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Medical News and Perspectives
January 22/29, 2003

Specialty Hospitals Generate Revenue and Controversy

JAMA. 2003;289(4):409-410. doi:10.1001/jama.289.4.409

Despite efforts by policymakers and legislators to stem the growing tide of physician-owned specialty hospitals, this boutique approach to health care continues to grow in 2003.

Chicago-based Neurosource Inc rings in the new year by opening its 85-bed Neurologic and Orthopedic Institute of Chicago. In the fall, Surgical Alliance Corp of Nashville, Tenn, is slated to open a 30-bed orthopedic hospital in suburban Columbus, Ohio. By the end of next year, Indianapolis will be home to four specialty heart hospitals. And MedCath Inc, based in Charlotte, NC, has four new heart hospitals in development to add to the nine facilities it already operates in seven states. Physicians have an ownership stake in most, if not all, of these new specialty hospitals. "We want to grow our business by opening one to three new facilities a year for the next few years," says Dennis Kelly, MedCath's executive vice president of development and government relations.

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