Press Release

AIMPA: Massachusetts Bill Could Put Independent Physicians Out of Business

(July 29, 2024)

WASHINGTON (July 29) — The American Independent Medical Practice Association expressed deep concern today about S.2881, a bill passed by the Massachusetts Senate this month that would threaten the viability of independent clinical practices in which physicians, advanced practice registered nurses, and other healthcare providers care for patients.

“Senate Bill 2881 could put local, independent practices across Massachusetts out of business,” said Dr. Paul Berggreen, president and board chair of AIMPA. “As countless national studies have shown, millions of patients rely on independent practices run by local physicians and advanced practice nurses for high-quality, low-cost care. This bill would deprive Massachusetts residents of this lower-cost access and force even more care to higher-cost hospital settings.”

The Senate bill would effectively prohibit independent practices from contracting with management services organizations for operational and financial support. Many independent practices have teamed up with MSOs to compete against larger, well-funded hospital systems. These partnerships have allowed the practices to maintain their independence in a rapidly consolidating healthcare market.

“If Massachusetts were to pass the Senate’s healthcare bill, it would signal a very concerning and, to date, unprecedented state policy trend that would defy well-documented evidence showing this practice model’s benefits for quality, access, and cost of care,” Berggreen said. “While the state must thoughtfully respond to increasing costs, consolidation, and market transparency, this policy provision dramatically misses the mark.”

Between 2019 and 2024, hospitals acquired 7,600 physician practices. In that time, more than 74,000 physicians signed on as hospital employees. More than half of all physicians now work for hospitals or health systems. That’s more than double the share employed by hospitals or health systems 12 years ago.

“The Senate bill’s proposed ban on independent practices partnering with management services organizations would be the first of its kind in the country,” said Dr. Robert Provenzano, AIMPA’s chair for state health policy. “The Senate advanced this bill with no public testimony, no committee hearings, and no transparency — something that is at odds with the bill’s stated intent. Given its potential consequences, further study is absolutely warranted — and should be demanded by patients who will be stuck paying more and getting less for their care.”

Lawmakers from the Massachusetts Senate and House of Representatives are meeting this week to reconcile S.2881 and H.4653, a healthcare reform bill the House passed in May.

“Independent practices offer patients a choice in where they receive care and provide a measure of competition that the healthcare market nationally — and Massachusetts in particular — desperately needs,” Berggreen said. “By threatening to regulate independent practices out of existence, the Massachusetts Senate is putting the Commonwealth at risk.”


About AIMPA

The American Independent Medical Practice Association is a physician-led national advocacy organization representing approximately 600 independent medical practices that provide quality, affordable health care for more than 24 million patients each year.

These independent practices are critical access points for health care across the country at more than 4,000 medical office locations and over 550 independent ambulatory surgery centers in Massachusetts, 43 other states, and the District of Columbia.

We advocate on behalf of more than 10,000 physicians caring for patients in the fields of Primary Care and Internal Medicine as well as the specialties of Cardiology, Dermatology, Emergency Medicine, Gastroenterology, Hematology/Medical Oncology, Nephrology, Neurosurgery, Ophthalmology, Orthopedic Surgery, Otorhinolaryngology, Radiation Oncology, Urology, Vascular Medicine, and Women’s Health.

About the American Independent Medical Practice Association

The American Independent Medical Practice Association is a physician-led national advocacy organization representing nearly 200 independent medical practices that provide quality, affordable health care for nearly 10 million patients.

Media Contact:

Ava Noack
ava@keybridge.biz
(202) 796-5112

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