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Critics say specialty hospital ban undermines care

The Ohio proposal would also limit a physician's ability to refer patients.

By Katherine Vogt, amednews staff. Oct. 13, 2003.

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A proposed two-year moratorium on new specialty hospitals in Ohio has revived debate about whether so-called boutique facilities hog profits to the detriment of general hospitals.

Supporters of the proposal, which is moving through the Ohio Legislature, said the temporary ban will prevent a proliferation of specialty hospitals and allow time to create a committee to study what impact the facilities have on the health care market. But critics, including the state medical association, say the ban would stifle innovation that could lead to better patient care.

"We've said all along that there is a need for empirical evidence as to whether specialty hospitals can or cannot coexist with the traditional community hospital, and certainly the study committee will help develop that information," said Tim Maglione, director of government relations for the Ohio State Medical Assn.

"But our concern is that we've essentially shut down the innovation and the competition in the interim as we seek answers about the impact of the specialty hospitals on the full-service hospitals. They've created a solution without really defining the problem," Maglione said.

The bill has passed the Ohio House and is expected to move through the Senate in coming months. If enacted into law, it would bar development of new for-profit specialty hospitals for two years. Proposals for new facilities that have already been filed with the state could still go forward. Additionally, it would require the establishment of a committee to study the effects of such facilities on Ohio's health care system.