Ohio Physician Investors Fight Back Against OhioHealth Policy

In December, 17 investor physicians at New Albany (Ohio) Surgical Hospital were sent letters by OhioHealth in Columbus. The letters reviewed the board policy of OhioHealth requiring physicians to “voluntarily” relinquish their privileges at OhioHealth by January 31st if they invest in a limited-service, for-profit hospital.

The physicians appeared before an OhioHealth attorney January 19th to affirm their ownership interests.

A spokesperson for the physicians said the hospital’s action has only solidified physician opposition. One of the physicians said he will try and schedule as many surgeries as he can at the new facility and exploring obtaining privileges at other hospitals is a possibility for some of the other physicians.

OhioHealth contends that the competing hospital would pull money from OhioHealth that is needed to run other programs beneficial to the community. An OhioHealth spokesperson stated board ruled that it was a conflict of interest that was harmful to the community, that a physician has privileges at two hospitals and would have a financial interest in one.

 Although the same philosophy applies in principle to ambulatory surgery centers and other physician-owned facilities, those were not targeted by the policy. The difference from an ASC is the in-patient beds in the New Albany facility.

Alan Pierott M.D., founder of physician-owned Fresno (CA) Surgery Center commented on OhioHealth’s action as not much of a business tactic. He said that it will force the physicians to expand the scope of their service in their own facility.

The Chief Executive officer of National Surgical Hospitals said that economic credentialing is fraught with dangers for big hospitals since the policy risks implicating federal fraud and abuse statutes, as well as triggering FTC scrutiny for anti-competitive behavior.

The AMC/NOMA is on record in opposition of any form of economic credentialing.  To view the AMC/NOMA points regarding economic credentialing go to

http://www.amcnoma.org/webpages/main/physician_credentialing_practice_021503.asp

For more information: http://www.modernphysician.com/news.cms?newsId=1716