American Surgical Hospital Association Welcomes Expiration of Moratorium on Specialty Hospitals

SAN DIEGO -- The American Surgical Hospital Association (ASHA) says it welcomes the expiration of the specialty hospital moratorium, adding that despite the limits imposed by the moratorium, specialty hospitals continued to provide efficient, high quality healthcare to patients. The ban on further development of specialty hospitals began Dec. 8, 2003 as part of the Medicare Modernization Act.

"We're pleased the moratorium has expired," says Jim Grant, ASHA president and COO of National Surgical Hospitals. "We've made progress as an industry but there's still work to be done This is a great day for patients in this country. The questions have been asked and specialty hospitals have answered them. Congress should now allow us to move forward, providing patients expanded choices in surgical care."

Three governmental agencies have studied specialty hospitals since 2003 and have determined that specialty hospitals do not cause harm to community hospitals. The most recent report, and the most favorable for specialty hospitals, was released on May 12, 2005 by the Centers for Medicare and Medicaid Services (CMS). The findings on the provision of high quality-care and low mortality rates in specialty hospitals is a strong endorsement of the concept.

CMS joined the Medicare Payment Advisory Commission in supporting changes to the diagnosis related group (DRG) payment system; ASHA says it has publicly supported DRG reform for all hospitals.

"The CMS report substantiates what we've been saying all along," Grant says. "Specialty hospitals provide better quality of care in terms of mortality rates, our net community benefit exceeds the uncompensated care provided by the non-profit community hospitals and specialty hospitals do not 'cherry pick' the most profitable patients. Congress is finally receiving independent analysis that says specialty hospitals aren't a threat."

ASHA says it understands that expiration of the moratorium will not stop opponents of specialty hospitals. The organization says it will now continue to educate elected officials in Washington, D.C. about the benefits to patients that specialty hospitals provide.  ASHA says it will continue to oppose any legislation that would extend the moratorium or place limits on physicians' ability to own hospitals.

ASHA reports that it is asking Congress to ignore calls for a permanent moratorium on the development of specialty hospitals and focus on larger healthcare issues such as DRG reform, as referred to in the latest CMS report.

Source: ASHA