A group of German patients has filed a
lawsuit against financially beleaguered Integrated Surgical Systems
Inc., alleging that the Davis company' Robodoc surgical robot is
"defective and dangerous," according to a company filing with the
Securities and Exchange Commission. The class action was filed in Yolo
County Superior Court Dec. 17, six months after Integrated Surgical
System's product liability insurance coverage was terminated because the
company could not pay the premiums.
'Smart
bombs' to deliver fatal blast to tumors
New Scientist, 1.5.2005
Nanoscale
polymer capsules could one day be used to deliver chemotherapy direct to
tumors, leaving adjacent tissue unscathed. The capsules would be
designed to rupture when heated by a low-energy laser pulse, delivering
their payload right where it is needed. Anti-cancer drugs would be more
effective, and the side effects less severe, if they could home in on a
tumor and be delivered in a single burst. This would allow the drug to
reach the concentrations needed to kill cancer cells, while minimizing
damage to surrounding tissue.
iPods
Store Medical Images
eWeek.com, 1.5.2005
Radiologists are turning to iPods to deal
with the hassles of managing medical images. They're not listening to
music, though; they're looking at pictures. Medical images are
increasingly important in diagnosing everything from cancer to heart
disease to sports injuries. And they are used extensively for research,
including brain function and experimental treatments, but they also
require large data sets, making storing and transferring images
problematic. Two radiologists recently developed open-source software,
called OsiriX, to display and manipulate complex medical images on the
popular portable devices called iPods.

Medication errors cut in Philadelphia area
Philadelphia Inquirer, 1.6.2005
A regional effort to
prevent hospital patients from being harmed by medication errors has
made progress, but more must be done, according to a new report.
Launched in February 2001 by the Delaware Valley Healthcare Council and
two leading patient-safety organizations, the Regional Medication Safety
Program for Hospitals sought to give hospitals the tools needed to
reduce mistakes that injure and kill patients. A report on the program
being released today concludes that participating hospitals had a 22
percent improvement toward meeting the council's goals.
Innovation or Irrelevance: Six Steps to Move Forward
HealthLeaders News, 1.7.2005
Anytime two or more
healthcare executives get together, talk will eventually turn to the
"tremendous" or "dramatic" change our industry has undergone in recent
years. Yet, management guru/author Ian Morrison begs to differ. In his
2000 book "Healthcare in the New Millennium," he observes that
"healthcare moves at glacial speed compared to most other industries."
Indeed, the speed of change is relative. While recent years have brought
considerable change to the industry (for example, increased
physician-hospital competition and advances in information technology),
healthcare change pales in comparison to that of industries such as
financial services, information technology, pharmaceuticals, and even
automobile manufacturing.

Surgical tools cleaned
improperly
Raleigh (NC) News & Observer, 1.7.2005
Two Duke University
Health System hospitals in Durham and Raleigh have notified about 4,000
patients that they may have been operated on with surgical instruments
that weren't properly cleaned. Although letters to patients don't
specify what happened, drums labeled "detergent" actually contained a
petroleum-based hydraulic fluid that was piped into the
instrument-cleaning system at Duke Health Raleigh Hospital and Durham
Regional Hospital. As a result, from early November until late December,
instruments were washed with a solution of hot water and hydraulic fluid
and then sterilized with heat. The problem was discovered after hospital
employees noticed that surgical instruments seemed unusually slick and
oily.
New
implant highlights tension between patients, profit Sacramento Business Journal, 1.10.2005
A new medical device called a drug-eluting
stent has made the future brighter for heart patients, but darker for
the hospitals that implant the devices. Stents essentially are small
tubes made of metal mesh. They are used to repair and strengthen damaged
arteries, and for the last decade the bare-metal version has surpassed
balloon angioplasty as the procedure of choice. In the past few years,
an improved stent has been available, one coated with medicine. Once
inside the patient, the medicine gradually oozes out of the stent and
helps the body accept the device. These drug-eluting stents also cut
down on the formation of new blockages that would require repair work
later. The problem for hospitals involves cost and reimbursement.

Suros
puts product first The Indianapolis (IN) Star, 1.10.2005
Suros' ATEC system -- Automated Tissue Excision and Collection -- is an
air-powered tool that allows doctors to reach, cut and collect tissue
samples through a needle. The procedure is minimally invasive, requiring
a puncture rather than surgery.
Doctors finding bigger is better to reduce costs
Philadelphia Inquirer, 1.11.2005
Doctors are frustrated
by low insurance reimbursements, high malpractice costs, and lack of
control over patient care. They don't want to join hospitals or
managed-care practices, but can't afford the overhead and malpractice
rates of a one-to-two-person practice. So many small groups are finding
strength in numbers - merging to form large private practices.
Hospitals Step Up Efforts To Avoid Medication Errors
The Wall Street Journal, 1.12.2005
It's a simple enough
concept: Hospitals should find out what medications a patient is taking
when he or she is admitted. Yet too many hospitals don't have a
medication-checking protocol, opening the door to potential disaster,
like a diabetic returning to a hospital recovery room without a
resumption of insulin after surgery or a heart patient being discharged
with a drug that duplicates one he's already taking.

Overuse of Medical Scans Is Under Fire
The Wall Street Journal, 1.12.2005
The government is likely
to join a growing number of private health plans that are attempting to
rein in the use of diagnostic scans. A Medicare advisory panel is
expected to make several recommendations to Congress on the best way to
curb the sharply escalating costs of MRIs and other scans.
Five Ways To Fix The FDA
Forbes.com, 1.12.2005
The U.S.
Food and Drug Administration may have the world's toughest job. A
quarter of every dollar Americans spend annually--some $1 trillion in
total--is regulated by the FDA. From the start, the safety of medicines
has been the agency's most sacrosanct calling. The FDA was founded after
a 1937 incident in which a poisonous medicine killed 107 people, most of
them children. Since then, the FDA has become synonymous with drug
safety. In a sense, "FDA approved" is the brand that the entire $216
billion U.S. drug market is founded upon. Dilute the confidence of the
public in the agency, and many billions of dollars in current and
potential sales vanish overnight.
How
the Right CFO Fixed Cleveland Clinic
HealthLeaders, 1.14.2005
It's a brisk, calm Fall
day in northeast Ohio, but at the Cleveland Clinic Health System's
administrative offices, organized chaos reigns. Movers and maintenance
personnel scurry about with their hands full, and boxes filled with
files, frames and memoirs are strewn about the lobby. All signal a sea
change in leadership at the world-famous academic medical center. For
the first time in 15 years, a new boss is moving in. By all accounts, it
is a friendly transition between outgoing chairman and CEO Floyd D.
Loop, M.D., and his successor, Delos M. "Toby" Cosgrove, M.D. But a
six-month period between the naming of the new CEO and the departure of
his predecessor has done only so much to limit stress on some 30,000
subordinates. Still, none of the upheaval penetrates the closed office
door of Michael O'Boyle, The Cleveland Clinic Foundation and Health
System's self-deprecating chief financial officer, who quietly has
brought about tremendous change.

A
micromachine that walks using muscles that it grew for itself has been
developed in a US laboratory. The remarkable device could eventually
lead to muscle-based nerve stimulators that let paralysed patients
breathe without a ventilator, or to nanobots that clear away plaque from
inside the walls of a human coronary artery.
Through Efficiency, Hospitals Can Improve Both Quality and Safety
The Wall Street Journal, 1.18.2005
For the average patient,
the costs and hassles associated with hospitalization make coming to the
hospital a last resort. They fear a big bill that they can't pay off as
much or more than the illness. Though cutting hospital costs can seem
daunting – they've been rising far faster than inflation – there are
small changes hospitals could make that would go a long way toward
improving the patient experience, and lowering costs in the process.
Prices are up because hospitals face challenges such as increasing
patient loads, uncompensated care for the uninsured, shortages of nurses
and declining reimbursement in the face of rising insurance and general
operating costs. Other industries have similar problems too, but they
are miles ahead of health care in instituting lean methods that cut the
waste from their daily processes.
Minnesota hospital errors revealed
Minneapolis (MN) Star
Tribune, 1.20.2005
Minnesota hospitals performed surgery on the
wrong body parts, gave the wrong medications or made other mistakes that
endangered patients 99 times in a 15-month period starting in the summer
of 2003, according to the first such report in the nation. The report,
released Wednesday by the Minnesota Health Department, said that 20
deaths were associated with hospital errors, including eight people who
died after falls and four after medication errors.

Electronic Medical Records Could Save $78 Billion a Year
The Wall Street Journal,
1.21.2005
Roughly $78 billion is
what a group of leading electronic-medical-record proponents believe
could be saved annually if the U.S. were to adopt a system that lets
medical professionals seamlessly access patient records and other
medical data. The conclusion was in a report given to the Bush
administration earlier this week.
Health IT Infrastructure
Could Net Big Savings
eWeek.com, 1.22.2005
A national
system for electronic health information could save as much as $78
billion dollars a year, or about 5 percent of current health care
spending, according to a study by the Center for Information Technology
Leadership, a nonprofit research group focused on health care. But about
half of that value will be lost if health care providers do not make
their systems interoperable, or capable of interfacing with each other.
As hospitals and their outpatient affiliates move toward adopting EHR
(electronic health record) systems, they do so without nationwide
standards of interconnectivity. That often means that a patient's
information from one provider is inaccessible to other providers.

Kaiser CEO reshapes a health-care giant for the 21st
century
Sacramento Business
Times, 1.24.2005
George Halvorson, Kaiser Permanente’s
chairman and CEO, is convinced that Kaiser's continued financial success
in coming years rests on two key strategies, which he's been pushing
since he arrived nearly three years ago: Successfully implementing a $3
billion electronic medical record system by late 2006 and introducing a
flurry of new products to attract younger, healthier enrollees. So
convinced, in fact, that Halvorson has been politely turning aside
requests by both foreign health officials and large employers to bring
Kaiser to new regions or even new countries.
Baptist South to go 'paperless'
The
Business Journal of Jacksonville (FL), 1.24.2005
In just a few weeks the 248,000-square-foot
Baptist Medical Center South will open, featuring state-of-the-art care
in 92 suites on a 32-acre campus off Interstate 95 and St. Augustine
Road. But something will be missing. Paper. Baptist South will be
Northeast Florida's first hospital to open as a paperless facility,
meaning medical histories, treatment orders and all other documents will
be kept only electronically.
Massachusetts hospital group to detail
safety plan
The Boston
Globe, 1.26.2005
The Massachusetts
Hospital Association is expected to unveil an ambitious program today to
improve patient safety in the state's 105 hospitals, including public
posting of nurses' workloads at individual hospitals and the number of
hours each day they spend directly caring for patients. The
association's program is voluntary. But hospitals that sign a pledge to
participate in the "Patients First" initiative agree to about 20 goals,
such as regularly discussing patient safety at hospital trustee meetings
and submitting their nurse staffing plans to state public health
officials yearly. The association, which is a trade group run by
hospitals, plans to report on a new website which hospitals have
enrolled and their progress toward the goals, hoping that the public
pressure and scrutiny will help motivate hospitals to participate.

High-Tech Alliance on Base for a Digital Health Network
The New York Times,
1.26.2005
Eight of the nation's
largest technology companies, including I.B.M., Microsoft and Oracle,
have agreed to embrace open, nonproprietary technology standards as the
software building blocks for a national health information network. The
Bush administration has said that creating such a network should be a
national priority over the next several years. The goal is to improve
care and reduce costs by abandoning paper and moving to a digital system
for handling patient records, clinical research, claims and payments.
Such a network, analysts agree, should save both lives and dollars.
MedPAC Recommends Extending Stark Moratorium on
Specialty
Hospitals
HealthLeaders News,
1.26.2005
On January 14, 2005, the
Medicare Payment Advisory Commission (MedPAC) announced the
much-anticipated recommendations that it will make concerning physician
investments in specialty hospitals. MedPAC voted to recommend that
Congress take several actions, most notably extending the Stark
specialty hospital moratorium for an additional 18 months, to address
the growing concern about the effects of physician investments in
specialty hospitals. The extended moratorium would give Congress time to
further study the quality and efficiency of services offered at
specialty hospitals, and, if warranted, to take additional, more drastic
steps to level the playing field between specialty hospitals and
community hospitals.
President Promotes Switching To Electronic Medical
Records
The Washington Post,
1.28.2005
President
Bush called on doctors and hospitals Thursday to move their medical
records from paper to electronic files, a change that he said would
improve medical care while shaving significant sums from the nation's
spiraling health care bill. Speaking at the Cleveland Clinic, Bush
quoted health analysts who said that the efficiencies wrought by
electronic medical records could reduce medical costs as much as 20
percent. Electronic records can "help change medicine and save money and
save lives," he said.

