Physician-owned hospitals serve patients in several cities including New Albany, Munster, Fort Wayne, Mishawaka, and Indianapolis.

Press Release

Inidanapolis, Ind. -- Fifteen physician-owned hospitals across the state of Indiana, including the Indiana Orthopaedic Hospital (IOH), could be eliminated causing a ripple effect resulting in thousands of job losses if the healthcare reform bill ready for debate in the U.S. Senate becomes law.

The Patient Protection and Affordable Care Act (HR 3590) before Congress contains specific language that bans physician-owned hospitals, strangling currently operating facilities that serve patients in several cities including New Albany, Munster, Fort Wayne, Mishawaka, and Indianapolis. In Indiana, physician hospitals employ more than 4,000 nurses and staff, and 2,610 physicians; which provides the state with a payroll of $180.4 million and $50 million in taxes, according to the 2008-2009 Economic Impact Analysis by the Physician Hospitals of America.

"I feel deeply threatened by the fact there is legislation on the table that has the potential to further damage our already battered economic climate, especially when the nation is struggling to emerge from the current recession and so many families are struggling to make ends meet," said Jane Keller, Chief Executive Officer at IOH. "Not only would we be eliminating jobs, but we would also lose the ability to offer proven quality of care to patients all across the state."

Language in the bill under section 6001, Title VI, places caps on growth for existing physician-owned hospitals and prohibits them from receiving critical reimbursements for services rendered under Medicare and Medicaid, eventually phasing them out of existence.

Two other Indiana physician hospitals already in development would also be killed outright by the bill, ending the promise of another 200 jobs.

While elimination of physician-owned hospitals would reduce viable jobs and tax revenue sources that sustain Indianas communities, Indiana residents would be dealt another devastating blow: the right to obtain personalized, quality healthcare.

At IOH and other physician-owned hospitals as well as the highly specialized OrthoIndy, the focus is placed on providing care in a convenient setting where the physician is involved in every aspect of the patients treatment.

Physician-owned hospitals have put patient care first for many decades, allowing every person who comes through our doors to receive individualized, personal attention, said John W. Dietz, Jr., MD, Chairman of the Board of Directors at IOH. Healthcare reform is imminent and necessary, however, it is time to be cognizant of the role physician-owned hospitals have played in the healthcare industry and recognize physician ownership should play a role in the reform process in the future.

A cohesive team of specialists and staff work together as a well-oiled machine to increase efficiency, reduce waste and, most importantly, effectively address the patients needs. This collaboration of effort allows physician-owned ventures to get the best value for every dollar spent which eventually will help lower the cost of healthcare overall.

For more information, please contact Kasey Peterson at (317) 802-2168 or kpeterson@orthoindy.com.


About OrthoIndy and the Indiana Orthopaedic Hospital
Founded over 40 years ago, OrthoIndy is one of the most highly respected orthopaedic practices in the Midwest. With over 65 physicians providing care to central Indiana residents at ten convenient locations, OrthoIndy provides leading-edge bone, joint, spine and muscle care. OrthoIndy physicians also provide care to the Indiana Pacers, Indiana Fever, Indiana Ice, Indianapolis Indians, IndyRacing League and Dance Kaleidoscope, as well as local colleges and high schools. On March 1, 2005, OrthoIndy opened the Indiana Orthopaedic Hospital (IOH) to provide central Indiana residents with complete musculoskeletal care in a patient-focused, like-home environment. IOH is owned by the OrthoIndy physicians and is ranked in the top 5 percent for Joint Replacement Surgery, 5-star rated in Joint Replacement, Total Knee Replacement, Total Hip Replacement, Spine Surgery and Back and Neck (Spinal Fusion) and the Winner of the 2009 Joint Replacement Excellence Award by HealthGrades, the nation's leading independent healthcare ratings company. For more information on OrthoIndy or IOH, please call (317) 802-2000 or visit us at OrthoIndy.com and IndianaOrthopaedicHospital.com.

Source: OrthoIndy and Indiana Orthopaedic Hospital