

Protecting Patient Access to
Office-Based Interventional Care

Medical Examination Room

Who We Represent

OBFA is a national coalition of office-based interventional physicians and facilities committed to preserving patient access to community-based care. Our members provide essential procedures outside the hospital setting — delivering high-quality care at lower cost to the healthcare system.

We bring the real-world experience of private practice directly into Medicare policy discussions with Congress and the Centers for Medicare & Medicaid Services (CMS).
Medical Desk Essentials

Office-Based Care is at Stake

HOSPITAL

AMBULATORY
SURGERY CENTER

OFFICE*

Most expensive setting

Cost less than hospitals

Lowest costs

Emergent capabilities

General sedation

Conscious sedation

All services

Surgical services

All minimally-invasive procedures**

Mostly urban

Mostly urban

Urban and rural

Most stringent CON restrictions

Less stringent CON restrictions

Least stringent CON restrictions

*Many terms are synonymous with "office-based," such as "private practice," “freestanding,” “nonfacility,” or “place of service 11” and such providers often are independent physicians, small businesses, and rural providers.

**Such care crosses a wide range of specialties, including primary care, cardiology, interventional radiology, pain medicine, proton therapy, radiation oncology, urology, vascular surgery, and more. 

Medicare Physician
Fee Schedule Cuts

From 2006 to 2025, office-based specialties were cut: 

  • Physical Therapy -9%

  • Urology -9%

  • Cardiology -19%

  • Radiation Oncology -22%

  • Vascular -32%

  • Diagnostic -38%

  • IDTF -54%

Surgeon at Work

Impact on Health System Consolidation

According to the American Medial Association from 2012 to 2024:

  • Private Practice decreased: -18% 

  • Hospital employment/ ownership of physicians/ practices increased: +18%

video
Protecting Patient Access to Office-Based Interventional Care
Now – more than ever – patients need access to office-based interventional care.
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The Problem

Medicare Physician Fee Schedules in the first half of this decade continued the long-term trend of cuts to office-based proceduralists.  These year-over-year cuts have been implemented without regard to patient outcomes, actual PFS provider resource needs, or any other policy.   These cuts also reduced patient access, particularly in rural areas; accelerated the health system consolidation trend; exacerbated health inequities in a variety of diseases; and threatened the pandemic resilience of our healthcare system.


The 2026 Medicare Physician Fee Schedule is the first CMS regulation in recent years that recognizes the plight of independent and private practice physicians by increasing reimbursement for office-based interventional providers. OBFA urges CMS and Congress to continue to build on these foundational changes by enacting legislation to focus the PFS on paying for the work of physicians and allied professionals and reimbursing separately for office-based practice expense.

 

© Office-Based Facility Association

300 New Jersey Ave NW #900, Washington, DC 20001

Tel: 202-465-8711

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OBFA represents office-based interventional providers nationwide and serves as a trusted resource for policymakers seeking practical, data-driven healthcare policy solutions.

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