Medicaid overpays inpatient rehab facilities; U.S Health & Human Services sign partnership with Veterans' Health Administration;

> Medicare overpaid 13 inpatient rehab facilities that did not comply with transfer regulations that were claimed as discharges, according to recent audits by the Office of Inspector General. Report (.pdf). Meanwhile, Medicaid also overpaid Hawaii Department of Human Services for nonemergency medical transportation services. The state also incorrectly reported the expenditures for those transportation services. Report (.pdf)

> The U.S. Department of Health & Human Services yesterday partnered with the Veterans' Health Administration, offering $25 million to help seniors and people with disabilities access home and community-based long-term services and supports. These services will better allow disabled, elderly and chronically ill patients to remain in their own homes. Statement

> John Muir Health and Blue Shield of California announced Wednesday that they entered into an accountable care organization agreement, adding to the number of provider-payer ACOs, reported The Sacramento Bee. Both parties expect this collaboration to help stem rising healthcare costs for their members. Article

> Tennessee's Capella Healthcare signed a long-term lease agreement yesterday with Muskogee (Okla.) Community Hospital, reported The Muskogee Phoenix. Capella, which already operates Muskogee Regional Medical Center, tentatively plans to assume management of the community hospital July 1. Article

>The Food and Drug Administration, National Institute for Occupational Safety and Health and Occupational Safety and Health Administration this week issued new recommendations on preventing healthcare worker needle sticks. They recommended healthcare staff use blunt-tip suture needles to reduce the risk of contracting blood-borne diseases from accidental needle sticks. Statement

And Finally... Happy National Donut Day! Article