FAH criticizes CMS specialty hospital plan

The Federation of American Hospitals (FAH) isn't happy with CMS decision to end the ban on specialty hospitals. Last week CMS announced that these hospitals could operate under the condition that they report their financial structures and physicians' financial ties to patients. Failing to do so would result in a $10,000 a day fine. The FAH thinks this isn't enough to ensure specialty hospitals play by the rules. The group says CMS's plan "fails to prescribe the medicine necessary to address the symptoms of physician ownership of, and self-referral to, specialty hospitals." Hospital groups have long criticized specialty hospitals, saying that doctor-owned hospitals have an unfair advantage because doctors can "cherry-pick" the best-insured patients, leaving poor patients to be treated in other facilities. 

- see the FAH press release (.pdf)
- read this report from KaiserNetwork.org

PLUS: The AHA's profits doubled in 2005, jumping from $9.4 million in 2005 to $18.4 million in 2005. Report