Physician Hospitals of America
June 16, 2016


PHA Advocacy Update

PHA Advocacy Update
Unfortunately, the House passed H.R. 5273 by voice vote WITHOUT relief for POHs. While this is disappointing, the bill now heads to the Senate and it is doubtful they will consider it in the near term as the Senate schedule is very tight leading up to the election. The industry is well positioned to gain relief for POHs there. In the House, the bill was considered under suspension of the rules, and while two-thirds majority was required, a vote was not recorded as no member of the House requested one.

John Wilkerson of Inside Health Policy wrote:

Some lobbyists expect the Medicare hospital legislation that the House passed Tuesday (June 7) to run into obstacles in the Senate, where Finance Committee members are expected to add provisions that will make it difficult to pass the bill. The lobbyists say it's possible those provisions include lifting a ban on physician-owned hospitals and reversing a wage-index policy that benefits hospitals in a few states, mostly Massachusetts, to the detriment of hospitals in other states.

Physician Hospitals of America Executive Director John Richardson said there is support among senators for legislation that would lift the ban on physician-owned hospitals.

"We cannot speak for any senator so you will need to speak to them directly," he said by email. "However, I can say we have meaningful support in the Senate for POH relief and will be looking at opportunities to help ensure these higher-quality, lower cost centers of health care excellence are treated like every other hospital participating in Medicare when it comes to expansion."
PHA News

Full Executive Summit Schedule Now Available
Physician Hospitals of America (PHA) is excited to announce the 2016 PHA Executive Summit schedule is available on our website. Taking place September 14-16 at the Meritage Resort and Spa in Napa, CA, this year's Summit includes three days of education, discussion, and networking. 
Nominate a Noteworthy Colleague by July 20
Through two annual awards, Physician Hospitals of America (PHA) recognizes significant achievements of its members to the physician-owned hospital industry. Help us celebrate an outstanding individual or facility by nominating them by July 20.

Physician Hospital of the Year Award
This award recognizes a PHA member facility that has demonstrated high-quality value and service to meet the healthcare needs of their community, as well as a proven commitment to supporting PHA initiatives.

Physician Hospitals of America President's Award
The President's Award recognizes an individual PHA member who has exhibited outstanding service to the organization. Nominees may have demonstrated their dedication by serving on a committee, taking part in conference planning, or advocating in front of legislators. 

Awards will be presented at the 2016 PHA Executive Summit in Napa, CA, September 14-16, 2016. 
Limited Sponsorship Opportunities are Still Available
The PHA Executive Summit is an outstanding opportunity to meet decision-makers from physician owned hospitals including CEOs and physician-owners in an intimate, casual environment. Partner with PHA to showcase your company, products or services through our unique sponsorship opportunities. Sponsorship packages are selling out fast. Do not wait, space is limited!  Click here   to view additional information. 
PHA Benchmarking:
Annual Collection 1 Opens July 15 
The PHA Benchmarking Program will transition to a single annual collection and report beginning this summer.   Doing so will lessen the administrative burden on participating hospitals and bring into alignment the collection periods for all measures, while continuing to provide members with valuable financial, occurrence, and staffing metrics. All PHA facility members are encouraged to participate! The collection will open on July 15 and remain open until August 15, 2016, capturing financial and operational measures from the period from July 1, 2015 through June 30, 2016.
 
All facility members will be contacted by the end of June to confirm or identify the Benchmarking point-of-contact for their facility. If your facility has not participated in the program in the past or if your Benchmarking contact person has changed, please email Greg Maciog to be added to the upcoming collection.
POH Executive Compensation Survey
PHA has partnered with Integrated Healthcare Strategies to conduct the fourth Physician-Owned Hospital Executive Compensation Survey.  The survey is designed to assist physician-owned facilities in determining appropriate compensation for top leadership positions. 
 
Participation in this compensation survey will be open to both PHA members and non-member physician-owned hospitals. As a member benefit, participation is free of charge to members of PHA and member survey participants will receive their complimentary report upon publication in September. Participating non-members will have the opportunity to purchase the report, as will members who do not participate.
 
The compensation survey is strictly confidential. No hospital's individual pay rates or practices will be identified in the survey results. As a third party survey vendor, Integrated Healthcare Strategies is fully compliant with federal anti-trust regulations regarding compensation surveys.
 
The survey will take approximately 30 minutes to complete. The survey link and instructions was sent to POH CEOs by [email protected] on Thursday, May 26 and the deadline for survey submissions is Thursday, June 30, 2016.
Industry News

Growth Means Price Increases
A new study published in the Journal of Health Care Organization shows that hospital prices increase in conjunction with health system consolidation. Two California health systems, Dignity Health and Sutter Health, used increased market share and bargaining power to win higher rates from insurers - resulting in 25% higher prices at these two health systems than at other hospitals across the state.

See the full article from Kaiser Health News here.
Antitrust Suit Against Carolinas HealthCare
The U.S. Department of Justice and the Attorney General of North Carolina have filed an antitrust lawsuit against Carolinas HealthCare System, a hospital chain based primarily in the Charlotte, NC region. The lawsuit alleges that Carolinas HealthCare used its market power to negotiate "unlawful contract restrictions" and to reduce competition in the market. Consumers face limited access to lower prices at other hospitals as a result.

See the full article from The Charlotte Observer  here.
FTC Stopped from Blocking Merger
A federal judge blocked efforts by the Federal Trade Commission to prevent the merger of two large hospital systems based in Illinois. According to the New York Times, "the decision represents a significant setback in the agency's continuing attempts to police the industry during a flurry of deal making among hospitals and physician groups." The FTC is expected to appeal the decision to allow Advocate Health Care and NorthShore University HealthSystem to merge.

See the full article from The New York Times  here.
CMS Proposes Antibiotic Reduction
The Centers for Medicare and Medicaid Services issued a new proposed rule that would require, as part of its conditions of participation in the Medicare program, hospitals to implement "antibiotic stewardship programs." Hospitals will be required to designate leaders for these programs, intended to reduce incidences of hospital-acquired infections and the spread of antibiotic-resistant bacteria.

See the full article from Becker's Hospital Review here.
"Never Event" Policies
In a new report from the Leapfrog group, one out of every 5 hospitals in the United States does not have in place a policy for so-called "never events." These events comprise serious medical errors such as "wrong-site surgeries, objects left inside patients after surgery, deaths from medication errors or death or serious injuries from falls."

See the full article from Fierce Healthcare  here.
Slavitt Remarks on MACRA Implementation
At the annual meeting of the American Medical Association, Acting CMS Administrator Andy Slavitt delivered remarks on the implementation of CMS's new physician payments and quality programs under MACRA - legislation passed last year to replace the Sustainable Growth Rate. You can read his full remarks here:

See the full article from The CMS Blog  here.

About PHA
Physician Hospitals of America , or PHA, offers support, advocacy, and educational services to the physician-owned hospital industry, reflecting at all times the best interests of the patients, physicians, and other specialty providers who play an inextricable and essential role in the provision of health care services.
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