Doctor-Owned Orthopedic Hospital Opens

After a long wait, the Denver, Colo., area’s first new physician-owned
specialty hospital in several years opened recently, but, if passed,
proposed congressional legislation would mean the hospital is the last of its kind—for now.

The Colorado Orthopaedic & Surgical Hospital cleared several regulatory
requirements in getting certification to treat Medicare patients for
orthopedic procedures such as hip replacements and knee replacements. The new facility will zero in on orthopedic surgery, spinal procedures and pain management. But while the owners of the new hospital tout the benefits of the physician-owned specialty concept, don’t expect to see similar sites on the horizon.

Congress and Obama most likely will approve new laws cracking down  
on future physician-owned specialty hospitals, which critics say pose a threat to the healthcare system because of financial issues.

 “The doctors have a natural incentive to take the healthier patients and
refer them to hospitals in which they have an ownership stake,” a
congressional aide said.

The influential American Hospital Association, which represents nearly 5,000 hospitals and other healthcare providers nationwide, backs the ban, which would not apply to its members.

“The AHA has long advocated for this ban and is pleased that Congress has again recognized the potential conflict raised by physician self-referral between the financial interests of the physician and the needs of the patient,” the association said in a Jan. 14 statement.