investments

With passion for health reform at a high across the U.S., fervor for cutting healthcare costs has never been higher. However, cutting costs is proving to be even harder than it looks. Of late, providers are increasingly being asked to make investments--such as electronic medical records--which could squeeze costs out of the healthcare system. The problem is, often the upfront costs are high and the benefits far in the future. Article

A group of six men have been indicted on federal charges that they rigged bids for a $79 million IT project. The group, which includes contractors, a military officer, the officer's son and a prominent healthcare consultant, is accused of steering IT contracts for roughly 20 Army hospitals to companies with which they were affiliated or companies they controlled. In some cases, the contracts were designed such that only a specific company could get them, and in others, the bidding process …

While malpractice claims against hospitals and doctors have stabilized over the past year, the average claim size has gone up, according to the results of an annual study by the American Society for Healthcare Risk Management (ASHRM) and and risk management firm Aon. The study, which reviewed about 48,000 claims totaling $4.4 billion, found that for the second year in a row, the volume of claims filed held steady. However, it also found that average claim sizes continue to increase at a …

Publisher's Note

As you know, information technology is transforming the healthcare industry and swallowing more and more of our spending -- $40 billion by 2008. To help you maximize ROI on your IT investments, FierceMarkets today launched a new newsletter called FierceHealthIT. In …

After an internal review, the Cleveland Clinic said it will no longer allow doctors and administrators to make investment decisions. The inquiry followed on the heels of controversy over investments made by key figures at the hospital, including CEO Delos 'Toby' Cosgrove. Long regarded as "one of the most entrepreneurial" providers in the country, the Cleveland Clinic hopes that the step will allow innovation and entrepreneurship to continue while resolving troubling questions. Clinic …

The University of Pittsburgh Medical Center reported much improved numbers for the first half of its current fiscal year. UPMC said revenues were up 13 percent to $2.8 billion for the six months ending December 31. The result: a much more profitable performance for the health network than last year. Profits jumped 73 percent to $225 million from $130 million. Notable bright spots included a 16 percent increase in outpatient activity and overall admissions. The hospital chain's investments …

A new survey finds venture capital investors pumped more than $2.1 billion into medical device companies last year, the most since 2000. The annual Money Tree Survey found that about 28 percent of venture capital money went to the med tech and biotech sectors. That's more than the 25 percent that went to software start-ups in 2005. The growth in med tech was led by investments in companies that make knee replacements, defibrillators and "other devices for which demand is expected to …

California's insurance commissioner gave the go ahead for the $9.2 billion merger of PacifiCare and the UnitedHealth Group. The deal creates one of the largest health plans in America--and the largest by market cap--with 26 million subscribers. Some analysts had predicted that commissioner John Garamendi might decide to block the deal on the grounds that it could hurt consumers, but he allowed it in return for $250 million in investments and contributions to medically underserved …

Facing criticism over his decision to strip cardiologist Eric Topol of his post at the Cleveland Clinic's medical school, CEO Delos "Toby" Cosgrove said the hospital will authorize an independent review of potential organizational conflicts of interest. Topol is believed to have lost his position partly as result of criticism of the CEO's role at Foundation Medical Partners, a venture capital fund which made investments in technologies used at the clinic.

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The Association for Healthcare Philanthropy released its annual Report on Giving. According to the group, healthcare organizations in the US raised $6.1 billion in 2004. That's an increase of 3.5 percent over 2003. The figures include income generated from endowments and investments. Individuals provided the bulk of all funds raised--60 percent. Businesses, including corporate foundations, supplied 19.4 percent; foundations other than corporate, 12.3 percent; and other sources 8.3 …