OrthoIndy, the physician practice that owns the Indiana Orthopaedic Hospital, was able to open a new outpatient facility this spring by working around growth restrictions in the 2010 health care reform law. But its choices for further growth are much starker—which is why it's lobbying to repeal that provision of the law.

To understand why hospitals are so eager to employ physicians—and prevent them from owning their own facilities—look no further than the latest data on how much doctors are paid compared with how much revenue they generate for hospitals.

Legal complaint alleges new $20 million facility in Greenwood breaches partnership deal struck in 2001.

The specter of declining reimbursement, as well as the desire for statewide growth, lie behind St. Vincent Health's decision to form a physician management firm with OrthoIndy and buy a minority stake in its Indiana Orthopaedic Hospital.

St. Vincent Health has acquired a minority interest in Indiana Orthopaedic Hospital and is in discussions with OrthoIndy physicians and other independent doctors to create a management company that would oversee orthopaedic and spine services at St. Vincent Indianapolis. The health care providers announced the deal early Friday.