Harvard Medical School CIO
Tests Embedded RFID Chip
eWeek.com, 1.28.2005
As an emergency medicine physician, Dr. John D. Halamka immediately saw
the life-saving potential of embedding tiny wireless RFID
(radio-frequency identification) devices in people. As the CIO of the
Harvard Medical School, he was naturally skeptical of such devices and
wanted to test them thoroughly before recommending their adoption. As a
physician CIO, he knew that there would be risks inserting any foreign
object into a human being and that the body might interfere with the
device's functioning and that the device could interfere with the body's
functioning. Therefore, Halamka said he did the only reasonable move: He
offered himself as a radio-signal guinea pig and got a first-hand
experience of having an embedded transmitter.
Siemens' unit creating new 'digital hospitals'
Atlanta Business Chronicle, 1.31.2005
Alpharetta-based Siemens One Inc. has been
rapidly growing its health-care technology business. The company, which
is a subsidiary of Siemens AG (NYSE: SI), is building "digital
hospitals" in more than five states. The hospitals are designed so that
medical equipment and information systems are completely integrated, as
are building and energy infrastructure, communications, environmental
controls and security. The "paperless" hospitals aim to improve
operational and financial efficiency, while creating a more convenient
experience for patients.
Medicare to Pay Bonuses to Doctors For Cutting Costs
The Wall Street Journal,
2.1.2005
Medicare launched an
experiment to pay some physicians bonuses if they deliver better-quality
care while reducing costs, a move that is part of a broad effort to
reward health providers for improved performance. The Centers for
Medicare and Medicaid Services named 10 clinics that will be awarded
bonus payments if they curb costs for patients with expensive health
problems. Medicare currently pays physicians based on the number and
complexity of services, leaving little incentive for health-care
providers to make care more efficient.

Some Push to Make Hospitals Disclose Rates of Infection
The Wall Street Journal,
2.1.2005
There is a growing push
for such disclosure, including a two-year-old national campaign by
Consumers Union. The intent is both to help people make informed choices
about what hospitals to use and, by harnessing competition, to spur
hospitals to try harder.
Paying for Better Care, Not More: Medicare Joins the P4P
Movement
The Wall Street Journal,
2.3.2005
About 46 cents of every
dollar spent on health care in the U.S. comes from the government, the
bulk of it from the Medicare and Medicaid health-insurance programs for
the old, the poor and the disabled. The government pays nearly 60% of
the hospital bills and 20% of the doctor bills. So if the government
changes the way it pays doctors or hospitals, it makes big waves in the
health-care system. Which is why it's worth paying attention to the
latest government experiments in paying doctors not for providing more
care, but for providing better care. Paying for performance, known as
P4P, is a fad in health care.

New Scientist, 2.5.2005
A material normally used to clean up car exhaust fumes could one day be
used in dressings and surgical equipment to prevent severe skin
infections and blood clots. It might even help combat infections by the
MRSA superbug, a newly filed patent claims. What these medical problems
have in common is that they can be treated with nitric oxide (NO). This
gas is able to regulate blood pressure, stop thrombosis - blood clotting
in the vessels - and is a powerful antibacterial agent. However,
applying NO to the right areas and at the right levels is a major
challenge.
Hospitals Build Deluxe Wings For New Moms
The Wall Street
Journal, 2.8.2005
Even as hospitals are
under increasing pressure to reduce costs, they are spending heavily in
an unlikely area: luxurious maternity wards. Amid heightened
competition, hospitals are betting that making a good impression on
moms-to-be and their families during such a formative experience can
build lifelong loyalty. The latest boom in hospital construction is an
effort to win over patients with state-of-the-art facilities offering
private suites, whirlpool baths and Internet access.
Creeping consolidation in the hospital M&A market
HealthLeaders, 2.14.2005
Following a busy 2004, it seems likely that high-profile
acquisitions between for-profit chains won't continue to lead the
consolidation trend. Though deals in 2004 like LifePoint Hospitals
Inc.'s pending $1.7 billion purchase of neighboring Province Healthcare
Co.-both based in Brentwood, Tenn.-make a splash in the industry, other
perennial giants seem poised to sit this round out. Nashville,
Tenn.-based HCA Inc. certainly has not added to its roster, nor has
Tenet Healthcare Corp. in Dallas. Instead, it is selling off a slew
underperforming hospitals.

The
Business of Cancer
HealthLeaders, 2.14.2005
Oncologists run a business where nobody ever wants to be
a customer. Yet the universal experience of cancer has touched virtually
everyone in and outside of healthcare with a heart-wrenching experience.
But it may not always be so. Much talked-about clinical advances on the
horizon will revolutionize the prevention, diagnosis and treatment of
cancer. At the same time, those same advances will bring about
far-reaching changes in how the hospitals, physician practices and
health plans involved in treating cancer will operate in the future.
Drug makers press fight vs. counterfeiters
The Boston Globe,
2.14.2005
Pfizer and other US
drug companies are fielding their own private agents to wage war on
prescription counterfeiters and Internet distributors around the world.
They are stepping in to guide and assist agencies like the Food and Drug
Administration, which do not have sufficient resources to investigate
the flood of unapproved knockoffs and phony prescriptions pouring into
the United States.
Make
that fish and microchips
HealthLeaders,
2.15.2005
It has been described as the world's largest healthcare
information technology project and is a goal the United States only
dreams about. England is implementing a border-to-border electronic
health record funded by the United Kingdom's National Health Service.
Dubbed the "National Programme for Information Technology," the 10-year
project will provide a centralized electronic patient record and
applications that connect patients, physicians and hospitals throughout
the country. The undertaking offers many lessons to U.S. healthcare
providers. National Health Service contractors and other experts discuss
what it takes to connect an entire nation.

When
is Enough, Enough in Supersized Hospital Equipment?
HealthLeaders,
2.18.2005
The U.S. patient population is growing rounder each year,
and the trend shows no sign of slowing. A September 2004 study by the
Centers for Disease Control and Prevention estimates that the number of
obese adults over the age of 20 has increased from 19.4 percent in 1997
to 25.1 percent in early 2004. The nation's growing girth means that
accommodating an obese population is no longer a choice but a necessity
for hospitals. Scores of patients are now too big and too heavy for
standard equipment and fixtures.
A
New Medical Worry: Identity Thieves Find Ways To Target
Hospital Patients
The Wall Street
Journal, 2.22.2005
Certainly, identity
theft isn't among the risks of medical treatment -- such as infection --
listed on the standard release form that patients sign. But there's
evidence that identity thieves are starting to target medical patients.
Hospital patients are vulnerable in part because they are unlikely to
detect anything amiss. Some may never leave the hospital. The biggest
vulnerability of hospital patients is that their Social Security numbers
often double as a medical identifier.
St.
Petersburg Times, 2.21.2005
Germs lurk in every
hospital, creeping into surgical wounds, seeping into IV lines, hitching
rides on dirty linens and unwashed hands. Most hospitals would rather
not talk about them, even though infections kill more than 80,000
Americans each year. That makes it hard to tell which hospitals do a
better job of stopping their spread. Hospitals have traditionally
closely guarded their infection rates. Even hospitals that report
infection data to a federal database are promised confidentiality. In
Florida, that veil of secrecy is supposed to lift - but just how soon
remains a question.

Medical-Device Industry Faces More
Scrutiny By U.S. Officials
The Wall Street
Journal, 2.25.2005
Federal officials,
after years of aggressively pursuing drug companies for questionable
promotional tactics, are expanding their focus to the medical-device
industry.
Sales of medical
devices are a fraction of those for prescription drugs, but the use of
such devices to treat pain, Parkinson's disease and epilepsy has been
expanding. Since many devices are covered by Medicare, regulators want
to rein in marketing efforts that provide improper incentives to
physicians to use particular devices.
The New York Times,
3.2.2005
Three years after the drug industry said
it would stop showering doctors with expensive gifts, a top federal drug
official told a Senate panel on Thursday that such marketing efforts
continued. The official, Dr. Janet Woodcock, acting deputy commissioner
for operations of the Food and Drug Administration, said during a break
in the hearing that drug companies still invited doctors on cruises and
to resorts in exotic places, all free. The F.D.A. has no jurisdiction to
police such efforts, she said.
Portable EMRs are still to come
eWeek, 3.5.2005
Fewer than one in
five hospital IT executives report that their organizations have fully
operational electronic medical records, according to a recent survey by
the
HIMSS
(Healthcare Information and Management Systems Society).
And, in fact, the exact percentage of health care organizations
reporting a functional EMR system actually declined slightly from last
year's results, from 19 to 18 percent. Still, most of the hospital IT
executives surveyed (62 percent) reported that EMRs are the top IT
application priority for their organization over the next two years.
That's a huge increase from last year's response, when only 10 percent
of the executives reported that EMRs were a top near-term priority.
Another 17 percent responded this year that their organizations have no
immediate plans to implement EMRs.

Medical data made whole: Health exchanges
hope to offer all patient records in one place
San Francisco
Chronicle, 3.8.2005
One of the main
stumbling blocks in the American health care system, many experts say,
is the inefficient use of computer technology to manage medical records.
Now, in Santa Barbara County, a network of hospitals, laboratories,
pharmacies and doctors is pioneering new technology that will allow
medical professionals with different computer systems to share clinical
information. The initiative may well be a first step toward the creation
of a national patient-care data bank.
Nashville Business
Journal, 3.7.2005
Dr. Jerry Franklin understands the
benefits of electronic medical records. His Mid-State Cardiology
Associates encompasses 15 physicians in two locations, who often see the
same patients and who also practice in outlying clinics, making the easy
transfer of medical information an attractive prospect. But he still
hasn't pulled the trigger on selecting one. When his practice looked for
an EMR two years ago, they counted more than 70 companies offering the
product. His group is one of thousands concerned about the cost of the
product, the amount of time needed to scan in old information such as
X-Rays and the lack of a standard for the technology.
High
Tech Tag
The Tampa Tribune, 3.7.2005
Every day, thousands of medical gowns travel through a
clothing toll booth of sorts at Tampa-based SRI Surgical Express, a
hospital supplier. Stitched inside each gown is a tiny radio transmitter
that sends an electronic signal, which allows SRI to identify the
location, size, color and age of every gown in shipment. Such
technology, known as radio frequency identification also allows the
company to track returning items.

Drug-error risk at hospitals tied to computers
The Boston Globe,
3.9.2005
Hospital computer
systems that are widely touted as the best way to eliminate dangerous
medication mix-ups can actually introduce many errors, according to the
most comprehensive study of hazards of the new technology. The
researchers, who shadowed doctors and nurses in a Philadelphia hospital
for four months, found that some patients were put at risk of getting
double doses of their medicine while others get none at all. Doctors at
the Hospital of the University of Pennsylvania identified 22 types of
mistakes they have made because of difficulty using computerized
drug-ordering, such as failing to stop old medications when adding new
ones or forgetting that the computer automatically suspended medications
after surgery. Some doctors interviewed for the study said they made
computer-related mistakes several times a week.
Brigham to adopt barcodes
to cut errors
The Boston Globe,
3.16.2005
Brigham and Women's
Hospital this month is rolling out supermarket-style barcodes on
medications and patients' wristbands, one of the first US hospitals to
adopt this common food industry technology to reduce overdoses and other
dangerous medical errors. The Harvard Medical School teaching hospital
plans to use barcodes on all its medical and surgical floors by
mid-July, and to complete implementation in the operating rooms,
emergency department and obstetrics units by the end of 2006. The system
will cost the hospital about $10 million on equipment and training for
several thousand nurses to scan barcodes.

