John Hornbeak, former president of San Antonio-based Methodist Healthcare System, wrote an editorial in the San Antonio Express-News claiming the three new children's hospitals planned for San Antonio will lead to higher costs with little gain in children's health.
The University of Texas Health Science Center at San Antonio recently chose to partner with Nashville, Tenn.-based Vanguard Health Systems and the Children's Hospital of Philadelphia to create a $350 million new children's hospital that would anchor a pediatric network in the San Antonio area. At the same time, San Antonio-based CHRISTUS Santa Rosa Health System is spending $135 million to renovate and expand its children's hospital. Methodist Healthcare System had also proposed building a children's hospital before UT chose Vanguard and CHOP.
Mr. Hornbeak wrote three new children's hospitals in the area would create "a war of attrition, long and tortuous." He argued the tripled costs of construction, equipment and physician recruitment would drive up prices of insurance premiums and costs for Medicaid and CHIP. In addition, he wrote children's health would not improve that greatly from the extra pediatric resources. "All three combatants will have to battle for the best paying patients, the highest margin services and give short shrift to the low or no pay kids and money losing services," Mr. Hornbeak wrote.
He suggested that instead, the providers invest half as much money in new primary care practices, nursing staff at schools, home care and other wellness and prevention programs. He wrote this strategy would be more effective at improving the health of children and would be less costly.
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The University of Texas Health Science Center at San Antonio recently chose to partner with Nashville, Tenn.-based Vanguard Health Systems and the Children's Hospital of Philadelphia to create a $350 million new children's hospital that would anchor a pediatric network in the San Antonio area. At the same time, San Antonio-based CHRISTUS Santa Rosa Health System is spending $135 million to renovate and expand its children's hospital. Methodist Healthcare System had also proposed building a children's hospital before UT chose Vanguard and CHOP.
Mr. Hornbeak wrote three new children's hospitals in the area would create "a war of attrition, long and tortuous." He argued the tripled costs of construction, equipment and physician recruitment would drive up prices of insurance premiums and costs for Medicaid and CHIP. In addition, he wrote children's health would not improve that greatly from the extra pediatric resources. "All three combatants will have to battle for the best paying patients, the highest margin services and give short shrift to the low or no pay kids and money losing services," Mr. Hornbeak wrote.
He suggested that instead, the providers invest half as much money in new primary care practices, nursing staff at schools, home care and other wellness and prevention programs. He wrote this strategy would be more effective at improving the health of children and would be less costly.
More Articles on University of Texas, CHRISTUS and Methodist:
University of Texas Chooses Vanguard, CHOP for New Children's Hospital; Ends Partnership With ChristusCHOP, Vanguard to Submit Proposal for Texas Children's Hospital
University Health System in Texas Ends Children's Hospital Talks With Christus