Tenet Hospitals Explains its Support of a Ban on Physician-Owned Hospitals

Although Tenet Healthcare Corp. operates two hospitals in partnership with physician-owners, an official at the 49-hospital network said Tenet would eliminate those partnerships if new physician-owned hospitals were banned under the current health reform legislation, according to a report by the Texas Tribune.

"All the studies show that physician ownership of these entities does drive utilization up and creates financial incentives for them to refer more patients for surgery," said Dan Waldmann, Tenet's vice president for government relations.

Supporters of physician-owned hospitals disagree with that assessment, citing studies that show that physician-owned hospitals deliver high-quality, less expensive care.

"When you're starting to tread into a financial area where other companies are established, obviously that's a threat," said Debbie Hay of the Texas Physician Hospitals Advocacy Center. "If the patients are given a choice, does it matter what the ownership is, as long as they're being well cared for?"

Read the Texas Tribune's report on physician-owned hospitals.

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