BUSINESSBattle for Midway: Physicians unite to save a hospitalThe president of a group that bought a former Tenet hospital discusses why they stepped in, and how doctors nationwide can keep struggling facilities alive.By Katherine Vogt, amednews staff. April 25, 2005. On Dec. 1, 2004, Shahram F. Ravan, MD, a cardiologist, and six other physicians took over Midway Hospital Medical Center in Los Angeles and set out to find the kind of success at the general acute care hospital that seemed to elude one of the nation's largest hospital chains. They invested some of their own money toward the roughly $10 million it took to buy the 220-bed hospital from Tenet Healthcare Corp. In making the move, Dr. Ravan's group joined scores of other physicians nationwide who have taken over hospitals -- usually, ones the big for-profit chains or nonprofit systems don't want. And often, physicians struggle to keep these hospitals alive, as indicated by recent closings of physician-owned facilities in Philadelphia and Indianapolis. Dr. Ravan and his colleagues are banking on their unique insights into health care delivery for a roadmap to success -- making enough money to keep the quality hospital viable for the long term. AMNews interviewed Dr. Ravan, president of the physician group that now owns the hospital, for his perspective on the pros and cons of physician ownership of acute care hospitals. Question: What prompted you to buy the hospital? Answer: A few years earlier we had seen an attempt to sell the hospital to another entity. The intention at that time was to turn the hospital into a rehabilitation facility, which almost destroyed the viability of the hospital. When Tenet announced their intention to divest [some of] their hospitals, we basically were faced with ... either getting involved and taking over the hospital and putting our money in there, or letting it go to an investor for real estate value, or closing the hospital, or allowing it to become a boarding care facility or rehab facility. [...]Full text of American Medical News content is available to AMA members and paid subscribers.
Copyright 2005 American Medical Association. All rights reserved.
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