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April 2003

September

Urban hospitals will gain $21 million from tax

Urban hospitals won’t have to worry about their bottom line being hurt by a provider tax recently approved by the federal government. They’ll end up doing quite well – to the tune of $21 million in net revenues during the next 10 months. At the same time, 24,000 couples and single adults on the Oregon Health Plan will have access to health care as a result of the tax.

Oregon’s 25 urban hospitals are expected to pay $45,389,674 in taxes (0.93 percent of their net revenues from March 1, 2004 to June 30, 2005). As a result, their total revenues will increase to $65,589,589, according to data compiled by Maureen King, Oregon Health Plan Actuarial Services Manager.

Drug pool delayed

A snag has hit the prescription purchasing pool intended to help low-income Oregonians purchase cheaper drugs. The program won’t start until Jan.1, at the earliest, rather than Oct. 1, as planned.

The delay occurred because state officials didn’t receive adequate responses to a bidding process for a pharmaceutical benefit management company, typically known as a PBM. One proposal arrived late, the other was incomplete, said Missy Dolan, administrator of the Oregon Prescription Drug Program.

Eye docs upset

A war’s brewing between optometrists in Lane County and a physician-led group that sits in the driver’s seat. Both sides have become fractionalized, and negotiations are at a stand still.

It boils down to a turf issue. Optometrists are licensed to treat eye infections, glaucoma, corneal abrasions, manage diabetic retinopathy and have limited prescribing privileges. But the Lane County Independent Practice Association is reluctant to grant them that authority. It only allows optometrists to do routine eye exams, prescribe glasses and contact lenses.

Medicare’s PETs

Ending years of contentious research, the Centers for Medicare and Medicaid Services has issued a preliminary decision to expand coverage for positron emission tomography (PET) scans to Medicare patients who may have Alzheimer’s disease. CMS rejected the idea of paying for PET scans for routine diagnoses because of insufficient evidence.

Emperor has no job

The golf courses and yacht clubs were a little more crowded this summer. Sixteen health care CEOs lost their jobs in June – more than any other industry.

Of the head honchos who stepped aside, four gave no reason for leaving and six resigned under the pressure of disputes or because a different kind of leader was needed. An additional 14 health care CEOs left their positions in July and August.

Statements filed

This year’s voter’s pamphlet will resemble a “tome” more than a “pamphlet.” Supporters and detractors of the health care measures – 35 and 38 – have filed over 100 pages of statements.

Some may take voters by surprise. Rep. Bob Jensen (R–Pendleton) crossed party lines to oppose non-economic damages in medical malpractice lawsuits (Measure 35). “I’m out on a limb with a saw in my hand,” he said. A Judiciary Committee member last session, he listened to hours of testimony, and made up his mind after insurance executives refused to say whether they’d lower rates if the measure passed. “If rates wouldn’t fall, why would we do it?” he asked.

HealthOregon alive

When voters receive their November ballots, HealthOregon will be visibly absent. Its proponents had visions of a universal health care insurance plan that would create transparency and deal with runaway medical costs. Their ballot title even passed muster with the Oregon Supreme Court despite challenges.

But Dr. David Sanders, its chief petitioner, stopped gathering signatures after people told him they wanted to hold onto what they had, “and not risk something new.” The measure called for a payroll tax with the funds administered by a market reimbursement mechanism, not a state agency.

Nurse recruitment

The Oregon Center for Nursing could look into a crystal ball or visit a psychic to predict the future. But the organization is sticking to more scientific methods.

With assistance from the Board of Nursing, it sent 1,200 surveys to a random sample of nurses, asking if they plan to leave the state within the next two years, how long they intend to keep working and in what setting.

More physicians on the way

As Oregon wrestles with a physician shortage, hope is on the horizon. A new training program should bring more osteopathic physicians into the Pacific Northwest. In 2003, the American Osteopathic Association gave a California college permission to add 30 students to a project called the Northwest Track. Last spring, Dirk Foley was hired as executive director of educational development for the northwest region.

Foley’s job is to attract college students and permanent residents from Oregon, Idaho, Alaska, Washington and Wyoming. He’s already been successful – 27 students, among them 10 from Oregon – were accepted into the College of Osteopathic Medicine of the Pacific at Western University of Health Sciences in Pomona.

Also in this issue...

  • Quarterly insurance numbers
  • Turning off the vending machines
  • Wyden bill awaits allocation
  • Mental health turnover
  • Regence wins contract
  • Low-cost plans redux
  • OHP cost estimates
  • Insurers watch PEBB
  • Task force speaks
  • Docs to open hospital

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