|
hpnonline Daily Update |
||||||||
|
|
June 2003
Mississippi hospitals plan to form liability insurance company
The Mississippi Hospital Association hopes to form a new insurance company to provide medical liability coverage to member hospitals. As reported by the American Hospital Association, the company, to be structured as a risk retention group, would be functional on or just after July 1 pending approval from the State Department of Insurance.
MHA says 24 Mississippi hospitals are working to create the new company because other insurance providers are raising their rates prohibitively or simply not renewing policies, even though state tort reform was passed in 2002. MHA president and CEO Sam Cameron said insurance companies seem to be waiting to see if the law is upheld before entering the state's liability insurance market, adding member hospitals can't wait several years to see whether tort reform improves the availability and cost of liability insurance. "They need coverage now," he said.
CDC: U.S. birth rate for 2002 lowest in nearly a century
The U.S. birth rate fell last year to the lowest level since 1909 when national data became available, according to preliminary birth statistics released last week by the Centers for Disease Control and Prevention. The birth rate declined by 1 percent in 2002, to 13.9 per 1,000 people, continuing a decline that began in 1991. CDC said the low birth rate primarily reflects the smaller proportion of women of childbearing age in the U.S. population as baby boomers age and Americans are living longer, and a recent downturn in the birth rate for women in the peak childbearing years. Birth rates for women in their 20s and early 30s were generally down in 2002, while births to older mothers (aged 35-44) continued to rise. Teen birth rates were also down, continuing a decline that began in 1991. U.S. births in 2002 totaled 4,019,280, or 6,653 fewer births than in 2001. For more, go to http://www.cdc.gov/nchs.
Herb Kohl, yes that Herb Kohl, says ‘no thank you’ to MJ
Sen. Herb Kohl, the Wisconsin Democrat who has been a central figure in the Congressional hearings on hospital group purchasing organizations, has decided not to sell his basketball team to Michael Jordan. Kohl, the owner of the NBA’s Milwaukee Bucks since 1985, acknowledged that he had "detailed discussions" with Jordan, who wants to own a team after retiring in Washington as a player two months ago.
“I think Michael will be an excellent owner of an NBA franchise and have encouraged him, for the benefit of the NBA, to continue his consideration of such an investment. On balance, I simply decided that I am not yet prepared to sell the team at this time and have instructed my representatives, accordingly,” said Kohl in a statement released to the press. According to several reports, the deal was nearly complete when Kohl opted to keep the team ownership.
For $622 million, Abbott settles fraud case
Abbott Laboratories has agreed to pay $622 million to resolve civil and criminal allegations that the company worked with certain healthcare providers to bilk government health insurance programs for the poor and elderly. The agreement, which would bring to an end one of the largest health-care fraud settlements in U.S. history, stems from allegations first raised in 2001.
At issue is a probe into whether Abbott and other medical product manufacturers encouraged hospitals, nursing homes or home care providers to buy pumps and related supplies used to feed seriously ill people--known as enteral nutrition therapy--by giving products away or selling them at a discount. Some providers then allegedly billed the products at a higher price to either Medicare or Medicaid. For Abbott, the practice allegedly helped it build market share. The company says that patient safety is not an issue in the matter.
Sources say that Abbott, which is based in Abbott Park, IL, has negotiated a plea agreement that would allow the company to continue to do business with federal and state health insurance programs.
Abbott was among at least four nutritional product makers under investigation, including Novartis AG, Tyco International's Kendall Co., and Zevex International Inc. previously disclosed that they, too, were under investigation.
W.H.O.: World will be free of SARS in 2-3 weeks
The World Health Organization said this morning the world should be free of the deadly SARS virus within the next two to three weeks, but warned the disease could emerge in China again next winter. David Heymann, director of the W.H.O.’s communicable diseases division, told Reuters he expected Taiwan and Toronto -- the only two areas still regarded as zones where the disease could be transmitted -- to be given a clean bill of health by the first week of July.
SARS which is believed to have jumped from animals to humans in southern China late last year, has killed more than 800 people worldwide, infected some 8,500, trimmed economic growth forecasts and cost billions of dollars in lost businesses.
Hong Kong and China, which were the most severely affected, were given the all-clear by W.H.O. this month and Taiwan and Toronto are expected to follow soon.
Retractable Technologies, B. Braun to distribute safety needles in Africa
Retractable Technologies Inc., Little Elm, TX, announced it has signed a three-year agreement with a wholly-owned subsidiary of B. Braun Melsungen AG, to market and distribute its VanishPoint safety needle devices in South Africa and seven other countries in sub-Saharan Africa. Under terms of the contract, which is Retractable's first such agreement in Africa, B. Braun South Africa will have exclusive rights to distribute the VanishPoint product lines in South Africa; it is non-exclusive for Namibia, Botswana, Zimbabwe, Zambia, Swaziland, Lesotho and Mozambique.
Last month, President Bush signed a bill providing $15 billion for the prevention and treatment of AIDS and other diseases worldwide, but with a focus on AIDS in Africa. Congress is now deliberating over how much of this money should be allocated for safer needle devices.
