Mark McClellan

ALSO NOTED: McClellan goes to think tank; N.Y. hospitals expect $28 million; and much more...

Fri, 03 Aug 2007 06:59:50 -0400

> Former CMS head Mark McClellan will soon head a new health care center at think tank the Brookings Institution. Article

> New York hospitals could get $28 million a year under new federal legislation. Article

> Jacksonville, Fla.-based Jacksonville University will soon offer specialized master's degrees in its nursing programs, including emergency nurse practitioner and family nurse practitioner subspecialties. Article

> Kindred Healthcare has opened a new hospital in Pittsburgh, and made some other acquisitions in Cleveland. Article

And Finally... Feeding babies in the traditional way may be better for them. Article

SPOTLIGHT: McClellan argues for power of competition

Mon, 09 Oct 2006 20:01:32 -0400

Outgoing CMS head Mark McClellan sat down for a chat this week with The Christian Science Monitor. In a wide-ranging discussion, McClellan laid out his belief in the power of competition for improving healthcare efficiency, citing a 10 percent drop in provider costs under the Medicare prescription drug program as an example. He also expressed support for the notion of making Medicare premiums income-sensitive, a concept CMS plans to implement in 2007. Article

Norwalk named acting director of CMS

Tue, 26 Sep 2006 20:01:38 -0400

Leslie Norwalk has been named acting director of the Centers for Medicare and Medicaid Services. She will be replacing CMS Administrator Mark McClellan, who announced that he was stepping down from his post to join a think tank focused on improving the U.S. healthcare system. "She is a nationally recognized expert on Medicare issues and played a central role in the successful implementation of the prescription drug benefit and other reforms to Medicare and Medicaid," Mike Leavitt, secretary of the Health and Human Services Department, told Forbes. Norwalk, who is currently the deputy administrator, will assume her new role on October 15th.

For more on Norwalk's appointment:
- read this report from Forbes

ALSO NOTED: UnitedHealthcare, HCA continue talks in FL; CO may get new VA hospital; and much more...

Thu, 14 Sep 2006 20:01:30 -0400

> In Florida, UnitedHealthcare and HCA are still discussing how to work out their differences. The massive contract dispute between the two healthcare industry giants has left thousands of patients in Colorado and Florida in limbo. Report

> The House has passed a bill to fund a new VA hospital in Colorado. Report

And Finally... According to a Washington Post Op-Ed, Mark McClellan's departure from his post will give him time to contemplate the "Medicare Monster." Op-Ed

CMS rolls out quality improvement program

Wed, 06 Sep 2006 20:01:38 -0400

CMS announced that it is rolling out the Physician-Hospital Collaboration Demonstration (PHCD), a three-year program designed to gauge whether hospitals can improve outcomes without raising costs, if they reward doctors for providing better care. Under the program, "the hospital would be paid its usual inpatient rate for the patient's care, but would pay to the physician a portion of the savings resulting from quality improvement and efficiency initiatives taken by the physician." Outgoing CMS administrator Mark McClellan says the program is an attempt to encourage improving care to cut costs. The program will take place at 72 hospitals and track patients through their entire course of care, from hospital admission until long after the patient leaves the hospital. This will help program administrators to determine the long-term success of care improvement measures. PHCD was authorized as part of the Medicare Modernization Act of 2003.

For more on PHCD:
- read this CMS press release

Who will fill McClellan's shoes?

Tue, 05 Sep 2006 20:01:35 -0400

Speculation is in the air in the wake of Mark McClellan's announcement that he will step down as CMS administrator. McClellan said he will join a think tank focused on improving the U.S.'s healthcare system. Now the question is: Who will replace him? The New York Times reports that CMS Deputy Administrator Leslie Norwalk is an obvious candidate. CQ HealthBeat says that Herb Kuhn, director of the Center for Medicare Management at CMS, is also a potential nominee. The Bush Administration has only five weeks to pick McClellan's successor.

For more perspective on McClellan's resignation:
- read this article from the Daily Health Policy Report

CMS's McClellan to resign?

