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 October More lawsuits against non-profit hospitals likely Lawsuits filed against Providence Health System and Legacy Health System may just represent the tip of the iceberg. The result could lead to more turmoil in Oregon’s health care economy. The state’s largest hospital systems are under fire for allegedly not meeting their charity care obligations. “We believe these lawsuits may not be the only ones filed in Oregon or Washington,” said Ellen Pinney, executive director of the Oregon Health Action Campaign. The lawsuits are part of what could be an enormous class action suit against non-profit hospitals. Mississippi trial lawyer Richard Scruggs, who pioneered the class action lawsuit against big tobacco and the asbestos industry, is the lead attorney. So far, 48 lawsuits against non-profit hospitals have been filed nationwide and Scruggs hopes to consolidate them into one large case. A spokesperson for Scruggs confirmed more hospitals might be added to the list. LIPA hires a PR firm Lane Individual Practice Association has decided to play it safe. The Oregon Health Plan contractor, which has come under fire by advocates for treating patients and vendors rudely, has hired a public relations firm to handle its media calls – the Young & Roehr Group. When Oregon Health News attempted to reach Terry Coplin, CEO of LIPA, for comment, a representative from Young & Roehr called, saying they represented Coplin, who was not responding to questions. Since then, Oregon Health News has filed a request with the Office of Medical Assistance Programs asking for a copy of that contract, including its monetary amount. Docs for millionaires Do same day office visits, house calls and 24-hour access to a physician sound like an impossible dream? They are – unless you have an extra $10,000 a year. Drs. Foster Manning and Robert Ironside open the doors of a lavish MD2 medical office in Portland on Nov. 1, said Jon Moses, chief executive officer of Seattle’s MD2 International, LLC. For the $10,000 fee, they’ll even accompany patients to appointments with specialists. These physicians don’t accept insurance, but the $10,000 fee does cover most basic diagnostic tests, medications and preventative care. It does not cover hospitalization, outpatient surgery or tests done outside the office such as MRIs, Moses said. Self-funded get TPA Salem-based Performance Health Technology will ring in the new year by launching a new product line, offering self-funded employers comprehensive medical, dental, vision and pharmacy administration. “Our research showed customer service and flexibility are areas of unmet need when it comes to the commercial TPA market place. It just made sense for us to extend our core competencies to that sector,” said Dr. Michael Rowher, president and CEO. On the record with Alice Dale Alice Dale is in a perfect position to scrutinize health care costs. With a long career as a labor negotiator, she joined the Health Policy Commission and co-chairs its Cost Work Group. For the past two years, Dale has been president of the Service Employees International Union Local 49, representing 6,500 members, the majority of whom work in hospitals – in positions other than nursing. Earlier she spent 17 years leading the Oregon Public Employees Union. She’s also a vice president of SEIU International, the largest union in the AFL-CIO with 1.6 million members. Recently she spoke with Diane Lund-Muzikant, editor of Oregon Health News. OHN: What do you see as the biggest challenges facing the Health Policy Commission? AD: How the state can be a catalyst for change by focusing on system inefficiencies, evidence-based medicine, health care market problems and the need to realign incentives. There’s also an enormous issue with the aging population, which is driving up health care costs. So we’re focusing on immunizations for seniors, disease management and educational efforts. Jet-set marketing Forget the bagels and free lunches. Health care marketers are becoming much more aggressive. In April, Oregon Health News reported on an all-expense paid trip (minus a $99 registration fee) to San Diego’s Four Seasons Avaria Resort for doctors willing to attend a seminar on technology being used to treat heart rhythm disorders organized by the Marion-Polk Medical Society (“Cailfornia dreaming”). Guidant Corporation, a designer and developer of cardiovascular medical products, was among the sponsors, according to Melissa Gaffke of Salem Cardiology Associates, which helped arrange the trip. New rules for CON The state has released new rules for hospitals seeking a certificate of need. An accelerated review process is in place to gain a certificate of need, a regulation overseen by the Department of Human Services to deal with new hospital construction. Officials began reviewing the rules after Springfield-based McKenzie Willamette Hospital cried foul. Trouble began when its competitor, PeaceHealth’s Sacred Heart Hospital, proposed moving from Eugene to Springfield. Fearing an increase in competition, MccKenzie Willamette considered relocating to Eugene. But the hospital would have needed a CON, which it considered expensive, onerous and unnecessary. Furthermore, McKenzie Willamette complained the rules were unfair because they didn’t apply to Sacred Heart. Hospital razes garage Salem Hospital plans to demolish its six-year-old parking garage to make way for a $202 million expansion project. Although it sounds like a paradox, tearing down the garage, valued at $9 million, will actually save money, said Sherryll Johnson Hoar, spokesperson. “The parking garage was built when (the board of trustees) fully expected they were going to replace the hospital.” In 1999, the birthing center and parking garage were built. At that time, it planned to construct a new hospital. But when cost estimates came in at $330 million, it was considered unaffordable, Hoar said. Mental health shortfall Not enough money. That’s the cry from the mental health community about the projected $88 million in new money to manage residential and day treatment for 29,199 children in the publicly funded system. Based on preliminary budget estimates Washington County “wouldn’t even be able to pay for children who are currently in care,” said Kim Burgess, mental health program coordinator. Also in this issue...
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