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August 2003
AHA calls for changes to proposed hand sanitizer rule
The American Hospital Association has asked the FDA to remove or exempt alcohol-based hand sanitizers from certain provisions in a proposed rule for healthcare antiseptic drug products. According to the AHA, the rule could unintentionally reduce the widespread use of hand rubs to effectively reduce healthcare-associated infections (HAIs). In an Aug. 27 comment letter to FDA, AHA executive vice president Rick Pollack said the rule would essentially require alcohol-based hand rubs to be reformulated to include an antimicrobial ingredient, even though studies have shown alcohol to be a comparable or better hand antiseptic.
“Given the importance of reducing HAIs, we are concerned that the FDA's proposed rule would undermine this critical goal by taking hand rubs off the market and requiring manufacturers to reformulate these products in a way that is at best, unnecessary, and at worst, detrimental to their proven efficacy,” he wrote.
HHS publishes smallpox rules
The Health Resources and Services Administration on Wednesday published an interim final rule on the Smallpox Vaccine Injury Compensation Program in the Federal Register. The program was established by the Smallpox Emergency Personnel Protection Act of 2003. The rule, which also took effect on Wednesday, establishes a table of vaccine-related injuries that are presumptively covered under the program and the timeframes within which such claims would need to be made. HHS will accept comments on the rule through Oct. 27, and plans to publish a companion final rule setting forth the administrative implementation of the program at a later date.
ASHES annual conference coming up
Next month, healthcare environmental service professionals who are looking for access to the top resources in professional training, products and people can expect to find them at the 18th annual conference and technical exhibition of the American Society for Healthcare Environmental Services (ASHES) in Philadelphia, Sept. 21 – 25, 2003. Educational sessions are designed to provide powerful take-home tools and critical information about hot issues that include staffing and productivity, infection control, disaster readiness, waste recycling, JCAHO issues and more. Contact the association at www.ashes.org for more information.
MedAssets HSCA cuts costs for CA system, gains long extension
St. Louis-based MedAssets HSCA says it has delivered on its supply chain savings commitments to St. Joseph Health System (SJHS), Orange County, CA, and as a result the exclusive supply chain management relationship between the IDN and the group has been extended through October 31, 2011.
SJHS and MedAssets HSCA had entered into a relationship in November 2001, targeting supply chain savings of $26 million over three years and working in collaboration with McGaw Park, IL-based Cardinal Health as the key strategic partner. For SJHS' fiscal year ending June 30, 2002, supply chain savings delivered totaled $8.5 million. Savings for the fiscal year ending June 2003, less than midway through the three-year relationship, exceeded the three-year savings goal of $26 million. As a result of the financial goals being exceeded, the exclusive supply chain management relationship was extended to 2011.
UHC picks information supplier
MediServe Information Systems Inc., Tempe, AZ, today announced that the University HealthSystem Consortium, Oak Brook, IL, has selected MediLinks as the preferred respiratory care information system for its member healthcare organizations. MediServe's clinical software and wireless solutions enable healthcare organizations to achieve a 360-degree view of both their patients and their business. MediLinks is MediServe's point-of-care application that supports all clinical information management activities and tasks of the healthcare organization.
Second man arrested in hospital thefts
A Miramar, FL, man has been arrested on charges that he helped a cohort steal more than $1 million in medical equipment from at least five South Florida hospitals. Authorities said Leovigildo Gonzalez, 32, aided Rene Lopez, who was arrested earlier this month on allegations he stole heart monitors and other costly equipment. The two men worked together at Community Asphalt Corp. in Hialeah, FL, according to an arrest report. Officials said Lopez used a company truck to gain entry into hospitals.
Investigators have said they suspect the stolen equipment, valued in the millions of dollars, was being sold on the black market in Third World countries for a fraction of its value.
Corporate Express joins Global Healthcare Exchange
Corporate Express Inc., Broomfield, CO, yesterday announced an agreement to join Global Healthcare Exchange, Westminster, CO, the healthcare supply e-commerce trading exchange. This agreement will make the entire line of Corporate Express office supply products available for hospitals and other healthcare providers to purchase electronically via GHX. Under this agreement, Corporate Express’ entire office supply product line, including future additions, will be available for purchase by healthcare providers connected to GHX.
Report: Losses mount at NYC hospitals
A new report by the United Hospital Fund rates 13 of New York City's 35 non-profit general care hospitals as "in jeopardy" financially, concluding their long-term viability is in doubt. The facilities in jeopardy are predominantly smaller hospitals that provide a higher proportion of care to low-income residents, and face large and recurring losses and working capital deficits, negligible short-term liquidity and higher levels of debt, the report indicates. As reported by the American Hospital Association, the conclusions are based on data from 2000 and 2001 and found little overall change in the financial condition of the city's nonprofit hospitals since 1999, with the aggregate operating margin remaining at -0.4%. Ken Raske, president of the Greater New York Hospital Association, said the analysis reflects what the association is seeing as hospitals face increased costs for medical liability insurance, energy, pharmaceuticals and labor combined with declining revenues from government and abusive HMO practices that limit revenues. The report can be found at http://www.uhfnyc.org/.
Fearing new SARS outbreak, Hong Kong probes infection control measures
An outbreak of upper respiratory infections among healthcare workers in Hong Kong has raised questions about infection control measures in hospitals. A Hong Kong hospital has isolated an entire ward of patients after seven healthcare workers on the ward fell ill with cold and flu symptoms. The workers complained about sore throats, coughs and mild fevers. But the hospital says it does not think the employees are suffering from Severe Acute Respiratory Syndrome.
Blood tests are being done to rule out SARS but doctors say the hospital workers most likely had a common upper respiratory infection or flu. Five have already recovered, whereas most SARS patients were ill for weeks.
While flu outbreaks in hospitals are common, they can also alert medical professionals to possible lapses in infection control measures, and health officials are quickly rechecking their infection control procedures.
Florida abuzz about malaria
Health officials in Palm Beach County Florida have confirmed a fifth case of locally contracted malaria, and the health director has ordered all county hospitals to test for the mosquito-borne disease when patients show its symptoms. Word of the discovery came yesterday, leading health director Dr. Jean Malecki to express "serious concerns about the persons in the county becoming sources for malaria transmission.”
