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November 12, 2010

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Today's Top Stories
1. State's malpractice policy has new doctors running for the hills
2. Cash-strapped states want to ditch Medicaid
3. Docs, providers would make sacrifices under deficit-reduction scheme
4. Technology helping patients to understand informed consent
5. H1N1 hospitalization rates higher for non-whites

Editor's Corner: Redefining the hospital


Top Hospitals and Insurers Post Q3 2010 Earnings

A tax benefit boosted Tenet's profits, while fewer births and H1N1 cases cut admissions for Health Management Associates. Those are just some of the forces behind Q3 earnings results. Want to know how top hospital chains fared in the third quarter of 2010? Curious as to how well insurers really did so far this year?

Check out FierceHealthFinance's earnings summaries to see how five of the largest, publicly-traded hospital chains and six of the largest health insurers stack up.

Click here for hospital earnings     Click here for insurer earnings

Also: Be sure to check out FiercePracticeManagement's report on how physicians can build a successful Facebook page.


Also Noted: Spotlight On... Hospital to sue state over inadequate Medicaid payments
Nearly 100 people waited 20-plus hours each in an ER in Australia; Nurse stole drugs from a dispensing machine; and much more...


This week's sponsor is Intel.

See how making fundamental changes in healthcare and rising fees will impact physicians bottom line



Editor's Corner

Redefining the hospital

By Sandra Yin Comment | Forward | Twitter | Facebook | LinkedIn


What will it take for hospitals to stay relevant as tectonic plates in the healthcare industry shift?

It's clear something's got to change. Many signs point to areas where hospitals could deliver care better.

Here's an example of where hospitals don't seem to be delivering on their promise: The most expensive hospital stays tend to be ineffective and pricey. We recently noted that the top 0.5 percent big-ticket hospital stays cost more than $500,000 for a 48 day stay on average. Yet more than 80 percent of those patients will die, despite the inpatient stay. Could it be that there's too much emphasis on last ditch-efforts that have little chance of succeeding, when a patient might do better getting palliative care in a hospice

In a more rational world, better preventive primary care would mean fewer preventable hospital stays. Ten percent of nearly 40 million hospital stays could have been avoided in 2008, according to the Agency for Healthcare Research and Quality. The bulk of that would be preventable chronic conditions. 

Already the growth in demand for outpatient care is outpacing growth in the inpatient slice of the healthcare pie. Technological advances mean smaller incisions avert the need for long hospital stays. As a result, a growing share of healthcare is getting delivered on an outpatient basis.

Hospitals increasingly find themselves treating the very sick or significantly injured as the market shifts to outpatient care. Given that diagnostics, chronic care management and rehab are mostly outpatient, perhaps hospitals would be best suited as the destination of last resort for patients who have exhausted other approaches. - Sandra




Sponsor: AT&T

Events

> IHI National Forum on Quality Improvement in Health Care - Dec 5-8, 2010 - Orlando, FL
> 7th Annual American Health Care Congress - December 7-8, 2010
> Personalized Medicine in P4 Healthcare 2010 - Dec 9-10, 2010 - Santa Clara, CA
> Hospital/Physician Alignment Leadership Summit - Dec 9-10, 2010 - Vienna, VA
> National Congress on Health Insurance Reform - January 19 - 21, 2011 - Ritz-Carlton Hotel, Washington, DC or Watch Online
> AMIA Joint Summits on Translational Science - March 7-11, 2011 - San Francisco, CA

Marketplace

> When patients see what's in their EMR, they will call.
> Invaluable insight led us to $2.5 million in savings in less than one-year
> VMware Whitepaper: The State of EHRAdoption: On The Road to Improving Patient Safety
> Axendia White paper: Lowering the Cost of Healthcare from the Inside Out
> EMRConsultant.com is the leading online EHR evaluation service, providing expertise to physicians in the industry for FREE
> On Your Side: How Outsourced Billing can Strengthen Your Practice
> WakeMed found a trusted advisor who has our back
> Connected Health: Harnessing Telemedicine to Facilitate Remote Diagnosis and Consultation
> Executive Summary: The Changing Impact of Patient Receivables
> HealthTech Marketplace - Search Smarter, Not Harder

Jobs

> Need a job? Need to hire? Visit FierceHealthcareJobs

* Post a classified ad: Click here.
* General ad info: Click here

Today's Top News

1. State's malpractice policy has new doctors running for the hills

By Dan Bowman Comment | Forward | Twitter | Facebook | LinkedIn

Attention all states opting to go without medical malpractice caps: Don't be surprised if doctors don't want to practice within your borders. That's essentially the message being sent by graduating medical students in Illinois, if the results from the state's new physician workforce study are any indication. 