Rand Study: Americans get only half a chance at proper healthcare
Patients who seek treatment from their doctors only get appropriate care about half the time, according to a report in today's New England Journal of Medicine. In a landmark Rand Health study of adults in 12 U.S. metropolitan areas, the study authors say the deficiencies "pose serious threats to the health of the American public" that lead to tens of thousands of preventable deaths each year.
The study involved 7,528 adults who participated in a telephone interview about their health history and provided access to their medical records. Researchers used the medical records to assess care for 30 common conditions as well as preventive care. They based their evaluation on 439 indicators of quality gleaned from established national guidelines and medical literature. For example, if patients had high blood pressure, researchers checked whether their doctors had changed their medication to better control blood pressure. For preventive care, researchers examined factors such as cancer screening and flu shots for the elderly.
Overall, patients' medical charts showed that doctors provided just 55 percent of care deemed appropriate. What’s more, that proportion varied little among the chronic, acute or preventive care categories, even if a study author acknowledges that it's possible that doctors didn't write everything down in patients' charts. That in itself represents poor quality care, she says.
Ardent Health joins GHX
Nashville-based hospital chain Ardent Health Services announced yesterday it has joined Global Healthcare Exchange, the Westminster, CO-based e-commerce provider. Ardent said it selected GHX because many of the suppliers currently participating in the exchange are among those that Ardent regularly purchases products from through its group purchasing organization, HealthTrust Purchasing Group.
Ardent currently owns 27 hospitals in 12 states, providing a full range of med-surg, psychiatric and substance abuse services.
Imaging among fastest growing outpatient procedures
Imaging procedures administered in outpatient hospital settings increased 44 percent between 1999 and 2001, making them one of the fastest growing outpatient hospital procedures, according to a new report by health information company Solucient. The use of position emission tomography (PET) scans grew nearly 26 percent in the three-year period, while the volume of magnetic resonance imaging (MRI) scans jumped nearly 52 percent and computed tomography (CT) scans increased nearly 40 percent. Colonoscopy, alternative care, and osteoporosis screening were among other key growth areas in outpatient settings during the period.
The findings are featured in a Solucient report on "Top Growth Areas in the Outpatient Market."
W.H.O.: SARS gone from China
The World Health Organization declared yesterday that Beijing had effectively conquered SARS, signaling victory over the disease in the country where it originated and took the most lives. The announcement, reported in the New York Times, prompted expressions of relief and celebration around the city, where just a few weeks ago people had stopped going to work, eating at restaurants or even leaving their homes for fear of catching the sometimes fatal illness.
Government officials hailed the suppression of SARS as a victory for Communist Party leadership, seeking to gain public credibility even though official dissembling and inefficiency contributed to its rapid spread last winter.
The lifting of the warning against travel to Beijing and the removal of the city from the list of SARS-infected areas came after the W.H.O. found that people had not been catching the disease in Beijing for more than three weeks, except for some new cases that had been reported among people confined to isolation wards as recently as June 11.
Taiwan and Toronto are the only two places that remain on the organization's list of infected areas, though they are no longer subject to a travel advisory and are thought to have the disease largely under control.
Relatively high rate of military sickened by smallpox shots
Heart muscle inflammation should be added to the list of serious but uncommon side effects linked to smallpox shots, according to a U.S. military study released yesterday. The study details 18 cases of probable myopericarditis out of 230,734 military personnel vaccinated between December 2002 and mid-March. The rate is more than triple the expected rate in nonvaccinated people and translates to at least 78 cases per million people. Updated figures show 37 cases out of 450,293 military people vaccinated through May 28, a similar rate. All patients recovered and are being evaluated to see whether there are any lasting effects on the heart.
The other known side effects from smallpox shots may include soreness at the injection site, fever and muscle aches. Less common but more serious reactions include a widespread skin rash, and -- rarely -- encephalitis, an inflammation of the brain. Government data show only one civilian and one military case of encephalitis were reported through May.
"Most adverse events occurred at rates below historical rates," the study authors, John Grabenstein of the Military Vaccine Agency and William Winkenwerder, assistant secretary of defense, wrote in the report, published in The Journal of the American Medical Association. "Our experience suggests that broad smallpox vaccination programs may be implemented with fewer serious adverse events than previously believed," they concluded. However, the program exempted pregnant women, people with weakened immune systems and those with chronic skin diseases. People at risk of heart disease were also excluded after several cases of myopericarditis developed after vaccination, and following the deaths of three people from heart attacks shortly after their vaccinations.
Safety concerns about the vaccine, which in the past killed one or two out of a million recipients, have been partly responsible for slow progress in the federal government's effort to inoculate 500,000 health care workers.
President Bush said late last year that he had decided to make smallpox vaccine available to all Americans to protect against a possible attack with the virus. Last month, he signed into law a compensation program for those sickened by a shot.
Penn State Milton S. Hershey Medical Center signs with Medline
Penn State Milton S. Hershey Medical Center, Hershey, PA, and Medline Industries Inc., Mundelein, IL, have agreed on terms of a multi-year corporate agreement in which Medline guarantees the center almost $300,000 in savings in the first year and over a million dollars during the term of the agreement. The agreement is said to be worth over $5 million in med-surg products. Much of the agreement initially will focus on driving savings on operating room products and services including savings by converting its disposable OR textiles to Medline’s reusable “new generation” fabrics, including drapes, surgical gowns and towels, as well as generating savings through converting all of the hospital’s standard and custom sterile procedure trays to Medline manufactured SPTs.
