Specialty hospitals not cost efficient, study says
Hospitalist Leadership Connection, October 7, 2008
Single specialty hospitals are not more cost efficient than their competing full-service hospitals, according to a recent study, “Specialty and Full-Service Hospitals: A Comparative Cost Analysis,” published in Health Services Research. In the study, researchers found that physician-owned hospitals that specialize in cardiology, orthopedics, and surgery are not more cost-efficient than their full-service hospital counterparts. The study evaluated facilities in Texas, California, and Arizona—those states with the most single specialty hospitals—and Medicare Cost Reports from 1998-2004. In fact, orthopedic and surgical specialty hospitals were found to be significantly cost inefficient when compared to other hospitals. The difference is not as noticeable in cardiac hospitals.
“Policymakers should not embrace the assumption that physician-owned specialty hospitals produce patient care more efficiently than their full-service hospital competitors,” states the study abstract.
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