Mon, 04 Sep 2006 20:01:38 -0400

According to the Dallas Morning News, CMS administrator Mark McClellan plans to announce his resignation as early as today. He has held the position since March of 2004. Citing anonymous sources, the paper reports that McClellan "had been considering moving on for some time and would probably pursue new opportunities in the private sector or in academia." McClellan declined to comment on the paper's report and a White House spokesperson said he couldn't confirm the Dallas Morning New's report. Prior to becoming CMS head, he was Commissioner of the Food and Drug Administration and served on President Bush's Council of Economic Advisers in 2001 and 2002.

For more on McClellan's possible resignation:
- read the exclusive from the Dallas Morning News
- check out further analysis from The New York Times

PLUS: Help wanted: Three of the world's top healthcare jobs will open up this fall. The WHO's in search of a new director-general, The Global Fund to Fight AIDS, Tuberculosis and Malaria needs a new executive director, and the World Bank's human-development network is in search of a leader. Article (WSJ sub. req.)

CMS's $50M mistake

Wed, 23 Aug 2006 20:01:32 -0400

A "data processing error" at CMS has caused the agency to incorrectly refund 231,000 Medicare recipients a total of $50 million. The recipients were mistakenly repaid an average of $215 for several months' worth of their prescription drug coverage. But no worries, the government assured recipients that it would be getting that money back. Medicare beneficiaries were also mistakenly told that Medicare would no longer automatically deduct their prescription drug premiums from their Social Security checks each month. "This was our mistake, and we are working right now to fix it as quickly as possible…We're making sure that the plans continue to get the payments they need to continue coverage," Mark McClellan told The Washington Post in an interview. Most likely this will end up being a major headache for CMS and a minor nuisance for Medicare beneficiaries. Sen. Charles Grassley (R-IA) raised an important issue, however: some cash-strapped recipients may have difficulty refunding the money. He suggest that CMS collect the repayments in small increments to avoid any problems.

For the details:
- read this Washington Post report

CMS to cut reimbursements 5.1%

Tue, 08 Aug 2006 20:01:32 -0400

CMS announced that it will cut Medicare and Medicaid reimbursement rates by 5.1 percent in 2007. Hospitals, meanwhile, will get a 3 percent raise for outpatient care on the condition that they submit data proving that they're following guidelines for improving patient care. CMS head Mark McClellan says the cuts are due to more treatments being given to each patient, which doesn't necessarily improve outcomes. That is why hospitals won't receive higher reimbursements unless they submit data on improving care. This move toward outcomes-based payment isn't surprising -- after all, CMS' actions are in line with the larger industry trend toward pay for performance. But industry insiders say that with CMS taking these steps, P4P plans are likely to make another leap forward.

CMS is also cracking down on specialty hospitals, stating that "we are entering a new era in terms of disclosure, transparency, and oversight of specialty hospitals." The hospitals will be fined $10,000 a day if they don't report on their financial structures. They also must disclose physicians' financial ties to patients and will be required to treat all emergency patients regardless of their ability to pay for services.

- read this Washington Post article
- see the report from Modern Healthcare

PLUS: Believe it or not, a group of businesses is actually lobbying against a Bush administration plan that would lower "provider taxes." The rising cost of Medicare is behind their unusual effort. Article

McClellan defends transplant programs

Tue, 04 Jul 2006 20:01:37 -0400

Last week the Los Angeles Times reported that as many as one in five organ transplant programs don't meet federal certification standards. On Tuesday, CMS head Mark McClellan defended the program in a letter to Senator Charles Grassley (R-IA), who had demanded an explanation of the Times article's finding. McClellan stated that the federal government increased oversight last fall in response to problems with the University of California Irvine transplant program.

The federal government sent out surveys to all heart, liver and lung transplant centers earlier this year in an attempt to gather more data on the programs and ensure that all accredited transplant centers met federal standards. Of the 202 that have replied thus far, six centers did not meet standard survival rates and 26 did not perform enough transplants to remain certified. McClellan promised to ensure that all transplant centers respond. This is only the most recent round of questions about the U.S.'s transplant program. In 2004, HHS audited the heart transplant program and criticized Medicare's handling of the program.

- read this Los Angeles Times article for more on McClellan's response
- see last week's article on problems with the transplant program

PLUS: A Connecticut hospital is less than pleased with the Los Angeles Times' transplant investigation. A spokesperson for Hartford Hospital said the report didn't include Hartford's most recent data and now private insurers are steering patients away from the hospital. Report