Physician surgery center investors running for hospital board fight objections — 6 insights

Two physician investors in Teton Outpatient Services and Teton Sports and Spine Imaging are running for the St. John's Medical Center board of trustees, raising concerns about conflicts of interest, the Jackson Hole News & Guide reports. All three groups are based in Jackson, Wyo.

Here's what you should know:

1. Teton Outpatient Services and Teton Sports and Spine Imaging are medical practices with physician investment that compete with nearby St. John's Medical Center.

2. Hospital administrators expressed concerns the surgery center and its new MRI could siphon valuable revenue streams from the hospital. The head of the hospital's imaging group said he believes the physician investors are sending patients for unnecessary testing because there's financial motivation to do so.

Resident Sandy Ress, who is running for the Teton County Board of County Commissioners, bought a car, parked it in front of Teton Orthopedics and mounted a sign on it urging patients to go to St. John's for MRIs.

3. OB-GYN Doug George, MD, invested in Teton Outpatient Services and Teton Sports and Spine Imaging, and OB-GYN Giovannina Anthony, MD, invested in Teton Outpatient Services. They both spoke to the Jackson Hole News & Guide about the controversy.

4. The physicians said their referrals are dictated by cost, efficiency and scheduling, not their investments. They both said they perform more complex procedures at the hospital. Dr. Anthony said it's fair to inform patients about all their options, and the surgery center is better suited for lower-cost, minor procedures.

"It's an efficient place to do minor procedures," Dr. Anthony said. "It's more about efficiency. The investing aspect never comes into my decisions."

5. Most investors in the two practices are orthopedic surgeons or OB-GYNs. Some other physician investors told the Jackson Hole News & Guide their investments won't threaten the hospital's financial health or patient wellbeing.

6. Federal Stark laws prohibit physicians from referring patients to an entity for Medicare-covered health services if the referring physician has a financial relationship with that entity, but this doesn't apply to Teton Sports and Spine Imaging due to a rural provider exemption.

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