Do MDs
or MBAs Make Better Leaders?
HealthLeaders, 3.18.2005
The concept of the physician executive has migrated from
the fringe of healthcare to its core. Today's physician leaders are seen
as key players in the ongoing effort to reinvent the struggling
healthcare system. This transformation of the physician executive from
outcast to savior reflects a widespread belief that doctors bring vital
skills to the executive suite. For one, physician leaders are more
connected to the daily grind of healthcare. From a clinical perspective,
they know what needs to happen. And perhaps most importantly, they have
an automatic "in" with the prime moneymakers: their fellow physicians.
That being said, are physicians better suited for the corner office? Or
is the MBA, whose sole career has been focused on the business side of
healthcare, better positioned to run a healthcare organization in
today's complex financial environment?
HCA
leads campaign to curb doctor-owned hospitals
The Tennessean, 3.21.2005
HCA, which runs 190 hospitals in the
United States and overseas, has become one of the leaders in the
campaign to curb expansion of physician-owned specialty hospitals across
the country. What makes it important to companies such as HCA is that
doctors are allowed to refer patients to facilities the doctors also
own. Critics such as the American Hospital Association say this
''self-referral'' gives doctors an unfair advantage because they refer
patients to their own hospitals and take the best-insured patients.
Amazing technology in the making
HealthLeaders, 3.22.2005
Wearing special viewing glasses, the physicians attending
last fall's Radiological Society of North America conference were
reminiscent of the crowds that packed movie theaters in the 1950s to
watch 3-D movies. But this was no retro event. These radiologists were
witnessing the future. In one demonstration, Michael Mastrangelo Jr.,
M.D., an expert in minimally invasive surgery, took viewers on a guided
journey through a patient's spinal column. Manipulating a set of "SpaceGrips,"
Mastrangelo deftly maneuvered through the image, while conversing with
another researcher viewing the same image at the University of Kentucky.
Sporting the far-out name of "immersive real-time tele-collaboration of
complex volumetric medical imaging for surgical planning," Mastrangelo's
demonstration drew applause from the rapt radiologists.

Robo-docs check in at Detroit Medical
Center
Detroit Free Press, 3.23.2005
Thirty-nine years
after "Star Trek" contrived the transporter ("Beam me up, Scotty") and
43 years after the "Jetsons" cartoons featured Rosie the mechanical
maid, the Detroit Medical Center today becomes the world's first
hospital system to deploy an entire fleet of real robots that can see,
hear, talk, scoot around and allow doctors to be in two places at once.
Safety concerns grow over pharmacy-mixed
drugs
USA Today, 3.24.2005
Tens of thousands of those patients —
and their doctors — may not know that they are using respiratory drugs
that are mixed together in pharmacies from bulk-purchased ingredients:
Those drugs are not approved by the Food and Drug Administration, and
they are made with far less oversight than drugs produced by
pharmaceutical companies. At their best, such pharmacies produce a
variety of medications for individual patients who can't get what they
need from products made by brand-name or generic drug companies, such as
flavored syrups for those who can't take pills and dye-free products for
patients allergic to colorings. But at worst, critics and regulators
say, some pharmacies are skirting federal law by mass-producing drugs
without FDA oversight, sometimes making contaminated, ineffective or
too-potent products.
GetWell Network asks users to diagnose technology
Washington Business
Journal, 3.28.2005
The GetWell Network is about to get its first dose of
feedback. The Alexandria company developed and sells a communications
system for hospitals that allows patients to use their in-room TVs to
surf the Web and access specific information on certain health issues.

Hospital Bills: Comparison Shopping in Gibberish
HealthLeaders, 3.31.2005
The whole idea of consumer-driven healthcare rests on
consumers being able to make informed choices on their care based on
price and quality. Much emphasis has already been placed on developing
consumer-driven health plan products. Somewhere along the line, a key
ingredient has mostly been overlooked: What good is consumer-driven
healthcare when consumers can't understand a hospital bill?
Orthopedic Firms' Ties With Doctors Scrutinized
The Wall Street Journal, 4.1.2005
The Justice Department's probe into orthopedic-device
companies has produced only a handful of subpoenas so far, but the
investigation has raised concerns about the relationship between doctors
and those companies for whom they consult. Orthopedic-device companies
frequently pay physicians for feedback on products to help them design
new ones. But doctors and industry experts speculate that the Justice
Department seems concerned that companies, in an effort to rustle up
more business, sometimes pay doctors who don't provide services worthy
of compensation.
There are few universal truths in
business, but there's one on which most would agree: Health care costs
are out of control. Feeling the pinch, some hospitals are now pushing to
cut costs in an unusual way that, if widely implemented, could squeeze
profits of Twin Cities-based medical device companies. It's called
gain-sharing, a practice that permits hospitals to financially reward
doctors who collaborate in efforts to lower costs. As part of these
efforts, some hospitals are trying to limit the number of medical
devices they use for certain procedures, and share the savings with
doctors. Proponents say it would more closely align the often-disparate
interests of doctors and hospitals. Critics, however, claim the
arrangement is nothing more than a kickback paid to doctors, and some
worry it's the interests of the patient that will suffer.

SRI to Develop Robotics for Battlefield
Medical Care
Washington Post, 4.4.2005
SRI International Inc. won a two-year, $12 million
contract from the Defense Advanced Research Projects Agency (DARPA) to
develop a robotic surgical system that would let doctors operate on a
wounded soldier on the battlefield from a remote location.
Privacy concerns hinder electronic
medical records
The Business Journal of the
Greater Triad Area, 4.4.2005
As medical
professionals tout the benefits of electronic medical records, they also
acknowledge that many of those same benefits are driving patient
concerns.
The benefits are
substantial, professionals say: easy access to patient records no matter
where they are, instantly updated files and the ability to more easily
share information with other physicians. But because electronic medical
record systems are often Web-based, many patients fear that also exposes
their medical history to anyone with an Internet connection. To help
with ease and portability, many doctors offices use wireless Internet to
transmit records around the office, opening up additional security
problems since unprotected wireless transmissions can be potentially be
accessed by anyone with a wireless modem within range.
How
hospitals pay doctors a thorny issue
The Tennessean, 4.8.2005
If hospitals change how they pay
doctors, they could control costs and improve care, but finding just the
right approach is tricky, a panel of health-care executives said. Some
incentives work better than others, some are illegal, and telling which
is which isn't always easy, the executives said.

Hospital Business in New
York Braces for a Crisis
The
New York Times, 4.11.2005
The
hospital business in New York, one of the largest and
most prized sectors of the region's economy, is deep in
financial trouble, which is forcing it into a sharp,
swift contraction. Across the city and state, public and
industry officials agree, hospital doors are likely to
begin swinging shut over the next year, and thousands of
jobs could be lost.
Making medical history portable
The Boston Globe,
4.11.2005
If the thought of carrying around your medical
information appeals to you but the idea of embedding a computer chip
under your skin to do it creeps you out, Dr. Carl Franzblau has an
alternative for you. Franzblau, an associate dean of graduate medical sciences and chairman
of the biochemistry department at Boston University, has introduced a
simple USB device for storing personal medical information that also
doubles as a fob for your keys.
Chips to speed new drugs The News & Observer, 4.9.2005
The hottest drug
discovery tool fits into the palm of a hand. Known as a laboratory on a
chip, it helps automate the screening of chemical libraries and promises
to generate safer drugs that can be brought to market faster and
cheaper. In the hands of biologists, chemists, software developers and a
physicist at Amphora Discovery in Durham, lab chips also are used to go
one step further: detecting possible side effects before experimental
drugs are tested in animals or humans.

Virginia Mason says surgery led to
troubling event
Seattle Post-Intelligencer, 4.14.2005
Responding to
numerous allegations of safety deficiencies in an anonymous memo on
hospital letterhead, Virginia Mason Medical Center acknowledged
yesterday that a surgery there last year had resulted in an event so
troubling that the hospital notified state regulators.
Doctors still e-mail resistant
Chicago
Tribune, 4.14.2005
Despite
medical technology advances, many physicians say patient communication
via the Web takes too much time and has risks. Medical practices have
proven remarkably resistant to embracing e-mail as a tool to correspond
with patients. Physicians regularly order medical tests and image scans
that use high-tech electronics, but when it comes to patient
communications they still prefer the phone. E-mail raises concerns about
patient privacy, legal liability over miscommunications and the failure
of most insurance providers to pay doctors for time spent answering
e-mails.
A More Affordable Cardiac Device
The Wall Street
Journal, 4.14.2005
New European research
raises the possibility that a $12,000 heart device could be as effective
in saving lives of many heart-failure patients as one that sells for
more than twice as much. The large study from 82 hospitals across
Europe, published in this week's New England Journal of Medicine, is
almost certain to touch off a debate among cardiologists as to who truly
needs the more-expensive machine. It poses a similar question for
insurers, such as the federal Medicare system, which only recently
agreed to pay for the costlier device.
State will look into patient set on
fire at Virginia Mason
Seattle
Post-Intelligencer, 4.15.2005
State regulators will
launch an investigation today into an incident involving a patient who
was set on fire during a surgical procedure at Virginia Mason Medical
Center in Seattle, officials said yesterday. Virginia Mason confirmed
yesterday that a patient ignited while on the operating table in late
2003, but said that was not the cause of his death, as had been claimed
in an anonymous memo distributed to the media this week.
A Bonus for Health, Payable to the Doctor
The New York Times,
4.15.2005
A quiet revolution is taking place in Medicare, one that
could set a new standard for the way medicine is practiced in this
country. For the first time in its history, Medicare is starting to
embrace an approach that has changed industries as diverse as carmakers
and fast-food restaurants - giving employees financial incentives to
meet goals for quality. By the end of this year, more than 600,000
Medicare recipients will be in test programs that pay doctors and
hospitals bonuses for achieving better results, like increasing the
number of diabetic patients whose blood sugar is under control.
No patient rush to 'concierge'
practices
The
Boston Globe, 4.15.2005
When two Harvard
Medical School-affiliated internists quit their jobs at Beth Israel
Deaconess Medical Center three years ago to open the state's first
concierge practice, a dozen Massachusetts doctors frustrated with what
one called ''turnstile medicine" followed and many more considered doing
so. But patients have not lined up to pay the $1,500 to $4,000 a year
such practices cost. In return for the fee, doctors typically offer
24-hour cell phone access to their patients, hour-long same-day
appointments, detailed research into patients' medical conditions, and
other extras.

One More Time...Are Service Lines the Answer?HealthLeaders News,
4.18.2005
As American hospitals face unrelenting financial
pressures, a timely question that begs a thoughtful response is, once
again, "Are service lines the answer?" When the model was first offered
in the late '80's, the answer was an unqualified, "apparently not."
After about five years of attempting the model, most hospitals abandoned
the idea as ineffective or irrelevant. But the consumer has matured, the
market has changed, and the service-line model may now provide the best
means of navigating these turbulent waters.
A Variety of Factors May Contribute to Lower Drug Cost
Trends in 2005
Managed Care Week,
4.18.2005
Market withdrawals, safety issues, a
smaller pipeline and larger copays could help drive down pharmacy costs
in 2005, according to some recent forecasts. UnitedHealth Group last
week said it lowered its projections for full-year 2005 pharmacy cost
trends, citing a number of external market forces along with internal
pharmacy strategies. The Segal Co. also said recent drug sales data
indicate lower-than-expected drug costs.
D.I.Y. docs
HealthLeaders News, 4.20.2005
With Congress' specialty hospital moratorium still going
strong, many hospital administrators see a recent proliferation of
"full-service" hospitals with physician ownership as specialty hospitals
by another name, or as one expert puts it, "wolves in sheep's clothing."
The hospitals, formed by physicians who are either partnering with or
competing against the local legacy providers, run the gamut in terms of
service offerings. Whether these facilities are good or bad for costs,
patient care and the fiscal health of legacy providers is debatable, but
many entrepreneurial physicians see ownership in full-service hospitals
as their best chance to gain a share of the say-so-and the profits.

Fewer U.S. Deaths Linked to Obesity
Washington Post, 4.20.2005
A new government study has concluded
that obesity causes about 112,000 deaths each year in the United States,
far fewer than a previous, highly publicized estimate by another part of
the same agency. The new calculation was immediately seized upon by
skeptics who argue that public health authorities have created undue
alarm about obesity. Other experts and the researchers who conducted the
new study, however, said obesity still is a major public health threat.
The Top 4 Power Struggles In Healthcare
HealthLeaders, 4.20.2005
In the pressure cooker known as our national healthcare
system, all the major players seem ready for battle. On the right,
advancing slowly behind a phalanx of riot shields, are the cost-cutting
forces of managed care. On the left, hurling brickbats at almost
everyone, are the physicians. In the rear, licking their wounds after
their latest brawl with the physicians, and plotting their next ambush
on the health plans, are the hospitals. Looking on from the sidelines
are the healthcare policy-makers, employers and random pundits-their
theories often two steps behind the facts on the ground.
Government Prods Hospitals To Survey Patients on Quality The Wall Street Journal, 4.20.2005
After three years of
often-fractious debate with the hospital industry over how to measure
patient satisfaction, the federal Center for Medicare and Medicaid
Services is preparing to launch the first national survey of patients'
perception of hospital care. As soon as this June, hospitals could start
asking discharged patients to complete the 27-question survey.