Report: U.S. hospitals facing increased debt, struggling to fund improvements
The average debt per bed across U.S. hospitals increased 35 percent in just five years, according to a just-released report from Solucient, Evanston, IL. The report blames an 11 percent jump in operating expenses among hospitals, decreased investment returns and reimbursements and a greater reliance on credit are among possible reasons for the debt increase.
From 1996-2000, operating expenses per adjusted discharge at U.S. hospitals increased 11 percent overall, even as the ratio of cash flow to total debt fell significantly. Drug spending represented a large part of the increase - up nearly 26 percent. In addition, expenditures on imaging technologies rose nearly 20 percent. But those expenditures, says Solucient, were not generally allocated to improving hospital plants. The average age of plants increased nearly nine percent between 1996 and 2000, representing the most rapid increase during any comparative time period. The findings are detailed in the latest edition of "The Comparative Performance of U.S. Hospitals: The Sourcebook" (ISBN 1-57372-298-7).
Philadelphia Children's signs with Owens & Minor
The Children's Hospital of Philadelphia announced that announced today that it has signed a five-year, comprehensive agreement with OMSolutions, a consulting arm of Owens & Minor Inc., the Richmond, VA-based med-surg supply distributor. The agreement includes materials management outsourcing; a five-year traditional distribution services agreement; and installation of WISDOM2, Owens & Minor's data mining tool. It also includes process improvement targets and provisions for benchmarking for the duration of the agreement.
JCAHO seeks comment on proposed wrong-site surgery protocol
With a proposed universal protocol for eliminating wrong site, wrong procedure and wrong patient surgery on the table, the Joint Commission on Accreditation of Healthcare Organizations is seeking comment on its proposals. The draft protocol was developed at a summit on the topic convened by JCAHO, the American Hospital Association, the American Medical Association and other national medical organizations. It creates a standardized approach to all operative and invasive procedures that call for multiple redundant strategies and the active involvement of the entire surgical team. The protocol's main components include a pre-operative verification process, marking of the operative site and a "time out" before starting the procedure. To submit feedback on the proposal through July 9, complete the survey at http://www.jcaho.org.
Labor/HHS approves fiscal year 2004 funding
The House Labor/Health and Human Services Appropriations Subcommittee on Friday approved its fiscal year 2004 budget appropriations bill. The legislation provides $518 million to help hospitals with preparedness and bioterrorism issues; $112.7 million for nursing programs, including provisions within the Nurse Reinvestment Act; $305 million for Children's Graduate Medical Education ($15 million more than FY03); $40 million for rural hospital flexibility grants; $57 million for rural outreach grants ($20 million less than FY03) and $2 billion for the Ryan White AIDS program ($24 million more than FY03). The bill now goes to the full committee for consideration.
Shared Services inks biomedical services pact
Atlanta-based Shared Services Healthcare Inc. announced it has signed an agreement with Dallas-based Modern Biomedical & Imaging Inc., to provide participating members with biomedical services. Modern Biomedical & Imaging provides maintenance and management of clinical and diagnostic equipment for hospital corporations, community and county hospitals, specialty hospitals, surgical centers, medical clinics and physician offices. The company’s program provides computerized preventive maintenance, repairs to the component level and an asset management program for a wide range of equipment, from general patient care items to high-tech lab and radiology devices.
MedPAC recommends quality incentives
The Medicare Payment Advisory Commission (MedPAC) recommends that HHS Secretary Tommy Thompson "conduct demonstrations to evaluate provider payment differentials and structures that reward and improve quality.” A new MedPAC report proposes exploring the use of financial incentives to improve quality of care. Among the areas suggested for such demonstrations are inpatient rehabilitation facilities, hospitals, skilled nursing facilities and home health agencies. The report, titled "Report to Congress: Variation and Innovation in Medicare," also examines variation in Medicare payment across states and in hospital performance under the prospective payment system, growth in the volume of physician services, and changes in the use of post-acute care since the advent of prospective payment systems. The report is available at http://www.medpac.gov.
Clinton Foundation hopes to treat at least 700,000 AIDS patients
Former President Clinton says he hopes to use his William J. Clinton Presidential Foundation to treat at least 700,000 AIDS patients in Africa and the Caribbean -- and possibly many more -- during the next five years.
“Nothing would please me more than if instead of 700,000 or 800,000 we have 8 million within a couple of years,” Clinton said. “But in order to do it we not only have to have the money and the availability of the medicine, we have to have the infrastructure.”
The William J. Clinton Presidential Foundation is working with the governments of Rwanda, Mozambique, Tanzania and several Caribbean nations to fund AIDS prevention and treatment.
NC network signs with SRI/Surgical Express
Rex Healthcare, a healthcare network based in Raleigh, NC, that includes a 394-bed acute care hospital, announced it has agreed on a new seven-year contract with Tampa, FL-based SRI/Surgical Express Inc. involving supply chain management services such as surgical instruments processing and physician-specific procedural case cart delivery. More than 27,000 surgeries are performed annually at Rex Healthcare. Under terms of the contract, processing of all surgical instruments will take place at either the SRI/Surgical Express facility or in the central sterile processing department at Rex Healthcare managed by SRI/Surgical Express. According to SRI, the agreement is expected to generate approximately $56,000,000 in revenue during its term. The contract takes effect on July 1.
