PHA: In Bi-Partisan Vote, House Amends Provisions of Affordable Care Act that Restrict Patient Access to Physician Owned Hospitals

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Washington, DC (Dec. 14, 2011)—Physician Hospitals of America (PHA) applauded Tuesday’s bi-partisan U.S. House of Representatives vote to amend provisions of the Affordable Care Act (ACA) that restrict patient access to physician-owned hospitals (POHs), and the industry leading care they provide. Included in the passage of H.R. 3630, “The Middle Class Tax Relief & Job Creation Act” is a narrow provision that will allow hospitals under construction that missed an arbitrary deadline, and those that need to expand to meet community demand, to serve Medicare and Medicaid patients.

“No one who is serious about healthcare can oppose this provision. Medicare and Medicaid patients deserve access to the nation’s highest performing hospitals,” said PHA president Michael Russell, M.D. “Furthermore, ACA creates issues in low capacity and high growth communities by adding 30 million Americans to the insurance rolls. More than half the 265 existing POHs need to expand immediately to meet the needs of their communities. ”

POHs lead the hospital industry in quality of care:

  • A Consumer Reports analysis of government hospital quality data (HCAHPS) ranks POHs #1 in patient satisfaction in 20 states, even though POHs account for less than 5% of all hospitals nationwide.

  • Mortality and complication rates are also significantly lower at POHs.  Patients are 3-to-5 times more likely to experience complications at general hospitals than POHs. 

“This provision does belong in the ‘Job Creation Act,’” added Russell. “We have identified 7000 highly skilled healthcare jobs that would quickly be created were physician-owned hospital projects allowed to move forward. This figure does not take into account thousands more construction and community jobs that would be supported by POH construction and expansion.”

While a step in the right direction, this does not repeal the whole of Section 6001 of the ACA which blocks new construction of POHs.

“American citizens on Medicare and Medicaid are in dire need of quality healthcare access, which is what physician-owned hospitals are helping to provide, especially in low capacity and high growth communities,” continued Russell. “With the support of the Senate, this compromise will be a step in the right direction. We are optimistic the Senate will focus on patients when they address this issue.”

Leslie Fossey
(903) 909-7747
leslie@azaleaortho.com

Michelle McRae
CCO Healthcare Partners
312.961.4745
mrm@ccopartners.com

About Physician Hospitals of America

PHA offers support, advocacy and educational services to the physician owned hospital industry, reflecting at all times the best interests of patients, physicians and other providers who play an inextricable and essential role in the provision of healthcare services. There are currently 275 physician owned hospitals serving patients in 33 states. These hospitals include general acute care, long term acute care, emergency medicine, multi-specialty, women’s, children’s, rehabilitation and psychiatric. According to its HCAHPS survey data, physician owned hospitals rank first for patient satisfaction in 20 states. For more information visit: www.phapulse.org.

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