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Specialty Wound Miscellaneous

Specialty Wound

American Hospital Assn. report suggests specialty hospitals wound An American Hospital Association study indicates doctor-owned specialty hospitals take an economic toll on traditional large hospitals in the metro area.

The study showed that many hospitals are hurt by the limited- service centers and their owners taking much of the most profitable business away from the major health centers.

However, not all outlets agree with the report, which was commissioned by a regional group of hospitals.

I looked at the report and I really have to dispute it as research, said Kevin Blaylock, CEO of Oklahoma Spine Hospital. It seems to be nothing but an infomercial, bought and paid for.

The report made several points, most notably:

* Hospitals have had to reduce services to compensate for lost patients and revenues.

* Physicians quickly shifted their patients to limited-service hospitals in which they had an ownership position.

The report singled out Oklahoma Spine Hospital as an example of profits made by its doctors. The AHA said the hospital's doctors had a profit of $700,000 each and margins in excess of 40 percent.

The numbers actually are not correct; the $700,000 was gross income before taxes, Blaylock said. That number was before the 35 percent federal and 7 percent state taxes.

The report also indicated:

* Seven new physician-owned limited-service hospitals opened between 1994-2005 in a competitive market, which included 10 full- service hospitals representing several major systems and 26 ambulatory surgery centers (including over 1,300 physician ownership positions).

* Many physician-owners reduced or eliminated their emergency call obligations.

* The doctor-owned hospitals and surgery centers selected patients who could generate high profits, focusing on the best-paid procedures (cardiac care, spine surgery, general surgery and gynecological surgery), elective procedures, and patients insured by acceptable payers.

* OU Medical Center - the state's only Level I trauma center - secured $5.7 million annually from the state to subsidize its trauma service after losing business to limited-service hospitals.

Dr. John Harvey and Jim Best, co-presidents of Oklahoma Heart Hospital, disagreed with many aspects of the study. Oklahoma Heart Hospital, which opened in 2002, is owned 51 percent by Mercy and 49 percent by doctors. Harvey represents the doctors' side, and Best, who has been with Mercy for five years, represents the Mercy end of matters.

A fundamental problem I have is that it paints all limited- service hospitals with the same broad stroke, Best said. Oklahoma Heart Hospital is very good for Mercy. We moved our cardiology (department) there.

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Harvey said he had many problems with the study.

This is a study that isn't close to being objective, Harvey said. But what else can be expected? It said none of the limited services threat Medicaid patients. That's not correct. It said limited- services hospitals avoided emergency services. Not only did we not avoid emergency services, we encouraged being part of it.

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