Article: Battle lines: Acute care and specialty hospitals square off in turf wars over lucrative medical procedures.(Cover Story)

As medical director of and physician-investor in North Carolina Specialty Hospital in Durham, N.C., Thomas Dimmig, M.D., knows first-hand of the conflict escalating between acute care and specialty hospitals.

Three times since 2000, North Carolina authorities have denied requests by NCSH physicians to replace their cramped 77-year-old facility, a former ENT hospital, by building a new hospital at another location. Authorities said a new specialty hospital would be too competitive for the county-owned hospital, Durham Regional Medical Center, which is losing money and has empty beds.

But on Dec. 30, a state administrative law judge recommended that the ...

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