Congress to Decide on Five Hospitals’ Ability to Expand Local Hospital Delivers Care and Physician Training in Underserved Community as State Braces for Increased Patient Need, Physician Shortage

Warren, Michigan (January 25, 2012) – Southeast Michigan Surgical Hospital is keeping a close eye on the Congressional Conference Committee to H.R. 3630. This legislation may provide relief for physician‐ owned hospitals which are currently prohibited from expanding to meet patient need. This piece of legislation will be among the first priorities for Congress as it heads back into session this month.

The hospital, which is located in one of Michigan’s most medically underserved areas, is the home of the nation’s first podiatric surgical residency program as well as a specialty clinic that provides care to 350‐ 400 patients each month. Yet it is prohibited from expanding in the future to meet patient demand if relief from Section 6001 of the Affordable Care Act (ACA) in not made. The House passed a bill which would provide such relief but the final outcome will be dependent on decisions by the Conference Committee.

“The U.S. is facing a diabetes epidemic, so the need for podiatric care is dramatically increasing,” says Dr. Kyle Sundblad, director of podiatric medical education at Southeast Michigan Surgical Hospital. “Currently, the number of podiatric specialists in this country is too small to keep up with future patient need. That’s why our residency program, which provides advanced training to recent podiatric medical school graduates, is so important.”

A study by Michigan State University estimates the state will face a shortage of 4,400 primary care physicians and 4,000 specialists by 2020. In addition, the U.S. Census Bureau categorizes the area, which Southeast Michigan Surgical Hospital serves, as a medically underserved community and also ranks Michigan number one in the U.S. for Medicare and Medicaid populations. The number of Medicaid enrollees in Michigan will increase by 30 percent in the wake of the Affordable Care Act as estimated by an Oxford Outcomes study.

Seventy‐five percent of patients treated at The Podiatric Clinic at Southeast Michigan Surgical Hospital are Medicaid recipients. Many of these patients seek treatment at the clinic in an effort to delay or prevent limb amputations or to heal chronic wounds associated with diseases such as diabetes.

The hospital also serves as a training ground for podiatric medical school graduates specializing in podiatric surgery, offering advanced education in limb salvage, wound care, infectious disease, endocrinology, vascular surgery and other care. This program began in 1956 at Civic Hospital in Detroit and moved to Kern Hospital in Warren in 1973. Kern was renamed Southeast Michigan Surgical Hospital in 2003.

There are five physician owned hospitals in Michigan. Three of those are located in counties in which the number of hospital beds per 1,000 population is below the national average and in some cases the short‐fall is large. This shortage is expected to further increase.

In December, 2011 the House of Representatives, in a bi‐partisan effort, provided relief from Section 6001 as part of the Middle Class Tax Relief and Job Creation Act. The Senate’s version of the bill did not contain Section 6001 relief.

“Physician owned hospitals provide access to high‐quality care to thousands of people in medically underserved areas and offer specialized training for future physicians,” says Dr. Michael Russell, president of the Physician Hospitals of America (PHA). “As more and more people start utilizing the healthcare system, we need increased access to high performing hospitals, not limit it. Section 6001 restricts that access to quality care for many patients.”

About Physician Hospitals of America PHA offers support, advocacy and educational services to the physician‐owned hospital industry, reflecting at all times the best interests of patients, physicians and other providers who play an inextricable and essential role in the provision of healthcare services. There are currently 275 physician‐ owned hospitals serving patients in 33 states. These hospitals include general acute care, long term acute care, emergency medicine, multi‐specialty, women’s, children’s, rehabilitation and psychiatric. According to its HCAHPS survey data, physician‐owned hospitals rank first for patient satisfaction in 20 states. For more information visit: www.phapulse.org.

Media Contact: Nikki Cary CCO Healthcare Partners 615.500.2924 [email protected] ###