MedAssets HSCA, Derma Sciences sew up wound care deal
St. Louis-based MedAssets HSCA announced agreement with Derma Sciences Inc., Princeton, NJ, on a new three-year agreement covering wound and skin care products. The contract took effect June 1.
JCAHO offers protocol to reduce surgery errors
The Joint Commission on Accreditation of Healthcare Organizations has proposed a universal protocol for marking surgery sites and verifying the intent of surgical procedures before patients have operations. The matter has been issued for public comment, which the JCAHO board will consider if submitted by July 9 before it takes action to approve the protocol. The Joint Commission also said it will seek endorsement and support from medical and healthcare associations nationwide on the subject. The aim is to reduce the likelihood of wrong-site, wrong-procedure and wrong-patient surgery with a standardized approach applicable to all operative and invasive procedures.
So-called "standard" approaches to the matter can differ among providers, confusing surgeons and other operating room professionals who work at several organizations. For example, the wrong leg can be marked with a big "NO" but nothing marks the correct leg. Or an X on a leg can be either the sign of a correct site or the wrong site. Proposed guidelines include making an unambiguous mark at or near the incision line, with the marking to be performed by the surgeon doing the procedure.
Report details “hidden” cost of uninsured
Allowing millions of Americans to live without health insurance costs the nation between $65 billion and $130 billion every year, according to a report released earlier this week. The costs have run so high, the report from an expert panel assembled by the National Academy of Sciences' Institute of Medicine says, because many of the uninsured receive inadequate medical care, which translates into a poorer quality of life and a shorter lifespan.
The 22-member panel was asked to calculate the "hidden" costs of leaving an estimated 41 million Americans uninsured. Each uninsured person loses the equivalent of between $1,645 and $3,280 annually in lost wages and benefits and in the value of what would be a better quality of life and a longer lifespan if the person were insured, the panel concluded. Previous estimates of the economic impact focused mostly on the costs of free or discounted healthcare that society provides to people without health insurance. The new estimate does not include the cost of the medical care itself.
CA hospital powers to huge rebate check
Salinas Valley (CA) Memorial Healthcare System will be handed a $587,430 rebate check Monday in recognition of its recently completed solar generation project. The check will be presented by Gordon R. Smith, president/CEO of Pacific Gas & Electric. Also on Monday, Salinas Valley will announce the launch of a massive cogeneration project, which will provide power to the main hospital building. The hospital is building four cogenerators, which are expected to be completed by the end of the year. The hospital recently completed construction of the largest solar power structure on any medical facility in the country. The 1,008 solar panels on top of the hospital's Downing Resource Center power 50,000 square feet of office space, including the hub of the hospital-wide computer system, which has made the facility nearly energy self-sufficient.
Consorta signs lab pact
Specialty Laboratories Inc., Santa Monica, CA, and Consorta Inc., Rolling Meadows, IL, announced agreement on a three-year contract covering clinical reference testing. The agreement, which takes effect July 1, provides participating Consorta members access to Specialty's menu of more than 2,500 assays, proprietary client connectivity applications and turnaround time schedules.
Kaiser awards $155,500 in So Cal nursing scholarships
Kaiser Permanente announced this week that it has awarded $155,500 in scholarships to assist 85 nursing students from 34 Southern California colleges to complete their education. This year, Kaiser Permanente received 448 applications and awarded 164 scholarships totaling $316,000 throughout California. The grand total for the Deloras Jones RN Scholarship Program, which has been awarded to more than 2,000 students since it was established in 1989, now exceeds $2.8 million.
Scrushy sues HealthSouth
Charging that the company he founded violating his rights as a director, Richard Scrushy, the deposed head of HealthSouth Corp., Birmingham, AL, sued the company he once led. In March, HealthSouth fired Scrushy's and took away his title of chairman, but acknowledged at the time that it could not remove him as a director. Scrushy now accuses the company of illegally excluding him from board meetings and withholding company information that Scrushy is entitled to as a director. HealthSouth meanwhile, insists it would be irresponsible for the board to have allowed Scrushy to remain as director and participate in board discussions that revolve around his alleged actions.
Nellcor donates pulse oximeters to nursing schools
Pleasanton, CA-based Nellcor announced that it has partnered with the American Association of Critical-Care Nurses (AACN) and the American Organization of Nurse Executives (AONE) to facilitate the donation of advanced technology Nellcor pulse oximeters and educational resources to 150 schools of nursing across the country. Nellcor, a unit of Tyco Healthcare, will donate an N-395 pulse oximeter and educational materials to each of the schools selected by AACN and AONE. Each school will also have access to Nellcor's field-based team of hospital clinical consultants. AACN and AONE are collaborating with each other to identify schools of nursing in need of these resources and facilitate the donations. Both associations plan to provide each school with additional resource materials.
