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On Nov. 24, U.S. District Court Judge Michael Schneider ruled Section 6001 does not violate any constitutional rights, but he also ruled the hospital and PHA were within their rights to sue in federal court. This gives the plaintiffs a leg up if a motion for appeal has to be filed, according to their attorney, Scott Oostdyk of McGuireWoods.
“We filed seeking an injunction in 2010 since the new law prevents us from expanding bed spaces and limits the growth of POHs in physical terms. The court decided it had jurisdiction in the case,” says Oostdyk. “So far this has been the only case challenging the new law.”
Another problem with the new law is that if POHs expand, they cannot accept Medicare patients—a serious barrier for new hospitals.
“About 60 percent of the billing from POHs is from Medicare, so they've cut off half of the financing and funding of this business model,” explains Oostdyk. “That competition has been curtailed, and physicians will no longer invest in this business model. If you can't build new facilities or expand old ones, there is no growth.”
Originally posted by saltheart foamfollower
I am just a dumb redneck and cannot understand the thinking of one of the black robe priests.
Consumer not decision maker.
Economic theory requires that for effective market operations, informed consumer decision making characterize both the input and output markets. In the market for hospital care, this is not the case since physicians have a significant amount of control over the patient’s choice of hospitals. For POHs this is especially problematic since physicians have a motivation to refer patients to facilities in which they have a stake or ownership interest.
Cherry Picking
POHs treat a smaller share of Medicaid patients, or patients with high needs, but low financial resources. .... Mitchell (2005) discovered that POH were more apt to treat low severity cases and cases with lower comorbidities. In an analysis of eleven studies examining POHs, it was concluded by each of the studies that POHs “cherry-pick the most profitable patients.”
Higher Margins at POHs.
An analysis of Medicare cost reports in 2006 found that 57 percent of physician-owned facilities had margins above 9 percent. In contrast, only 17 percent of acute care general hospitals had margins greater than 9 percent (MedPac, 2005). It was found that steering patients to the higher margin hospitals resulted in higher medical costs.
Summary
This “White Paper” has compared past studies that analyzed the impact of POHs on health care costs. In general, research has concluded that the addition of POHs increases cost for patients in an area. Moreover, the addition of POHs to an area tends to undercut the economic viability of full-service community hospitals in the service area. By selecting patients with less severe illnesses, by limiting emergency room care, and by earning higher profit margins, POHs tend to increase medical costs in an area. The fundamental factor accounting for this relationship is that the decision of which medical facility to use is made, or influenced, by the physician, not the patient. Thus, physicians with a financial stake in the POH are motivated to send high profit margin patients to the POH.
Originally posted by maybereal11
reply to post by saltheart foamfollower
Wow that post was a little unhinged...
I provided actual research and links and you simply screamed "facism"...and dismissed a non-partisan in depth study of the issues with Physician Owned Hospitals, a study funded by the Catholic Church, as "Sugar Coating" of the "Facism" you declared.
Just a little reality disconnect...hope you get better soon.
Originally posted by saltheart foamfollower
reply to post by maybereal11
Hey thanks for that, I wonder WHERE THEY GOT THEIR INFO?
Let us take a look see shall we?
American Hospital Association, “Self-referral to Physician-owned Hospitals,” April 17, 2008.
References
American Hospital Association, “Self-referral to Physician-owned Hospitals,” April 17, 2008.
Cram P, et al. “Cardiac Revascularization in Specialty and General Hospitals,” New England Journal of Medicine, April 7, 2005, Vol. 352(14), pp. 1454-1462.
Government Accountability Office. (April 2003). Specialty Hospitals: Information on National Market Share, Physician Ownership, and Patients Served. Washington, DC.
Greenwald, Leslie, et al. 2006. “Specialty versus Community Hospitals: Referrals, Quality, and Community Benefits,”. Health Affairs, 25(1), 106-118.
