Oops! Obamacare will force 60 Hospitals under construction to close

One little provision under Obamacare is a prohibition against Doctor owned hospitals. It seems that Obamacare cannot tolerate individual doctors owning a hospital. Consequently, Medicare and Mediaid will not pay for services from these hospitals. Existing ones will be “grandfathered” but only under very specific conditions.

One of the more well known eye clinics in KC falls within this definition. They do a lot of outpatient cataract and other eye surgeries. From this point on—it’s cash on the barrelhead. They are effectively prohibited from serving a large portion of the population who will end up on Medicare or Medicaid—like me. I’m in the early stages of developing cataracts. I’ll be drawing Social Security soon and under Obamacare my ONLY source for healthcare now is (yep, you guessed it,) Medicare. I’m not even sure at this time if I’ll be able to acquire SS supplemental insurance.

From CNS News is this report. Stop and consider. Just how many of you will be affected by this in some way?

Monday, April 12, 2010
By Fred Lucas, Staff Writer

(CNSNews.com)The new health care overhaul law, which promised increased access and efficiency in health care, will prevent doctor-owned hospitals from adding more rooms and more beds, says a group that advocates physician involvement in every aspect of health care delivery.

Physician-owned hospitals are advertised as less bureaucratic and more focused on doctor-patient decision making. However, larger corporate hospitals say doctor-owned facilities discriminate in favor of high-income patients and refer business to themselves.

The new health care rules single out such hospitals, making new physician-owned projects ineligible to receive payments for Medicare and Medicaid patients.

Existing doctor-owned hospitals will be grandfathered in to get government funds for patients but must seek permission from the Department of Health and Human Services to expand.

To get the department’s permission, a doctor-owned hospital must be in a county where population growth is 150 percent of the population growth of the state in the last five years; inpatient admissions must be equal to all hospitals located in the county; the bed-occupancy rate must not be greater than the state average, and the hospital must be located in a state where hospital bed capacity is less than the national average.

The rules fall under Title VI, Section 6001 of the Patient Protection and Affordable Care Act. The provision is titled “Physician Ownership and Other Transparency – Limitations on Medicare Exceptions to the Prohibition on Certain Physician Referral for Hospitals.”

More than 60 doctor-owned hospitals across the country that were in the development stage will be canceled, said Molly Sandvig, executive director of Physician Hospitals of America (PHA).

“That’s a lot of access to communities that will be denied,” Sandvig told CNSNews.com. “The existing hospitals are greatly affected. They can’t grow. They can’t add beds. They can’t add rooms. Basically, it stifles their ability to change and meet market needs. This is really an unfortunate thing as well, because we are talking about some of the best hospitals in the country.”

The organization says physician-owned hospitals have higher patient satisfaction, greater control over medical decisions for patients and doctor, better quality care and lower costs. Further, physician-owned hospitals have an average 4-1 patient-to-nurse ratio, compared to the national average of 8-1 for general hospitals.

Further, these 260 doctor-owned hospitals in 38 states provide 55,000 jobs, $2.4 billion in payroll and pay $509 million in federal taxes, according to the PHA.

In one ironic aspect, President Barack Obama’s two largest legislative achievements clashed. The Hammond Community Hospital in North Hammond, Ind., got $7 million in bond money from the federal stimulus act in 2009. It will likely be scrapped because of the new rules on physician-owned hospitals, according to the Post-Tribune newspaper in Merrillville, Ind.

Doctor-owned hospitals have long been a target of the American Hospital Association, which represents corporate-owned hospitals as well as non-profit hospitals.

An AHA study from 2008 says that physician-owned hospitals “lessen patient access to emergency and trauma care;” “damage the financial health of full-service hospitals and lead to cutbacks in service;” “are not more efficient than full service community hospitals;” “use physician-owners to steer patients;” “cherry pick the most profitable patients;” and “provide limited or no emergency services.”

One AHA fact sheet asserts that physician-owned orthopedic and surgical hospitals costs are 20-30 percent higher than average hospitals. Further, these hospitals lead to higher profits just for doctors, the AHA asserts.

“We don’t cherry pick patients, period, end of story. We take patients based on their need for care, not on their ability to pay,” Sandvig said. “It [the health care reform] puts control outside the hand of physicians and patients and into bureaucrats’ hands really.

The Association of American Physicians and Surgeons (AAPS) is one of many organizations suing to have the law declared unconstitutional on the grounds that the federal government cannot compel someone to buy a product.

While the provision on physician hospitals is not part of the lawsuit, it will affect it, said Dr. Jane Orient, AAPS executive director.

“If the law is declared unconstitutional, then the prohibition is part of the bill,” Orient told CNSNews.com. “There are vested interests in getting rid of physician-owned hospitals because they do a better job and are more affordable.”

The provision in the legislation and efforts opposing these hospitals can be simply explained from Sandvig’s view.

“It’s anti-competitive. I think it’s pretty clear,” Sandvig said. “We’re a model that makes sense that’s affecting innovation. We’re trying to do something better than it has been done. Anytime you do that, there’s going to be a clash between the existing and the new. Unfortunately, it’s a real David and Goliath battle.”

Welcome to the New Socialist World Order.

5 thoughts on “Oops! Obamacare will force 60 Hospitals under construction to close

  1. AHA is about one thing and one thing only… that is PROFIT! They would let their own mothers die rather than give free care… In Florida when I was doing fire/rescue back in the late 70s, they used to routinely submit bills to MC/MA for 'pain medications'at $12/dose (for Bayer Aspirin)…

  2. Well, we'd better get busy on getting those cataracts taken care of! My husband went to the great place near 40Hwy & I-70 a couple years ago — twice — and had excellent treatment, fairly priced (even tho we had private insurance for it) and were quite pleased. Glad you found that story as I hadn't come across it. The O's cousin, Dr. Milton Wolf, was a super-duper speaker at the KC Tea Party on Thursday railing against Ocare.

  3. Dinah, Mrs Crucis and I were there too—about 10 rows back from home plate.

    I have one problem getting the cataract surgery. I can't stand to have anyone or anything get close to my eyes. It's an old phobia, I guess. Most of the docs don't listen when I say I have to be unconscious. They won't believe me when I tell'em I'll fight them if I'm not.

    That's the real problem. I hope that when the time comes I'll be able to find a doc who'll listen to me instead of himself.

  4. Crucis–We were about 10 rows back in the section to the left of home plate. You may have been near the signs of 'Obama WTF' and 'A Village in Kenya….' I got some good pics of those. It was a good day and well-worth the long drive to get there. We are thinking of a return to see a BB game there–such a pleasant ball park, free parking, plenty of good restaurants in the neighborhood, but fear we may have to make it an over-niter–it's a long drive!

  5. Dinah, Greewood isn't any further than Raymore from the Park. It took us about 35 minutes up US71 then I435 to get there.

    We were just to the left of the "Kenya" sign on the other side of the stiarway and a row back as I remember. I was wearing a dark red shirt, my wife was wearing a bright red shirt.

    You probably saw us and didn't know it.

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