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Medicare lab test pilot on hold
Medicare has been forced to put a pilot program designed to cut the cost of lab tests on hold after losing a battle in court. CMS had asked labs to bid competitively on prices to provide 303 standard... Read more...
State stops acquisition by growing CA hospital chain
Earlier this week, we told you about the growing California hospital empire controlled by cardiologist Dr. Prem Reddy. Victorville, Calif.-based Prime Healthcare Services, which has made its mark with its insurance-free business model, has picked up eight California hospitals in recent times, drawing much attention and some opposition. Now, questions about the chain have stopped …
... Read more...BC of California faces hearing on complaints
Over the past three years the state of California has logged more than 1,600 consumer, physician and hospital complaints about Blue Cross of California (BCC) business practices. Sparked by these complaints, the state's Department of Managed Health Care (DMHC) now plans to hold a public hearing to look at whether the Blue plan has kept promises it made when it was acquired in 2004 by WellPoint. The hearing, which will take place next week, follows a Department of Insurance report …
... Read more...Pediatric stent-maker faces FDA investigation
A company that makes coronary stents and catheters for pediatric use is facing an investigation by the FDA and federal prosecutors, who contend that it promoted non-approved stents for use in children. They say device maker NuMed sold more than 30 stents to the DuPont Hospital for Children in Wilmington, Del., but didn't file for FDA approval prior to selling the stents as agency regs require. If the FDA investigation moves forward, NuMed ultimately could be banned from selling the …
... Read more...Manor Care goes private in $6.3B deal
The Carlyle Group is taking national skilled nursing and assisted living facility operator Manor Care private in a $6.3 billion deal that pays stockholders $67 per share. The chain operates 278 skilled nursing facilities and 65 assisted living centers across the United States. The equity firm is paying out roughly $4.9 billion in cash, and will also assume $1.4 billion in debt.
The Manor Care deal follows the …
Small buy means big change for Tenet
Picking up a single 41-bed hospital usually isn't a big deal for a hospital chain the size of Tenet. But in this case, its acquisition of Hardeeville, S.C.-based Coastal Carolina Medical Center is a significant move, as it's Tenet's first acquisition in five years after years of focusing on existing properties. Executives with Tenet say the $35 million acquisition is a significant step for the company, which has been in turnaround mode for four years.
Tenet is only …
California hospital system launches pro-reform ads
Catholic Healthcare West (CHW) has begun running a series of ads advocating healthcare reform in California. The health system, which operates 42 hospitals in California, Arizona and Nevada, plans to run print ads in several national and regional publications, including the Wall Street Journal, New York Times and Newsweek. The ads don't detail a specific reform scheme, but rather, agitate for broad healthcare accessibility. CHW also belongs to a pro-reform …
... Read more...HealthSouth's Scrushy going to jail
It's the end of the line for high-profile healthcare exec Richard Scrushy, who was sentenced to almost seven years in prison yesterday for his conviction on federal bribery charges. Scrushy, who now runs a church out of a television studio, continues to deny wrongdoing.
Unlike peers involved in similar scandals at Enron, WorldCom and Tyco, Scrushy actually managed to …
... Read more...WellPoint named in sexual-battery suit
And the steamy plot gets thicker. A month after it kicked out Wall Street darling David Colby as CFO, WellPoint was named as a defendant in a suit accusing Colby of varied nasty misdeeds, including sexual battery.
Prior to his dismissal from WellPoint, Colby earned a $740,000 salary and had been awarded stock options worth about $1.7 million at the time. He's since sold $100 million plus of …
... Read more...St. Barnabas racketeering suit dismissed
Despite its having engaged in a massive Medicare scam costing the federal government at least $630 million, St. Barnabas Health Care System did not prevent other hospitals from getting fair reimbursement.
That's the conclusion of a federal judge, who ruled that despite the fraud, St. Barnabas had not engaged in racketeering. Two small hospitals in Maine and Colorado filed the suit, alleging St. Barnabas' over billing was so extreme it distorted CMS's Medicare reimbursement …
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