Does consolidation equal strength?
HealthLeaders News, 4.21.2005
For both managed care companies and providers,
acquisitions have been seen as a fast ticket to greater pricing power in
the market. Yet for all the deals that have been successful, the
healthcare landscape has been littered over the past decade with the
wreckage of mergers that never delivered the market dominance they had
seemed to promise. So what is the accepted wisdom today regarding
consolidation? Do acquisitions really result in the accumulation of
greater marketplace muscle and clout? Or are they too often problematic
in the fast-changing, high-volume, low-margin business of healthcare?
Fake Hospital Inspectors Probed
Washington Post, 4.22.2005
The FBI
and other law enforcement agencies are looking into incidents in which
people masquerading as unannounced inspectors were found poking around
three hospitals in Boston, Detroit and Los Angeles. In each case the
impostors were stopped by security guards or hospital staff, and then
either left or were expelled. No one has been arrested, and neither the
identity of the intruders nor their motives are known.
Insiders' Insights: Unions gaining ground against providers
HealthLeaders News, 4.22.2005
Depending on which side you ask, the relationship between
hospitals and unions has become either more or less combative over the
past year. Both sides agree, however, that union organizing tools have
become extremely sophisticated and are a definite force to be reckoned
with. For example, the use of a "corporate campaign" that targets a
hospital's reputation-often by claiming that the organization provides
poor quality healthcare or doesn't serve the poor-is fast becoming a
tactic of concern to all hospital administrators.

Surgeon left in midst of operation
The Boston Globe, 4.22.2005
A prominent plastic
surgeon has been reprimanded and indefinitely suspended by Beth Israel
Deaconess Medical Center after he left a patient in the middle of an
operation to perform surgery down the street at another hospital. Dr.
Joseph Upton, who specializes in complex hand surgeries, has voluntarily
agreed to stop practicing medicine until at least May 4 while state
regulators investigate whether he has double-booked operations on other
occasions.
Hospital suits fall flat, but debate rages
USA Today, 4.24.2005
Most of the lawsuits filed in federal
court by high-profile lawyer Richard Scruggs and other attorneys
alleging non-profit hospitals overcharge the uninsured have been
dismissed, but the debate over the industry's charity care continues.
Curbing costs of medical scans
San Francisco Chronicle, 4.24.2005
Imaging procedures
such as CT scans and MRIs have been hailed as one of the miracles of
modern medicine, letting doctors see inside the body to spot tumors and
other abnormalities. But these great advances in medicine do not come
cheap. Medical imaging is one of the fast-growing pieces of the health
care bill, with spending approaching $100 billion a year. There is a
growing movement among insurers and health care planners to try to rein
in expenses associated with high-tech scans such as CTs, short for
computerized tomography, and MRIs, or magnetic resonance imaging.

In
search of the 800-pound gorilla
HealthLeaders News, 4.25.2005
There is no shortage of well-meaning stakeholders in
regional health information organizations or RHIOs. From local hospitals
and medical groups, to the state and federal government, there is
growing consensus on the value of RHIOs. But due to the very
collaborative structure comes a key roadblock: Who takes the lead?
Mind-reading machine knows what you see
New Scientist, 4.25.2005
It is possible to read someone’s mind by
remotely measuring their brain activity, researchers have shown. The
technique can even extract information from subjects that they are not
aware of themselves. So far, it has only been used to identify visual
patterns a subject can see or has chosen to focus on. But the
researchers speculate the approach might be extended to probe a person’s
awareness, focus of attention, memory and movement intention. In the
meantime, it could help doctors work out if patients apparently in a
coma are actually conscious.
Curing health’s IT
San Francisco Business Times, 4.25.2005
In Silicon Valley and
statewide, health-care, business and technology leaders are scrambling
to create data-exchange networks to link hospitals, physicians and
patients electronically. And they're pushing for far greater use of
health-care IT.

Scanning out medication errors
Pittsburgh Business Times, 4.25.2005
A $2 million
investment has given Ohio Valley General Hospital in McKees Rocks the
distinction of being the first medical facility in the country to
automate its intravenous medication system using bar code scanning and
innovative infusion technology.
Tiny scope gives surgeons inside look
at damaged joints
The Birmingham News, 4.25.2005
Medical technology is drawing ever
closer to those scenes produced for the 1966 sci-fi classic, "Fantastic
Voyage," a movie about a miniaturized surgical team traveling through a
patient's body. Most recently, the Orthopaedic Sports Medicine Clinic of
Alabama - a medical group with offices in Vestavia Hills - started using
the InnerVue Diagnostic Scope System to get amazing, inside views of
damaged knees, shoulders, ankles and wrists. The scope is a tiny bundle
of optical fibers that is inserted into a joint like a large needle. It
provides surprisingly clear pictures of tissue or bone damage with a
minimum of pain and trauma.
The Prosperity of Managed Care Plans May Be Tapering Off
The New York Times, 4.27.2005
Even as the nation's health care costs keep climbing, the
insurance companies that try to manage those costs have been prospering
and increasing their profit. But some analysts see trouble ahead. The
share prices of three of the largest insurers - WellPoint, UnitedHealth
Group and Cigna - reached 52-week highs early this month, at the peak of
a two-year surge in the stocks of managed care companies. But since
April 7, the big insurers have led the way down as a Standard & Poor's
index of managed care stocks fell 8.4 percent while the broader S.& P.
500-stock index slipped only 3.3 percent.

Are radiologists running the show?
HealthLeaders News, 4.27.2005
About 60 miles down Interstate 57 from busy Chicago, with
its millions of residents and its multitude of healthcare providers,
lies tiny Kankakee, Ill., with about 27,000 residents and its two
hospitals. Administrative leaders at 210-staffed-bed Riverside Medical
Center could conceivably rest easy on capital spending, knowing patients
and physicians have only two choices for healthcare. Instead, they're
busily adding to a 60-acre outpatient campus five miles north in the
city of Bourbonnais. The priority: radiology. Riverside is building a
$10 million outpatient imaging center there to complement a radiation
center and wellness center already on the campus. When it opens in May,
it will feature one of the hottest "toys" available to any size
hospital: a 64-slice CT scanner that can treat 100 patients each day at
capacity. The $1-million-plus piece of equipment will complement a
16-slice scanner the hospital purchased two years ago that can handle 75
patients a day. Why this heady pace of investment in imaging? Radiology
pays well, and because it increasingly applies to so many specialties,
physicians are subverting their funding requests for pet capital
projects in favor of system-wide investment in radiology.
IBM Moves Aggressively Into Health Care
Associated Press via Chicago Tribune, 4.27.2005
As it moves aggressively into the health care business,
International Business Machines Corp. announced an 8-year, $402 million
partnership with the University of Pittsburgh Medical Center that the
company said will be a model for how the health care industry can use
new technology. Earlier this week, the company announced a test system
for sharing medical data across hospitals, agencies and patients, which
will connect IBM sites in San Jose, Calif., Rochester, Minn., and Haifa,
Israel. The company also said earlier this week that it plans to buy
Healthlink, a Houston-based consulting firm that helps hospitals convert
to electronic medical records. It did not disclose a price.

Five Healthcare Joint Venture Scenarios Facing New Antitrust
Reporting Rules
HealthLeaders News, 4.27.2005
As of April 7, 2005, there are new reporting requirements
applicable to joint ventures structured as unincorporated entities, such
as limited partnerships and limited liability companies, under the
Hart-Scott-Rodino Act. According to the new rules, which were announced
by the Premerger Notification Office of the Federal Trade Commission, a
change of control of a joint venture or the acquisition of control of a
newly formed joint venture structured as an unincorporated entity is
subject to reporting requirements. The transactions and the parties
involved must meet certain size requirements to trigger the reporting
requirements.
VR headset spots concussion in minutes
New Scientist, 4.27.2005
You’ve
had a blow to the head, but how do you know whether you are concussed or
not? The answer could be a matter of life or death, yet it takes hours
of testing by professionals to know for sure. Now a virtual-reality
headset is being developed that can diagnose the extent of a head injury
within minutes. Non-medical personnel will use it to quickly gauge the
extent of brain damage, and the system works in noisy emergency rooms,
on the battlefield or at the side of a sports field. It can also pick up
early signs for dementia.

Ilinois lawmakers target bad doctors
Chicago Tribune, 5.1.2005
One Illinois doctor left a woman waiting for an emergency
Caesarean section while he spent time with his girlfriend. Another
botched a gynecological surgery, then urged his bleeding patient not to
go to the hospital. A third ignored the fetal monitor during a difficult
delivery that resulted in a brain-damaged infant. Although all three
were referred to state regulators for investigation, none was ever
disciplined--even though all resulted in out-of-court settlements in
malpractice lawsuits. Advocates for injured patients say state law sets
the bar so high that some of the worst cases go unpunished. Now, in an
attempt to contain the rising cost of medical malpractice insurance in
Illinois, lawmakers are considering how to toughen up the regulatory
system to weed out doctors who might be most prone to the kind of
medical negligence that ends up in court.
HMO
Profits, Enrollment Declining
HealthLeaders News, 5.2.2005
With few exceptions, HMO licenses held
by health plans across the United States produced profits in 2004,
although many of them generated less net income than the year before, an
analysis by HealthLeaders-InterStudy finds. The trend reflects continued
migration from HMOs to PPOs and self-insured accounts and significant
technology investments.
Surgery tracking system at Christ mirrors airport
Cincinnati Business Courier, 5.2.2005
A new computer system allows Christ
Hospital to track surgical patients from the moment they enter the
lobby. Using keypads and large display monitors, the NaviCare Patient
Flow System from Batesville-based Hill-Rom operates like the departures
and arrivals screen at the Cincinnati/Northern Kentucky International
Airport.

Doctors see more pay for careful care
Houston Business Journal, 5.2.2005
These days, family practitioner Dr.
Robert Vanzant is just doing his job when he works with diabetic
patients to control blood pressure, blood sugar and cholesterol levels.
But under proposed pay-for-performance initiatives, Vanzant might be
eligible for a monetary bonus if he provides evidence of taking extra
measures to help his diabetic patients keep their vitals in check. For
example, diabetics are at risk for kidney failure, so monthly physician
visits are often recommended. In the current system, a diabetic patient
may or may not consistently receive an outreach call from a doctor's
office to schedule a monthly appointment. And even if such a call were
made, the doctor would not receive extra compensation for those efforts.
But under pay-for-performance initiatives -- which vary widely from
program to program -- that extra step might make the physician eligible
for a financial reward.
Increase in actions
filed against doctors leads to more lost licenses
Tampa Bay Business Journal, 5.2.2005
Nearly 1,000 Florida doctors -- just
under 2 percent of all the doctors in the state -- faced actions from
the Board of Medicine in 2004. That's more than twice the number of
actions handed down by the board in 2003. The bulk of the 2004 actions
were citations against doctors who fell behind in meeting requirements
to stay up-to-date in their profession. Citations for failure to
complete and document participation in continuing medical education --
or CME violations -- are the equivalent of a traffic ticket, said
Lindsay Hodges, a spokeswoman for the medical board. Those citations
accounted for about 400 of the 976 actions the board took against
doctors last year.

Radiologists junking film for digital systems
South Florida Business Journal, 5.2.2005
Local emergency room patients receiving nighttime imaging
tests may soon get their results from radiologists enjoying a sunny
morning in Shanghai, China. A Fort Lauderdale company is creating this
type of system, using an information network of digital images that's
been replicated at many local hospitals. These digital systems are
quickly making film images obsolete and allowing doctors to share images
anywhere, from offices to laptops. A 20-doctor group called Florida
United Radiology set up Information Management Systems and Support (IMSS)
to build its digital network. Those radiologists, along with other
participating doctors, share the image-reading responsibilities between
them to get specialist input and handle the workload when facilities are
understaffed.
Kaiser cuts cord between drugs, docs
San Francisco Business Times, 5.2.2005
Kaiser Permanente’s Northern California medical group has
quietly adopted a revised conflict-of-interest policy intended to
dramatically limit links between its physicians and vendors. The policy
shift by the Permanente Medical Group affects doctors for 3.2 million
Kaiser enrollees in the region. It results from concerns over real and
perceived conflicts created when doctors accept gifts or compensation
from pharmaceutical or biotech companies, medical-device makers and
other vendors or consultants with a vested interest in Kaiser's
business.