The patient is a 23-year-old man who lives in the same suburban Lake Worth area as the four previously infected victims. The man, whose name has not been disclosed, has been infected with a milder form of the disease and is expected to recover. He first sought medical help on Aug. 5 but was not tested for the disease. None of the five men diagnosed with malaria have been out of the country recently, troubling health officials.
Most of the 1,200 cases of malaria diagnosed in the U.S. each year involve people who have traveled to infected areas such as Asia, Africa, Central and South America, the Mediterranean countries and islands in the Pacific and Caribbean.
Malecki asked health professionals who see unexplained fever, high fever, headache and chills to conduct a blood test for the disease. The directive will run through Sept. 23 but could be extended. The Palm Beach County malaria cases have been the only ones in Florida this year.
Premier signs blood gas pact with Radiometer America
Premier Inc. announced today it has signed a two-year contract with Radiometer America Inc., Westlake, OH, that covers blood gas instruments and related products and services. The contract is the second blood gas agreement between Radiometer America and Premier.
MI system becomes VHA shareholder
Oakwood Healthcare System, Dearborn, MI, says it has been selected and approved to become a shareholder in VHA Inc., the national health care cooperative based in Irving, TX. The change gives Oakwood, which has four acute care hospitals representing 1,337 licensed beds, a greater say in the governance of the cooperative and more opportunities to engage in networking and educational offerings that are reserved solely for shareholders.
In 2002, Oakwood purchased nearly $77 million in products and services through VHA and Novation, VHA's supply company. According to Novation, Oakwood saved more than $4 million on those purchases and realized almost $7.2 million in total value through the cooperative, based on savings on supplies and services and cooperative distributions.
Maxxim gains contract extension from Johns Hopkins
Maxxim Medical, Clearwater, FL, says it has been awarded an extension of its current custom procedure tray and non-woven drape and gown contract by The Johns Hopkins Health System in Baltimore.
Novation, Medi-Flex sign skin prep pact
Irving, TX-based Novation and Medi-Flex Inc., Overland Park, KS, announced that they have agreed on a contract covering the ChloraPrep One-Step line of patient preoperative skin preparation products. Novation will add the four ChloraPrep product applicators to their contract portfolio beginning Sept. 1.
AmeriNet lets fingers do the walking
St. Louis-based AmeriNet announced it has signed an agreement with New York-based Yellow Pages Inc., a specialized advertising consulting agency that works on the development, placement and purchase of Yellow Pages directory programs for its clients. The agreement took effect June 1.
Dallas hospital group allies with and MedAssets HSCA
The Dallas-Fort Worth Hospital Council (DFWHC) has announced plans to affiliate with St. Louis-based MedAssets HSCA. The relationship will allow DFWHC to provide its member facilities, as well as its GroupOne customers throughout Texas, access to MedAssets HSCA’s GPO and outsourced supply chain services. DFWHC is a local trade association focused on supporting its 71 members in addressing common healthcare issues in a collaborative manner with innovative solutions. The agreement took effect August 1.
Premier gains new shareholders
Premier Inc. announced last week that four hospitals or systems became shareholders of the health alliance this month. The new shareholders include 540-bed Cooper Health System, Camden, NJ; Seattle-based Hospital Shared Services Association, a 40-hospital network that is a former Premier affiliate; 355-bed North Oaks Health System, Hammond, LA; and 454-bed Salem Hospital, Salem, OR, another former Premier affiliate.
HealthSouth divisional head resigns
HealthSouth Corp., facing U.S. fraud charges, said on Thursday the head of the unit that operates its outpatient rehabilitation and diagnostic imaging centers has resigned to "pursue other opportunities." Daniel Riviere, who was president and chief operating officer of the Ambulatory Services division, resigned after a 16-year career at HealthSouth. In a July 7 presentation to investors, executives said the Riviere's division faced "operating issues and market challenges." Interim Chief Executive Robert May will serve as acting head of the division until the company finds a permanent division chief. The Birmingham, Alabama, company faces federal charges of inflating reported earnings by $2.5 billion in recent years. Fourteen former accounting and finance executives have agreed to plead guilty to fraud charges.
Acute Care Hospitals Financial Analysis
Research Study Published
A new research study published in Biomedical Market Newsletter(R), concludes that well-capitalized hospitals continue to grow stronger, while weak hospitals grow weaker. “Acute Care Hospitals Financial Analysis,” notes that hospital construction is increasing, and inpatient hospital bed capacity grew in 2001, the first time since 1983. This investigation of the financial and construction side of the hospital industry provides invaluable details and analysis by key industry experts. In particular:
Abbott Laboratories to Create Global Public Hospital Products Company
Abbott Laboratories plans to create one of the largest manufacturers of hospital products in the United States by spinning off much of Abbott's core global hospital products business. The new, independent hospital products company will have approximately 14,000 employees worldwide, more than 5,000 customers and a large portion of Abbott's core hospital products business, including the related international hospital business. The new company's business will include: medication delivery systems, such as electronic drug-delivery systems, infusion therapy and critical care products; generic pharmaceuticals, including acute-care injectables and other generic anesthetics; and other businesses, including intensive care pharmaceuticals, as well as contract manufacturing. The new company, to be named later, will be headquartered in Lake Forest, Ill., north of Chicago.
CDC Suspends Tiered Influenza Vaccination Schedule
The National Foundation for Infectious Diseases (NFID) issued a special announcement today to health care providers that the Centers for Disease Control and Prevention (CDC) has suspended its tiered influenza vaccination schedule for this year. This now allows everyone to be immunized beginning in October. After determining there will be a sufficient supply of influenza vaccine this season, the CDC published a notice in the August 22, 2003, issue of Morbidity & Mortality Weekly Report (MMWR), stating it has suspended the tiered vaccination schedule. The CDC, collaborating with the Food and Drug Administration and vaccine manufacturers, concluded that influenza vaccine production was proceeding satisfactorily and that projected vaccine distribution schedules will allow for an ample supply of influenza vaccine during October and November.
