Physician-owned Hospitals Face an Uncertain Fate

DALLAS — The gleaming mahogany floors, elegant track lighting and high-speed wireless Internet at the Texas Institute for Surgery scream “upscale hotel,” not “demise of American health care.”

But to many traditional hospitals and health care experts, the latter is exactly what physician-owned specialty hospitals like this one represent.

And as lawmakers in Washington hammer out a health care reform bill to expand access and control costs, these physician-owned facilities — a quarter of them in Texas — face an uncertain fate. Those under development could see bulldozers, not cranes. Those already in operation may face serious limits on growth.

“There are a ...

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