RFID Technology Developments:
Wal-Mart tagging fuels RFID market
CNET News.com, 12.22.2004
Wal-Mart
Stores' top merchandise suppliers are lifting sales of radio frequency
identification devices as they race to comply with a January deadline
from the world's largest retailer.
Major consumer goods
companies--including Gillette, Kraft Foods and Procter & Gamble--have
collectively spent about $250 million on RFID tags and related equipment
this year, according to a new report from AMR Research. Those companies
are among the nearly 140 Wal-Mart suppliers working toward fulfilling
the
retailer's RFID directive.
Issued last year, the directive calls for Wal-Mart's largest suppliers
to attach RFID tracking "tags" on shipments sent to several Dallas-area
Wal-Mart warehouses and stores.
Microsoft plans RFID software in 2006
CNET News.com, 3.8.2005
After investing
significantly in technology for radio frequency identification devices,
Microsoft is readying its first major product, a software package
designed to help companies manage the product tagging technology.
Microsoft plans early next year to release the RFID Services Platform, a
"middleware" product that connects the hardware that monitors RFID
signals with the business software that can make sense of the
information. The product is designed for businesses that want to
incorporate RFID into their own systems, as well as for other software
companies that want to build a product based on Microsoft's technology.
The RFID product will be built on top of Microsoft's .Net development
platform.
Gartner: Get ready now for next-gen RFID tags
CNET News.com, 4.11.2005
Companies should start preparing now for
next-generation RFID technology that will soon hit the shelves,
according to research company Gartner. Earlier this month
Intermec,
Metro Group
and
Royal Philips
Electronics said they had developed an RFID chip that
complies with EPCglobal's Ultra High Frequency Electronic Product Code
Class 1 Generation 2 G2 standard, sometimes referred to as UHF and G2.
Impinj has
also unveiled an RFID reader and tag system that conforms to the
next-generation standard, and Gartner said these hardware announcements
will soon be followed by many more.

Survey: Tagging tech gets to work
CNET News.com, 4.29.2005
Manufacturers in Europe and North America
are finally getting turned on to radio frequency identification
technology--and they're jumping rather than being pushed. According to
new research from
Datamonitor,
manufacturing executives are keen on the tracking technology because of
its merits, not because they're being forced to use it as a result of
mandates from the likes of
Wal-Mart Stores.
The research is based on a survey of IT decision makers at 150 of the
top 300 manufacturers in Europe and North America.

MRI and CT Centers Offer Doctors Way to Profit on
Scans
The Wall Street Journal, 5.2.2005
Medical imaging such
as MRI and CT scanning is one of health care's fastest-growing sectors.
Last October, an owner of imaging centers told doctors how they could
get in on the boom.
At a meeting of
cardiologists, neurologists and cancer specialists in Torrance, Calif.,
Imaging Solutions Inc. proposed that the doctors sign a contract to send
patients to one of its centers. According to documents handed out there
and physicians who attended, the deal worked this way: The center would
charge doctors a flat rate per scan. Then the doctors could bill
insurers at the going reimbursement rate in their area. Arrangements
like this are increasingly common, say some doctors, industry officials
and health-care lawyers. But few doctors acknowledge taking part in
them, and the scanning centers that offer them typically are reluctant
to identify referring doctors. Some lawyers say the referral deals risk
running afoul of federal and state laws. Others say the arrangements
risk raising usage of expensive procedures at a time when U.S. medical
costs already are surging.
David Brailer's Year of Living Attentively
HealthLeaders, 5.10.2005
For the past year, David Brailer, M.D., Ph. D., the national coordinator
for healthcare information technology, has been speaking and gathering
feedback at congressional hearings, industry conferences, hospitals and
wherever else the gospel of electronic health records needed to be
spread. He has spent the year "pinging," he says, or sending out ideas
to see how the industry's stakeholders would react. But that year-and
the phase that it represents-is about to come to a close.

New X-ray scanners can speed, sharpen diagnoses
Chicago Tribune, 5.16.2005
New X-ray machines give physicians a window inside the human body that's
so clear, it promises to change the way doctors treat patients. Within a
year or two, a patient whose chest pain sends him to an emergency room
may get an X-ray exam that could determine, within 10 minutes, if he is
in danger of a heart attack due to clogged coronary arteries.
Sen. Bill Frist: What's next for the country's most
powerful M.D.?
HealthLeaders News, 5.18.2005
Sen. William H. Frist, M.D., (R-Tenn.) says he has every
intention of fulfilling his pledge to leave his powerful position behind
next year. Consider that just more than a decade ago, Frist was a
successful transplant surgeon, with a family name and wealth to let him
try something else. His father, the late Thomas F. Frist Sr., M.D., was
a co-founder of Nashville, Tenn.-based Hospital Corporation of America,
along with his brother, Thomas F. Frist Jr., M.D. Another older brother,
Robert, is also a physician. In 1994, Frist tried the U.S.
Senate-defeating incumbent Sen. Jim Sasser (D-Tenn.)-with a promise to
leave after two terms. Few would have guessed that he would be leaving
as Senate majority leader and on the short list for the GOP ticket in
2008. In his Senate terms, however, he has never been far away from his
black doctor's bag-which he has used on several lifesaving occasions-or
from healthcare policy. HealthLeaders recently posed a few key questions
to the nation's most powerful M.D.
Seven Steps: Using Marketing in Healthcare Technology Planning
HealthLeaders, 5.23.2005
In the face of ever-expanding
information technology solutions, many healthcare executives continue to
wrestle with how best to invest their resources and effectively manage
digital applications throughout the healthcare organization. Often,
decisions regarding what technologies to buy are being driven by
short-term internal and external pressures rather than sound business
planning and long-term vision. Given the thin margins most health
systems operate within today and the high cost of IT products and
solutions – both in terms of the immediate capital expenditures and the
manpower resources to fully implement these solutions – it’s little
wonder that many healthcare executives are cautiously evaluating going
digital.

Four
Reasons Not to Outsource Your Margin
HealthLeaders, 5.25.2005
Outsourcing is a growth industry in
healthcare. It's estimated that at least 75 percent of all hospitals
outsource at least one hospital function. The 20 largest outsourcing
companies reported a combined total of 9,422 healthcare clients in 2003,
up 12 percent from 2002. Studies show that housekeeping, food service
and laundry top the list of hospital department management contracts,
with the combined total of these contracts jumping 17 percent from 2002
to 2003. Survey results also indicate that healthcare organizations are
expanding outsourcing beyond their historic areas of focus. For example,
the number of hospitals with management contracts for outsourcing
billing and collections and information systems increased 10.6 percent
and 31 percent respectively from 2002 to 2003. Such increased interest
in outsourcing has led many healthcare organizations to raise questions
about outsourcing their entire revenue cycle function in the hopes of
improving efficiency and performance.
Along hospitals' road to high-tech bliss, there are numerous potholes
Baltimore Business Journal, 5.30.2005
Technology advances offer hospitals a
chance to make giant strides in enhancing quality and safety for
patients. But as any business executive knows, the transition to new
information technology is complex and fraught with peril. Some have
criticized hospitals for their slowness in joining the information
technology revolution, but keep in mind that a hospital's IT makeover is
mind-boggling given the multiple variables in treating and caring for
patients 24/7. It takes time, careful planning and a lot of money. The
good news is that hospitals in Maryland are working to integrate
computer technology into their ordering and distribution systems for
medication and are adopting various components to create electronic
medical records.

Gutcheck: Robot combined
with swallowable camera could give docs a better look inside the
small intestine
Pittsburgh Post-Gazette, 5.30.2005
The words "intestinal bug" could gain a
whole new meaning if a Carnegie Mellon University engineer is successful
in his efforts to develop a medical robot for examining the intestinal
tract.
Metin Sitti, director of the
NanoRobotics Lab, is developing a set of legs that could be incorporated
into the swallowable camera-in-a-pill that has become available in the
past four years for diagnosing gastrointestinal disorders in the small
intestine. The capsule camera snaps thousands of pictures as it makes
its way slowly through the narrow tract, carried by the wave-like
peristaltic motion that moves all contents through the intestines.
Toyota Assembly Line Inspires Improvements at Hospital
Washington Post, 6.3.2005
Manufacturing giants such as General Motors Corp. and Dell Computer
Corp. began stealing Toyota's model decades ago, but hospitals took much
longer. Today, about a dozen are experimenting with elements of the
approach, but "nobody has been bolder in what they are trying to do than
Virginia Mason," said Premera Blue Cross president and chief executive
H.R. Brereton "Gubby" Barlow, who is watching the effort as both an
insurance executive and a patient. In an era of aging patients, costly
new therapies and stingy reimbursement rates, the medical profession is
searching for ways to gain a financial and performance edge. Many are
turning to information technology; others are shifting more costs to
patients. Here in downtown Seattle, a community accustomed to
innovation, one hospital is experimenting with a total overhaul of its
business philosophy, embracing a set of concepts designed in the 1950s
by Taiichi Ohno. Whether making a car or a healthier patient, the
approach fundamentally is about eliminating waste -- from paperwork and
inventory to waiting-room delays and extraneous surgical tools.

Stents supplant surgery
Pittsburgh Business Journal, 6.6.2005
Although an increasing number of people
prefer stenting over surgery, the revolution in the catheterization
suite is squeezing hospitals' bottom line. The number of bypass
operations in Pennsylvania was relatively constant at approximately
20,000 between 1995 and 2000, according to the Pennsylvania Health Care
Cost Containment Council, a state agency that tracks medical data. By
2003, the number of bypass surgeries had fallen to 15,117, partly
because of the increasing popularity of heart stents. Based on sales for
the first quarter of 2005, the domestic market for cardiac stents has
been estimated at $3.2 billion.
Emergency rooms may strike out on their own
Washington Business Journal, 6.6.2005
Hospitals are so five minutes ago. To get
patients the care they need -- and fast -- health care officials across
the region are looking beyond traditional hospital campuses and
considering a new hybrid: the free-standing emergency room. While many
Washington-area hospitals have massive on-site expansions under way,
there also has been a push by some to build free-standing facilities:
Northern Virginia already is home to free-standing medical facilities
run by Inova Health System. The HealthPlex in Springfield, for example,
includes a full-service emergency department, surgery center, medical
office building and other services. It is becoming a model for other
hospitals.
Hospital's bottom line tied to
surgical mistakes
Seattle Post-Intelligencer, 6.8.2005
Did the hospital
where you're having that operation next week turn a profit last year? If
not, the odds are higher that the medical staff will make a significant
mistake during or after your surgery, according to a study published
yesterday. Researchers from the U.S. Agency for Healthcare Research and
Quality reviewed medical errors in the files of about 1 million patients
who underwent major surgery in 176 Florida hospitals between 1996 and
2000. They found that over time, a decrease in a hospital's financial
profit margin leads to a higher risk for mistakes in the treatment of
adult surgical patients.

Surgery's next step: face transplants
Chicago Tribune, 6.12.2005
Ethicists may find
the idea unacceptable, but at least two medical centers in the U.S. are
in the final phases of planning for a controversial new procedure: a
face transplant. Surgeons say they are ready to remove the face of a
cadaver and stitch it onto an adult who has been severely disfigured by
trauma, burns or tumors. The goal is helping people who often say they
are shunned by society and lead extremely unhappy lives.
State will post surgery prices
Chicago Tribune, 6.15.2005
Patients will be able to shop around more easily among health care
providers before choosing where to have outpatient surgery in Illinois,
under a measure Gov. Rod Blagojevich signed into law. The new law will
require hospitals and surgery centers to report to the state the cost of
outpatient procedures, as well as their success rates in performing
them. The state will post the information on the Internet beginning in
January 2007.
Moratorium on specialty hospitals expires
Dallas Business Journal, 6.20.2005
It could be
described as a quiet death, which is ironic given the venom that's been
spilled as the divided health care community argues over the fate of
specialty hospitals. On June 8, an 18-month federal moratorium barring
the opening or development of specialty hospitals expired. Large, local
hospital system officials cheered the moratorium expiration, but are
keeping an eye on Washington, D.C., policymakers. The expiration of the
moratorium did not go unmarked.
The U.S. Centers for Medicare and Medicaid Services
issued an outline of its planned actions on the topic, including what
amounts to a six-month ban on any new specialty hospital openings. CMS
declared that it, and its regional offices around the country, will not
issue payment agreements to any new specialty hospitals, which means
even if a facility were to open, it would be unable to collect payments
for treating Medicare and Medicaid patients.

