IBJNews

OrthoIndy looks to loopholes for growth

Back to TopCommentsE-mailPrintBookmark and Share

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.

The hospital continues to pay Krieg DeVault LLP attorneys Deborah Daniels and Tom New to lobby Congress to pass repeal legislation. The hospital spent $90,000 in 2009 and 2010 trying to prevent the provision from taking effect, according to data made available by the Center for Responsive Politics.

In the meantime, the Indiana Orthopaedic Hospital is also developing contingency plans for how to grow in spite of the restrictions. To do so, the hospital would have to qualify for one of various exemptions under what is known as the Stark law.

“Not being able to expand certainly has us concerned,” said hospital CEO Jane Keller, adding, “In order to be a viable business, we need to have the ability to expand going forward.”

One exemption is for a publicly traded company, which Indiana Orthopaedic Hospital could become. But that’s an expensive proposition and might even require Indiana Orthopaedic Hospital to merge with other physician hospitals in order to reach the $75 million asset threshold required by the Stark law.

Another possible exemption would be to qualify as an academic center by operating several resident training programs. But that too is an expensive undertaking.

The Indiana Orthopaedic Hospital could transfer itself to an employee stock ownership plan. Or it could restrict its facility for use only by OrthoIndy physicians and then claim that all its procedures are part of its physicians' consultations with patients.

Dr. John Dietz, chairman of the Indiana Orthopaedic Hospital, said each option would require many more lawyers and many more dollars to put into effect, compared with its current structure. He said the hospital doesn't have a favored option right now, but as the economy recovers and patient demand grows, a decision must be made within a few years.

"They're all about equally flawed as far as I can tell," Dietz said. "It's a choose your poison kind of a deal."

And a last resort would be to sell the operations, which Keller said the hospital and its physician owners do not want to do. OrthoIndy already sold a minority stake in the Indiana Orthopaedic Hospital to St. Vincent Health in 2009.

OrthoIndy is the largest orthopaedics practice in central Indiana, with more than 70 specialists.

The 38-bed Indiana Orthopaedic Hospital currently operates at about 50-percent capacity, on average, but is at full capacity in the middle of each week, when most of its physicians schedule surgeries.

And with aging baby boomers needing more joint replacements, Keller is confident the hospital will run out of room in the not-too-distant future.

The hospital also operates two outpatient centers, one in Avon and one in Greenwood. The second center opened in March, even after the growth restrictions took effect, because the Indiana Orthopaedic Hospital was able to get rid of four beds at its facility in exchange for opening four operating rooms in the Greenwood facility.

But Keller said the hospital cannot afford to give up any more beds in the future.

“Orthopaedics is going to be in very high demand as the baby boomers continue to need our services,” she said. “We’re just hoping that we continue to meet their needs.”

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT