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Physician Hospitals of America Charges: Hospital Associations Bargain Away $155 Billion in Medicare Funding in Attempt to Destroy Physician Hospitals
Date:7/8/2009

WASHINGTON, July 8 /PRNewswire/ -- Today, the American Hospital Association, Federation of American Hospitals and Catholic Health Association announced an agreement with the White House and Senate Finance Chairman Max Baucus (D-MT) to reduce Medicare hospital spending by $155 billion. Cost savings is an important goal, supported by Physician Hospitals of America (PHA), the national association representing physician owned hospitals. As always, physician hospitals will shoulder their share of cost controls and other responsibilities to see health reform become reality.

However, in a desperate move aimed at reducing competition, garnering control of the entire industry, and eliminating patient choice, these associations have bargained for the destruction of physician owned hospitals as a quid pro quo for the Medicare cost savings.

PHA Executive Director, Molly Sandvig states, "To put this anti-competitive issue into the deal between Administration, Congress and the hospital associations makes no sense and demonstrates the desperation of many hospitals to remove healthcare decisions from the hands of those who should have the biggest say, the physicians and patients. Ownership of a hospital by any party is simply not relevant to ensuring that every American has affordable access to medical care. Including the destruction of physician owned hospitals jeopardizes more than 70,000 American jobs. Given the state of our economy and the latest unemployment figures, we cannot understand why the Administration would agree to this part of the package."

WHAT IS AT STAKE

There are over 220 physician owned hospitals in 32 states. They are an important part of the healthcare system and serve rural and inner city areas, military personnel, and in many cases are an integral part of community hospitals. There are 18 general acute care facilities, 153 multispecialty facilities (children's, women's and
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SOURCE Physician Hospitals of America
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