What Is a Specialty Hospital?

Specialty hospitals focus on specific medical conditions or a subset of the population. Patients may go to this type of facility to receive expert care or access to cutting-edge technology. As a facility leader, you may find yourself asking, What is a specialty hospital’s role within the evolving healthcare landscape?

Here’s a look at how these facilities have changed over the years, how they fit into the healthcare system, and the types of services they may offer.

A History of Specialized Care Within the U.S. Healthcare System

Specialty hospitals have existed for centuries, going back to the New York Eye and Ear Infirmary of Mount Sinai, which was established in 1820 to focus solely on diseases of the eyes, ears, nose, and throat. Healthcare specialization was the exception, however, and the U.S. healthcare system was shaped primarily by not-for-profit general hospitals that served entire communities and offered a broad range of services.

The general hospital model has been challenged by an increasing number of different healthcare delivery options, including specialty care hospitals and ambulatory surgery centers. In the 1990s, an industry-wide trend toward the specialty care model earned attention from investors and policymakers alike.

Research and studies followed, aimed at investigating the question: What is specialty-hospital care and physician ownership doing to the healthcare market? In 2005 Medicare Payment Advisory Commission (MedPAC) issued its report on specialty hospitals, and by the end of the 2000s several important new regulations were in place, including Stark Law modifications and CMS’s definition of specialty hospital.

What Is a Specialty Hospital? Definition and Examples

While the exact definition varies from one institution to another, in general terms specialty hospitals are facilities with inpatient capabilities that provide patients with a limited offering of services and procedures. They’re often owned and operated by a physician or group of physicians with expertise in a specific clinical category.

For example, Oklahoma Heart Hospital focuses exclusively on the prevention and treatment of heart disease and cardiologists have a significant role in the hospital’s ownership, design, and patient-care approach. Other common examples of specialty hospitals are:

• Children’s hospitals
• Burn centers
• Psychiatric care facilities
• Women’s hospitals
• Orthopedic centers
• Surgery centers

What Is a Specialty Hospital According to CMS? 3 Examples of a Specialty Hospital

In addition to the general definition, you may also want to understand the method CMS uses for identifying this type of facility. According to CMS, specialty hospitals focus on treating patients:

• With cardiac conditions.
• With orthopedic conditions.
• Undergoing surgical procedures.

The definition was established as a part of the Medicare Modernization Act, in an effort to address concerns about the possible financial incentives involved in referrals to physician-owned specialty hospitals.

Services You Might Find at Specialty Hospitals

While some specialty hospitals focus on specific populations, such as children, others limit services based on medical conditions. Providers at these facilities often see high volumes of cases related to one type of illness or injury, and may specialize in treatment modalities related to it.

The services offered could reflect the providers’ level of expertise and the latest developments in technology. Specialty care examples include:

• Cardiovascular hospitals that offer robotic-assisted heart surgery.
• Burn centers that offer patient rooms with radiant heating panels for comfort.
• Orthopedic surgery centers that use 3D printing technology to create custom implants.

Reasons Why Patients Choose Specialty Care

Patients looking for advanced treatment options, high quality of care, and providers with specific areas of expertise may be attracted to specialty hospitals. In some cases, specialty care is also the more affordable option, compared to an inpatient stay at a general care hospital.

Because of these benefits, you may be wondering, What are specialty hospitals’ disadvantages? Patients often must weigh the benefits of seeking out specialized care against any inconveniences, such as potential travel time and the challenge of coordinating care among different providers.

What Are Specialty Hospitals’ Roles in Patient Care?

When a patient gets a consultation, surgery, or other treatment at a specialty hospital, the visit fits into a broader continuum of care that may involve a primary care provider and caregivers within a general hospital system. It may be helpful to think of the patient as the center of a care team that extends beyond the walls of a single institution. This necessitates collaboration among facilities and adequate engagement with patients.

Specialty Care vs. Primary Care

While providers at specialty hospitals often collaborate with primary care providers, the two are distinct. Providers at specialty hospitals focus exclusively on one clinical category or patient population, while primary care providers offer comprehensive and ongoing care for general health maintenance.

For example, a children’s hospital may provide leukemia treatments for a toddler. The child would also develop a long-term relationship with a primary care provider who monitors their health over time, potentially into adulthood.

Keep Up With the Changing Healthcare Marketplace

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