One group of doctors changes its ways
Pittsburgh Post-Gazette/The Wall Street Journal, 6.21.2005
The rising cost of medical-malpractice
insurance has hit many doctors, especially surgeons and obstetricians.
But one specialty has largely shielded itself: Anesthesiologists pay
less for malpractice insurance today, in constant dollars, than they did
20 years ago. That's mainly because some anesthesiologists chose a path
many doctors in other specialties did not. Rather than pushing for laws
that would protect them against patient lawsuits, these
anesthesiologists focused on improving patient safety. Their theory:
Less harm to patients would mean fewer lawsuits. Over the past two
decades, anesthesiologists have advocated the use of devices that alert
doctors to potentially fatal problems in the operating room. They have
helped develop computerized mannequins that simulate real-life surgical
crises. And they have pressed for procedures that protect unconscious
patients from potential carbon-monoxide poisoning.
`Bionic' arm brings back sense
of touch
Chicago Tribune, 6.23.2005
Jesse Sullivan lost both of his arms at the shoulders,
but with the help of a prosthetic hand and a set of rewired nerves, he
can now feel -- and sense hot and cold -- almost as if he had real
fingers. Two years ago, experts thought this advance in technology was
at least a decade away. Now they see it as a leap forward in treating
victims of stroke, lost limbs and paralysis.
Healthcare's strange bedfellows
HealthLeaders, 6.24.2005
The universe is held together by opposites, like mass and
energy working together to keep the fabric of space from ripping apart.
Healthcare holds together the same way, with competing interests keeping
the system in balance, at least theoretically. So when healthcare's
feuding clans start to shake hands, is that a good thing? The shifting
sands of today's healthcare landscape leave various interests wondering
where they stand. In at least a few cases, longtime opponents are
finding that they stand together in unexpected, if uneasy,
partnerships-hospital administrators and trial lawyers, drug companies
and a hard-bargaining state payor, a huge health plan and its region's
major hospital system. Who knows where peaceable cooperation may flare
up next?

The
new face of the digital hospital
HealthLeaders, 6.27.2005
Just weeks before the grand opening of Baptist Health's
new "digital" hospital in Jacksonville, Fla., its chief information
officer suffered a nervous breakdown. But the $90 million facility,
Baptist Medical Center South, opened without a hitch in mid-February.
The new hospital, which is stocked with the latest information
technology, has been flooded with patients and, at last report, Senior
Vice President and CIO Roland Garcia was doing fine.
Alabama hospital group saves
millions with infection-tracking technology
HealthLeaders, 6.28.2005
It may be that the best way to kill hospital germs isn't
with disinfectant, but with numbers.
The Centers for Disease Control and Prevention in Atlanta
estimates that some 88,000 people die each year from infections they get
in the hospital. Finding the sources of each one of those infections
requires a sophisticated system that can track, cross-reference and
analyze signals of an infection source. Until recently, the technology
for such a system was unavailable in healthcare, but the Alabama
Hospital Quality Initiative, now joined by 37 hospitals, Blue Cross and
Blue Shield of Alabama and an Alabama-based healthcare technology
company is using number crunching technology, also known as data mining,
to root out deadly germs. So far, the program has saved the four
hospitals that have participated for the full two years an estimated
$4.96 million total, and an incalculable amount of needless patient
suffering. Thirty-three Alabama hospitals have joined at various times
since then, and officials expect similar savings from their
participation. Meanwhile, BCBSA has saved an estimated $3 million over
the same time period-savings that are expected to grow sharply as the
additional hospitals are integrated into the program.

Behind the Wires: Rural hospital in Wisconsin has IT success HealthLeaders, 6.28.2005
At first glance, it looks as though Mike Bartman, IT
Director of 36-staffed-bed Sauk Prairie Memorial Hospital & Clinics, has
assembled the power elite at the rural hospital in Prairie du Sac, Wis.
Flanking Bartman in the community hospital's modest library are the
chief operations officer, chief financial officer, chief nursing
officer, the director of acute care and the director of pharmacy. The
topic of the day is which of three proposals for an automated medicine
dispensing cabinet to accept.
Radiology work shifts to overnight,
overseas
The Boston Globe, 6.29.2005
On many nights, detailed body scans of
patients at the North Shore Medical Center in Salem zip through Internet
lines to a suburban Minneapolis office. From there, they might be
rerouted to Texas or California, or to France, China, or India, where
doctors study the images for signs of disease. More than two dozen other
medical institutions in Massachusetts send their CAT, MRI, and X-ray
scans to doctors in other states or foreign countries who often render
crucial medical judgments. To many local hospitals, these so-called
''nighthawk" radiology services are godsends, a global solution to a
local problem: a rapidly increasing demand for patient scans, but a
shortage of trained radiologists to analyze them. Doctors in other time
zones analyze the scans while radiologists here sleep. Often, emergency
room doctors on the night shift treat patients based on these far-off
diagnoses. Some local radiologists said the volume of work would
overwhelm their practices if nighthawk services were not available.
Harvard project to scan millions of
medical files
The Boston Globe, 7.3.2005
Harvard
scientists are building a powerful computer system that will use
artificial intelligence to scan the private medical files of 2.5 million
people at local hospitals, as part of a government-funded effort to find
the genetic roots of asthma and other diseases. The $20 million project
-- which would probe more deeply and more quickly into medical records
than human researchers are capable of -- is designed to find links
between patients' DNA and illnesses. Although the effort could raise
concerns about privacy, researchers say the new program, called ''I2B2"
(for ''Informatics for Integrating Biology and the Bedside") would
respect the strict guidelines set out in federal and state laws, and
could be a powerful tool for many kinds of research.

Video Robots Redefine 'TV Doctor'
The Washington Post, 7.6.2005
Robot-assisted exchanges are being repeated in dozens of hospitals
across the country by doctors who use the machines to make their rounds,
monitor intensive-care units, respond to emergency calls and consult
with other physicians. Proponents say this and other new "telemedicine"
technologies are allowing doctors to use their time more efficiently and
serve more patients, often at odd hours or in remote places where the
sick would otherwise have a hard time seeing a doctor.
Baptist puts $50M in paperless system
Memphis Business Journal, 7.11.2005
Baptist Memorial Health Care Corp. will spend up to $50
million in the next four years to convert six hospitals to a
near-paperless environment. The system will integrate all aspects of
patient care, as well as inventory, scheduling and billing into a single
system which is dubbed as Baptist CD: Clinical Documentation. It will
allow, for example, a physician to call up patient information in real
time from home, reorder supplies as they are consumed and automatically
check each drug before it is administered. If a medication is too early,
or incompatible with a recent lab test, the system will automatically
warn the nurse.
Supersized health care
Atlanta Business Chronicle, 7.11.2005
Bigger beds, supersized stretchers and double-wide
wheelchairs are becoming more common at Atlanta hospitals. As the
nation's weight problem balloons, hospitals are stretching to care for
heavier patients that require special gear and extra attention -- often
at a higher cost and a greater strain on hospital employees. Many
hospitals are furnished with standard hospital beds built for patients
up to 350 pounds, so they typically have to rent bigger beds or special
mattress pads to accommodate larger patients. Although many of the
expenses are reimbursed by insurance, hospitals still bear much of the
cost of accommodating the obese, said hospital officials.

FDA halts expansion of network to monitor medical device safety
The Boston Globe, 7.14.2005
Despite its plans to
closely monitor deadly malfunctions and misuses of medical devices
through a new computer reporting system, the Food and Drug
Administration has frozen the project in place well short of its goal of
connecting 500 hospitals. The system, known as MedSun, allows doctors
nationwide to directly report to the FDA problems with pacemakers,
stents, and defibrillators. The FDA had aimed to connect 500 of the
nation's 5,000 eligible hospitals, but is stuck at 350 and won't fund
further expansion for the next several years. That means more doctors
are using an older system, through which they report problems to
manufacturers, who then notify regulators. Some fear the process allows
device makers to downplay bad news to the FDA.
CEO's guide to winning physician relations
HealthLeaders, 7.15.2005
Of all the relationships that a hospital's senior
leadership must massage, finding successful partnerships with physicians
requires perhaps the most creativity, risk and effort. The American
College of Healthcare Executives asks hospital CEOs for their top three
concerns in its annual survey, and physician/hospital relations are
quickly moving up the priority list. In 2002, 21 percent of CEOs said
the issue was one of their top three concerns. By 2004, the share had
grown to 32 percent. Because their economic futures are inextricably
entwined with those of their medical staffs, hospital CEOs say
cooperation is inevitable. Moreover, hospitals are using a number of
strategies to build better relationships with their physicians, such as
including them in decision-making, helping them become more efficient
and productive, and increasing their revenue streams. In the
give-and-take relationship, however, both sides have offered precious
little give until recently. But the success stories share in common a
willingness to release old notions about how doctors and hospitals
should work.

Disruptive Physicians Pose Compliance Problems, Risks for Hospitals
Report on Medicare Compliance, 5.9.2005
The occasional obnoxious, egomaniacal
physician can cause risk management and compliance problems for
hospitals, which should take steps to prevent and address them, one
expert says — especially because 60% of adverse medical events are
traceable to out-of-control physicians. Disruptive physicians are "a
breeding ground for major problems for hospitals from the standpoint of
staff relations, patient care, false claims, criminal actions because of
misrepresentations in certification" and malpractice liability, says
Philadelphia attorney Mike Mustokoff.
Five Ways to Make Sure Your HIPAA Privacy Compliance Remains Effective
Report on Patient Privacy, 6.1.2005
No amount of preparation is likely to
insulate your organization from the damage that can be done by
disgruntled employees who post protected health information (PHI) on a
Web site, or thugs who break into your facility at night to steal
personal information. No matter how hard you try, you could someday face
one of these types of privacy-related PR nightmares. But if you've taken
regular measures to monitor and refocus your compliance, investigators,
prosecutors, judges and juries are likely to reward your good-faith
efforts.
Drug Reps Are Restricted by HIPAA Privacy Rules
Report on Patient Privacy, 7.1.2005
Before the privacy rule went into
effect, well-groomed, attractive men and women with bright smiles would
meander into the offices of Cardiology Associates, P.C., of Tennessee,
peddling statins, cholesterol medications and clot-stopping drugs.
They'd come at any time, on any workday, hoping to chat with one of the
group's 26 physicians and 15 non-physician practitioners, perhaps
politely cornering them as they moved between patient rooms. Not
anymore. Today drug reps are welcome on only specified days of the week,
and must first sign in before being escorted to the supply closets at
the group's three locations.

Q&A: HealthSouth in the rear
view mirror
HealthLeaders, 7.18.2005
Guy Sansone didn't
know exactly what to expect when he rolled into Birmingham, Ala., in
March 2003 as the interim CFO of HealthSouth Corp. He was ready for the
worst, and he got it. More than a dozen former executives, including
chairman and CEO Richard Scrushy, have resigned. Five former CFOs have
since pleaded guilty to fraud. The company's leadership, it was later
revealed, overstated profits by about $2.7 billion between 1996 and
2002. Meanwhile, no one knew the extent of that overstatement: The books
said the company was sitting on $600 million in cash but the reality was
closer to $117 million. Sansone was tasked with crisis management as
well as figuring out whether there was a sound business underneath all
the lies. When this veteran turnaround expert at New York-based Alvarez
& Marsal LLC turned over the reins to permanent CFO John Workman in
September 2004, it was clear that despite the problems, the company was
much stronger than anyone, including Sansone, had dared to hope. Though
not fully recovered from the taint of fraud, today HealthSouth is moving
past the scandal with Workman and new president and CEO Jay Grinney at
the helm. Profit for 2004 was more than $643 million, slightly more than
expected. Sansone says his crisis management skills helped convince a
ravenous band of creditors that the troubled rehab center and hospital
owner could be salvaged.
Bad Practices Net Hospitals
More Money
Washington Post, 7.24.2005
As far back as 1999, federal and state
regulators began to receive complaints that the heart surgery unit at
Palm Beach Gardens Medical Center in Florida was a breeding ground for
germs. Dust and dirt covered some surgical equipment. Trash cans and
soiled linens were stored in hallways. IV pumps were spattered with
dried blood. One patient's wife said she saw a medical assistant tear
surgical tape with his teeth. State inspectors in 2002 found "massive
post operative infections" in the heart unit, requiring patients to
undergo more surgery and lengthy hospital stays. In a four-year period,
106 heart patients at Palm Beach Gardens developed infections after
surgery, according to lawsuits and government records. More than two
dozen were readmitted with fevers, pneumonia and serious blood
infections. The lawsuits included 16 patients who died. How did
Medicare, the federal health insurance program for the elderly, respond?
It paid Palm Beach Gardens more. Under Medicare's rules, each time a
patient comes back for another treatment, a hospital qualifies for an
additional payment. In effect, Palm Beach Gardens was paid a bonus for
its mistakes.

