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Obamacare Ends Construction of Doctor-Owned Hospitals
The Weekly Standard ^ | Jan 3, 2011 | JEFFREY H. ANDERSON

Posted on 01/04/2011 9:51:45 AM PST by george76

Physician Hospitals of America says that construction had to stop at 45 hospitals nationwide or they would not be able to bill Medicare for treatments." Stopping construction at doctor-owned hospitals might not seem like the best way to boost the economy or to promote greater access and choice in health care, but that exactly what Obamacare is doing.

"Section 6001 of the health care law effectively bans new physician-owned hospitals (POHs) from starting up, and it keeps existing ones from expanding."

American Hospital Association ... the AHA, along with Sen. [Max] Baucus (D-MT) and Congressman Pete Stark (D-CA), are responsible for the language in Section 6001...

(Excerpt) Read more at weeklystandard.com ...


TOPICS: Crime/Corruption; Culture/Society; Front Page News; Government; News/Current Events; US: California; US: District of Columbia; US: Montana
KEYWORDS: baucus; doctors; healthcare; hospitals; medicare; obamacare; stark; two

1 posted on 01/04/2011 9:51:49 AM PST by george76
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To: george76

Government health care started in Canada in the late sixties. Initially, doctors could do both private and public patients. Then, they had to chose between the two. In 1984, it became ILLEGAL for a doctor to bill any patient privately. This is the road you are on. It is the road to hell!


2 posted on 01/04/2011 9:59:13 AM PST by BillM
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To: george76

Not news for Texas:
As a state that does not require a “certificate of need” to build hospitals, Texas leads the nation in the number of doctor-owned, limited service health care businesses, such as surgical or diagnostic centers, according to THA. Out of 100 such facilities that operate across the nation, about 50 are in Texas, with at least another 30 proposed or under development. Specifically, in the Houston area, there are currently 10 existing physician-owned hospitals and at least 12 that are pending, according to the Texas Hospital Association.

Read more: Physician-owned hospitals under fire | Houston Business Journal
...............
Memorial Health Care System (a night mare HC provider) was sued by the Tx AG for anti-trust actions against a Doc owned Hospital. The suit was settle with MHCS agreeing to 5 years probation and $1mil settlement with the state.
MHCS is the prototype for the nightmare Americans can expect from HCR. Herding the cattle (Americans) into the chutes.


3 posted on 01/04/2011 10:05:17 AM PST by Marty62 (Marty 60)
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To: nutmeg

bookmark


4 posted on 01/04/2011 10:06:19 AM PST by nutmeg (The 111th Congress: Worst. Congress. Ever.)
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To: Marty62

Link to article:
http://www.bizjournals.com/houston/stories/2005/05/23/story3.html


5 posted on 01/04/2011 10:07:36 AM PST by Marty62 (Marty 60)
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To: Marty62

Does that mean the ones in existence must close or sell out to the government?


6 posted on 01/04/2011 10:14:40 AM PST by Terry Mross ( Time for a true conservative third party.)
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To: george76

Yeah, that seems pro business and pro-growth. :sarc


7 posted on 01/04/2011 10:15:40 AM PST by RC one (WHAT!!!!)
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To: Terry Mross

The Town and Country Hospital that was forced out by MHHCS, the victim of MHHCS strong arming of the insurance companies. They told the major insurance carriers that if they held contracts with T&C Hospital, the charges to the insurers would be increased (resulting in higher premiums for their customers). The Hospital closed due to this action. (inability to get contracts with insurers).

I wonder how much Sheila Jackson Lee made off of this one.


8 posted on 01/04/2011 10:20:38 AM PST by Marty62 (Marty 60)
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To: george76
Heaven forbid a Doctor should be allowed ownership in a hospital. That might lead to things like pride, improved service, and innovation. Can't have that in Obama’s Amerika.
9 posted on 01/04/2011 10:34:12 AM PST by Gabrial (The Whitehouse Nightmare will continue as long as the Nightmare is in the Whitehouse)
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To: Dr. Scarpetta

Thanks for the ping on the locked thread.


10 posted on 01/04/2011 10:34:25 AM PST by neverdem (Xin loi minh oi)
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To: george76

So glad we passed it just to find out what’s in it.
This will hurt my company as we service those hospitals.


