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HSC, AMA square off on value of specialty hospitals

Ambulatory Surgery Reimbursement Update, January 31, 2006

The Center for Studying Health System Change (HSC) and the American Medical Association (AMA) issued conflicting press releases on their respective Web sites addressing the impact of specialty hospitals on health coverage.

HSC, citing its recent study,concluded that in three communities with "significant specialty hospital development" (Indianapolis; Little Rock, AK; and Phoenix), specialty hospitals cause "a medical arms race that is driving up costs without demonstrating clear quality advantages." "While purchasers are predisposed to favoring increased competition to help keep prices low, what we heard generally from health plans and employers is that specialty hospitals are contributing to higher costs without any clear quality benefits," said Paul B. Ginsburg, PhD, president of HSC.

The AMA responded to the report by stating, "HSC's subjective impressions are gleaned from conversations in three communities, while studies based on hard data by both the government and private sector support the AMA's position that specialty hospitals provide high quality care to patients," said William G. Plested III, MD, AMA president-elect.

Plested cited a study published in the current edition of Health Affairs that finds quality advantages in specialty hospitals. "The study also found that specialty hospitals provide more net community benefits through uncompensated care and taxes than not-for-profit competitors as a share of total revenues," Plested said.

To view the HSC's release, click here.

To view the AMA's statement, click here.

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