The Emergence of Physician-Owned Specialty Hospitals

This report discusses the heated controversy over the proliferation of physician-owned specialty hospitals, such as cardiac and orthopedic hospitals. The owners of general hospitals argue that specialty hospitals provide services for the most profitable cases and thus have an unfair competitive advantage. Late in 2003, Congress declared an 18-month moratorium on the opening of new specialty hospitals, and it will soon decide whether the moratorium should be lifted or made permanent.