Lewin Group (2004). “TrendWatch: Impact o Limited-service Providers on Communities and Full-service Hospitals, Sept. 2004, Vol. 6(2).
McManis Consulting, 2005. “Impact of Physician-owned Limited-service Hospitals,”
MedPac. 2005. “Report to the Congress: Physician-Owned Specialty Hospitals,” Medicare Payment Advisory Commission, Washington, DC.
Mitchell, J.M. (2005). “Effects of Physician-owned Limited-service Hospitals: Evidence from the Market for Cardiac Inpatient Care in Arizona,” Health Affairs Web Exclusive, Oct. 25, 2005.
Mitchell, J.M. (2007). “Utilization Changes Following Market Entry by Physician-owned Specialty Hospitals,” Medical Care Research and Review, 64(4), 395-415.
Nallamothu, BK, et al. “Opening of Specialty Cardiac Hospitals and Use of Coronary Revascularization in Medicare Beneficiaries,” Journal of the American Medical Association, March 7, 2007, Vol. 297(9), pp. 962-968.
Office of the Inspector General, “Physician-Owed Specialty Hospitals’ Ability to Manage Medical Emergencies,” oig.hhs.gov... Department of Health and Human Services, January 2008.
Roemer, Milton. “Hospital costs relate to the supply of beds,” Modern Hospital. 1959 Apr;92(4):71-3.
TrendWatch, “Physician Ownership and Self-referral in Hospitals: Research on Negative Effects Grows,” American Hospital Association, April 2008.
Trinh, Hanh Q, Begun, James W and Luke, Roice D. “Hospital service duplication: Evidence on the medical arms race,” Health Care Management Review 33, no. 3 (Jul-Sep 2008): p. 192.
[1]An examination of spinal fusion operations at Nebraska’s other POH, the Nebraska Orthopedic Hospital, shows the same relationship as presented in Tables 1 and 2. That is, for the POH, cost- per-patient day were generally higher and the length of hospitalization was shorter than for community hospitals.
[1]The eleven studies were 1) MedPAC, 2) McManis: Black Hills, SD Case Study, 3) McManis: Lincoln, NE Case Study, 4) McManis: Oklahoma, OK Case Study, 5) McManis: Wichita, KS, Case Study, 6) TrendWatch, 7) Government Accountability Office, 8) Mitchell: Oklahoma City, 9) NEJM: Cran et al. , 10) Office of the Inspector General, 11) JAMA: Naltanothu et al.
Originally posted by saltheart foamfollower
Sorry to tell you this, how bout getting rid of the problem of the people using the ER's as their personal clinic. How bout them apples?
Originally posted by PayMeh
I'm telling you. If you want to know what this will look like, follow a Veteran to a clinic.
Originally posted by Sinnthia
Originally posted by PayMeh
I'm telling you. If you want to know what this will look like, follow a Veteran to a clinic.
Where are all the vets that boycott VA services for private hospitals?
Honest question here.
Originally posted by PayMeh
You do realize that it is a government cost analysis study.
I was engaged by Catholic Health Initiative (CHI) beginning March 9, 2010 to examine the impact of increasing the number of physician-owned hospitals (POHs) in Nebraska. This “White Paper” represents my work to-date on this task.
Originally posted by PayMeh
You really think the government is going to offer you something that is "good," with "quality service," and is "efficient?"
Originally posted by PayMeh
Oh come on.. You know as well as I do that they can't afford it. Every older Vet I know has limited income. They can barely afford the medicine the VA prescribes for them, much less go out and get a second opinion. They all complain like mad. Getting left in halls after surgery and forgotten about, taking months to get an appointment, ect.
here
“Winning NCQA’s seal of approval is the gold standard in the health-care industry. And who do you suppose this year’s winner is: Johns Hopkins? Mayo Clinic? Massachusetts General? Nope. In every single category, the VHA system outperforms the highest rated non-VHA hospitals.”