Competition, but on a level or even playing field…please talk with your local legislators regarding house bill SB120

Competition is a very good thing. If you have read some of my past blogs relating to transparency, our hospital and doctors feel we can compete with anybody in providing great services at a valued price.

Why am I so concerned about this legislation and the expansion of niche or specialty hospitals? More services and choices mean more competition, right? WRONG!

These specialty hospitals usually target the most profitable services that are typically part of a Community-not-for profit hospital, like ACH. Yes, we too (like the for profit hospitals) need to make money otherwise we wouldn’t be here. However, the profits we make get plowed back into all the services that aren’t self supporting and sometimes lose a great deal of money; services that are vital to our Community like having an Emergency Department available 24 hours a day, seven days a week that never closes; or OB Services or Cardiac Rehabilitation.

At our facility our not for profit status entitles us to tax advantages to the tune of about 2.3 million dollars a year. We still make a profit but, we provide just under $8 million of Community benefit dollars to support services that otherwise would not be provided or scaled back greatly.

One of two things should occur if specialty hospitals are allowed to proliferate in Ohio. The first, which is addressed in the proposed legislation, is that these hospitals should also provide emergency support to the Communities that they are in. This levels the playing field and shares the burden of providing much of the Community’s uncompensated care. The other is unlikely to occur. Without inclusion of this type of provision how services are paid for must change. Insurance companies and the government must shift some of the payment away from the profitable services and pay more for services like OB, ER, and Cardiac Rehab. If that doesn’t occur we will have more competition, more fragmentation and most likely higher costs. That is my opinion, what’s yours?