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| We would note only that the
so-called critics in these situations typically are competing organizations. |
| Yes, but we would mention
something that’s even more central to cost control, and that is integrated
care. The hospital planned by Advanced Healthcare and Aurora Health Care
will give us a complete continuum of services in an area where we already
have tens of thousands of patients. By coordinating care across a wide range
of services and sites, we can drive down the cost of care. |
| The whole notion of “duplication
of services” has no place in a free market. |
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Aurora hospital creating a debate
Mark Kass, editor
Milwaukee Business Journal, August 17, 2007
The proposal by Aurora Health Care to build a hospital in Grafton
has sparked emotions in this community that haven't been seen since
the Milwaukee health care giant proposed a hospital in Oconomowoc.
It seems every time Aurora wants to build something, its critics
come out
 in full force.
Consider the huge response to The Business Journal's poll this
week on whether there is a need for a new hospital in Ozaukee
County. With more than 1,200 responses, 53 percent believe there is
not a need to build the hospital. As more evidence of the passion on
this issue and Aurora, one only has to look at the hundreds of
comments that were submitted, some of which I could not print
because of the language used.
"There is simply no need in that area that anyone can
demonstrate, either for capacity or breadth of service," said one
respondent.
 Added a second respondent: "How many hospitals do we need per
square mile before we realize money is being wasted? This appears to
be much more of a market share struggle and much less of a true need
for services. It's time to stop."
The logical argument expressed by Aurora supporters was that it
would create more competition, which would result in lower health
care costs.
But the reality is that the health care industry is
unlike any other, such as retail where competitors want to build
across the street from each other. Industry experts contend that
more hospitals actually increase costs because of the funds needed
to staff the facility and buy the expensive equipment.
"Duplication of services in an area that is efficiently served
will raise
health care costs," a respondent wrote. "It is simple
math and logic. It's not about competition."
It will be interesting to watch how Aurora and its new president,
Dr. Nick Turkal, respond to the critics, even though the only
approval needed for the hospital is from the village of Grafton.
Mark Kass is editor of The Business Journal. He can be reached
at 414-278-7788 or
mkass@bizjournals.com.
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| We would do well to
allow health care consumers to decide what is needed and what is
not. That is the way markets work. |
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| The factors driving
health care costs are well understood, and they do not include
capital expenses or hospital capacity. |
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