tci Part B Insider - 2006 Issue 6

Physician-Owned Specialty Hospitals Threaten Community Hospitals

Your physician's cardiac, orthopedic or surgical specialty hospital may be chipping away at your community hospital's profitability, according to a new study.Also, competition for high-profit cases is leading community hospitals to leave quality and efficiency measures on the back burner, according to a Jan. 25 study from the Center for Studying Health System Change. Policymakers have been debating whether specialty hospitals hurt community hospitals, and whether they in fact meet the definition of a "hospital." The Centers for Medicare & Medicaid Services last year extended a moratorium on allowing physician-owners of specialty hospitals to refer Medicare patients...

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