The study, conducted by Northwestern University's Feinberg School of Medicine, surveyed 561 new medical students on where they will practice following graduation, and their reasons for those decisions. Roughly half indicated that they were leaving Illinois to practice elsewhere, with medical malpractice liability playing a big part in that decision. 

Russell Robertson, MD, the study's lead author and a professor and chair of family and community medicine at the Feinberg School and family medicine at Northwestern Memorial Hospital, called the state's malpractice environment "toxic." Said Robertson in a press release: "The Illinois Supreme Court's decision to lift the liability caps seems to send the message that the potential for litigation supersedes the need for residents of Illinois to get needed healthcare." 

That decision--made last February by the state's Supreme Court--drew the ire of the American Medical Association, and continues to leave many doctors trained in The Prairie State feeling like they have no choice but to pull up stakes to begin their careers. 

"It is no shock that Illinois is losing our new doctors," Steven Malkin, MD, president of the Illinois State Medical Society, said in the press release. "If a graduating resident sets up shop in any of our neighboring states, the liability premiums will be about a third to half of what he or she would pay in Illinois....Graduates feel it often doesn't make sense to stick around, unless they have a strong Illinois family connection." 

Furthermore, the study ascertains that as more and more doctors opt to leave the state, rural communities throughout Illinois will remain undersupplied, increasing the likelihood of a prolonged physician shortage. 

To learn more:
- read through the study
- here's the accompanying press release
- check out this Chicago Sun-Times article

Related Articles:
Decision to halt malpractice damage caps in Ill. could have national aftershocks
Illinois judge throws out state's malpractice caps
AMA fights to keep malpractice caps in place
Georgia Supreme Court ends malpractice caps

Read more about: Northwestern University, malpractice caps, Illinois State Medical Society, Feinberg School of Medicine
back to top


This week's sponsor is AT&T.


2. Cash-strapped states want to ditch Medicaid

By Sandra Yin Comment | Forward | Twitter | Facebook | LinkedIn

Budget woes are spurring states to consider dropping Medicaid, according to Kaiser Health News and the Texas Tribune.

Conservative lawmakers in about a dozen states--including Texas, Alabama, Mississippi and Washington--see opting out of the federal Medicaid program as a way to deal with budget pressures and the costs associated with meeting the requirements of the federal healthcare overhaul. Many state governments complain that the expansion of Medicaid, which is expected to add 16 million new enrollees, will put their already cash-strapped budgets into even more dire straits, the Washington Post reports.

"States feel like their backs are against the wall, so this is the nuclear option for them," said Christie Herrera, a director with the American Legislative Exchange Council, an association for conservative state lawmakers. She said she's hearing chatter from legislators around the country who are considering opting out.

In the Texas State House, a larger majority of Republicans contend that states could provide more efficient care by giving up federal matching money entirely, or having federal officials grant states waivers to provide healthcare in a different way. Options that have been floated in several states include remaking Medicaid into a state-financed plan only to give states more flexibility in benefit and cost design. Texas currently is facing a budget gap estimated at $25 billion.

Opponents to dropping Medicaid say the idea is anti-Washington grandstanding that could hurt the health of 3.6 million Texans who are current enrollees. Without the 60 percent of Texas' $45 billion biennial Medicaid budget coming from the feds, there could be unintended consequences. "This will raise local property taxes because hospital emergency rooms can't turn away patients," said Regina Rogoff, executive director of the safety-net People's Community Clinic in Austin. "And it has the implication of us paying, through federal taxes, to subsidize care in other states, leaving people who live in our state without care."

