Despite tough talk for lobbyists in Washington, Congress is working on a bill that will benefit a powerful lobby—the hospital industry. A bill designed to reauthorize the State Children’s Health Insurance Program (SCHIP) is intended to provide health coverage for children, but it includes a section that bans physicians from owning hospitals.
This section of SCHIP, supported by lobbyists for major hospital groups, would effectively put an end to specialty hospitals, which are a source of competition. These medical centers focus on specific areas of the body or diseases and often provide higher quality care than general hospitals. There are over 200 specialty hospitals in the United States, out of about 6,000 hospitals overall.
During his election campaign, Obama vowed to expand access to health care, suggesting a national health insurance exchange for those who can’t get insurance thorough employer plans. Under Obama’s plan, larger employers that don’t offer employee health benefits will pay a tax to help fund federal coverage.
The expansion of SCHIP is a pillar of Obama’s plan that would provide health coverage for children whose parents are ensured but don’t qualify for Medicare. On Wednesday the House moved to expand coverage to 4 million more children, and the Senate will address the issue next week.
The expansion bill passed in the House would cost $32 billion over four and a half years, funded by a new 61 cent cigarette tax.
Opponents of the ban argue that it is foolish for Congress to consider destroying a medical industry that provides over 55,000 jobs nationally in a time when unemployment is high and quality health care is hard to come by.
http://www.forbes.com/businessinthebeltway/2009/01/15/obama-hospitals-schip-biz-healthcare-cz_dw_0115schip.html
http://www.modernhealthcare.com/article/20090123/REG/301239978
http://www.forbes.com/forbes/2008/0310/086.html
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/20/AR2009012001310.html
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