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New Study Shows 'No Medicare Savings' if Congress Moves Against Physician Owned Hospitals.
Date:12/17/2009

WASHINGTON, Dec. 17 /PRNewswire/ -- The cost to Medicare of a patient receiving treatment at a physician owned and operated hospitals is "4.6 to 6.00% lower" than hospitals not run by physicians, according to a new study by Oxford Outcomes, an internationally respected research agency.

Medicare savings projected by the Congressional Budget Office (CBO) has been given as the primary reason for efforts to limit growth and eventually force physician owned hospitals to close.

"Every other accusation against over 200 of America's best and safest hospitals has either been withdrawn or discredited," said Molly Sandvig, JD, executive director of Physician Hospitals of America (PHA). "All that is left now putting tens of thousands of people out of work and further injuring local economies if Congress does not remove the attack on physician owned hospitals contained in the health care bill."

The new study and analysis was directed by Dr. John Schneider and shows that while moving against physician owned hospitals puts billions of dollars and thousands of jobs at risk, there will be no savings to Medicare, despite earlier CBO estimates. In fact, Medicare pays less to physician hospitals than to non-physician owned hospitals for the same treatments.

According to Schneider, "The estimated savings from limiting physician owned hospitals (POH) growth are overstated for a number of reasons, including the fact that the costs of providing care in a POH is less than the costs of providing care in non-POHs. "

Among Dr. Schneider's findings:

  • For the same types of inpatient cases receiving the same treatment, a patien
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SOURCE Physician Hospitals of America
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