Proponents of opting out aren't necessarily that worried about the latter. "If people are in superbad poverty, that's one thing," said State Rep. Warren Chisum, a Republican who is the state's biggest supporter of opting out of Medicaid and a candidate for Speaker of the House. "It breaks my heart when there's someone who smokes, and who stays drunk half the time, and we're supposed to provide their healthcare."

To learn more:
- read the Kaiser Health News/Texas Tribune article
- check out this Washington Post piece

Read more about: Medicaid, Federal Medicaid Program, Budget Gap, American Legislative Exchange Council
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3. Docs, providers would make sacrifices under deficit-reduction scheme

By Sandra Yin Comment | Forward | Twitter | Facebook | LinkedIn

A bipartisan White House panel is calling for belt-tightening measures to cut the deficit by $4 trillion through 2020. Proposed mandatory cuts to healthcare spending would include paying doctors and other providers less, according to the 50-page proposal developed by the National Commission on Fiscal Responsibility and Reform.

To defray the cost of the doc fix, in the medium term, the panel asks doctors and other providers to take responsibility for the growth in healthcare costs. Offsets would include:

  • Paying doctors and other providers less, improving efficiency and rewarding quality by speeding up payment reforms.
  • Paying lawyers less and cutting the cost of defensive medicine by adopting comprehensive tort reform that would cap non-economic and punitive damages.
  • Expanding cost-sharing in Medicare.
  • Fortifying the Independent Payment Advisory Board.

"America cannot be great if we go broke," the commission's proposal says. "If the U.S. fails to stabilize and cut the national debt, we could spend $1 trillion a year in interest alone by 2020."

Providers already are gearing up for a fight against belt-tightening measures that they see as draconian. A press release issued by the American Hospital Association noted that the draft proposal "could jeopardize hospital services for vulnerable patients and communities, particularly given that hospitals already face $155 billion in cuts as part of hearth reform." AHA also objects to the proposal that hospitals be subject to an independent payment advisory board that sets Medicare payment rates.

The Alliance of Specialty Medicine, an organization of national medical societies, also expressed concerns about the proposal to strengthen the Independent Payment Advisory Board--which aims to cut Medicare spending--because such cuts would endanger seniors' access to doctors and lead to care rationing.

To learn more:
- read the National Commission on Fiscal Responsibility and Reform proposal
- here's the Alliance for Specialty Medicine's press release
- here's the AHA press release
- read The Hill's article
- here's the Wall Street Journal article

Read more about: Tort Reform, Medicare, healthcare costs, Defensive Medicine
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4. Technology helping patients to understand informed consent

By Alicia Caramenico Comment | Forward | Twitter | Facebook | LinkedIn

Hospitals are turning to technology to better inform patients about what they are consenting for the doctor to perform, reports the Associated Press. The interactive computer programs explain procedures step-by-step, the associated risks and benefits as well as answer patient questions.

Many in the healthcare industry say using computers to acquire informed consent makes patients partners in the decision-making, according to the AP. "[It] sends a message that the decisions are truly owned by the patients," Dr. Harlan Krumholz, a Yale University heart specialist and advocate of changing informed consent procedures, told the news agency.

Cancer patient John Noble watched the program prior to a tumor removal surgery at University of Pittsburgh Medical Center. "It changed my perspective. It removed my fear," he told the AP.

The traditional informed consent process often involves convoluted medical forms, leaving patients confused about what they just signed and why a certain procedure is being performed or how it might help or hurt them.

"In order to make informed choices about healthcare, patients need complete and accurate information," Department of Veterans Affairs' Chief Healthcare Ethics Officer Dr. Ellen Fox told the AP. "It is ultimately the patient's choice whether to have a procedure. The program helps make that clear."

The VA requires its doctors to use iMedConsent computer programs for all treatments requiring informed consent. The programs, developed by Dialog Medical in Atlanta, are used by more than 190 hospitals. Chicago-based Emmi Solutions also has developed computer-based informed consent programs used in more than 100 hospitals.

The interactive programs also guard hospitals from lawsuits if something goes wrong, notes the AP. The programs act as an electronic record that hospitals can use to fight malpractice lawsuits. According to the AP, some hospitals already have used such electronic data in court to argue that patients were informed about specific risks because they watched portions of the program that explained those risks.

