Safety, Quality, & Innovation for Patients

CMS Asks for Comments on Physician-owned Hospitals

WASHINGTON (April 2017 ) – The Centers for Medicare and Medicaid Services (CMS) asked for comments regarding the ban on physician-owned hospitals in its CY 2018 proposed rule for inpatient hospital policy. Tuesday, June 13 is the deadline for individuals and entities to submit comments regarding physician-owned hospitals (POHs) to the Centers for Medicare and Medicaid Services (CMS).

CMS stated: “We are seeking public comments on the appropriate role of physician-owned hospitals in the delivery system. We are also seeking public comments on how the current scope and restrictions on physician-owned hospitals affects healthcare delivery. In particular, we are interested in comments on the impact on Medicare beneficiaries.”

CMS Proposes 2017 HOPD/ASC and Physician Fee Schedule Rules

WASHINGTON (July 15, 2016) – The Centers for Medicare and Medicaid Services (CMS) proposed the 2017 payment rules for the hospital outpatient and ambulatory surgery center and physician fee schedule payment rules last week. The outpatient proposal asks for comments on removing knee arthroplasty from the inpatient only list, the addition of four new spine codes to the outpatient setting, and additional guidance on on the new site neutral payment provisions for provider based departments in the outpatient setting at off-site facilities.

More information about the payment proposals can be found in TPHAC’s e-mail newsletter for members.

Texas Physician-owned Hospitals Dominate New Medicare Five-star Patient Ratings

AUSTIN (May 10, 2016) – The Centers for Medicare and Medicaid Services (CMS) recently released its latest patient experience star ratings for hospitals. Fifteen of Texas’ eighteen five-star hospitals are physician-owned hospitals.

The five-star physician-owned hospitals include:

The Heart Hospital Baylor Plano
The Heart Hospital Baylor Denton
Quail Creek Surgical Hospital – Amarillo
South Texas Spine & Surgical Hospital – San Antonio
Texas Health Methodist Hospital Southlake
Baylor Orthopedic & Spine Hospital at Arlington
Baylor Uptown Medical Center at Uptown (Dallas)
North Central Surgical Center – Dallas
Texas Health Center for Diagnostics & Surgery – Plano
Texas Spine & Joint Hospital – Tyler
TOPS Surgical Specialty Hospital – Houston
Sugar Land Surgical Hospital
The Physicians Centre – Bryan
Memorial Hermann Surgical Hospital Kingwood
Baylor Scott & White Surgical Hospital at Sherman

The five-star hospitals that are not physician-owned include:

Methodist Ambulatory Surgery Center NW – San Antonio
Hill Country Memorial Hospital – Fredericksburg
Glen Rose Medical Center

Congress Approves Medicare Site Neutral Payments

WASHINGTON (November 2, 2015) – As a result of Congress’ budget ceiling deal (H.R. 1314), new off-campus, provider-based hospital patient departments will now be subject to Medicare site neutral payments for certain services.

More information about the issue can be found in TPHAC’s member e-mail newsletter.

Medicare’s 2016 Physician Fee Schedule Finalized; Physician Ownership Implications

WASHINGTON (October 30, 2015) – The Centers for Medicare and Medicaid Services (CMS) finalized its 2016 Medicare Physician Fee Schedule. It included a provision regarding physician ownership in hospitals.

A full analysis can be found in TPHAC’s membership e-mail newsletter. In addition, TPHAC will hold a conference call with members in November to discuss the provision.

New Physician Owned Hospital Expansion Waivers Issued by HHS

WASHINGTON (September 18, 2015) – Doctors Hospital at Renaissance in McAllen joins an Indiana behavioral hospital and Lake Pointe Medical Center in the Dallas are as the three hospitals that have received expansion waivers from the U.S. Department of Health and Human Services.

A full analysis can be found in TPHAC’s membership e-mail newsletter.

Medicare Proposes CCJR Bundled Payments for Texas Markets

WASHINGTON (July 10, 2015) – Yesterday, the Centers for Medicare and Medicaid Services (CMS) proposed the Comprehensive Center for Joint Replacement (CCJR) program that would result in mandatory bundled joints in several different Texas markets. The markets include Austin/Round Rock, Beaumont/Port Arthur, Corpus Christi, Temple/Killeen, and Tyler.

A full analysis can be found in TPHAC’s membership e-mail newsletter.

TPHAC’s 2015 Texas Legislature Analysis

AUSTIN (June 5, 2015) – Earlier today, TPHAC’s members received a complete analysis of the 2015 Texas Legislature’s health care actions. The Legislature witnessed several issues pertaining to hospitals, including balance billing and commercial insurance issues, prompt pay changes, facility licensing, and other issues.

TPHAC Reaction to the 2011 Texas Legislature

AUSTIN (June 1, 2011) – Bobby Hillert, the executive director of the Texas Physician Hospitals Advocacy Center (TPHAC), issued the following statement regarding the conclusion of the 2009 Texas Legislature’s Regular Session.

“TPHAC’s membership was pleased with the regular session’s outcome,” Hillert said. “In response to the Affordable Care Act and other issues facing our health care system, the state government tackled a number of issues that will come into play in 2013.”

