The Physician Difference

Physician Hospitals are Leaders in Healthcare

They deliver the highest quality care at lower cost than their competitors. They are known as centers of excellence that are innovative models for healthcare reform. The driving force that ensures these results is simple….Physicians.

Hospitals owned by physicians achieve greatness due to their governance structure and their physicians’ total commitment to do what’s best for patients.  Far too often physicians have to struggle with bureaucracy within a hospital that impedes patient care.  Many physicians grow tired of dealing with these situations. Physicians have responded by coming together at great personal financial risk to create and build hospitals to ensure they can practice on their own terms; what they believe is best for their patients rather than on the terms of the big hospital bureaucracy.

The results physician hospitals produce speaks for themselves. The following are some facts about the physician hospital model:

There are approximately 220 physician-owned hospitals (POH’s) in 32 states.These hospitals include full-service community, rural, specialized surgical, rehab, orthopedic, cardiac and children’s hospitals as well as psychiatric facilities.

Quality Second to None

A government report found that mortality rates were significantly lower at physician hospitals. These hospitals also performed better than non-physician hospitals in terms of complication rates. According to the study, patients are three-to-five times more likely to experience complications at non-physician hospitals than at physician hospitals. The study compared 14 areas, including complications from anesthesia, infections due to medical care, and post-op hip fractures. Physician hospitals led in 13 of 14 areas, in some cases by wide margins.

The Centers for Medicare and Medicaid Services Hospital Value Based Program, developed to reward hospitals for quality of care, demonstrated that physician hospitals outperform non physician hospitals.  Out of almost 3,500 participating hospitals, 9 of the top 10 and 53 of the top 100 hospitals were awarded the highest honors and bonuses.

Lower Cost

As physician hospitals avoid wasteful spending, excess administrative costs, unnecessary tests and services, and other such inefficiencies, they provide complex medical care at rates far below those of non-physician hospitals. A recent study reviewed payments to hospitals from the Medicare program found that physician hospitals receive much less reimbursement due to efficiencies than non-physician hospitals.  This means patients enjoy lower copays and coinsurance at physician hospitals.

The same study combined the lower payments made by Medicare with the higher quality of care delivered at physician hospitals and estimated they save the Medicare program over a billion dollars annually.

Benefiting the Community

A government study concluded that, considering charitable care and tax payments, physician hospitals returned a net community benefit almost 7 times higher than non-profit hospitals, averaging 5.5 percent in net benefit as a percent of revenue as compared to .87 percent for non-profit hospitals.