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.)
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