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Effect of specialty hospitals may get closer look

Ambulatory Surgery Reimbursement Update, May 24, 2005

Texas may have to take a closer look at how niche hospitals affect the financial viability of other general hospitals in the state if a bill is passed in the House and then signed by the governor, according to the Dallas Business Journal.

According to the Texas Hospital Association, the bill, SB 872, if passed, would

  • require the Texas Department of State Health Services to conduct a comprehensive study regarding the impact of niche hospitals on the financial viability of other general hospitals located in the state

  • compare the referral patterns of physicians with an ownership interest in a niche hospital to the referral patterns of physicians with privileges at a niche hospital who do not have an ownership interest

  • mandate physicians to disclose their ownership interest in a niche hospital

    "It's an emotional issue and there are valid concerns," David Tesmer, vice president of government and community affairs for Texas Health Resources, an Arlington health care sytem that owns 13 hospitals in North Central Texas, told the Dallas Business Journal. "We do think that all involved parties should really collaborate."

    The bill was approved by the Senate and passed out of the House Public Health Committee on May 18. It will go for a vote on the House floor by May 24. If the bill passes, it would take effect Sept. 1. The Department of State Health Services would have to submit a report to the Legislature on the study's results by Dec. 1, 2006.

    To view the bill, click here.

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