Experts Disagree on Staying Power of Pay-for-Performance Programs
Managed Care Week, 7.25.2005
Several health insurers
have launched new pay-for-performance (P4P) programs and are continuing
to invest in existing ones. Despite that, some analysts have dismissed
the initiatives as a short-lived trend driven primarily by employee
consulting firms. Others, however, contend that the programs will
continue to proliferate, as public and private payers and enrollees
themselves push for more health quality and cost information.
P4P programs are intended to improve quality of care and reduce costs by
using financial and other incentives to encourage physicians and
hospitals to change practice patterns and other behaviors.
Hospitals study when to apologize to patients
The Boston Globe, 7.24.2005
Harvard Medical
School's major teaching hospitals are considering adopting a sweeping
disclosure policy that would establish detailed procedures for
physicians to openly acknowledge medical errors and other bad results to
their patients, and provide for training in apologizing.
If Harvard's largest
teaching hospitals -- Massachusetts General Hospital, Brigham and
Women's Hospital, Beth Israel Deaconess Medical Center, Dana-Farber
Cancer Institute, and Children's Hospital Boston -- adopt the policy, it
would create a uniform response across the Harvard system to some of
medicine's most difficult situations. The Harvard hospitals also would
join a growing number of US medical centers and malpractice insurers
that are embracing immediate and open disclosure and apology to patients
when medical care goes wrong.
Once Health Regulators, Now Partners
Washington Post, 7.26.2005
There’s a little-known network of
private contractors called Quality Improvement Organizations, or QIOs.
Each year, Medicare pays nearly $300 million to 53 businesses such as
Indiana-based Health Care Excel to measure quality, work with hospitals
and doctors to improve care, and investigate patient complaints. By law,
QIOs, which are dominated by doctors and health executives, operate in
secrecy with little oversight or accountability. Consumers say they are
difficult to contact and rarely uphold complaints. At the same time, the
number of sanctions QIOs recommend against doctors each year has
dwindled from hundreds to a few. Today, QIOs are also leading proponents
of a new brand of regulation that favors cooperation over discipline.
QIOs increasingly view themselves not as regulators but as partners of
hospitals, nursing homes and doctors, working to improve care. Some have
leveraged their positions to become highly profitable businesses, paying
generous salaries and perks to executives and board members.

Essay: Learning Words They
Rarely Teach in Medical School:
'I'm Sorry'
The New York Times, 7.26.2005
There is nothing in the Hippocratic Oath
that tells doctors what to do when they make a mistake with a patient.
Nor is there much on this subject in medical school curriculums or in
residency training programs. But there should be.
Plan Would Compile, Analyze Medical Errors
Washington Post, 7.29.2005
Nearly six years after
the nation's most prestigious body of medical researchers reported that
as many as 100,000 Americans die each year from medical mistakes,
Congress this week passed long-debated legislation aimed at improving
patient safety. The measure -- which was approved by the Senate last
week and the House on Wednesday and now goes to President Bush -- would
create a network for reporting and analyzing medical errors, with a goal
of reducing future mistakes. Currently, 23
states have systems for collecting reports of mistakes, all but one of
them mandatory. Hospitals and health providers have argued against
mandatory reporting, contending that a voluntary system would be more
effective at getting doctors and hospitals to participate. Under the new
plan, hospitals would be encouraged to report their mistakes
confidentially to groups that will be known as patient safety
organizations. The groups could then contract with the hospitals to
analyze their mistakes and develop ways to prevent errors. The federal
government would play the role of coordinator, developing the computer
network used by the safety groups to collect and analyze the data. The
estimated federal cost over five years is $60 million.

Medical error law signed Chicago Tribune, 7.30.2005
President Bush Friday
signed into law legislation to reduce medical errors by encouraging
medical care providers to report mistakes without the risk of the
information being used against them in lawsuits. Doctors, hospitals and
nurses say a significant hurdle to reporting such errors has been fear
that such information would be used against them--leading to abysmal
reporting of errors to the government or to non-profit health groups
that collect such data. Error reporting is still voluntary under the new
law, which has no federal penalties for failing to provide information.
Hospitals and Consumer-Driven Healthcare: Five Marketing Moves
HealthLeaders, 7.29.2005
Consumer-driven
healthcare is a hot topic these days, but there are many misconceptions
about what it actually is. To adequately plan for future initiatives,
hospital executives need to have a firm understanding of the concept.
As Their Use Soars, Heart Implants Raise Questions
The New York Times, 8.2.2005
A little-known heart
device, an implantable defibrillator, has been under a spotlight after
the recent disclosure that a producer, the Guidant Corporation, did not
tell doctors for years that one of its models had a defect that could
render it useless. But well before that, medical experts had been
increasingly debating other aspects of the device, namely its benefits
and its costs.

New cleaning process reduces hospital risk of vCJD
Reuters via Yahoo, 8.3.2005
A new cleaning
process can reduce the risk of hospital transmission of the human form
of mad cow disease, scientists said. Doctors have been concerned that
variant Creutzfeldt-Jakob Disease (vCJD) could be transmitted by
contaminated surgical equipment, since standard sterilizing procedures
do not destroy the abnormal prion proteins that cause the illness. The
new cleaning technique, which is described in the Journal of General
Virology, could also be used to reduce infection risk from all forms
of human prion diseases – progressive brain wasting illnesses for which
there is no cure.
Hanging on a Hit; Company's Stent Is a Superstar, but What About an
Encore?
The New York Times, 8.9.2005
Few companies have ever enjoyed a
product success like Boston Scientific did when it introduced its Taxus
stent to the American market 16 months ago. Taxus blew by records for a
new health care product -- even such high-profile drugs as Viagra --
topping $2 billion in domestic sales in its first year. And the stent, a
tiny drug-coated metal sleeve inserted into arteries near the heart to
keep them open after doctors remove blockages, is unusually lucrative
for a medical device, generating profit margins of more than 90 percent.
But Taxus has proved to be a decidedly mixed blessing for Boston
Scientific. It has transformed the company from one known for a broad
but obscure array of medical devices into a cash-rich powerhouse -- but
one dependent on a single high-profile product for more than half its
earnings.
Hospital's design a
healthy start
Milwaukee Journal Sentinel, 8.7.2005
Most patients won't
give any thought to the windows at the new St. Joseph's Hospital, but
they could be healthier for them. The windows - in most hospitals, a
breeding ground for germs - were designed to lessen the risk of
infection, one of the hazards of being hospitalized. The blinds, as
difficult to clean in a hospital as a home, are enclosed in the window
panes. The hospital's designers also put heating vents above the windows
to reduce the condensation that lets germs thrive. The windows are just
one of dozens of features that make the new hospital safer by design.
But that kind of detail is why St. Joseph's Hospital has attracted
national and even international attention. The small, 80-bed hospital,
which opened Sunday, is being praised as a model for how design can
reduce medical errors and improve the quality of health care.

Claims say Jewish
Hospital
caused infections
The
Louisville Courier-Journal, 8.9.2005
Ten former patients
and the estate of an 11th have sued Jewish Hospital, claiming they
developed serious infections because of unsanitary conditions at the
hospital. The cases
bring to 69 the number of suits that attorney Joseph White has filed
since late 2003 claiming people have contracted various infections that
resist treatment with common antibiotics.
Technology aids
tracking of patients
Kansas
City Star, 8.11.2005
When disaster strikes,
communities can be sent into disorder trying to keep track of the
injured. But this fall, the Kansas City area expects to be among the
first in the nation to tackle the problem with an electronic tracking
system. The system is to be launched —
perhaps as early as October — in the eight Missouri and Kansas counties
covered by the Mid-America council. Using neck tags with bar-code
technology, the new system will track the location and medical status of
all patients through a central database. The system can be used for
major disasters or for confusing scenes.
N.C. Patients Discuss
Surgical-Tool Fiasco
Associated Press via Yahoo, 8.12.2005
Patients
whose surgeons unknowingly used instruments washed in hydraulic fluid
instead of detergent held their first group meeting, sharing stories of
delayed recoveries and distrust of their doctors. About 50 people
attended the meeting, organized by a freelance medical writer who was
among 3,800 patients to undergo surgery with instruments washed in the
fluid in late 2004 at two hospitals owned by Duke University Health
System.

Imaging companies aim to make worth clear
The Boston Globe,
8.15.2005
Medical imaging companies want to give
regulators a clearer picture of their work. Stung by criticism from
insurers and hospitals that costs are out of control for
magnetic-resonance imaging and other scans, equipment makers including
Siemens Medical Solutions USA Inc. and Philips Medical Systems of
Andover are fighting back, saying that the techniques pay off in better
healthcare overall.
In the Hospital, a
Degrading Shift From Person to Patient
The New
York Times, 8.16.2005
Entering the medical system, whether a
hospital, a nursing home or a clinic, is often degrading. The small
courtesies that help lubricate and dignify civil society are neglected
precisely when they are needed most, when people are feeling acutely cut
off from others and betrayed by their own bodies. Larger trends in
medicine have made it increasingly difficult to deliver such social
niceties, experts say. Many hospital budgets are tight, and nurses are
spread thin: shortages are running at 15 percent to 20 percent in some
areas of the country. Average hospital stays have also shortened in
recent years, making it harder for patients to build any rapport with
staff, or vice versa. Some hospitals have worked to address patients'
most serious grievances. But in interviews and surveys, people who have
recently received medical care say that even when they benefit from the
expertise of first-rate doctors, they often feel resentful, helpless and
dehumanized in the process.

Building a Lean Healthcare Business
HealthLeaders, 8.17.2005
American hospitals are
making little significant improvement in cost, quality and safety of
care despite efforts by the Institute for Healthcare Improvement and
others. A recent report by the HHS Office of the Inspector General finds
that 20 percent of consecutive inpatient stay sequences were associated
with poor quality care, unnecessary fragmentation of care, or both. The
current organization and management of hospitals is a broken system that
cannot effectively address these issues. We have continued to believe
that we can keep doing the same thing and expect a different outcome.
Wired hospitals help
staff, soothe patients
The
Detroit News, 8.17.2005
When first-time
parents learn to swaddle, bathe and burp their new babies at Huron
Valley-Sinai Hospital, the lessons don't come from a nurse. Instead,
instructions are beamed to their bedside through a flat-screen monitor
hovering over their hospital bed. The device, among other things, can
link patients to the World Wide Web, call up X-rays and other medical
data and stream in a host of customized videos and tip sheets.
Science of tiny generates big developments
Baltimore Sun, 8.17.2005
For the past decade,
nanotechnology has been a key to developing super-strong materials, such
as carbon tubes, that are expected to lead to high-performance clothing,
microchips and satellites. But at the two-day conference that ended
yesterday, scientists from around the world praised nanoparticles as
important tools for delivering drugs to diseased tissues and creating
imaging techniques that make it easier to detect cancer and other
ailments. While therapies using nanoparticles are still years from
approval, a number are being tested in clinical trials.