Bush Administration Proposed Cancer Care Cuts Could Reach $27.6 Billion
A proposed rule issued today by the Centers for Medicare & Medicaid Services (CMS) could severely disrupt cancer care for Medicare beneficiaries in this country by cutting up to $27.6 billion from physicians' reimbursements for chemotherapies and other drugs over the next 10 years. The proposed rule, which would go into effect January 1, 2004, would significantly change the way the Medicare program currently provides coverage for cancer care, including cancer-fighting drugs and treatment services. The CMS rule, published August 20 in the Federal Register, was announced as Congress is considering a Medicare package that could cut up to $16 billion of Medicare funding for cancer care over the next 10 years, according to estimates released by the Congressional Budget Office.
Guidant to pay J&J $425 million in stent patent case
Johnson & Johnson, New Brunswick, NJ, announced that an arbitration panel has upheld its preliminary finding issued in June that Indianapolis-based Guidant Corporation's Multi-Link Duet Coronary Stent System infringes a key Palmaz patent of the Cordis Corporation, a Miami-based Johnson & Johnson company. This final decision requires Guidant to make a one-time payment of $425 million to Cordis within 90 days.
Virtua raises stake with Mezzia
Virtua Health, the largest healthcare provider in South Jersey, says it is expanding the capital management initiative it started two years ago with Indianapolis-based Mezzia Inc. Mezzia, an enterprise software company, will work with Marlton, NJ-based Virtua Health to enhance information technology and performance efficiency, to reduce costs and improve overall capital management efficiencies. Virtua currently operates its own shared services center, distributing supplies to the 33 locations within the Virtua network. By collaborating with Mezzia, Virtua utilizes Mezzia’s technology to create bottom line value on the purchase of capital goods and services.
CMS to cover lung volume reduction surgery
The Centers for Medicare & Medicaid Services announced it intends to make lung volume reduction surgery available to Medicare patients with severe emphysema who meet criteria outlined by the National Emphysema Treatment Trial. The procedure, which removes diseased portions of the lung to provide space for remaining healthy lung tissue, is designed to improve overall lung function for some patients with emphysema. As reported on by the American Hospital Association, CMS said the five-year national trial provided new evidence regarding the effectiveness, safety and cost-effectiveness of adding the procedure to medical therapy for patients with advanced emphysema. The study on average indicated patients who undergo the procedure with medical therapy are more likely to function better after two years and do not face an increased risk of death compared with those who receive medical therapy only.
SARS may have resurfaced in Canada
Medical authorities said today that early test results of a small portion of a virus that has spread through a nursing home outside Vancouver is genetically identical to SARS, but the New York Times reports this morning that scientists are sharply divided over the meaning of the findings. The early and still inconclusive results have sent shudders through the Canadian medical community after an outbreak of the illness in the winter and spring killed more than 30 people in and around Toronto and caused serious economic damage.
In the latest report, more than 100 of the 142 residents at Kinsmen Place Lodge in North Surrey, BC, as well as 48 of 160 staff members, have come down with respiratory symptoms, mostly sore throats and runny noses. Seven patients have died of pneumonia-related illness in recent weeks. Most patients have fully recovered. But federal officials said the symptoms are different from those displayed by victims of severe acute respiratory syndrome in Canada and several parts of Asia, but scientists say the disease may be transforming itself.
"This could be a mutated SARS corona virus that has lost virulence, and that is the favorite hypothesis among many people," Dr. David Patrick, director of epidemiology at the British Columbia Center for Disease Control, told reporters. The World Health Organization sent a virologist to Canada on Monday to investigate results from tests processed at the National Microbiology Laboratory in Winnipeg. Experts say it could take days or weeks for a full investigation to be completed. So far, less than two percent of the genetic material of the virus has been decoded. But some patients also showed antibodies to the SARS virus in their blood samples. It is still possible, experts say, that tests are picking up another form of corona virus that is similar but not identical to SARS.
Novation beds with Medline
Irving, TX-based Novation said yesterday it has signed a three-year, multi-vendor agreement covering pressure relief mattresses and related products with Medline Industries Inc., Mundelein, IL. The contract includes adult mattresses, specialty mattresses, such as extended care, pediatrics, birthing bed and crib mattresses and raised edge mattresses, pressure reduction seating products including O.R. table pads, and custom mattresses.
Young docs rebel against hours and pay
The nation's medical establishment has grown increasingly anxious about an antitrust suit contending that residents are forced to participate in a system that ensures they work long hours and receive low pay. A report published earlier this week in the New York Times details how medical schools and teaching hospitals, the principal defendants in the lawsuit, are so worried that in recent weeks they have asked their allies in the Senate to enact legislation that would derail the suit, inoculating them from damages that might otherwise run into the hundreds of millions of dollars.
The defendants maintain that the suit, filed by several young doctors, has no merit, and express confidence that they would prevail in court. But they are clearly troubled by the possibility the suit could upend the decades-old system of medical residents' selection and deployment around the country. The defendants have also hired lobbyists with previous connections to two senators who have been most directly involved in the effort to introduce such legislation: Hillary Rodham Clinton (D-NY) and Edward M. Kennedy (D-MA).
At issue is the National Resident Matching Program, known in medical circles as the Match. Every March, a computer determines where new graduates of medical schools will spend the next several years as residents, gaining experience and honing their skills. More than 80 percent of first-year residency positions are offered exclusively through the program, which is based on rankings submitted both by hospitals, which list the graduates they want, and the 15,000 or so graduates, who list the hospitals they prefer. Both sides agree in advance to accept the pairing. The suit contends that the Match keeps salaries artificially low — the annual pay for residents is about $40,000 and varies only marginally regardless of region or speciality — and crushes any competition that might force teaching hospitals to offer better conditions like shorter working hours. The industry's defense of that system has long been that a residency is not a job per se but instead a continuation of medical education in which the resident ought to be entirely immersed.
MedAssets HSCA signs X-ray deal
St. Louis-based MedAssets HSCA announced it has signed a new multi year supply agreement with NHD Inc., Beachwood, OH, that covers the complete line of X-ray products and services offered by NHD through their 27 shareholder organizations. NHD Inc. is comprised of a network of regional, independently owned and operated distributors of medical imaging supplies, services and equipment.
