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Congressional Action Could Harm Physician Hospitals; Economic Impact Could Be Severe Warns PHA
Date:1/14/2009

re bill (SCHIP) would not allow hospitals to grow and would essentially cause these hospitals to whither on the vine since they could not adjust to marketplace demand. Also, there would be no protection offered for hospitals under development and no physician hospitals built after January 1, 2009 would be allowed to take Medicare or Medicaid patients. Closure of physician-owned hospitals would eliminate $2.4 billion in total payroll, $509 million in federal taxes, $1.9 billion in trade payables, and will put 55,000 full- and part-time employees out of work.

There are also 85 hospitals currently under development nationally. On these hospitals, an estimated $1,830,909,350 has been expended with $574,358,090 still outstanding, ready to be spent. The addition of these 85 hospitals would also equate to an estimated 23,000 more jobs.

"HR 2 is punitive legislation and the physician hospital piece is an insignificant offset to the costs of SCHIP. It is hard to understand how Congress can propose an important increase in medical services to children while simultaneously cutting back on hospitals that provide services to this population, among others," said Sandvig.

For more information on physician-owned hospitals please visit www.physicianhospitals.org or contact Molly Sandvig at (605) 321-3483.

                          Total Effect
                           Plus Taxes     Total
          State               Paid         FTEs    Direct Effect
    Arkansas
      Total                $332,575,450    2,703   $198,200,962
      General Hospitals     $41,877,944      582    $24,025,794
      Under Development    $166,658,400      780   $100,680,000
    Indiana
      Total                $324,199,688    3,377   $174,621,644
      General Hospitals    $152,891,657    1,637    $83,284,586
      Under Development     $55,465
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SOURCE Physician Hospitals of America
Copyright©2009 PR Newswire.
All rights reserved

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