Archive for the ‘Hospitals’ Category

We hear a lot about physician shortages in the primary care field, but this is a different twist – physician shortages in small and rural hospitals, caused by a state ban on corporate medicine. As it stands now, California state law allows hospitals to create foundations if they have 40 physician members, 10 of those being specialists. Smaller hospitals simply don’t have the numbers to meet the criteria. According to Jim Lott, executive VP of the Hospital Association of California, these smaller hospitals are desperate for physicians. HealthLeaders reported that this latest initiative to ease the corporate ban is in part due to the Hospital Association of California’s failure to get legislation passed that would have helped these smaller hospitals recruit physicians. And according to the article, the California Medical Association would oppose any bill that could alter the state’s ban on the practice of corporate medicine, including this initiative.

Dustin Corcoran, CEO of the California Medical Association, told the Wall Street Journal that such foundations would give hospital groups too much control, and said they would in effect be creating medical groups.

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