11 posted on 01/04/2011 10:35:44 AM PST by SparkyBass
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To: BillM

The potential problem with physician owned facilities is that health care is an area where the suppliers can create their own demand — in this case by finding reasons to put patients in their hospitals. The Wall Street Journal has conducted a couple of analyses recently, one involving back surgeries, the other I don’t remember, that suggest indeed this does happen and entails considerable cost.

When this happens it is not deserving of a knee-jerk defense as free enterprise. Given the role of third-party payers — insurance and gov’t — we are all paying for whatever abuse occurs. Sorry, but I’m not willing to pay a share of that.


12 posted on 01/04/2011 10:39:20 AM PST by Curmudgeon2K
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To: george76
Obamacare - getting doctors out of the doctoring business.
13 posted on 01/04/2011 10:45:57 AM PST by Cheburashka (Democratic Underground - the Hogwarts of Stupid.)
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To: Terry Mross

Obama care has essentially stoped private hospitals from being built or expanded. It is stripping the patients of choice. Plus the added bene for ObamaCare, NO cash paying patients (wealthy). But the most neferious issue is that it drive the choice out of selecting a hospital. Forces patients into the mega Hospital Systems where the patients are $ signs nothing else.
Also it will be easier to deny services to the useless eaters.


14 posted on 01/04/2011 10:48:58 AM PST by Marty62 (Marty 60)
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To: Curmudgeon2K

That is why doctors have to swear the Hippocratic oath.

So what you are saying is that we CAN trust the public sector but not the doctor? Remember, you are trusting him with the scalpel in his hand but not your wallet????


15 posted on 01/04/2011 10:54:16 AM PST by BillM
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To: Curmudgeon2K

While that may be true consider this. I was hospitalized for 24 hours recently ( In Northern California at nonprofit community hospital). The total bill was $44,000! Between Medicare and my personal health insurance, the hospital was paid less than $5,000. The hospital won’t discuss their billing practices but you have to believe that neither of these numbers fairly represent the real cost of delivering the care I received. This whole matter raises the issue of honesty in the health care.


16 posted on 01/04/2011 11:12:39 AM PST by vette6387 (Enough Already!)
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To: Curmudgeon2K

While that may be true consider this. I was hospitalized for 24 hours recently ( In Northern California at nonprofit community hospital). The total bill was $44,000! Between Medicare and my personal health insurance, the hospital was paid less than $5,000. The hospital won’t discuss their billing practices but you have to believe that neither of these numbers fairly represent the real cost of delivering the care I received. This whole matter raises the issue of honesty in the health care.


17 posted on 01/04/2011 11:12:49 AM PST by vette6387 (Enough Already!)
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To: vette6387

Did you ask for and itemized bill?

Maybe the GOVERNMENT decided not to pay for services they deemed. NONCOST EFFECTIVE


18 posted on 01/04/2011 11:29:36 AM PST by Marty62 (Marty 60)
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To: george76

Can’t have any competition with big brother now, can we.

Just like the government and their services; can’t match private services, so they just ban them.


19 posted on 01/04/2011 11:50:57 AM PST by RWB Patriot ("My ability is a value that must be purchased and I don't recognize anyone's need as a claim on me.")
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To: george76
The Hospital's Surgical Board suddenly went secret, followed
by informing each patient of their fate by final tribunal.



20 posted on 01/04/2011 12:07:35 PM PST by Diogenesis (Si vis pacem, para bellum)
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To: Gabrial

“Heaven forbid a Doctor should be allowed ownership in a hospital. That might lead to things like pride, improved service, and innovation.”

I believe in the free market but doc owned hospitals are run the same way as any other for profit. The profit comes first.


21 posted on 01/04/2011 12:48:48 PM PST by A Strict Constructionist (Oligarchy...never vote for the Ivy League candidate.)
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To: A Strict Constructionist

Well of course they’re run to make a profit. But doctor-owned hospitals are usually much cleaner (at least in Texas) and the docs on the Board get to set hospital policy. Docs setting policy is good for patients.


22 posted on 01/04/2011 12:58:29 PM PST by BuckeyeTexan (There are those that break and bend. I'm the other kind.)
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To: george76

Is this part of Obama’s laser focus on”jobs, jobs, jobs”?

THE UNION BOYS OUGHT TO TAKE NOTE: Congressman Fortney “Pete” Stark (RAT-CA) done ‘em all dirty on this one.

RULE: Among leftists; your “Friend” is only your “Friend” until someone with more money shows up at the party.

All those pro-democrat union stooges just got punked by two ‘rats shilling for the American Hospital Association.


