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Top 10 States for Physician-Owned Hospitals

These 10 states make it more practical for physicians to participate in hospital ownership by aligning statutory structure, corporate practice of medicine rules, and population trends.

Conexiant

Physicians pursuing hospital ownership operate within federal and state regulatory requirements. Federal law sets limits on the expansion of physician-owned hospitals, while state-corporate practice of medicine statutes define how medical practice, licensure, and physician involvement in ownership are regulated. Physician participation in hospital ownership is therefore subject to established legal frameworks.

  1. Texas — Texas law dictates that a health organization “may not interfere with, control, or otherwise direct a physician’s professional judgment.” Texas QuickFacts reports a 2020 Census population of 29.1 million.

  2. Florida — Chapter 458 details the practice of medicine, defines a physician as a person licensed to practice in Florida, and establishes the Board of Medicine. Florida QuickFacts reports that 21.8% of residents are 65 years or older.

  3. Arizona — Arizona statute defines a physician as a Doctor of Medicine licensed under that chapter and defines the practice of medicine. The Census Bureau’s Arizona 2020 Census page indicates that the state’s population grew nearly 11.9% from 2010 to 2020.

  4. Oklahoma — The Oklahoma Board of Medical Licensure oversees complaints involving possible violations of the Oklahoma Medical Practice Act. Oklahoma QuickFacts reports a 2020 Census population of just under 4 million.

  5. South Dakota — South Dakota law states that any person who practices medicine without a license, certificate, or permit issued by the board is guilty of a Class 1 misdemeanor. South Dakota QuickFacts reports a 2020 Census population of 886,667.

  6. Nevada — State law defines the practice of medicine and requires physician licensure for diagnosis and treatment. Nevada QuickFacts reports a 2020 Census population of 3.1 million and population growth of 5.7% from April 1, 2020, to July 1, 2025.

  7. Tennessee — The Tennessee Board of Medical Examiners says it “establishes standards of practice and regulates the licensing of those qualified to be medical doctors in Tennessee.” Tennessee QuickFacts reports a 2020 Census population of 6.9 million.

  8. Utah — State law treats practicing a profession that requires licensure without a license as unlawful conduct. Utah’s population increased by 8.2% from April 1, 2020, to July 1, 2025.

  9. Idaho — The Idaho Board of Medicine’s rules apply to physicians who are licensed or seeking licensure under the board. The Census Bureau states that Idaho was the second-fastest–growing state in the last decade.

  10. North Carolina — State law defines the practice of medicine and requires physician licensure for diagnosis and treatment. North Carolina QuickFacts reports a 2020 Census population of 10.4 million.

Sources: Centers for Medicare & Medicaid Services, Texas Constitution and Statutes, US Census Bureau, The Florida Senate, Arizona State Legislature, Oklahoma Board of Medical Licensure and Supervision, South Dakota Legislature Research Council, Nevada Legislature, Tennessee Department of Health, Utah State Legislature, Division of Occupational & Professional Licenses, North Carolina General Assembly