Doctors' hospitals brace for new regulations
Officials with physician-owned hospitals worry the new regulations of Obamacare could bring about their demise. But what's in that bill that is so problematic?
Section 6001 spells out the restrictions placed on physician-owned hospitals, covering everything from expansion restrictions to financial audits. Only the 260 hospitals owned by doctors are covered, not the other 5,800 hospitals in America.
Physician owners view the rules as an anti-competitive move meant to hurt their bottom line, fueled by community hospitals and powerful Washington lobbyists at the American Hospital Association.
At McBride Orthopedic Hospital in Oklahoma City, the new law meant curtailing construction plans because Obamacare explicitly prohibited expansion of operating rooms, procedure rooms and beds.
There are exceptions, of course, but the onerous rules are so difficult to meet that many physician-owned hospitals won't even try. Applications for exceptions must meet these requirements:
- The county must have a population increase over the last five years that is at least 150 percent of the percentage increase in the population growth of the state.
- The percent of total inpatient admissions must equal or be greater than the average percent for all hospitals located in the county.
- The state's average bed capacity must be less than the national average bed capacity.
- The hospital's average bed occupancy rate must be greater than the average bed occupancy rate in the state.
Hospitals that meet these requirements are allowed only one application over a two-year period, are limited to 200 percent growth and cannot expand beyond the main campus. In addition, the secretary of health and human services will solicit input from the local community on the hospital's application.
The prohibition on expansion is just one aspect of the new rules governing physician-owned hospitals. They are also required to submit annual reports on each physician owner, investor and any other owners, including the nature and extent of their ownership and investment interests. Obamacare also restricts new investments.
Physician owners must tell patients they refer to their hospital about their ownership stake and disclose that the hospital is owned by doctors on the hospital's Web site and advertising.
Hospitals that comply with all of the new regulations under Obamacare still face the prospect of an audit from the Department of Health and Human Services. And physicians who are found in violation of the transparency rules are subject to fines of up to $1 million. - Rob Bluey Read more at the Washington Examiner
In a related story article, we have these comments from The American Spectator:
The plight of doctor-owned hospitals is one of the areas that was far too neglected during the health care debate. As much as Democrats holler about the skyrocking costs at hospitals, the truth is that for years they have helped to protect the big hospitals from competition from smaller, innovative, hospitals that tend to specialize in one area and can deliver more personalized service. If we wanted real choice and competition that would drive down prices and improve quality and outcomes, we'd be encouraging the development of such facilities. Instead, ObamaCare is putting them out of business.
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