23 posted on 01/04/2011 1:09:29 PM PST by HKMk23 (WANT DIFFERENT? VOTE DIFFERENT!)
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To: BuckeyeTexan
“But doctor-owned hospitals are usually much cleaner (at least in Texas) and the docs on the Board get to set hospital policy. Docs setting policy is good for patients.”

Texas has the largest number at 61. The nurse to patient ratio is significantly higher on the average at these institutions. They also tend to get higher quality of care ratings from independent rating agencies.

Democrats are generally against these institutions, which is why they effectively banned them in the Obamacare bill.

The main argument is the claim that doctor-owned hospitals slough off uninsured patients, who invariably end up in the emergency rooms of nonprofit hospitals. Those hospitals, facing an exodus of insured patients, may find it hard to stay afloat since they can't balance the cost of treating the uninsured with profits from performing procedures on the insured.

24 posted on 01/04/2011 1:19:17 PM PST by Gabrial (The Whitehouse Nightmare will continue as long as the Nightmare is in the Whitehouse)
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To: BuckeyeTexan

“But doctor-owned hospitals are usually much cleaner (at least in Texas) and the docs on the Board get to set hospital policy. Docs setting policy is good for patients.”

It depends on the hospital, most have docs on the board. I personally like the Mayo model.


25 posted on 01/04/2011 1:34:22 PM PST by A Strict Constructionist (Oligarchy...never vote for the Ivy League candidate.)
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To: george76

Looks like a perfect reason for doctors to stand up and say that Obamacare violates “interstate commerce” laws by prohibiting the building of a facility that can be used by anyone.


26 posted on 01/04/2011 1:39:12 PM PST by voicereason (A RINO is just a different shade of Democrat.)
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To: A Strict Constructionist

“I believe in the free market but doc owned hospitals are run the same way as any other for profit. The profit comes first.”

And with Obamacare after a very short while the object will be to save a buck. Would you rather be doctored by someone who’s trying to make an honest living or by someone who’s been ordered to cut costs, with the power of law and the full weight of the gov’t on his side ?


27 posted on 01/04/2011 2:33:18 PM PST by PLMerite (Thanks for fixing the clock.)
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To: george76

There is a physician owned cardiac hospital in Arkansas. I try and send all my patients there. If I have a heart problem that is where I am going. They are efficient and have the best nurses. The physicians I talke to are polite and I can call them on their personal phones 24/7 365 days a year and they automatically take the patient. Does not matter if they have insurance or not. Of coarse the other hospitals hate them. They even sued them and lost. I know where I will go if I ever need cardiac care. Best hospital in Arkansas.


28 posted on 01/04/2011 2:54:49 PM PST by therut
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To: vette6387

You have to think that $44,000, and similar outrageous charges, are a lie. If they’ll settle for $5,000, you have to think it’s closer to the real cost.


29 posted on 01/04/2011 2:55:25 PM PST by newzjunkey
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To: vette6387
yes, that's all they pay...

this is roughly how it works out for surgeons, now apply the same formula to hospitals…

Insurance Payouts

As an example, take a Diagnostic Laparoscopy with a true value of $1500

First tier insurance companies will all agree the value is $1500, but…

Their negotiated rate will include a combined adjustment/write off of ~$500 because there is a high volume of patients with their insurance in your area.
Pay out = $1000

Medicare on the other hand will say - No, it’s NOT worth $1500, it’s only worth $1000

And you will take an adjustment/write off of ~$250.
Pay out = $750

Medicaid says, We DON’T CARE what it costs… we are paying you $500.
Pay out = $500

30 posted on 01/04/2011 3:32:39 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: A Strict Constructionist
I believe in the free market but doc owned hospitals are run the same way as any other for profit. The profit comes first.

Indeed. And in a properly functioning marketplace, how does one profit? By things like pride, quality service, and innovation.

To be sure, there are many ways in which government rules and regulations have changed the health-care system away from being a properly-functioning marketplace, but the solution is not to shift things even further from one. Rather, the solution is to shift things toward a model where services are allocated based on people's willingness to pay for them.

If a doctor has time to treat one of two patients for some condition, and patient #1 would rather have $500 cash than receive the treatment, while patient #2 would rather give up $1,000 cash than go without treatment, having the doctor treat patient #2 would be a far more efficient outcome than having him treat patient #1. If patient #2 gave $667 to patient #1, and gave $167 more to the doctor for treating him than he would get for treating patient #1, then patient #1 would get $667 for a treatment he would have gladly surrendered for $500, the doctor would get $167 more than he otherwise would have gotten, and patient #2 would only have to pay $834 to get a treatment for which he would have gladly paid $1,000. Having the doctor treat patient #2 instead of patient #1 would be a win for everyone.

