Public policies have been and will continue to be a major force in the U.S. healthcare delivery system. Specifically reviewed in this article are the Balanced Budget Act of 1997 and the Sarbanes-Oxley Act of 2002. Both acts added significant governmental and regulatory burdens, and increasing uncertainty, thereby reducing entrepreneurs' ability to control their environment. These legislative initiatives have negatively impacted factors that influence entrepreneurs, which, in turn, have negatively impacted the healthcare industry. Copyright © Taylor & Francis Group, LLC.