For more:
- read the Associated Press article

Related Articles:
Peel pushes for 'informed consent' over every element of patient data
Updating informed consent in the era of patient-centered care
How health IT can keep hospital leaders in the loop

Read more about: University of Pittsburgh Medical Center, malpractice lawsuits, Interactive Programs, Informed Consent
back to top



5. H1N1 hospitalization rates higher for non-whites

By Sandra Yin Comment | Forward | Twitter | Facebook | LinkedIn

African-Americans and Hispanics were about twice as likely as whites to be hospitalized for H1N1 during the 2009-10 flu season, according to a new report, Fighting Flu Fatigue, from the non-profit Trust for America's Health. Both H1N1 and seasonal flu vaccination rates were lower for African-Americans and Hispanics than for whites.

Here are some of the report's findings:

  • 30 African-Americans were hospitalized per 100,000 people compared with 16 per 100,000 for whites.
  • H1N1 vaccination rates were 12 percent lower for Hispanics and 10 percent lower for African-American adults than whites.
  • Seasonable flu vaccination rates were 22 percent lower for Hispanic adults and 17 percent lower for African-American adults than their white counterparts.

To fight the flu and boost vaccination rates, the report suggests a launching campaign to educate about the need for flu shots and making a concerted effort to reach minority groups with targeted, culturally appropriate messages to encourage vaccinations, as well as countering negative beliefs and misinformation.

The report notes that while the response to the H1N1 outbreak showed that the country was better prepared to respond to a pandemic than it had been a few years earlier, the outbreak revealed continuing challenges to public health preparedness.

One key variable that dampened the response to H1N1 was that in the midst of the outbreak, budget cuts shrank local health departments by 23,000 jobs. Shortened work weeks for 13,000 local health departments also slowed the response.

To learn more:
- read the report
- here's the press release from the Trust for America's Health

Related Articles:
Study: Early vaccinations could cut H1N1-related deaths
H1N1 flu could overtax hospital bed capacity

Read more about: Vaccination Rates, outbreak, Hispanics, flu vaccination
back to top



Also Noted

SPOTLIGHT ON... Hospital to sue state over inadequate Medicaid payments

A Beckley, W.Va., hospital plans to sue the state over Medicaid reimbursements, alleging that the state doesn't cover the cost of treating patients, the Charleston Gazette reports. Appalachian Regional Healthcare Hospital sent a letter to state Department of Health and Human Resources officials Thursday announcing its plan to file a lawsuit. West Virginia's Medicaid program covers only 67 percent of what it costs the hospital to treat Medicaid patients, according to Rocco Massey, community CEO of the nonprofit hospital. Article

> A nurse at Three Rivers Medical Center in Louisa, Ky., stole drugs from a dispensing machine, WKYT reports. Article

> Northern Michigan Regional Health System plans to eliminate 50 positions and cut three services, including a NICU, 9&10 News reports. Article

> Daniel Moen was named CEO of Sisters of Providence Health System in Springfield, Mass., The Republican reports. Article

> The VA will add a $35 million 135,000 square foot clinic in Jacksonville, Fla., the Times-Union reports. Article

> Nearly 100 people had to wait more than 20 hours in the ER at Bendigo Hospital in Australia over the course of 11 months, the Bendigo Advertiser reports. Article
  
And Finally... Maybe he didn't want to eat hospital food. Article


Events


* Post listing: Click here.
* General ad info: Click here.

> IHI National Forum on Quality Improvement in Health Care - Dec 5-8, 2010 - Orlando, FL

For health care professionals passionate about improving care, IHI's National Forum sparks a surge of new ideas and allows attendees to think through the whole process of change, with a focus on doing it well. Join us and "take care" to a new level this December. Click here to learn more!

> 7th Annual American Health Care Congress - December 7-8, 2010

This event is an intensive, two-day educational and networking forum, designed for senior health care executives from all industry sectors to address critical implementation challenges post-reform. Register and save $200! To register, contact us at 800-767-9499 with code BYG327!

> Personalized Medicine in P4 Healthcare 2010 - Dec 9-10, 2010 - Santa Clara, CA

Strategic leadership event, designed to give you a blue print to upgrade your service lines with successful business models, revenue generating partnership s and ROI strategies in P4 Healthcare. Learn More & Register Today!