Novation inks Innovative Technology pacts
Irving, TX-based Novation announced it has awarded agreements to 11 companies, nine of which were initiated through Novation's Innovative Technology Department, a work unit created exclusively to identify new medical technologies that could improve patient care. The new agreements were signed with Applied Medical Resources, Rancho Santa Margarita, CA; Cook Urological, Spencer, IN; Davol Inc., Cranston, RI; Healthpoint Ltd., Ft. Worth, TX; Masimo Medical, Irvine, CA; Medi-Flex Inc., Overland Park, KS; Medwave Inc., Danvers, MA; Novo Nordisk Pharmaceuticals, Princeton, NJ; Philips Medical Systems, Andover, MA; Stryker, Kalamazoo, MI; and Urosolutions Inc., Orlando, FL.
Novation initiated its efforts to uncover new contracting opportunities with small manufacturers following a Senate subcommittee hearing last year in which the Senators expressed a desire for GPOs to enhance contracting opportunities for small manufacturers. Since last August, Novation has added approximately 20 new contracts to its portfolio. Novation is currently holding discussions with 12 other manufacturers about new contracting opportunities.
Premier expands tissue management pact
Premier Inc. announced it has signed an agreement with Healthpoint Ltd, Ft. Worth, TX, which covers an expanded portfolio of tissue management products. The new agreement follows a prior purchasing agreement between the two organizations. The three-year agreement, took effect July 1, covers a variety of Healthpoint’s tissue management products.
Neoforma joins with McKesson in supply chain deal; amends Novation pact
San Jose, CA-based Neoforma, Inc. announced it has signed an agreement with McKesson Information Solutions to develop certified integration between the companies' complementary supply chain management technologies. According to Neoforma, this integration will enable healthcare organizations to decrease supply management costs while taking advantage of the performance, reliability and full support of a joint offering. The three-year agreement expands Neoforma's existing business relationship with San Francisco-based McKesson Corporation, which has been a supplier to hospital customers of Neoforma's Web-based supply chain management solutions since February 2001. Neoforma's Order Management Solution (OMS) will be integrated with McKesson's supply chain information technology solutions, including its NOVA and Pathways Materials Management systems.
Separately, Neoforma announced it has amended its 10-year exclusive outsourcing and operating agreement with Novation, VHA Inc. and University HealthSystem Consortium to simplify the basis on which Neoforma earns fees from Novation under the agreement; increase Neoforma's responsibility for managing relationships with suppliers that use its solutions; and clarify the rights to data collected by Neoforma through its solutions. Neoforma had previously announced in May that it was in discussions to amend this agreement, which was originally entered into in March 2000.The amendment simplifies the terms of the previous agreement, under which the maximum payments would have been calculated as a percentage of Novation's estimated revenue and were subject to adjustment periodically each year. In 2004 and 2005, these previously applicable percentages would have declined by approximately 27 percent and then an additional 9 percent, respectively. The amendment to the outsourcing agreement also grants Neoforma increased responsibility for its relationships with suppliers participating in Marketplace@Novation.
GHX, McKesson to enhance e-commerce services
Global Healthcare Exchange announced it has signed an alliance agreement with McKesson Information Solutions that provides direct connectivity between McKesson’s Horizon Supply Source Web-based procurement tool and GHX’s electronic trading exchange, including its industry-standard AllSource catalog. This integrated solution is expected to lower costs for joint GHX and McKesson customers by automating the purchasing process—from requisition, through order fulfillment and payment.
Omnicell acquires inventory management software producer
Palo Alto, CA-based Omnicell Inc. announced this morning it has completed the purchase of BCX Technology Inc., Lebanon, TN, a provider of inventory management software solutions for hospitals. Omnicell is best known for its lines of so-called supply vending machines. BCX manufactures the ScanREQ System, a real-time point-of-use system that utilizes touch screen technology, a bar code scanning system and inventory management software. The system enables hospitals to handle supply management more efficiently and cost-effectively. Omnicell will continue to market BCX products under the BCX Technology name. The acquisition also gives Omnicell a presence in a number of important hospitals and systems across the country.
Federal Health Officials Announced Yesterday that
WNV Tally has Tripled Again
The number of human West Nile cases this year rose by 240 to 393 this week. The numbers include nine deaths: five in Colorado and two each in Texas and Alabama, according to the CDC. In Colorado, the hardest-hit state so far this year, officials have reported 195 cases, a massive jump from the state's 14 cases overall in 2002. The nation's tally is expected to climb rapidly in the next month. Last year, about two-thirds of new cases occurred in the six weeks after August 7, according to the CDC. Last year's season extended through October, with a final total of 4,156 cases of human infection, 284 of them fatal. Arizona, one of only four states in the lower 48 spared West Nile activity in the past, was added to the infected area list. Oregon, Nevada, and Utah remain the only continental states with no activity this year or in the past.
Medication Safety System Available Through MedAssets
ALARIS Medical Systems Inc. announced today the addition of the ALARIS(R) Medley(TM) Medication Safety System with its proprietary Guardrails(R) Safety Software to its existing contract, which extends through July 31, 2005. The Medley(TM) System is a modular point-of-care platform that integrates infusion, patient monitoring and clinical best practice guidelines for optimal outcomes. At the core of the Medley(TM) Medication Safety System is the Guardrails(R) Safety Software, available only from ALARIS Medical Systems, which provides an automatic safety net for infusion programming focused on medication error-prevention at the critical point of IV delivery to the patient. The Guardrails(R) Safety Software helps protect patients from infusion programming errors by allowing institutions to configure unique care-specific profiles with pre-defined drug dose limits and other delivery parameters to meet the particular needs of multiple patient care areas.