31 posted on 01/04/2011 3:47:20 PM PST by supercat (Barry Soetoro == Bravo Sierra)
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To: Curmudgeon2K
So, a drug dealer or a lawyer or even a politician is allowed to own a hospital, but not a physician? Yours is a typical RINO argument for getting along with the statists.

It is always possible to come up with "pragmatic" reasons why free enterprise does not work in the current environment. This always boils down to the need for the nanny state to "protect" people from making stupid economic choices (or somehow being preyed upon by evil capitalists). By your reasoning, the government should make all economic decisions for us (since only the enlightened, benevolent government knows best).

Even if it were true that patients and insurance companies are so stupid as to always make the wrong choices in purchasing health care (or anything else, for that matter), there would still be no justification for preventing law abiding citizens from owning a legitimate business.

Given your statist sympathies, you should probably consider moving over to DU.
32 posted on 01/04/2011 6:17:06 PM PST by Ragnar54
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To: george76
War On Doctors

Obamacare needs to be repealed, badly.

33 posted on 01/04/2011 11:34:06 PM PST by neverdem (Xin loi minh oi)
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To: supercat

“Indeed. And in a properly functioning marketplace, how does one profit? By things like pride, quality service, and innovation.”

The only problem is that we have a limited supply of docs. I agree with your argument but we need to increase the supply of docs for it to work. There is no need for competition now. They all charge the same excessive prices.


34 posted on 01/05/2011 6:27:10 AM PST by A Strict Constructionist (Oligarchy...never vote for the Ivy League candidate.)
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To: PLMerite

“by someone who’s been ordered to cut costs, with the power of law and the full weight of the gov’t on his side”

The insurance companies have been doing that for quite a while. I prefer for the service to be done logically and for the benefit of the patient.


35 posted on 01/05/2011 6:29:23 AM PST by A Strict Constructionist (Oligarchy...never vote for the Ivy League candidate.)
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To: george76

Its called “Accountable Care Organizations”

http://www.kaiserhealthnews.org/daily-reports/2010/november/30/health-care-models.aspx

And, no, your doctor doesn’t “know” enough about “how to run a hospital” like they do.

Welcome to the Fascist Fifty States of America.


36 posted on 01/05/2011 6:33:05 AM PST by mo
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To: george76

If I were a physician, I would be gathering other doctors and investors to set up off-shore clinics and hospitals where American could go for elective surgery. Take a place like Belize or some beautiful island country that needs the revenue. Set up regional hubs in the US where preliminary lab tests, x-rays, etc could be performed, but do the surgery at some idland resort without all the encumbrances of government regulations. What would be better if you are having coronary by-pass, knee or hip replacements or some other procedures than to combine it with a nice tropical vacation for a few weeks in resort-like fashion. What everyone needs to do is find ‘end-runs’ around the govt loonies.
Doctors, nurses and other technical medical personnel could take short flights to this island clinic and work in a vacation-like atmosphere - away from Obama and his nightmare healthcare destruction act.


37 posted on 01/05/2011 6:55:32 AM PST by veritas2002
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To: A Strict Constructionist

“The insurance companies have been doing that for quite a while. I prefer for the service to be done logically and for the benefit of the patient.”

That’s not the choice you’re going to have. It’ll be like Canada - their way or the highway.


38 posted on 01/05/2011 9:12:52 AM PST by PLMerite (Thanks for fixing the clock.)
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To: PLMerite

“That’s not the choice you’re going to have.”

I know that and don’t want government control. I thought we were discussing doc owned hospitals.


39 posted on 01/05/2011 1:15:24 PM PST by A Strict Constructionist (Oligarchy...never vote for the Ivy League candidate.)
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To: A Strict Constructionist

The profit motive leads to the best service.
This has been proven repeatedly in the marketplace.

The doctors could try to squeeze out a few bucks by providing inferior service,
or they could provide superior service for a competitive price and attract more customers.

The second method provides the best profit, and a profit motivated hospital would follow this model or go bust.


40 posted on 01/05/2011 1:18:25 PM PST by MrB (The difference between a (de)humanist and a Satanist is that the latter knows who he's working for.)
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