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 August CareOregon, Legacy negotiate $16 million lawsuit No need to go hunting on Wall Street, the Portland hospital system has a juicy corporate accounting scandal all its own. Months of legal posturing and financial cover-ups are coming to a head as CareOregon and Legacy Health System try to finalize an out-of-court settlement for a $16 million breach of contract lawsuit. The debacle began when CareOregon, using a flawed formula, accidentally overpaid three Portland hospital systems — Providence Medical Center, Portland Adventist Medical Center and Legacy — more than $7 million in fee-for-service care during 2001. Candidates sound off Where do the gubernatorial candidates stand on the pivotal health policy issues facing Oregonians such as the future of the Oregon Health Plan, the malpractice insurance crisis and the gaping hole in the state budget? That’s what you’ll learn by attending luncheons sponsored by Oregon Health Forum. Republican candidate Kevin Mannix appears on Sept. 10; his opponent, Democrat Ted Kulongoski, on Sept. 30.
Gubernatorial candidates clash over tort reform Tort reform has hit the campaign trail, and the gubernatorial candidates couldn’t be further apart. The most stunning proposal comes from Republican Kevin Mannix. Not only would he rewrite the state’s liability laws, making it extremely difficult for anyone to launch a lawsuit, but he’d indemnify health care practitioners — using state dollars — so doctors could be held harmless above a certain level, say $250,000. “We do this for public employees and need to if we want good health care professionals to come to Oregon,” he told physicians gathered at the Sunriver Forum sponsored by the Oregon Medical Association on Aug. 11. In a show of support for the pharmaceutical industry, Mannix also favors a no-fault system for claims against drug manufacturers that result from medication errors. And, without bashing the legal profession, he boldly said, “there would be no need for lawyers” if there was a schedule of awards for jury verdicts. Sounding a barbaric yawp The Oregon Consumer League screamed so loud in objection to Governor Kitzhaber’s task force on medical liability the attorney general even heard the commotion. Not only did he hear it, but Hardy Myers also wrote a letter to Kitzhaber suggesting the task force needed consumer representation. Myers criticized the composition of the task force, saying it was imperative the agencies charged with protecting consumers and enforcing antitrust laws be represented. He recommended adding representatives from both the Department of Consumer and Business Services and the Department of Justice. Nevada cap too loose After a few sunny days of self-congratulatory rhetoric, a bank of clouds has quickly descended on Nevada’s new law that imposes a $350,000 cap on non-economic damages in medical malpractice lawsuits. The brewing storm of criticism of the law ironically includes a couple of insurance companies. “The national spin is that it’s not (enough),” said Richard Bray, executive vice president of marketing for Nevada Mutual Insurance Company, which insures 330 physicians in Nevada. “A.M. Best and others think it hasn’t gone far enough to have a major impact.” The dentists strike back Dentists are wrestling to protect their turf against advancing denturists. A sibling rivalry between the two professions stretches back to 1978 when voters approved an initiative allowing denturists to provide full dentures over objections from the Oregon Dental Association (ODA). Now they are hoping to make further strides. If passed by voters, “The Consumer Denture Care Act of 2002” would allow them to provide partial dentures. More fuzzy math If nothing else, the 2001 legislature deserves kudos for creative accounting. Not only did it borrow nonexistent future money to balance the budget, but it also created the senior drug assistance program without allocating any funding. Designed to give low-income seniors access to discounted medication, the program will be launched in November, in rural Oregon, barring any unforeseen challenges, with Multnomah County coming on line in December. The only problem, according to pharmacists, is that 100 percent of the financial responsibility falls on their shoulders. On the move with David Wu Famous for his hectic schedule and 12- hour days, Democratic Congressman David Wu is always on the move. Naturally, this makes him prone to stepping on some toes. The only Chinese-American member of the U.S. House had the door home shut on him last year when he opposed the proposal to grant permanent normal trade relations to China due to its civil right’s record. He also supports weapons sales to his native Taiwan, which hasn’t won him any fans in Beijing either. Now he’s embroiled in a race against conservative talk show host Jim Greenfield, his political polar opposite, but Wu is expected to walk away with an easy victory. He spoke with Oregon Health Forum Associate Editor Rory Carroll by cell phone from his car while rushing between engagements. OHF: What are you doing to get the Oregon Health Plan waiver approved? DW: I took the lead in pulling the delegation together to write a letter to the Department of Health and Human Services. I’ve also been calling over there. We’re trying. Showing Mercy A federal agency lifted a threat against Mercy Medical Center, which would have halted its Medicare and Medicaid reimbursement. “We're relieved it's all over," said Janet Baker, Mercy's chief financial officer. A June 7 inspection found the physical environment wasn't up to code and patients' rights had been violated. Inspectors found 30 safety violations ranging from an unauthorized extension cord in the medical records office to a door propped open with a chair. The Centers for Medicaid and Medicare Services also faulted Mercy for restraining patients who might harm themselves by removing tubes when they came out of anesthesia. New rules require the hospital to consult with physicians when restraints are required. Armchair prescribers The power of the couch yields to the power of the pen. And Rep. Phil Barnhart (D–Eugene) already has set his eyes on the 2003 session. He plans to introduce legislation giving prescription-writing privileges to psychologists. “The bottom line is patient care,” said John McCulley, a lobbyist for the Oregon Psychiatric Association, which opposes the legislation. “It’s very important people understand the power of medications, that there be adequate medical training before those medications are dispensed.” Also in this issue...
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