Florida Passes Medical Malpractice Bill with Damages Limitations
The Florida House and Senate approved a compromise medical malpractice bill. Under the bill, the state would cap noneconomic damages in malpractice lawsuits against individual physicians at $500,000 and at $1 million in lawsuits against multiple physicians. The cap in lawsuits against individual physicians could increase to $1 million in cases of severe malpractice. The legislation would cap noneconomic damages in malpractice lawsuits against hospitals and other health care facilities at $750,000 and at $1.5 million in lawsuits against multiple facilities. The cap in lawsuits against individual facilities could increase to $1.5 million in cases of severe malpractice. In addition, the bill would cap noneconomic damages in malpractice lawsuits against individual emergency room providers at $150,000 and at $300,000 in lawsuits against multiple providers. Other mandates of the legislation will: freeze malpractice insurance premium rates in the state from July 1 through Jan. 1, 2004, and require malpractice insurers to reduce rates retroactively based on state estimates of the amount that the bill will save insurers; require hospitals and physicians to inform patients when they experience injuries; require hospitals and surgical centers to adopt patient safety plans and to appoint a patient safety officer and a patient safety committee to help reduce medical errors; mandate that physicians receive information on the five most common patient diagnoses in the state in the previous two years to improve patient diagnosis; allow malpractice insurers to have seven months to study malpractice lawsuits and offer settlements; require the state to suspend the licenses of physicians who do not pay damage awards in malpractice lawsuits within 30 days; limit lawsuits against hospitals or hospital medical boards related to physician discipline; allow physicians to form self-insurance funds; and require malpractice insurers, hospitals and physicians to provide the state with more information on malpractice insurance premium rates, medical errors and malpractice lawsuits .
MedAssets Awards Medline with Custom Procedure Tray Agreement
MedAssets recently awarded Medline Industries, Inc. (Mundelein, IL) a multi-million dollar contract for custom procedure trays and unitized delivery systems making Medline the second leading supplier of CPTs in the industry. Medline was awarded both a base agreement (for general members) through July 31, 2006 and a SELECT® agreement (for highly committed members) through September 30, 2004. The agreement also includes Medline’s unitized delivery system called Complete Delivery System (CDS). CDS is a procedure-based supply management system, which combines all sterile and non-sterile perioperative supplies required for a specific procedure and puts them in one container which saves hospitals time in setting up surgical procedures, standardizing products and reducing costs per procedure.
IAHCSMM seeks education director
The International Association of Healthcare Central Service Materiel Management says it is seeking to hire an education director. The association is encouraging qualified applicants to apply for the position, which will ultimately help advance the development of educational materials and resources for the Chicago-based group. To qualify for the role, applicants must be motivated and experienced and possess a solid understanding of certification policies and procedures. Applicants should also be well-versed in instructor concepts and be comfortable in taking initiative and leading a broad scope of IAHCSMM’s educational pursuits. The person chosen for this position will be able to work independently on special projects, while at the same time serve as liaison to all allied groups, including the Association of periOperative Registered Nurses, the Association of Surgical Technologists, the Association of Professionals in Infection Control and Epidemiology, and the Association for the Advancement of Medical Instrumentation.
Those interested in applying for the Educational Director position should mail a resume and cover letter to IAHCSMM headquarters at: 213 West Institute Place, Suite 307, Chicago, IL 60610, or send via email to: mailbox@iahcsmm.com
Hospital margins declining
A recent memorandum from the Medicare Payment Advisory Commission indicates the average total margin for hospitals as measured by the National Hospital Indicator Survey averaged 4.8% from January to December 2002, not significantly changed from the 4.7% margin the survey found in 2001. However, Rick Pollack, executive director of the American Hospital Association, notes that more recent data from the Hospital Databank program collected by 37 state hospital associations shows hospitals' total margins declined markedly to 4.2% from 5.8% in first quarter 2003 compared with first quarter 2002. "We need to see improvement in hospitals' financial health if the foundation of our healthcare delivery system is to remain secure," he said. While hospitals continue to face increased labor costs from a severe workforce shortage, skyrocketing medical liability costs, and rising expenses for pharmaceuticals and other new technology, Pollack said reimbursement continues to remain below cost for Medicare and Medicaid recipients.
Tenet being investigated by Florida Medicaid
Tenet Healthcare Corp. said it is being investigated by Florida's Medicaid program, adding to a raft of legal and regulatory woes for the nation's No. 2 hospital operator.
Tenet said the Florida Medicaid Fraud Control Unit in June issued a subpoena "seeking employee Personnel records and contracts with physicians, therapists and management companies, including loan agreements and purchase and sale agreements."
Government too focused on smallpox, IOM panel says
The Bush administration's smallpox vaccination plan is too narrowly focused to adequately protect Americans from bioterrorism, and the vaccine itself is too risky to be made widely available to the public, a scientific advisory panel reported yesterday.
"Smallpox is not the only threat to the nation's health, and vaccination is not the only tool for preparedness," said Dr. Brian L. Strom, chairman of the Institute of Medicine committee and a professor at the University of Pennsylvania School of Medicine.
The smallpox vaccination program has "no doubt" improved the nation's capacity to respond to a bioterror attack as well as to SARS and other natural outbreaks of infectious diseases, said Strom, in comments reported on by the Los Angeles Times this morning.
But the program has strained resources of underfunded state and local health departments, leaving them unable to provide some basic public health services and unprepared to respond to other bioterror agents, the committee said.
The report by the committee calls on the administration to overhaul its bioterrorism preparedness program. Specifically, the government should make its smallpox vaccination plan part of a broader public health program to protect Americans against a variety of threats, the committee said. The Centers for Disease Control and Prevention, which commissioned the report, also should establish a national standard of preparedness and help states develop plans for responding to specific situations, the committee recommended.
Shared Services reprocesses deal with SRI/Surgical Express
Atlanta-based Shared Services Healthcare Inc. says it recently renewed a two-year agreement with Tampa, FL-based SRI/Surgical Express Inc., that covers the supply, delivery and management of surgical supplies. Specific services under contract include supply and delivery of reprocessed sterilized surgical packs and surgical carts. According to the GPO, the agreement is expected to save participating Shared Services’ members 10 percent over traditional disposables.
Baptist Memorial on track with Materials Management Microsystems
Memphis-based Baptist Memorial Health Care Corporation announced it has selected Materials Management Microsystems Inc., Mequon, WI, a provider of computerized sterile processing information systems, to implement its instrument and equipment tracking systems. Materials Management Microsystems will install its Sterile Processing Microsystem and Mobile Equipment Microsystem software at the 706-bed Baptist Memorial Hospital-Memphis.
BayCare Health System points to Sempermed for gloves
BayCare Health System, Jacksonville, FL, the nation’s fifth largest not-for-profit health system and a member of Premier Inc., has selected global glove manufacturer Sempermed USA, Palm Harbor, FL, as its sole supplier of examination gloves. The BayCare system includes nine hospitals and six non-acute care facilities serving multiple counties in West Central Florida. According to Sempermed, the 18-month agreement is expected to save the health system over $525,000 while standardizing on one supplier for examination gloves.
