Last week, the U.S. House of Representatives approved a bill that would reauthorize and expand the State Children’s Health Insurance Program (SCHIP). The measure, which passed by a vote of 289 to 139, would expand coverage for children from families with incomes of up to three times the federal poverty. Such an expansion would cover three million more children.
The Kaiser Network reported yesterday that the House version of the SCHIP bill would prohibit the construction of new physician-owned hospitals and restrict the expansion of existing hospitals. The Senate version doesn’t contain the provision.
Those who support specialty hospitals say they save money for patients and insurers, while non-supporters believe physicians who refer patients to physician-owned hospitals have a conflict of interest.
“Very often, they are going to refer the well-reimbursed and less difficult cases to the places they have a financial interest in, because it’s going to be more lucrative,” said Rick Pollack, executive vice president of the American Hospital Association.
