Dallas-Forth Worth has more physician-owned hospitals than any other metro area, according to the Dallas Morning News. About 9.7 percent of the country’s physician-owned hospitals are in the area, and Texas itself has the highest rate in the country.
Opponents of such facilities believe doctors may base medical decisions on how much money they’ll make, citing a study showing that after doctors bought a Tulsa specialty hospital, the odds of a patient undergoing a complex spinal procedure was 65 times higher.
Other detractors say physician-owned hospitals create conflict of interest issues that may put patients in danger. To take a step toward resolving the issues, the American Hospital Association wants to ban physicians from referring patients to their own hospitals.
The Dallas Morning News quotes a “free-market guy” who works for Tenet Healthcare, and says such hospitals are “not a good form of competition.”
Last year, the Office of the Inspector General issued a report that concluded only 55 percent of physician-owned specialty hospitals had emergency departments and seven percent didn’t meet Medicare requirements that an RN be present at all times or that a doctor be on call if none are present on site. (Kaiser Network)
Physician Hospitals of America said the study was limited “because it does not address the most significant issues: Was there any impact on the quality of patient care as a consequence of the IG’s findings? And how do these findings compare to the practices of comparable general hospitals?”
Last week, CNN Money reported that 12,000 primary care physicians surveyed said they’re planning to leave the profession in the near future. Those who’ll remain in the profession may consider investing in physician-owned hospitals.