Materials management week set for Oct. 5-11
Just days before it convenes its annual conference and trade show, the Association for Healthcare Resource & Materials Management said today that it has designated the week of Oct. 5-11 for hospitals to celebrate National Healthcare Resource and Materials Management Week. The occasion recognizes the integral role of materials management departments in the delivery of patient care. Hospitals are encouraged to recognize materials management and procurement professionals during the week with special events and staff-wide recognition. For ideas on how to celebrate, go to http://www.ahrmm.org.
The annual AHRMM conference is scheduled for Aug. 17-20 in San Diego.
VHA study outlines scenarios for healthcare finances
As Congress deliberates on Medicare changes and employers provide less and less healthcare coverage, the method for how healthcare providers will be paid is constantly evolving. A new VHA Inc. study, “Dollars & Sense: Strategies for Emerging Payment Scenarios,” shows how healthcare may be financed and paid for as the economy and market conditions change and as political efforts and societal trends emerge.
The study describes three scenarios and how they are currently in play in the marketplace:
AmeriNet expands deal with Kodak
St. Louis-based AmeriNet announced it has signed a new three-year contract that expands its earlier agreements with Eastman Kodak Company, Rochester, NY. The arrangement was reworked to cover the purchase of computed radiography and digital radiography systems as well as general radiology and mammography medical films and Kodak DryView lasers covered under the earlier deal.
GAO says future SARS outbreak could overwhelm hospitals
In a report last week to the Senate Permanent Subcommittee on Investigations, the American Hospital Association reports that the General Accounting Office warned that hospitals may be "limited in their capacity" to respond to a future outbreak of severe acute respiratory syndrome. Though traditional infectious disease control measures proved effective in containing SARS when it reached the U.S. earlier this year, the GAO said in testimony that the virus may overwhelm hospitals if it re-emerges on a larger scale. In addition to posing the potential for hospital and emergency department overcrowding, a future outbreak of the virus could cause shortages of staff and infectious disease control equipment. Although only 36 probable SARS causes and no deaths were reported in the U.S., experts fear that the virus may be seasonal and reappear this fall and winter. The report is available online at http://www.gao.gov/cgi-bin/getrpt?GAO-03-1058T.
Medex forms alternate care unit
Fresh from its recent acquisition of Johnson & Johnson’s vascular access business, medical products manufacturer Medex Inc., Dublin, OH, says it has added a new business unit specifically targeting the alternate care market. The unit will be responsible for sales and marketing to free-standing surgical centers, emergency medical services, dialysis and oncology centers, long-term care, various medical and dental offices, and veterinary practices. A portion of the new Medex vascular access products were already being sold to alternate care customers.
MEDICA readies huge exhibition
Three months before the start of MEDICA 2003, the 35th World Forum for Medicine, organizers say 3,072 exhibitors from 63 countries have booked 1.2 million square feet of net exhibit space. MEDICA 2003 is scheduled for November 19-22 at the fairgrounds in Düsseldorf, Germany. Over 130,000 visitors from around the world are expected to attend the event.
To date, 60 percent of the MEDICA 2003 exhibitors are from countries other than Germany. The leading foreign exhibitor nation is Italy with 245 exhibitors, followed by the U.S. (227 companies), Great Britain (213 exhibitors), China (107 companies) and France (100 exhibitors). The U.S. figure includes 98 companies exhibiting within the two North American Pavilions, organized by Messe Düsseldorf North America.
MEDICA 2003 entrance passes and show directories can be obtained from Messe Düsseldorf North America in advance of the show: $20 each for a one-day entrance pass, $65 each for a four-day entrance pass and $12 each for a show directory. For further information on visiting or exhibiting at MEDICA 2003, contact Messe Düsseldorf North America, 150 North Michigan Avenue, Suite 2920, Chicago, IL 60601. Telephone: 312-781-5180; Fax: 312- 781-5188; E-mail: info@mdna.com. Or visit the website http://www.mdna.com.
Human cases of WNV reach 164, outpacing infections last year
The number of human cases of West Nile Virus in the U.S. has tripled since last week to 164 cases in 16 states, including four deaths, the Centers for Disease Control and Prevention reported yesterday. That's up from a year ago, when CDC was reporting 112 cases in four states. The CDC said that about twice as many mosquitoes also are showing evidence of the virus this year, as are more horses, another sign the virus may hit harder this summer than last. All of the human cases this year have been attributed to mosquito bites. Blood banks have been testing the blood supply for the virus since July and pulling any units suspected of infection. However, about half of the cases are the more serious form of the virus, West Nile encephalitis, down from two-thirds of cases a year ago. The average patient's age is also down, 45 versus 55 last year. Colorado, which had no human cases at this time last year, is reporting the largest number of cases at 72; followed by Texas with 29 cases and Louisiana with 15. Two deaths have been reported in Texas, one in Colorado and one in Alabama.
Baylor Med Center to operate with Encision instruments
The Baylor University Medical Center, Dallas, says it is converting from conventional instrumentation to AEM Laparoscopic Instruments manufactured by Encision Inc., Boulder, CO, for minimally invasive surgical procedures. Baylor represents the fourteenth university/teaching hospital to utilize the Encision instruments, including Ohio State University, University of Louisville, University of Kansas and Northwestern University.
CEOs worry about money
Reduced reimbursement from government sources continues to be the top concern of hospital and health system CEOs, the latest American Hospital Association member poll suggests. The survey of 573 CEOs by the HSM Group found that 70 percent were concerned about reimbursements in the first six months of 2003, up from 66 percent in all of 2002. Workforce issues were a top concern for 58 percent of the executives, down slightly from 70 percent last year. Medical liability/tort reform was an important issue for 26 percent, up from 19 percent in 2002, as was physician issues, at 26 percent the only other topic mentioned by more than a fifth of the CEOs surveyed.
Zoll Medical relocates HQ
Zoll Medical Corporation, a manufacturer of non-invasive cardiac resuscitation devices which provide pacing and defibrillation, announced that it has relocated its corporate headquarters to Chelmsford, MA from Burlington, MA. Zoll’s new address is 269 Mill Road, Chelmsford, MA 01824-4105. The new main phone number is 978-421-9100. The new main fax number is 978-421-9655. Toll-free numbers remain the same including the one for Emergency/Technical Support and International Support (800-348-9011).
