The Senate Regulated Industries and Utilities Committee heard testimony last week on Senate Bill 61, which would create an integrated surgical center in the Alpharetta area.
The Center is a clinical affiliate of renowned surgeon Dr. James Andrews, who has made millions of dollars treating elite athletes, particularly those in need of “Tommy John Surgery,” where a healthy tendon is extracted and used to replace an arm’s torn ligament.
The organization applied and received permission to establish an integrated training, athletic care and healing center, with a non-profit, 501C3 status. Representatives say it would have a $1 billion impact over the next five years.
“We want to be a world leader in sports medicine,” said Jenna Lee, an attorney representing Legacy Sports Institute. “We were granted a CON twice, and it was appealed, and the State Supreme Court would not intervene.”
Former Atlanta Braves pitcher John Smoltz has endorsed the facility.
But the Georgia Alliance of Community Hospitals says the proposal has significant unintended consequences, such as draining profitable revenues from “Safety Net Hospitals,” which are required to serve all patients, regardless of their ability to pay. And the project could impede the State’s CON (Certificate of Need Regulations) for Hospitals in Georgia.
“If this is approved, it would not just pave the way for this specialty clinic, but would also harm safety net hospitals, because the specialty clinic would not be required to take other types of patients in need of medical care, including un-insured and indigent patients,” said Monty Veazey, President and CEO of the Georgia Alliance of Community Hospitals.
Representatives of Georgia Hospitals noted the Alpharetta, Georgia area where the clinic seeks to locate is not lacking in medical care facilities. In fact, Georgia has 350 specialty surgical centers already, almost as many as the State of Texas.
There are already 88 surgery centers and 32 hospitals in the geographic area that this facility intends to serve.
The clinic could be established without designation as a general surgery center. There is no regulation that would prevent it from doing so.
Ben Watson, Chairman of the Health and Human Services Committee, said that the proposed surgery center “is not going to get James Andrews to relocate to Georgia. And we already have many patients who choose to get Tommy John Surgery locally.”
Ethan James, who represents the Ga. Hospital Association, said the 10-mile radius issue will be used and tested and the issue will pop up in other areas of Georgia. “We stand in opposition to SB 51 because current regulations have a place in healthcare,” he said.
“We are forced to give away services,” he added. “It is our responsibility to serve any and all patients. Because he is not bound by CON laws, Dr. Andrews can pick the best insured. The children in this area are either well insured through their parent’s insurance or they’re on Peach Care.”
Elmer Stancil, who represents community hospitals, said the organization does not support carve-outs for private clinics, because they jeopardize Georgia Hospitals, which are required to serve all patients, regardless of their ability to pay.