Smith & Nephew forms wound management improvement business
Smith & Nephew Inc., Wound Management Division, a subsidiary of Smith & Nephew plc yesterday announced the formation of Bamboo, a wound management outcomes tracking and improvement business designed to help healthcare providers improve quality and financial performance in their wound care delivery. By bringing together clinical, business and information technology expertise, Bamboo is designed to support improved planning, decision-making and delivery of care.
Research conducted for Bamboo showed that more than 80 percent of the cost of treating wounds is related to delivery of care and demonstrated a real need for wound management efficiency and tracking. Bamboo's premier wound management product, WoundPath, provides data capture and reporting capabilities as part of an integrated program of clinical analysis and quality improvement. Bamboo takes information management further than traditional systems, which focus largely on data capture.
Sentara buys breast cancer detection equipment
Sentara Healthcare, a Virginia based, not-for-profit integrated delivery network, announced it has purchased from Milwaukee-based Instrumentarium Corporation, Imaging Division; and iCAD Inc. six Computer Aided Detection imaging systems for the early detection of breast cancer. Instrumentarium Imaging is the exclusive U.S. distributor of the iCAD system.
Alliance Medical gains FDA clearances
Phoenix-based Alliance Medical Corporation announced that the FDA has cleared Alliance's 510(k) (K030026) for Daig Response electrophysiology catheters and Daig Response and Supreme EP cables. Alliance can now reprocess diagnostic EP catheters manufactured by Bard, Cordis, Daig, EP Technologies, Medtronic and Biosense Webster (Cordis Webster).
Smallpox shots offered for monkeypox
Wisconsin state health officials offered smallpox vaccinations Monday to about 90 healthcare workers who have been in contact with animals or other people infected with monkeypox.
The eligible workers were told the shots were available at a clinic on Saturday, but none came, according to Milwaukee's health commissioner, Dr. Seth Foldy.
Some people declined to participate after reviewing material from the Centers for Disease Control and Prevention on possible side effects, which in rare cases can be serious and even deadly.
Monkeypox, a West African disease not previously seen in the Western Hemisphere, is related to smallpox but is not as lethal. It causes rashes, chills and fever. The vaccinations, offered at the CDC's recommendation, can prevent monkeypox for up to two weeks after exposure.
Yesterday, state health officials confirmed a total of at least 12 human cases of the disease in the U.S.: four each in Wisconsin, Indiana and Illinois. Seventy-two suspected cases had been reported -- 22 in Indiana, 30 in Wisconsin, 15 in Illinois, two in Ohio and one each in Arizona, Kentucky and Missouri.
Guidant to halt production of controversial artery device
Indianapolis-based Guidant Corporation plans to stop production of a device that is used to treat a weakened blood vessel in the abdomen without surgery. The announcement comes less than a week after Endovascular Technologies Inc., a Guidant subsidiary based in Menlo Park, CA, pleaded guilty to criminal charges for concealing product defects that may have led to 12 deaths.
Endovascular faces more than $92 million in federal penalties for failing to report a malfunction in the device to the FDA after company officials admitted concealing more than 2,600 complaints about it. Guidant officials said yesterday that Endovascular would cease operations other than continuing to provide long-term services for people who have received the device, which has been used to treat abdominal aorta aneurysm, a weakening of the aorta, the main blood vessel from the heart. The product, Endovascular's Ancure "stent graft" device, will continue to be shipped until October, Guidant said.
The problems with the device, which is inserted through the groin to let doctors patch an aneurysm without requiring risky surgery to open the abdomen, were resolved after it was voluntarily recalled in March 2001. The device was reintroduced five months later.
Sisters of Mercy casts lot with Omnicell
St. Louis-based Sisters of Mercy Health System announced it has chosen Omnicell Inc., Palo Alto, CA, as its sole-source provider for all point-of-use medication dispensing cabinets for 11 hospitals. The value of the agreement is estimated at $11 million. The agreement includes Omnicell along with Valley Forge, PA-based AmerisourceBergen's distribution, patient safety and pharmacy automation capabilities.
Bard acquires Source Tech Medical
C. R. Bard Inc., Murray Hill, NJ, today announced that it has acquired Source Tech Medical, L.L.C., Carol Stream, IL, a manufacturer of iodine radioactive isotope seeds used in brachytherapy procedures for the treatment of prostate cancer. The company has been Bard's primary supplier of iodine seeds for the U.S. market.
22 states limiting doctors' latitude in Medicaid drugs
In one of the most successful efforts to rein in the fast-rising cost of Medicaid, the government health plan for the poor, states are limiting which drugs doctors can prescribe for Medicaid patients. According to a report this morning in the New York Times, two years ago, only three states had authorized the use of lists of preferred drugs for such patients; since then, 19 other states have done so, though not all their programs are up and running, according to the National Conference of State Legislatures. Preferred drug lists steer doctors away from some of the most expensive drugs and toward different, less expensive ones that the state deems equally effective, a practice that many private insurance companies and employee health plans have adopted and that is being considered by Congress as part of a government-subsidized drug benefit for 40 million Medicare recipients. Such limits have persuaded pharmaceutical companies to lower the cost to states of some medicines. Doctors who want to deviate from the list must get prior approval, a process whose difficulty varies widely from state to state.