Tenet to pay record $54 million in fraud settlement with government
Santa Barbara, CA-based hospital chain Tenet Healthcare Corporation will pay $54 million to settle government charges that doctors at Tenet-owned Redding (CA) Medical Center performed unnecessary heart surgeries on hundreds of patients, the Justice Department said yesterday. The settlement did not limit the government's criminal or civil investigation of any individuals, said U.S. Attorney McGregor Scott.
The settlement is the largest in a case involving what is known as medical necessity fraud, or billing government health programs for tests and treatments that the patient's condition did not require. By settling, Tenet conceded it would rather pay a heavy fine than argue in court that there was a medical reason for the patients to undergo the procedures or operations. However, the New York Times reports today that under the agreement, the Department of Health and Human Services may continue its own inquiry to determine whether Tenet and its hospitals should be barred from federal health programs, including Medicare. Criminal and civil investigations of individuals are continuing. Moreover, former patients can proceed with their lawsuits against Tenet, the hospital and the doctors.
Kodak and Siemens sign global sales deal
Eastman Kodak Company and Siemens Medical Solutions today announced an agreement in which Siemens' sales force will sell medical imaging systems from Kodak's Health Imaging Group. This new three-year global agreement is an expansion of previous regional agreements between the two companies and is effective immediately. Under this worldwide original equipment manufacturer agreement, Siemens will begin selling Kodak computed radiography and digital laser printing systems directly to Siemens' customers. Kodak's previous contracts established OEM sales agreements with Siemens in the U.S. and Europe, while this new agreement is worldwide in scope and positions both companies to explore mutually beneficial marketing and new product development opportunities.
Quorum to gas up at Praxair pump
Nashville-based Quorum Health Resources announced it has signed what it calls a multi-year service agreement with Praxair Healthcare Services, Danbury, CT, to make bulk and cylinder Medipure medical gases available to Quorum hospitals.
GAO: Many urban hospitals lack equipment to cope with bioterrorism
Most of the nation's urban hospitals have participated in bioterrorism planning and coordination activities, but lack the medical equipment needed to handle the likely surge in patients during a bioterrorist incident, according to a study released yesterday by the General Accounting Office and reported on by the American Hospital Association. For example, half of the 1,482 urban hospitals surveyed by GAO between May and September 2002 reported having fewer than six ventilators per 100 staffed beds. Four out of five hospitals had a written emergency response plan addressing bioterrorism, although many plans omitted some key contacts, and almost all of the hospitals were coordinating their planning activities with other agencies. Most of the hospitals also were training personnel to identify and diagnose diseases caused by biological agents, but fewer than half had conducted drills or exercises simulating response to a bioterrorist incident. The report is available at http://www.gao.gov/.
Panel: U.S. should call for insurance to pay for vaccines, subsidize shots for poor
The federal government should require all health insurance policies to pay for vaccines, should reimburse insurers for the costs and should subsidize vaccines for the uninsured, an expert panel from the National Academy of Sciences said this week. According to a report in the New York Times the proposals call for a sweeping overhaul of vaccine policy and are a response to recent shortages in the supply of some vaccines and a steady decline in the number of companies producing vaccines. A major purpose of the recommendations is to guarantee that everyone has access to the growing number of new and expensive but effective vaccines.
At the same time, the panel said it wanted to stimulate and sustain investment in new vaccines, by assuring that manufacturers could achieve an adequate return on their investments. The proposal for an "insurance mandate" and subsidies would increase federal spending on vaccines, by an unspecified amount, and is subject to approval by Congress. Lawmakers expressed concern about severe shortages of some vaccines in 2001 and 2002. The problem has not been high on the Congressional agenda, but this week’s report may prompt action on Capitol Hill.
The mandate would provide coverage for all insured children, for adults 65 and older and for certain people 18 to 64 with a high risk of developing diseases that can be prevented by vaccines.
Survey of hospitals in five countries finds similarities, sharp contrasts
Preliminary findings from a survey of hospital administrators in five countries show U.S. hospital administrators are by far most worried about losing patients. According to a report from the American Hospital Association, about 19 percent of the U.S. hospital executives called themselves "very concerned" they would lose patients to other hospitals, while 51 percent worried about losing out to free-standing ambulatory or primary care centers.
In contrast, 7 percent or fewer of administrators in the United Kingdom, Canada and New Zealand shared those concerns, as did 16 percent or fewer of Australian administrators. The 2003 Commonwealth Fund International Health Policy Survey of Hospital Administrators indicated 1 percent of U.S. patients were likely to wait six months or more for elective surgery (vs. 26 percent to 57 percent in the other countries), according to results presented Sunday. At least 75 percent of the execs in each country called their hospital's programs for finding and addressing preventable medical errors somewhat or very effective. The results come from a telephone survey in April and May of administrators at 100 hospitals in Canada, the U.K. and Australia, plus 200 administrators in the U.S. and 28 in New Zealand. All the facilities had 100+ beds. Harris Interactive managed the data-gathering.
July hospital employment rises 0.02%
Employment at the nation's hospitals rose 0.02 percent in July to a seasonally adjusted 4,228,100 people, the Bureau of Labor Statistics reported this week. That's 900 more people than in June and 68,500 more than a year ago. At the same time, the nation's overall unemployment rate dropped by two-tenths of a percentage point to 6.2 percent.
Premier packs care into kit deals
Premier's group purchasing division, Premier Purchasing Partners, L.P., said yesterday it has awarded multi-source contracts for personal care kits and components to Care Line Inc., Greenbrier, TN, and Medline Industries Inc., Mundelein, IL. This category was previously referred to in the Premier portfolio as non-sterile custom kits. The three-year contracts, which took effect on Friday, cover standard kits or individual kit components for admission, baby care, maternity and other uses.
IDNs upgrade their VHA memberships
Irving, TX-based VHA Inc. reports that three healthcare systems have upgraded their memberships in the group by stepping up to shareholder status in the healthcare cooperative. The healthcare organizations are Archbold Health Services, a five-hospital IDN with 592 beds in Thomasville, GA; Gwinnett Hospital System, with two hospitals and 486 beds in Lawrenceville, GA; and Freeman Health System, with three hospitals and 494 beds in Joplin, MO.
