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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

multi-specialty surgical hospitals), 19 rehabilitation and long term care hospitals, 19 cardiac hospitals and 13 orthopedic hospitals. Over half are joint ventures with community hospitals and other third parties. On average, more than forty percent of their patients are Medicare beneficiaries. These facilities would wither and die under the deal supported by the Administration and Congress.

In addition, there are 104 new hospitals under development that would not be able to open and the more than $5 billion that has been invested in these projects and more than 20,000 future jobs would be lost.

By the year 2010, physician hospitals will employ over 70,000 Americans. The national payroll currently exceeds $2.4 billion and they spend over $1.9 billion per year on trade payables. As for profit entities, they each pay on average $2,575,000 a year in taxes. More than 27,000 physicians practice in these facilities and the vast majority of them have no investment interest in the hospital.

ONE ILLUSTRATION: THE IOWA-NEBRASKA BORDER

One case in particular, illustrates the problems with the policy to ban physician ownership.

Bellevue Hospital in Bellevue, Nebraska is scheduled to open next year. It will be the only hospital in town and is a joint venture between the University of Nebraska medical center and local physicians.

It will serve 180,000 people in Eastern Nebraska and Western Iowa. Most importantly, however, the hospital will serve the 10,000 men and women stationed at Offutt Air Force Base, 20,000 military dependents and 11,000 military retirees living in the immediate area. The base hospital closed in 2005. Under the hospital associations' proposal, Bellevue will never open and these military personnel will continue to be underserved.

Ms. Sandvig states, "It is time that the hospital associations give more than lip serv
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SOURCE Physician Hospitals of America
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