> Hospital/Physician Alignment Leadership Summit - Dec 9-10, 2010 - Vienna, VA

Learn about the different types of alignment strategies - contracting, integration and service line - and the culture, legal and reimbursement implications that must be considered under each alignment approach. Register or learn more at www.worldcongress.com/HPA.

> National Congress on Health Insurance Reform - January 19 - 21, 2011 - Ritz-Carlton Hotel, Washington, DC or Watch Online

Media partners Harvard Health Policy Review and Health Affairs, a faculty of over 100 national experts with over 60 sessions on the key issues, including high risk pools, reinsurance programs, medical loss ratio, premium rate regulation, individual mandate, and more. For more information, go to www.HealthReformCongress.com, call 800-503-0078, or click here to email

> AMIA Joint Summits on Translational Science - March 7-11, 2011 - San Francisco, CA

Two days of Translational Bioinformatics followed by two days of Clinical Research Informatics, with a bridge day of shared keynote speakers and sessions. Parc 55 San Francisco. Registration opens December 15, 2010.



Marketplace


* Post listing: Click here.
* General ad info: Click here.

> When patients see what's in their EMR, they will call.

With questions. Patients may perceive their medical data as chaos. Clear up confusion, increase efficiency, and address Meaningful Use menu-set directives with Healthwise solutions that give them specific patient-friendly information they need and help providers get MU payments. Find out how.

> Invaluable insight led us to $2.5 million in savings in less than one-year

VHA PriceLYNXTM offers invaluable insight and a trusted pricing advisor that helped WakeMed Health & Hospitals, Raleigh, N.C., identify $9.8 million in savings and implement $2.5 in savings in less than one-year. Learn more.

> VMware Whitepaper: The State of EHRAdoption: On The Road to Improving Patient Safety

Download this report to discover how organizations are overcoming obstacles to adoption, how they benefitting from EMR/EHR solutions, and where the industry is going next. Read more

> Axendia White paper: Lowering the Cost of Healthcare from the Inside Out

This white paper written by Axendia discusses how integrated asset and service management enables healthcare providers to enhance patient care, improve clinical outcomes, reduce costs and ensure compliance. Read more.

> EMRConsultant.com is the leading online EHR evaluation service, providing expertise to physicians in the industry for FREE

EMRConsultant.com uses over 50,000 data points to provide the practice with recommendations for the best EHR solutions for their practice. EMRConsultant.com expedites the EHR search process for overwhelmed practices that are looking to go paperless. Visit EMRConsultant.com today.

> On Your Side: How Outsourced Billing can Strengthen Your Practice

By outsourcing medical billing services, practices are not only able to save valuable time and resources, but may also reduce rejected claims and receive reimbursement more quickly. Download this new Whitepaper to learn ways to strengthen your billing solutions.

> WakeMed found a trusted advisor who has our back

VHA PriceLYNX™ offers invaluable insight that helped WakeMed Health & Hospitals (N.C.), implement $2.5 in savings in less than one year. Says Brenda Meares, "We can't dedicate a resource solely to mining VHA PriceLYNX data, so to have our pricing advisor point out our biggest opportunities without us having to spend time compiling that information ourselves is wonderful."

> Connected Health: Harnessing Telemedicine to Facilitate Remote Diagnosis and Consultation

This eBook explores the myriad issues surrounding telemedicine, delves into some specific case studies and discusses how telecommunications and related technology affect physician, nurse and hospital workflow. Click here to download this eBook now!

> Executive Summary: The Changing Impact of Patient Receivables

These survey results from FierceHealthFinance reveal the latest trends on how patient receivables are impacting the healthcare revenue cycle. See how your colleagues are affected and what they're doing about it. Use the results as a benchmarking tool for your own organization. Click here to download the free survey results, sponsored by Varolii.

> HealthTech Marketplace - Search Smarter, Not Harder

Tired of searching? Find the vendors you trust and the products you need the first time with our healthcare decision-making tool, HealthTech Marketplace. HealthTech makes it simple to Compare, Research and Contact leading healthcare vendors in one place. Search smart. Start today.



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