RAC medical necessity audits; Gender discrimination lawsuit filed against West Penn Allegheny subsidiary;

> Recovery audit contractors (RACs) have received approval from the Centers for Medicare and Medicaid Services (CMS) to conduct the first medical-necessity review audits under the national RAC program, reports AHA News Now. Exactly which RACs and which claims are involved are yet unknown, but 18 types of inpatient hospital claims will be under scrutiny. Article

> Trial is now under way for a lawsuit filed against West Penn Allegheny Health System subsidiary Alle-Kiski Medical Center in Natrona Heights, Pa., by former vice president of operations Lorri Sue Wildi on charges of gender-based wage discrimination, reports the Valley News Dispatch. Article

> CMS has published a final rule detailing changes to the Payment Error Rate Measurement (PERM) for Medicaid and the Children's Health Insurance Program (CHIP). PERM measures national error rates in both programs. Rule

> Talk about a lack of oversight: The Utah Attorney General has filed a civil lawsuit against a former University of Utah hospital cafeteria cashier for allegedly stealing roughly $400,000 over six years, reports the Salt Lake Tribune. Article

> Two nurses who made national news after they were fired by Winkler County Memorial Hospital in Kermit, Texas, and criminally prosecuted for alerting state regulators that they believed a doctor was providing improper prescribing and surgical procedures have settled with the county and will split a $750,000 payment, reports the New York Times. Article

> CHS won the day with a final $120 million bid for Forum Health in Ohio. A bankruptcy judge approved the sale, pending approval from the Ohio Attorney General's Office, after the Ohio Nurses Association withdrew an objection it had filed with the court, reports the Nashville Business Journal. Article

> Suburban General Hospital in Bellevue, Pa., isn't going quietly into the night. The hospital's advisory board has filed suit to stop West Penn Allegheny Health System's planned Aug. 13 closure of the hospital's emergency room and inpatient operations, reports the Pittsburgh Post-Gazette. Article

And Finally... Nurses, just don't laugh at a newborn's name. Article