In 2002, the three networks combined to purchase more than $103 million in products and services through VHA and Novation, VHA’s supply company. VHA says that they saved a combined $7.7 million on those purchases and realized more than $9.2 million in total value through the cooperative, based on savings and cooperative dividends.
Consorta says ’03 wound closure deals produce most successful product conversion
Consorta Inc., Rolling Meadows, IL, announced yesterday that the agreements for wound closure products that Consorta established six months ago have led 94 percent of its members to begin or complete conversions to sutures from United States Surgical/Davis & Geck, endomechanical products from United States Surgical AutoSuture, and manual ligation products from Weck, Inc.
During the first six months of the new agreements, Consorta says that members rated 97.2 percent of suture uses clinically acceptable or superior to competitive products; they also found 97.2 percent of endomechanical products to be clinically acceptable or superior. Some facilities have reported clinical acceptability rates of 100 percent.
“These extraordinary rates of clinical acceptability have been sustained for an estimated 5.2 million units purchased since the agreements were implemented in November 2002,” said Robin Szarmach, director of surgical and cardiovascular contracting at Consorta.
Chris Pancratz, former HIDA exec, dead at 52
Chris Pancratz, former executive director of the Health Industry Distributors Association, died Saturday, Aug. 2, of cancer. Memorial services for Pancratz, who was 52, will be held from 6 p.m. to 8 p.m. today at Miller Funeral Home and Crematorium, 3200 Galansky Blvd., Woodbridge, IL, and from 1 p.m. to 3 p.m. Saturday, at Lauterburg and Oehler Funeral Home, 2000 E. Northwest Highway, Arlington Heights, IL. Pancratz, who was born Oct. 31, 1950 in Chicago, served as HIDA’s top staffer for ten years. Earlier in his career, he was also employed for more than 20 years by Chicago Hospital Supply, Palatine, IL, the last five years as president of the firm, in addition to several other positions in and out of the industry. Most recently, in 1999 he founded his own consulting firm, PAD Development Association. Pancratz is survived by his wife, Christine (nee Stanczak), whom he married Aug. 12, 1973; his children, Katherine of Woodbridge, IL, and Phillip (Kimberly) Pancratz of Virginia Beach, VA; his grandchildren, Jillian, Alina and Joseph; his brothers, Matthew (Heather) Pancratz of Homer, AK, Andrew (Jeanette) Pancratz of Hoffman Estates, IL; Kevin (Joyce) Pancratz and Richard (Lynette) Pancratz both of Arlington Heights, IL; and his sisters, Anne of Evanston, IL, and Barbara (Ronald) Heiderman of Niles, IL.
HPNOnline and Healthcare Purchasing News would like to extend sincere sympathy to the family of Chris Pancratz, a feeling we are certain is shared by readers who knew him.
In lieu of flowers, memorials may be made to the American Cancer Society, the National Space Society or to the U.S. Jaycees Foundation. Friends may visit www.dailyherald.com/obits to express condolences and sign the guest book. For funeral information, call 847-253-5423
CMS ups ICD reimbursements
Indianapolis-based Guidant Corporation says that the Centers for Medicare and Medicaid Services (CMS) would reimburse hospitals at a higher level for heart failure patients needing implantable cardioverter defibrillators (ICDs). The increased reimbursements, Guidant says, will help hospitals remove cost barriers and provide life-saving therapy to more patients. The new reimbursement code, DRG 535, reimburses hospitals at an increase of 32 percent for 17 percent of the current ICD procedures done today.
HHS stumps for patient safety
Health and Human Services Secretary Tommy Thompson announced on Saturday a new HHS campaign in partnership with the AHA and American Medical Association to distribute information about improving patient safety to healthcare providers and patients across the country. The American Hospital Association reports that Thompson is urging every hospital and doctor to make the information available to their patients. The "5 Steps to Safer Health Care" campaign includes posters and fact sheets providing tips that could help patients avoid errors related to prescription medicines, laboratory tests, procedures and surgery.
AmeriNet, pharmacy group, get going on new deal
St. Louis-based AmeriNet last week announced the signing of a contract with RPh on the Go USA Inc., Niles, IL, a national company specializing in long-term, temporary and permanent placement for pharmacists. The agreement took effect July 1.
Time drawing near for 2003 AHRMM conference
Today is the deadline for mail registration for the 2003 Association for Healthcare Resource and Materials Management Conference and Exhibition, scheduled for August 17-20 in San Diego. The annual conference focuses on current issues in the healthcare field such as JCAHO surveys, purchasing and distribution issues, support services, finance, information systems, strategic planning, and professional development, giving you tools and resources to apply in your own organization. Also, next Friday, August 8 marks the deadline for Express Online Registration and for registration via fax. For more details, see the AHRMM website at ahrmm.org.
Premier, Encision cut into surgical instrument deal
Premier Inc. announced it has reached agreement with Encision Inc., Boulder, CO, a manufacturer of patented surgical instruments designed to advance patient safety in minimally invasive surgery. The contract extends an earlier agreement for Encision's AEM laparoscopic instruments through at least June 30, 2004.
B. Braun and Venetec to sell morphed needlestick system
B. Braun Medical Inc., Bethlehem, PA, and San Diego-based Venetec International yesterday announced an agreement to jointly market and sell a sharps safety system that combines the B. Braun Introcan Safety IV Catheter and Venetec StatLock IV catheter. The system is designed as a securement device to reduce the risk of accidental needlestick injuries and exposure to bloodborne pathogens.
Under the two-year agreement, effective immediately, B. Braun will offer its customers the passive-design Introcan Safety IV Catheter, with built-in securement through Venetec's StatLock IV catheter securement device for Introcan Safety IV Catheter.
The agreement represents an approximately $20 million, two-year commitment from B. Braun to Venetec. Under agreements announced last year, B. Braun also includes the StatLock IV securement device with the B. Braun Ultrasite Needle-Free IV System and includes Venetec's StatLock CV Plus catheter securement device in B. Braun's Certofix Central Venous Catheter kits.