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March 1998

March

Hospitals fined $502,516 for overbilling Medicare

Oregon hospitals have paid $502,516 to the federal government during the last four months after double billing Medicare for diagnostic services. As part of their settlement agreement, hospitals must review their patient accounts and refund payments made by beneficiaries.

"This shows how the professionals are gaming the system," said Ben St. John with the Office of Inspector General. Responded Ken Rutledge of the Oregon Assn. of Hospitals and Health Systems: "It's good publicity for them. Basically it's a shake-down operation."

SUMMARY: The U.S. Office of Inspector General has recovered $50.2 million from 1,795 hospitals in 24 states; the hospitals were charged with violating Medicare rules that say hospitals cannot bill for laboratory and other tests done 72 hours prior to admission. Three audits were conducted in Oregon from 1983 through 1990, and when a fourth audit revealed hospitals were still overbilling, the Justice Department launched an investigation in 1994. Despite the crackdown, a fifth audit during 1997 revealed hospitals were continuing to double bill.

Republicans meet behind closed doors with lobbyists

The House Republican leadership is building its issues platform for the 1999 legislature. House Majority Leader Lynn Snodgrass has appointed eight interim caucus work groups, which have been meeting with lobbyists every four to six weeks. Because the groups usually have one legislatior in attendance, they aren't subject to Oregon's open meeting law.

The health care caucus, headed by Rep. Leslie Lewis, is discussing expansion of the Oregon Health Plan, insurance mandates, senior health care issues and licensure/scope of practice. Lobbyists from some of the state's largest health care organizations -- the Oregon Medical Assn., Kaiser Permanente, Associated Oregon Industries, Regence BlueCross BlueShield of Oregon and the Oregon Health Care Assn., among others -- have been invited to the meetings.

$2.4 million went toward lobbying in 1997

Oregon's health care industry spent $2.4 million on lobbying during 1997, according to employer reports filed with the Oregon Government Standards and Practices Commission. Of that $2.4 million, 23 percent was spent by health insurers ($532,1000), with Regence BlueCross BlueShield taking the lead. The pharmaceutical industry accounted for 11 percent ($269,510).

Oregon Health Forum lists how much 21 major health care organizations spent on lobbying over the past three years. The Oregon Assn. of Hospitals and Health Systems and the Oregon Medical Assn. were the top two spenders.

Alternative providers latch onto insurers

Widespread public acceptance of alternative practitioners has translated into market gain. In the last two years, chiropractors, naturopaths, acupuncturists, massage therapists and certified nurse midwives have made inroads toward mainstream inclusion.

Oregon Health Forum's biennial survey of the state's largest health plans shows that HMOs increasingly are giving health care buyers at least the option of access. The biggest trend since the Forum's last look (March 1996) has been the growth of alternative networks, such as The Alternare Group, Complementary Healthcare Plans and Axis HealthCare.

Other headlines

  • Insurance mandates are coming before the legislature
  • Legislators ponder long-term care
  • Tobacco lawsuit hits Oregon in 1999
  • Physician-assisted suicide pounded
  • OHSU overloaded with Medicaid patients
  • State takes baby steps toward health data system
  • PSO rules out June 1
  • FamilyCare drops PSG
  • Pharmacy Board strengthens pharm tech rules
  • Letter to the Editor: Hospital association takes offense

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