TPHAC Hosts Conference to Examine Affordable Care Act

DALLAS (April 9, 2010) – The Texas Physician Hospitals Advocacy Center (TPHAC) hosted an event today in Dallas that took an early look at the impact of the Affordable Care Act on the state’s health care system. Topics included accountable care organizations, the future of physician-owned hospitals, and value-based purchasing.

“As an industry, we are not pleased with the impact that the Affordable Care Act had on physician-owned hospitals,” TPHAC Executive Director Bobby Hillert said. “We will continue working with our lawmakers in Washington to make sure that Texas patients have full access to the safe and high-quality care being produced in Texas physician-owned hospitals.”

TPHAC Reaction to CMS Hospital Compare Results

AUSTIN (June 10, 2009) – The newest patient satisfaction survey ( from the Centers for Medicare & Medicaid Services (CMS) offers further evidence that Texas physician hospitals are delivering outstanding care to Texans. The patient satisfaction results from physician hospitals in the Houston, Dallas, San Antonio, Austin and Rio Grande Valley regions outweighed the survey averages of hospitals without physician ownership in all 10 survey categories.


TPHAC Reaction to the 2009 Texas Legislature

AUSTIN (June 3, 2009) – Bobby Hillert, the executive director of the Texas Physician Hospitals Advocacy Center (TPHAC), issued the following statement regarding the conclusion of the 2009 Texas Legislature’s Regular Session.

“Unlike the past two sessions, the 2009 Texas Legislature did not result in attacks on physician-owned hospitals,” Hillert said. “We were pleased that lawmakers have become receptive to the physician-owned hospital model and recognize the incredible value that they are bringing to patients.”

TPHAC Reaction to Economic Impact Study

AUSTIN (January 13, 2009) – “The Economic Impact of Physician-Owned Hospitals in Eight States” concluded that Texas physician hospitals, which employ over 22,000 Texans, have a net economic effect of nearly $2.3 billion on the Texas economy. In addition, the study estimated that Texas physician hospitals will pay approximately $86 million in taxes (property, payroll and income taxes) in 2009.

“The study confirms that each one of the approximately 50 Texas physician hospitals serves as a leader in its community. Not only are they revolutionizing the way that health care is delivered, physician hospitals are paying critical taxes that are re-invested in their communities, employing a significant number of Texans and many are providing charity and uncompensated care as well,” TPHAC Executive director Bobby Hillert said.

“Texas physician hospitals come in a variety of forms: children’s hospitals, traditional general hospitals, hospitals specializing and excelling in certain specialties and joint ventures that partner with traditional non-profit hospitals. All of these physician hospitals have one thing in common: they are using innovative delivery models that focus on safety and quality,” Hillert said.

The January 12, 2009 study by the Health Economics Study Group, LLC determined the direct economic effect by calculating the sum of the payroll and capital expenditures for each physician hospital. It calculated the total effect by multiplying the direct effect by the multiplier. A copy of the study will be posted on TPHAC’s Web site:

Economic Impact Study Determines Physician-Owned Hospitals Beneficial

January 12, 2009 – From the article: “We use statewide industry data (IMPLAN) combined with operating expenditure data from physician-owned hospitals in order to calculate the economic impact of physician-owned hospitals. We find that physician-owned hospitals add considerable value to state economies, ranging from a net effect of $117.8 million in Pennsylvania to $2.3 billion in Texas. The combined impact across all eight states is $2.9 billion. This implies that physician-owned hospitals, through their employment and capital expenditures, generate a total of $3.9 billion in economic activity in these eight states alone.


TPHAC Reaction to CMS Hospital Compare Results

AUSTIN (April 3, 2008) – The newest patient satisfaction survey ( from the Centers for Medicare & Medicaid Services (CMS) offers further evidence that Texas physician hospitals’ efforts to transform patient care are resulting in high patient satisfaction. The three Texas physician hospitals that reported survey results scored well over the national average in the critical category of whether a patient would recommend their hospital to friends and family. The Texas physician hospitals all scored over 85 percent as compared to the national average of 67 percent.

In another critical piece of the national patient satisfaction survey, only 63 percent of patients gave their hospital a rating of 9 or 10 on a 10-point scale. Texas physician hospitals excelled in this category as well. All of the reporting hospitals scored over 80 percent.

“The survey’s disappointing national patient satisfaction results provide another example of a healthcare system that is failing to meet patient needs,” Texas Physician Hospitals Advocacy Center (TPHAC) Executive Director Bobby Hillert said. “A growing number of patients who are tired of the status quo when it comes to their healthcare needs are embracing physician hospitals. As evidenced by their outstanding patient satisfaction results in the survey, Texas physician hospitals are placing an incredible emphasis on patients.”

The new Hospital Consumer Assessment of Healthcare Providers and Systems (HAHPS) results were posted at the Hospital Compare consumer Web site ( on March 28, 2008. The 10 new patient-satisfaction categories provide patients with an additional opportunity to learn more about the hospitals in their communities.

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