Medicaid officials in Florida say their program is saving more than $200 million a year, Michigan officials say theirs cut costs by $45 million a year, and some legislators in New York predict annual savings for their state as high as $400 million. Such claims are difficult to judge, because states negotiate below-retail prices and rebates with drug makers but keep those figures secret at the manufacturers' insistence. Among the most frequently excluded drugs are widely advertised, high-priced pills like Nexium and Prevacid for acid reflux, and Vioxx and Celebrex for arthritis pain, for which there are no generic versions yet on the market. Several states report that they save more on acid reflux drugs than any other category.
Hospital prices slip 0.6% in May
Overall prices for hospitals dropped 0.6 percent in May, although they were 5.2 percent higher than a year ago, according to the most recent report from the Bureau of Labor Statistics released Friday. Prices at general medical and surgical hospitals fell 0.7 percent and were 5.1 percent higher than in May 2002, according to the BLS' Producer Price Indices, which measure average changes in selling prices received by domestic producers for their output. For hospitals, this translates into actual or expected reimbursement for a sample of treatments or services. The PPI for hospitals measure changes in actual or expected reimbursement received for services across the full range of payer types. This includes the negotiated contract rate from the payer plus any portion expected to be paid by the patient. A complete report is available at http://www.bls.gov/ppi.
Bill to relieve nursing shortage draws acclaim
Both the American Hospital Association and the American Organization of Nurse Executives are expressing strong support for the Nurse Education Promotion Act (H.R. 2053). The bill would establish a grant program for associate degree nursing programs to recruit students, provide scholarships and hire faculty. It also would create a competitive grant program for professional nurses' associations to conduct continuing education programs, in cooperation with hospitals and higher education, which would enable associate degree nurses to take college credit courses towards a B.S. degree in nursing.
Two WI health workers may have monkeypox
Health officials are investigating whether two Wisconsin healthcare workers may have contracted monkeypox from patients. If true, the event would mark the first known transmission of the virus from one human to another in the U.S. Patrice Skonieczny, infection control coordinator at Milwaukee’s St. Francis Hospital, said a nurse developed monkeypox symptoms after caring for a patient with a possible case of the disease. According to Skonieczny, the nurse was wearing protective clothing, including a mask, gloves and a gown. In another case, John Melski, a dermatologist at Marshfield (WI) Clinic said a medical assistant is suspected of getting the disease after helping treat a three-year-old girl on May 22. The girl was later diagnosed with monkeypox. He said the medical assistant's boyfriend has some similar symptoms, but it's unknown how he may have gotten sick.
Guidant to plead guilty, pay huge fine, in felony fraud case
Guidant Corp. said yesterday it has agreed to plead guilty to 10 felony counts and pay more than $92 million to settle government charges that it made fraudulent statements to regulators regarding one of its medical devices. The government charged that the Indianapolis-based company failed to report problems doctors had with the Ancure Endograft, a device used to treat abdominal aortic aneurysms. Use of the product, which is manufactured by Endovascular Technologies, a Guidant business unit, is linked to 12 deaths. In its agreement, Guidant admitted that it lied to the government about the product and hid thousands of serious health problems.
Guidant agreed to make a payment of $43.4 million and an additional $49 million civil settlement to the government. It also agreed to plead guilty to 10 felony counts, including nine for shipping misbranded products and one count of a former employee making false statements to the government.
But the company's legal troubles are far from over. According to a report in the New York Times, it already faces a number of lawsuits from individuals, and thousands of patients whose procedures did not go as expected could still bring cases. Guidant must also complete aspects of a civil settlement with the Department of Health and Human Services, which would allow it to avoid exclusion from government programs like Medicare.
AHA registers support for proposed FDA rule on bar coding
The American Hospital Association says it “strongly supports” rules proposed by the Food and Drug Administration aimed at standardizing bar coding for drugs and blood. In a letter yesterday to the FDA, the AHA said bar coding is a proven technology that helps doctors, nurses and pharmacists prevent medication errors, overdoses and the use of wrong drugs. AHA said it favors recommendations included in a June 11 comment letter by the National Alliance for Health Information Technology, of which AHA is a founding member. Additionally, the AHA said bar coding must be standardized in format and affixed to all drugs, bloo
ASHES award applications and nominations due July 15
The American Society for Healthcare Environmental Services (ASHES) provides several awards programs to recognize those who are setting the standard and raising the bar for the healthcare environmental services profession. The awards will be presented at the Annual Conference in Philadelphia on September 24. Details concerning the award program are available on the ASHES website at www.ashes.org.
Blickman gains AORN honor
The Association of periOperative Registered Nurses recently awarded Blickman Inc. its 50-Year Exhibitor Award. Blickman, which is based in Lodi, NJ, says it is the nation’s oldest and largest supplier of stainless steel healthcare equipment. The company was one of only a handful of companies to receive this honor. Besides Blickman, the AORN named seven other companies: BD, STERIS Corp, Tyco Healthcare/Kendall, and Ethicon, a Johnson and Johnson Company.
