GAO Issues Report on Specialty
Hospitals
May 30, 2003 - A May 15 report issued by the General
Accounting Office (GAO) examines the share of the national
hospital market comprising specialty hospitals, the extent
to which physicians have ownership interests in specialty
hospitals, and the patients served by specialty hospitals
compared with those served by general hospitals, in terms
of illness severity.
The report,
entitled, "Specialty Hospitals: Information on the National
Market Share, Physician Ownership, and Patients Served,"
was written in response to a request by House Ways and Means
Committee Chairman Bill Thomas (R-Calif.) and committee member
Rep. Jerry Kleczka (D-Wisc.). The report finds that "patients
at specialty hospitals tended to be less sick than patients
with the same diagnoses at general hospitals."
In a joint press
release, Chairman Thomas said, "GAO's findings are
of concern because they indicate that community hospitals
generally care for the sicker, higher-cost patients, and Medicare's
reimbursement does not adequately account for varying acuity
levels in these different settings. This disparity is problematic,
and needs to be corrected to maintain fairness." Rep.
Kleczka stated, "This study suggests that specialty hospitals
intentionally cherry pick the healthiest patients so providing
care won't be as expensive, and they can pocket as much of
the Medicare payment as possible. Such a strategy ensures
that full-service, community hospitals bear the brunt of providing
the most costly care for the same amount of financial support.
To survive economically, I am concerned that community hospitals
may have to increase fees or consider closures, threatening
the quality and availability of health care for patients across
the country."
The GAO indicated they would issue a more comprehensive
report later this year on the prevalence of specialty hospitals,
their characteristics in terms of ownership and patients treated,
and the effect specialty hospitals have on the greater hospital
communities in which they operate.
Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526
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