AAPS Passes Resolution Endorsing Specialty Hospitals

On Saturday, October 16th, 2004, at their 61st annual meeting, held in Portland, OR, the Association of American Physicians and Surgeons (AAPS) adopted a resolution endorsing physician-owned specialty hospitals as a vital part of the competitive medical marketplace. As part of the 2003 Medicare Modernization Act, there is currently a moratorium on further development of physician-owned hospitals until June 2005 in order to examine their effect on local community hospital care. AAPS Executive Director Dr. Jane Orient today issued the following statement:

�Members of the Association of American Physicians and Surgeons collectively agree that Congress should not extend, make permanent or broaden the moratorium on physician-owned specialty hospitals contained in the Medicare Modernization Act.

Responsible competition and the dynamics of the free-market encourage innovation and reduce costs. Furthermore, specialty facilities have consistently delivered superior results in terms of patient outcomes, operating efficiency, and patient satisfaction; therefore AAPS believes that it is not in the best interests of patients, physicians or taxpayers for government to arbitrarily limit the growth of physician-owned single-specialty hospitals.

A joint study by the Federal Trade Commission and the Department of Justice strongly endorsed expansion of competitive, free-market choice as a means for delivering excellent medical care and containing costs. Their conclusion was echoed by the Medicare Payment Advisory Commission (MedPAC) at a recent presentation of preliminary study findings in which they acknowledged that specialty hospitals can serve as a �wake up call� for community hospitals to improve quality of care and service.

The growth of physician-owned specialty hospitals over the last 10 years represents a free-market trend that should be encouraged, not stifled by Congress. Policy makers in Washington should stand up for the best interests of patients by refusing to extend, make permanent, or broaden the moratorium on physician-owned hospitals.