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Study: Physician-owned facilities generate significant economic value

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Physician-owned hospitals have been under pressure over the last couple of years. It has been driven largely by concern from traditional hospital industry leaders, who don't like competition from physicians they would rather see referring to their facilities. Given these concerns, federal and state legislatures have considered a number of measures to regulate physician-owned facilities, including some requiring specialty hospitals to have an emergency department.

However, Congress and state legislatures should think carefully before they put too much pressure on this industry, a new study suggests. The study, by Morristown, NJ-based Health Economics Consulting Group, concludes that such hospitals will generate about $3.9 billion in eight states in 2009, an economic impact worth considering.

Researchers found that physician-owned hospitals add value to state economies, from $117.8 million in Nebraska to $2.9 billion in Texas. They calculated the value by looking at "direct effects" of the facilities, including added payroll and capital expenses, as well as "indirect" and "induced" effects such as re-spending of money pumped into the local economy. The study also looked at the impact of property, payroll and income taxes paid by these facilities.

To find out more about the study:
- read this Modern Healthcare piece (reg. req.)

Related Articles:
Physician-owned hospitals: Are they the boogieman?
U.S. Reps give boost to physician-owned hospitals
Physician-owned hospitals: A conflict of interests?
Partnership building 10 doctor-owned hospitals

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Given this data it is astonishing that the U.S. House would vote to effectively kill off hospitals owned by physicians. Perhaps that explains why Rep Stark felt compelled to attach his anti-physician language to the SCHIP Bill that has such widespread, bipartisan support. Any light of day look at what he has tried to do would be laughed out of the lower chamber.
Perhaps the Senate, Congressional leadership or the new President will step in and correct this insanity before it becomes law? Or, as outlandish as this may sound, perhaps Members of Congress will awake to find that they've been misled and will have to answer why they voted to further erode the economies of their districts?

Right now there are big-box, non-profit hospitals declaring bankruptcy all over the country because of the way they are managed. (see www.thehospitalfiles.com for more information). Does it make any sense for the United States Congress to shut down over 200 of America's best and safest hospitals just because physicians own and operate them instead of the bureaucrats? Of course not.
America's economic crisis & healthcare crisis have not stopped Congressman Stark (CA-D) from pushing ahead with the big-box hospitals, the bureaucrats, & their high-paid lobbyists' determination to destroy hospitals owned by physicians, even if it means destroying healthcare that millions of America's children depend on.
As you might expect, Congressman Stark has done very well for himself as the champion of the American Hospital Association which represents the bureaucrats. That's how it's worked in Washington for a very long time.
The AHA bureaucrats sure aren't telling.
The physicians are, well, physicians, not politicians. They're hoping that the Congress will wind up doing the right thing ... somehow.
But we know better, don't we? There are times when, as voters and citizens, we've just got to pick up the phone and tell our Congressman and Senator, "no way."
This is one of them.
During the campaign Barack Obama said he could bring change and reform to Washington, but he needed our help to do it.
After he won the campaign President-elect Obama told us that we must all work together for change and reform.
Starting right now.
The Congress is going into session weeks before President-elect Obama will be sworn in. That's why Congressman Stark has been told to shut down hospitals operated by physicians right away, before our new President moves into the White House.
That's why we need to tell the Congressmen and Senators who work for us that we support physicians, not bureaucrats and so should they.

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