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 September Providence sells its health plan to the big Blues Providence will cease health plan operations in Washington next January--selling its business to Regence BlueShield. The transaction, cemented by Richard Woolworth, president of The Regence Group, could have ramifications in Oregon. Officials deny such a transaction is in the works. "Right now this deal only involves Washington. Our focus is to strengthen our Oregon product so we can survive in the future," said John Lee, Providence Health System's regional vice president. In December 1997, Providence Health Plans consolidated its Oregon and Washington health plans, moving management functions to Portland. Over the long term, a relationship between Providence Health Plans and Regence BlueCross BlueShield makes sense in Oregon. Providence has already shown interest in Hood River Memorial Hospital. Rogue Valley hit with $15-million negligence lawsuit When C.W. Smith, a police chief in Talent saw his 20-year-old son, Morgan, go into Rogue Valley Medical Center for surgery to repair a punctured lung, he had no idea his family's life would be irreparably changed. According to a $15.73 million negligence lawsuit filed by the Smith's in August, their son suffered brain damage as a result of an adverse reaction to morphine while in the operating room The Smith's allege their son's condition was in large part attributable to the incompetence of the certified nursing assistant (CNA), assigned to monitor his condition. The CNA, the lawsuit charges, did not have the experience or education to recognize Morgan's reaction to the morphine. Morgan Smith is paralyzed blind, bedridden and under 24-hour surveillance. Some say the tragedy of Morgan Smith is indicative of a larger problem in Oregon hospitals: safe staffing. HIV reporting creates a stir Oregon's Health Division is proposing to change the way HIV is reported to the state, which now records AIDS cases, but not HIV infection. Physicians and laboratories , which test people anonymously, share HIV results with the Health Division, but don't attach names. Many fear people likely to acquire the AIDS virus would avoid getting tested if they knew their names could be connected to the disease. But the epidemic has changed. Physicians have treatments to slow the progression of HIV to AIDS. And epidemiologists have lost track of how many people are infected since fewer cases progress to reportable stages. Larsen loans DCIPA $1 million; takes over management In a surprise move, Douglas County physicians (DCIPA) accepted a $1 million loan from Marlin Larsen, PHD, a Roseburg entrepreneur, rather than sell their insurance company to ODS Health Plans. In return, Larsen will handle the claims processing for DCIPA's 11,000 Oregon Health Plan members, while doctors retain influence over medical management. The $1 million will be held in a reserve account by the physicians until all of SureCare's policies expire. Eventually, SureCare's commercial insurance license may be sold, but not in the immediate future, said Ron Preston, CEO. Other headlines
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