AmeriNet, Roche Diagnostics agree on immunoassay pact
St. Louis-based AmeriNet and Roche Diagnostics Corporation announced they have reached agreement on a new contract to provide immunoassay instruments, reagents, and consumables to participating AmeriNet members. According to Roche, which is based in Indianapolis, the three-year contract has a total value of close to $500 million. This new agreement, which took effect June 1, continues a long-term relationship between AmeriNet and Roche Diagnostics in the areas of clinical chemistry, hematology, blood glucose monitoring, and hospital point-of-care testing. It is the first new award for Roche Diagnostics under AmeriNet's new strategy of competitively bidding major contract categories to bring more value to its membership and to its trading partners.
Emergency visits up 20% over decade
Visits to hospital emergency departments increased by 20 percent in the past decade, according to a report released this week by the Centers for Disease Control and Prevention. The National Hospital Ambulatory Medical Care Survey reveals that EDs received an estimated 107.5 million visits in 2001, about 17.5 million or 20 percent more than in 1992. CDC attributes the increase in part to population growth and an increase in older adults, who tend to visit EDs more often than younger people. At the same time, the number of emergency departments also decreased by about 15 percent, the agency notes. Hospitals in metropolitan areas and those affiliated with medical schools tended to have a larger volume of ED visits. Abdominal pain, chest pain and fever were the most common principal reasons for visits. About 30 percent of ED patients had elevated blood pressure, and about one in four patients received medications during their visit.
Chicago hospital retires 20-year-old ultrasound System
Rush-Presbyterian-St. Luke's Medical Center in Chicago first received their Acuson 128 ultrasound system Serial #0001 in August 1983. After nearly 20 years of continuous use, approximately 85,000 exams and more than 20 upgrades, the hospital has finally decided to trade in their two Acuson 128XP ultrasound systems for two new, ultra-premium Acuson Sequoia ultrasound systems. Since components for the 128XP systems are no longer manufactured, service and repair have grown more difficult. To make parting with the trusty systems easier, Siemens Medical Solutions, which now operates Acuson in Mountain View, CA, made Rush an offer of a transition plan to the Sequoia ultrasound platform as part of its Gold Standard Bridge Program that the facility couldn't pass up.
Chicago hospital has mice, state told
The Illinois Department of Health said yesterday it has plans to investigate a patient complaint, made nearly three months ago, about a mouse infestation at Jackson Park Hospital. According to a report in the Chicago Tribune, a state health official said the complaint was filed March 11, but the department has not yet visited the hospital. An unannounced inspection of the South Side facility will be conducted soon. The revelation follows allegations made at yesterday’s Cook County Board meeting by commissioner Roberto Maldonado, who said he saw mice inside the hospital on two recent occasions while visiting a patient. "It was deplorable," said Maldonado, who is a psychologist. "These mice were so comfortable, they wouldn't move if you chased them."
Board president John Stroger, in whose ward the hospital is located, downplayed the seriousness of Maldonado's allegation, contending that all large buildings have problems with vermin.
However, the Joint Commission on Accreditation of Health Care Organizations has other feelings about the issue. "We don't write standards around that [rodent] issue. Not having mice is as fundamental as a hospital having running water," said Charlene Hill, a JCAHO spokeswoman.
DeBusk, DeRoyal founder, reappointed to federal Medicare post
Autry O.V. “Pete” DeBusk, chairman, CEO and founder of DeRoyal Industries, Powell, TN, has been reappointed as a member of the Medicare Payment Advisory Commission (MedPAC) by General Accounting Office comptroller General David Walker. DeBusk will serve a second three-year committee term advising Congress on Medicare policy in regard to payment and reimbursement issues.
MedPAC is an independent federal body of 17 commissioners established by the Balanced Budget Act of 1997 with a broad mandate to advise the Congress on issues affecting the Medicare program, including payments to health plan providers and analyzing access to care, quality of care and other issues affecting Medicare recipients.
CDC expands use of experimental SARS diagnostic test
The Centers for Disease Control and Prevention says it is expanding the use of an experimental diagnostic test for SARS to 100 specialized laboratories around the country to learn more about the accuracy and reliability of the test and how it can be improved. The test, rapidly developed by CDC over the past few months, can detect evidence of the SARS-associated coronavirus in suspected SARS patients in a couple of hours. Because information about the test's performance is still being collected, CDC said patients will be asked for written consent before the test is used, and patients and practitioners will receive clear information about how the test may assist in diagnosing SARS. The announcement is available at http://www.hhs.gov/news/press/2003.html.
Two states ban sale of mercury-containing blood pressure devices
Maine and Washington have recently become the first states to ban the sale of mercury-containing blood pressure devices, signifying a major step toward the elimination of mercury from healthcare. Health Care Without Harm, an advocacy group, praised the actions as bold and necessary to protect the health of children.
While other states and municipalities have banned the sale of mercury fever thermometers, the Maine and Washington laws are the first statewide bans to include mercury-containing blood pressure devices, which represent the largest use of mercury in healthcare.
Information about the step-by-step elimination of mercury sphygmomanometers and other mercury-containing products can be found at www.noharm.org/mercury/issue.
K-C acquires patient warming business
Kimberly-Clark Health Care, Roswell, GA, today announced that it has signed a definitive agreement with Medivance Inc., Louisville, CO, to acquire its patient warming business. This includes the Arctic Sun Model 100 Temperature Management System, a patented patient warming system developed by Medivance. Under the terms of the agreement, Medivance will receive $10 million up-front, plus two deferred payments of $1.2 million each, with an additional $4.6 million possible if certain milestones are met over the next two and one-half years. Medivance will retain all of its patient cooling technologies and business.
