The Ohio House of Representatives
Select Committee on Quality Healthcare
Rep. Greg Jolivette, Chair
Testimony by Karl Valentine, MD, Medical Director Ambulatory Care Affiliates, Ltd.


Representative Jolivette and members of this committee, I want to thank you for inviting myself and my colleagues here today. As the Medical Director of America's Urgent Care of Gahanna, I represent two points of view, that of the healthcare provider and of small business. Ambulatory Care Affiliates, Ltd (ACA) provides urgent care services in six locations in Central Ohio. By year's end, we anticipate we will see over 68,000 patients.

With the increasing shortage of primary care physicians, the public's use of the local hospital's emergency room as their primary care facility has grown tremendously each year. In response to this, the urgent care services market has also grown tremendously. In Columbus alone, there have been nine urgent care clinics that have opened their doors since January 2001. Two of these have been in response to the closing of a hospital facility.

These centers are a free-market response to the growing need for medical care that is flexible, available, and affordable. Because of the specific regulatory and physical costs that face an emergency room, but not the urgent care clinic, we can often provide the appropriate level of medical care for hundreds of dollars less. And with our availability during the evening and weekends, we can also provide appropriate care at the on-set of a condition before it can have an increasingly adverse effect on the patient. As the trends in both medical care costs and patient responsibility increase, the urgent care clinic is a viable and cost effective response to the community's needs.

In the past, it has been the traditional role of emergency room to act as the safety net for communities' immediate health care needs. The demands being made on today's Emergency Departments have now exceeded their capacity to fill this role. It is now the urgent care clinic that, properly structured, can be the new safety net for those medical needs,

We will not presume to advise you on how to address the total healthcare concerns presented today. But we do believe it would be in the public interest for the State of Ohio to take a proactive approach in supporting the development of programs and regulations which will enhance utilization of the urgent care clinic option. An example of this would be the elimination of the co-pay limits that ultimately, through financial incentives, can improve the health care choices an employee makes. By eliminating these limits, consumers can have a choice of what copay levels they can or want to buy, and employers can have options to encourage their employees to use their benefits responsibly.

Businesses have simple needs when it comes to their healthcare benefits. If an employee becomes sick or injured, he or she needs to be treated, made well, and able to return to work. The administrative process required to accomplish this task can easily overwhelm a small business.

Finally, as a small business, we would like to note two national trends that impact our costs and business. First, in the past 24 months, our medical insurance has risen 32%, and we have recently been told to anticipate a 20 to 25% increase for 2003. Second, since 1998, our malpractice insurance premiums have increase 332%, from $23,898 to $77,065. This is without a single malpractice case being brought against us. As patient care is our source of income, both these costs need to be passed on in the form of increased patient charges.

Again, thank you for the opportunity to present this information, and I will certainly be available for any question you may have either today or in the future.