Hospital CEO explains
To the Editor:
I would like to respond to Vicki Jackson's letter to the editor entitled, "Where is Dr. Hodson?" Her question which asked why Dr. Hodson wasn't mentioned in the St. Luke TV advertising is a valid one. In fact, I've been asked similar questions by a couple of community members. However, I wish Mrs. Jackson had spoken with me before she had sent her letter because the basic answer is that legally we cannot advertise for Dr. Hodson.
Before I get into the specifics I would like to make clear that St. Luke is very appreciative of the long-term and continued service that Dr. Hodson has provided to St. Luke, his patients, and the community. Dr. Hodson is a vital part of health care at St. Luke. The fact that Dr. Hodson and his clinic were not seen in our advertising was not an oversight by the hospital or the board of directors. Quite to the contrary, they were excluded because of our need to comply with federal law.
The law is complicated and there are a few exceptions, but here is the Cliff Notes version. Stark Law (federal law) strictly prohibits physicians from referring patients to an entity (hospital) in which they have a financial interest (receipt of anything of value exceeding $300 per year). What this basically means is that if St. Luke wishes to continue accepting Medicare patient referrals from Dr. Hodson, then St. Luke cannot offer anything of value to him or his practice that exceeds $300 per year.
There are only two exceptions to this rule. The first is to have a one-year written agreement with Dr. Hodson in which he agrees to reimburse St. Luke fair market value for advertising services provided on his behalf. Written agreements with physicians require attorney review and board approval. This option would have been cumbersome for both parties and more expensive and time consuming than if Dr. Hodson advertised on his own.
The second option was for Dr. Hodson to become an employee of the hospital. I discussed this option with Dr. Hodson before Dr. Skiles joined St. Luke. Some physicians prefer employment and some prefer independence. St. Luke has made the commitment to work with either, but there is no question that hospitals are much more restricted in their dealings with independent physicians.
I would agree that this does not seem right and that there is an inherent look and feel of unfairness. You are welcome to write your Congressman or better yet Congressman Pete Stark (D-CA) who proposed the law in 1988. I would welcome the repeal of the Stark Law.
As I have mentioned previously, if anyone has questions regarding the decisions, actions, or happenings at St. Luke, I would be happy to talk with you. If you cannot reach me at the hospital, you are welcome to call me at home (382-2338).
Jeremy Armstrong, CEO
St. Luke Hospital, Living Center
