Analysis of Niche Hospitals in Texas and the Financial Impact on General Hospitals

Research Report
December 2006
Deborah Chollet, Su Liu, Gilbert Gimm, Cheryl Fahlman, Laurie E. Felland, Anneliese M. Gerland, Michelle I. Banker, Allison Liebhaber

In Texas, as in other states, the proliferation of niche hospitals has raised concern about the potential financial impact of these hospitals on full-service general hospitals. This report compares the financial status of physician-owned niche hospitals and general hospitals in Texas, analyzes the impact of niche hospitals on general hospital financial margins and levels of uncompensated care, analyzes potential bias in physician-owners' referral patterns, investigates stakeholders' perceptions about the impacts of niche and other physician-owned hospitals in Texas, and presents stakeholder recommendations for policy change.

A copy of the report can be accessed at the Texas Department of State Health Services Web site by clicking here.