Insurer Reveals What Doctors Really Charge
The Wall Street Journal, 8.18.2005
The growing effort to
enlist consumers in reducing health-care costs has been stymied by the
fact that most people just don't know what medical care costs. Private
and government health coverage has helped shield them from bills. And
even with newer consumer-driven plans that employ Health Savings
Accounts, which give people more of a financial stake in the issue,
pricing information can be hard to come by.
M.R.I.'s Strong Magnets Cited in Accidents
The New York Times, 8.19.2005
The pictures and stories are the stuff
of slapstick: wheelchairs, gurneys and even floor polishers jammed deep
inside M.R.I. scanners whose powerful magnets grabbed them from the
hands of careless hospital workers. The police officer whose pistol flew
out of his holster and shot a wall as it hit the magnet. The sprinkler
repairman whose acetylene tank was yanked inside, breaking its valve and
starting a fire that razed the building. But the bigger picture is
anything but funny, medical safety experts say. As the number of
magnetic resonance imaging scanners in the country has soared from a
handful in 1980 to about 10,000 today, and as magnets have quadrupled in
power, careless accidents have become more frequent. Some have caused
serious injuries and even death. No one knows how many have occurred.
But the safety experts say there is no doubt they are on the rise, and
their growing frequency is prompting widespread calls for more
regulation.

Physicians as Retailers: Banking on Convergence
HealthLeaders, 8.19.2005
A funny thing happened
to healthcare on the way to the bank: Common interests of banks, HSAs,
high-deductible consumer plans, information technologies and physicians
converged. Doctors realized electronic records would allow them to be
paid promptly, completely and reliably at the point of care, through
cash or credit, debit or smart cards, just as with any other retail
transaction. Banks realized they could market and serve as repositories
for HSA funds. Consumer-driven plans realized banks could serve as
powerful marketing and claims processing partners. Suddenly everyone
knew that a new era -- with physicians as retailers with lower practice
overhead; quicker, more transparent transactions; satisfied and more
informed consumers; and efficient payment of physicians in their offices
-- was at hand.
Hospitals beef up their
security measures
HealthLeaders, 8.24.2005
When people posing as
JCAHO inspectors gained entry into three hospitals in Boston, Detroit
and Los Angeles last spring, alarm bells belatedly sounded for hospital
leaders. While the imposters' identities and motives remain unknown,
their actions underscored a tricky balance hospitals must strike. How do
you keep out unwanted visitors -- whether they be fake JCAHO inspectors,
gang members, thieves scoping for purses or drugs, or even
terrorists-without turning your facility into a defensive Fort Knox for
the patients and families you're serving?
a 
Health group's triage:
safety first
The Indianapolis Star, 9.14.2005
In hospitals, simple oversights can
be fatal. A heart attack victim might not get an aspirin early enough.
Or a doctor might prescribe a medication that could have a dangerous
reaction with another drug the patient is taking. The Indiana Hospital &
Health Association on Tuesday detailed its plan to avoid such errors and
improve patient safety at hospitals across the state. The group also
said it intends to lead the development of a mandatory system for
hospitals to report medical errors to the Indiana State Department of
Health.
Healing by design: New hospitals create
places that improve patient outcomes
The Business Journal of Milwaukee,
9.19.2005
Hospital design has come a long way from years ago, when floor plans
were based on where the doctors gather. In the traditional hospital,
space was arranged by department and specialty: radiology was one
department, nuclear medicine another. It was up to patients to find
their way around from one service to the next -- often guided by
multi-colored tape along the floors. Today, architects and health care
planners say, design is focusing more on creating an environment that's
conducive to healing. That means surroundings that soothe patient
anxiety; reduce stress levels for physicians and staff; bring in more
natural light; guard patient dignity and privacy; minimize the spread of
infection and improve patient safety.
Gainsharing dusts off
HealthLeaders, 8.25.2005
Give it enough time,
and the old becomes new again in healthcare. Never has that saying held
more truth than with gainsharing, which is making a return to
respectability after recent government decisions. The practice is now
back on hospital administrators' radar screens following the issuance of
six advisory opinions in February by the Department of Health & Human
Services Office of the Inspector General. The opinions-involving
cardiology and cardiovascular services at four hospitals-made it
possible for the facilities to reward physicians financially for helping
achieve cost reductions. Since then, hospital executives have been
evaluating the merits and legal nuances of gainsharing and are beginning
to develop arrangements similar to the ones approved in the advisory
opinions.

Hospitals must beat the bugs
New York Daily News, 9.23.2005
If you think you may have to go into
the hospital soon, keep reading. A new report highlights one of the
gravest dangers you'll face - the risk of getting a hospital infection
that antibiotics cannot cure. The report, in the medical journal
Clinical Infectious Diseases, raises alarms about the growing number of
hospital bugs that can kill you because they are resistant to
antibiotics. How big is your risk? In the U.S., one out of every 20
hospital patients gets an infection. An estimated 103,000 people die
from hospital infections every year. These infections are almost all
preventable.
Broadlane gets in the fast lane for growth
San Francisco Business Times, 9.26.2005
San Francisco's fast-growing
Broadlane Inc. is taking a broad swipe at handling group purchasing
and related chores for hospitals and doctors nationwide, and expects to
parlay that into more than $170 million in revenue this year. That's 37
percent more than 2004's total of $124 million, and triple the total
three years ago. "I don't see anything different. Growth this year
should be consistent," said CEO Charles Saunders, M.D.
Rethinking supply chain
management
HealthLeaders, 8.26.2005
Yesterday, maybe you
bought a new box of Band-Aids only to find a nearly full box in the
cabinet as you put them away. Or you could have sworn you had a new
bottle of aspirin. Those flubs might cause seconds of frustration and
cost you a few bucks. But translate that slack accounting for supplies
into a business behemoth like a hospital, which orders thousands of
items per month ranging from cheap latex gloves to expensive surgical
supplies, and those nickel-and-dime inefficiencies grow quickly to
thousands of lost dollars.
Hospitals, insurers mull spending
more on digital mammograms
The Business Journal Serving the Greater
Triad Area, 10.3.2005
A
major national study has helped validate the choices of two Triad
hospitals to invest in digital mammography equipment, and is prompting
some insurance companies to reconsider how they reimburse for the
procedure. However, several doctors say that although digital
mammography will likely become more common in the next few years, for
the time being traditional film mammographies will remain the most
widely used procedure. At stake is not only the health of tens of
thousands of Triad women, but also the precarious finances of
mammography, a critical screening tool that radiologists and hospitals
say is, at best, a break-even proposition.

Getting
your health care at Wal-Mart
Pittsburgh Post-Gazette/The Wall Street
Journal, 10.5.2005
Americans can increasingly get basic medical care in the same place they
buy toothpaste and light bulbs. In a development that has broad
implications for the nation's primary-care system, a rising number of
major pharmacy and retail chains -- including CVS Corp., Wal-Mart Stores
Inc. and Target Corp. -- are opening in-store health clinics. They offer
patients fast access to routine medical services such as strep-throat
tests, sports physicals and flu shots. The clinics, which typically
charge between $25 and $60 per visit, don't require an appointment and
are open during pharmacy hours including evenings and weekends. To keep
costs down, they are staffed by nurse practitioners, who can legally
treat patients and write prescriptions in most states.
Emerging Technology:
Hospitals turn to RFID
HealthLeaders, 8.26.2005
Despite its potential, RFID has been slow in coming to healthcare, says
Luis Taveras, a partner with the health and life sciences division of
New York-based Accenture. Lack of awareness has worked against RFID, he
says. In addition, RFID implementations can be costly, particularly if a
hospital lacks the wireless infrastructure needed to support far-flung
applications, such as equipment tracking.

The Quality of Care Chasm: 10 Questions Hospital Executives Should
Be Asking
HealthLeaders, 8.31.2005
Finally, in the healthcare industry, we have the marriage of quality
performance and financial reward. Or at least we have the courtship. The
fairly recent decision/announcement by CMS to more favorably compensate
hospitals and health organizations based on their outcomes data is no
small thing. At the very least, it represents an attempt to incentivize
healthcare providers to improve the caliber of patient care and increase
patient safety. Who can argue with that reasoning? No one. At least not
in good conscience.
Minimally invasive is
becoming a standard operating procedure
Minneapolis Star-Tribune, 10.12.2005
At
St. Joseph's Hospital in St. Paul, patients having their kidney stones
removed go home after a night's stay instead of three. At Robbinsdale's
North Memorial, hysterectomy surgery patients are home within a day and
recover in days rather than weeks. It's all thanks to minimally invasive
surgery, in which surgeons manipulate slender instruments through tiny
incisions. It's a trend that doctors and patients have embraced as a
medical breakthrough worthy of a Star Trek sick bay.
Stent maker to offer free
replacements
The Boston Globe, 10.14.2005
Battling to keep its
share of one of the world's largest medical-device market, Boston
Scientific Corp., said that it would provide a free new Taxus coronary
stent to any hospital treating a patient whose artery clogs around the
device. Starting in January, if a patient requires a procedure to reopen
an artery within 12 months of having a Taxus stent put in, the company
will provide the hospital with a free replacement, the Natick
device-maker said.

ASCs vs. hospitals: Whose side is
Medicare's payment system on?
HealthLeaders, 9.19.2005
Like a suitor hoping
to make a good impression, the ambulatory surgery center industry used a
study to softly coo into the federal government's collective ear earlier
this year. The nature of the flirting: If certain surgical procedures
were to be performed in ASCs rather than hospital outpatient
departments, Medicare could save more than $1 billion a year.
Doctor writes book on HealthSouth
The Birmingham News, 10.14.2005
An Indiana physician whose surgical
center once partnered with HealthSouth Corp. has penned a book about the
company under former Chief Executive Richard Scrushy and the online
community that arose amid a federal accounting fraud investigation. In
"Going South," Dr. William Cast attempts to provide an insider's view of
HealthSouth and "the real story of the man and the company he created
and controlled." It will be released Dec. 1 in bookstores by Dearborn
Trade Publishing, a division of Kaplan Professional Co. that specializes
in business publishing. The price is $25.95.

Plasma TVs with Internet access: In a hospital
room?
Orlando Business Journal, 10.17.2005
Next month, Florida Hospital will break ground on its new $250 million,
240-bed patient tower in downtown Orlando. And once it's done in 2008,
look for patients to start clamoring for the facility's comfortable,
high-tech, private rooms. Indeed, the hospital has spent almost two
years coming up with the best possible design for patient rooms meant to
coddle patients and their families, as well as to bring smiles
to nurses and hospital cleaning crews.
Emerging
Technology: The patient-accessible EMR
HealthLeaders, 9.19.2005
Welcome to the world
of the high-tech doctor-patient relationship. Their EMR installations
behind them, growing numbers of hospitals and medical groups are taking
the next logical-though controversial-step of granting their patients
online access. Often combining chart access with other services, such as
appointment and referral requests, such portals are gaining wide
popularity among patients. Using sites like these, patients can access
information that's otherwise difficult to obtain. Likewise, physician
champions of online records access-dismissing fears of patient
misuse-contend that the systems enhance the doctor-patient relationship.

Repeated Defect in Heart Devices Exposes a History of Problems
The New York Times, 10.20.2005
The
sudden death by cardiac arrest of a 21-year-old student who suffered
from a genetic heart disease set off a series of events that would
expose flaws in how producers of critical heart devices disclose defects
to doctors and patients. It also would reveal that the Food and Drug
Administration's oversight of the fast-growing heart device industry is,
at best, loose.
Hospitals rework their disaster plans
USA Today, 10.21.2005
For
emergency planners, Hurricane Katrina challenged a long-held assumption:
that help will arrive within 24 to 48 hours.
After the rescues of patients from New Orleans in the
wake of Katrina — and the widespread evacuations before Rita — medical
centers are beefing up their disaster plans.

Room design
with IT in mind
HealthLeaders, 10.18.2005
In
planning for advanced information technology, Thomas Tinstman, M.D.,
likes to ask questions nobody else does. It's why Tinstman, executive
director of clinical information systems at UC Davis Health System,
spearheaded a nine-month planning effort prior to the implementation—now
under way—of a suite of clinical documentation technologies. He wanted
to know how a picture archiving system and electronic medical record
package would fit in with clinician workflows at the Sacramento,
Calif.-based acute-care hospital and its 45 primary-care and specialty
physician clinics. Moreover, Tinstman wanted to know which access
devices would mesh best with the inpatient and outpatient settings.
Doctors study risk of clots in new stents
The Boston Globe, 10.21.2005
With drug-eluting coronary stents
implanted in more than 2 million people worldwide, some doctors and
researchers are now concerned about a long-term problem they see in a
small number of patients who have received stents: blood clots inside
the stents themselves. Although the rate of serious clotting is
extremely low, with manufacturers reporting just a handful of clots in
more than 1,500 patients they are following, the cases concern doctors
because clots nearly always cause heart attacks or death.
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