KRLD Radio

The Business of Health Care Report
Niche Services and their Effect on Full-Service Hospitals - April 2003


Click to listen to this taped broadcast.

Doug Hawthorne, President and CEO of Texas Health Resources I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD.

Today, I'll discuss health care niche services and their effect on full-service hospitals.

So-called niche services, which provide a narrow array of procedures, are springing up across the country - often in the form of short-stay surgery, endoscopy and imaging centers.

Several operate in the Metroplex, and Harris Methodist HEB Hospital, a Texas Health Resources facility, has planned a specialty-care hospital in Southlake. The benefits of these facilities go beyond customer service. They also are a cost-effective way to extend access to communities where full-service hospitals are consistently at or near capacity or are not feasible to build.

There are concerns, however, that niche providers add to the economic burden of hospitals by siphoning away the most-profitable procedures, such as orthopedic surgery, and by catering to the well-insured. As a result, full-service hospitals may be left with needed but less profitable services or have less money to offset the cost of indigent care.

As an example, Texas Health Resources hospitals provided $117 million of uncompensated charity care last year to patients who did not pay for services, and we expect that amount to grow by to over $130 million this year.

Another difference? Specialty care providers are not required to offer emergency services, while community hospitals offer full-service emergency rooms and 24-hour care.

Without a doubt, our communities are best served by having both full-service and specialty care hospitals. But they must work to each other's benefit, not at the expense of one over the other.

For Texas Health Resources and its family of hospitals - Harris Methodist Hospitals, Presbyterian Healthcare System and Arlington Memorial Hospital - I'm CEO Doug Hawthorne with "The Business of Health Care Report" on NewsRadio 1080 KRLD.

Doug Hawthorne

Archives | Close Window

© 2003 Texas Health Resources
All Rights Reserved

Close Window