Abbott buys spinal fixation concern
Abbott Laboratories, Abbott Park, IL, said this morning that it has acquired Spinal Concepts Inc., Austin, TX, for approximately $170 million in cash plus additional milestone payments of up to $40 million if agreed upon targets are met. Spinal Concepts markets a broad range of devices, including spinal fixation products used in the treatment of spinal disorders, diseases and injuries. The transaction is subject to regulatory approvals and customary closing conditions and is expected to be completed in the second quarter of this year. The acquisition is part of Abbott’s expansion of its Hospital Products Division, which has marketed traditional medical devices for more than 60 years. That unit recently expanded its presence in high-growth medical product areas such as cardiovascular devices. Orthopedics is the second largest medical device area behind cardiovascular devices and the spinal market is said to be the fastest growing segment of orthopedic implant products.
Owens & Minor, HealthTrust agree on supply pact
Owens & Minor Inc., Richmond, VA, announced today that it signed a five-year master distribution agreement with Nashville-based HealthTrust Purchasing Group. The contract takes effect September 1. Owens & Minor is one of three national healthcare product distributors authorized to pursue distribution contracts with HPG hospital systems, which has more than 900 facilities. HPG membership includes HCA, HMA, Triad, Lifepoint, Ardent, Quorum, Vanguard, as well as other members.
PeopleSoft to acquire J.D. Edwards in $1.7 billion deal
PeopleSoft Inc., Pleasanton, CA, and Denver-based J.D. Edwards & Company today announced a definitive agreement for PeopleSoft to acquire J.D. Edwards, creating what PeopleSoft says will be the world's second largest enterprise applications software company. Under the terms of the agreement, stockholders will receive 0.860 PeopleSoft common shares for each outstanding J.D. Edwards common share. Based on the closing price of PeopleSoft stock on May 30 and J.D. Edwards' shares outstanding, the transaction is valued at approximately $1.7 billion. Under the agreement, J.D. Edwards will become a wholly owned subsidiary of PeopleSoft.
Harris poll: Hospitals do a good job serving consumers
Nearly three-quarters of American adults (73%) think hospitals do a good job of serving consumers, according to the latest annual Harris Poll ranking 15 industries for customer service. The same percentage of Americans said hospitals served consumers well in last year's poll, while health insurers saw a sharp drop in their standing this year. Only 40 percent and 30 percent of Americans said health insurers and managed care companies served their customers well, down from 51 percent and 33 percent in 2002, respectively. Pharmaceutical companies also saw a 10-point slide in their score from 59 percent to 49 percent. The poll surveyed 1,010 adults by telephone between April 10 and 15.
HealthTrust aglow with new laser, distribution pacts
HealthTrust Purchasing Group, Brentwood, TN, announced today it has reached agreement with Lumenis Ltd., Yokneam, Israel, on a two-year, multisource contract covering laser and light-based devices and services. As part of the agreement, Lumenis will offer the company's surgical and ophthalmic lasers, accessories, delivery devices, as well as service to HPG's 900 hospitals and clinics at negotiated prices. The contract will be effective through July 31, 2005.
Separately, HPG said this morning that it has signed San Francisco-based McKesson Corporation to a five-year pharmaceutical and med-surg distribution contract renewal. The two companies have had trade relations since 1998. Under the new agreement, which runs through August 2008, McKesson will serve as an authorized distributor for pharmaceutical and med-surg supplies for HPG members. The HPG membership includes HCA, Triad, Lifepoint, Ardent, Quorum, HMA, Vanguard as well as other key members. As part of an existing agreement, McKesson will continue to provide pharmaceutical distribution services for HCA members through at least December 2004.
CDC: More seniors to suffer from arthritis, chronic joint symptoms
The Centers for Disease Control and Prevention projects that the number of Americans aged 65 or older with arthritis or chronic joint symptoms will nearly double by 2030 to 41 million. Previous lower projections of arthritis cases by 2020 were based on rates for person of all ages and used a different case definition, according to the report in CDC's Morbidity and Mortality Weekly Report. CDC says viable and affordable programs should be available at the community level to help this large group of older adults manage their condition. Additional information about CDC-funded state arthritis programs and evidence-based interventions is available at http://www.cdc.gov/nccdphp/arthritis. Today's MMWR report is online at http://www.cdc.gov/mmwr/.
ASHES gets green nod
The American Society for Healthcare Environmental Services (ASHES) has been named a Champion for Change by Hospitals for a Healthy Environment (H2E).
Champions for Change organizations commit to improve their own environmental performance and assist other healthcare facilities achieve H2E's goals by providing information to their members and affiliated facilities about the financial, community, public health and environmental benefits of mercury elimination, waste minimization, toxicity reduction, and reducing persistent bioaccumulative toxic chemicals; products and services that help members and affiliated facilities eliminate mercury, minimize the volume and toxicity of waste, and reduce persistent bioaccumulative toxic chemicals; and lead by example and demonstrate that they are making substantive changes in their own practices that will help achieve the national goals of H2E.