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Physician Hospitals Also Save Money

In addition to saving lives, physician hospitals also save health care dollars for patients and third-party payers. Physician owned hospitals are among the most cost effective, efficient providers of care in America. The high quality of medical outcomes and financial efficiencies of physician owned hospitals reduce pressure on the health insurance system and ease the burdens on patients and their families. Physician ownership means that doctors are paying close attention to the bottom line for hospitals and especially for patients.

There is no room in this model for wasteful spending, excess administrative costs, unnecessary tests and services or any other inefficiency that would negate the core values embraced by physician owners. This is why physician hospitals can provide complex medical care at rates far below those charged by large general hospitals. This is why Medicare spends less for every patient who enters a physician owned hospital than it does for the same care at large hospitals where interests are less aligned between doctors and administration. Physician ownership is the purest form of true physician/hospital alignment and is far more effective in controlling costs than the fabricated programs being considered such as gain sharing and pay-for-performance.

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