tci Part B Insider - 2005 Issue 11

Politics and Policy: DRG Changes Could Slash Physician-Owned Hospital Payments

Moratorium likely to last until 2007Do physician-owned hospitals that focus on one narrow specialty hurt local community hospitals? And do they improve patients' outcomes?Two March 8 congressional hearings failed to resolve those tricky questions. The most likely outcome of the two hearings is that Congress will extend the current moratorium on new physician-owned facilities until January 2007, as the Medicare Payment Advisory Commission recommends. MedPAC analysts haven't crunched enough data to know whether physician-owned hospitals improve quality and efficiency of care, or just increase utilization, MedPAC Chair Glenn Hackbarth told the Senate Finance Committee, which had a morning...

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