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April 2003

July

PEBB decision causes uproar in Corvallis

Shaking up the health care delivery system was its intent, but the Public Employees’ Benefits Board may end up with a crisis in Corvallis. The faculty at Oregon State University are in an uproar over the decision to eliminate Regence BlueCross BlueShield from its insurance panel. “We’ve become the little guinea pigs for this new change,” said Prof. Sunil Khanna who teaches in the anthropology department. “The campus community is upset. Why aren’t they giving us any choice?”

The unrest led faculty to protest PEBB’s decision when its board met July 12 and asked for reconsideration. But their request was turned down because PEBB doesn’t have the legal authority to re-open the bidding process. Instead, board members, along with PEBB Administrator Jean Thorne, plan to meet with the disgruntled faculty to explain the rationale behind their decision.

Murky waters lie ahead for commission

Diagnostic imaging is big business. In fact, the cost of MRIs, PET and CT scans outweigh pharmaceutical costs for at least one health insurer — Regence BlueCross BlueShield, said Dr. Kathy Weaver, medical director of the Health Resources Commission.

Since its formation, the commission has focused on evidence-based drug reviews with researchers, clinicians and consumers coming up with a preferred list for 14 drug classes. But the commission is running out of work — only six more classes remain, along with annual updates. Meanwhile, insurers, physician groups and health policy officials are encouraging the commission to spread its wings.

A lover’s quarrel

Next Valentine’s Day will be anything but a day of love for Portland radiologists, who’ll be a heart beat away from Providence Health System.

On February 14, an anti-trust lawsuit brought by Drs. Paul Meunier and Gerald Warnock heads to trial in federal court. Ten days have been set aside for the jury trial, said Athena Maris, public relations spokesperson. If the radiologists succeed in convincing the jury, Providence would have to pay treble damages. The exact amount being sought is unknown.

Construction battle rages on in Eugene

Bricks and mortar. The buzzwords of the hospital industry.

Nowhere is this more apparent than in the Eugene-Springfield area where both hospital systems have massive building plans. Their fate rests with state officials who hold the reins over the certificate of need process — a complicated bureaucratic process beset with lawyers, financial analysts and consultants.

Governor performs disappearing act

On Jan. 31, Governor Ted Kulongoski spoke out on the plight of the uninsured, heralding new low-cost insurance programs, developed by the Insurance Pool Governing Board, for small employers and children. Of the state’s 610,000 uninsured, approximately 110,000 are children.

“By offering both of these plans, the state is doing its part to increase the percentages of Oregon businesses that offer health insurance to their employees,” according to the governor's press release.

Providence Newberg: It’s easy being green

If Frank Lloyd Wright had built a hospital, it might look like Providence Newberg Medical Center. Surrounded by the soft rolling hills of Oregon's wine country, the hospital, which opens next June, incorporates building practices that would make Wright proud. Energy-efficient construction. Recycled materials. Natural light. Healing gardens.

“It is a reflection of our core value of stewardship — economically and environmentally,” wrote Gary Walker, a spokesperson for Providence.

The hospital will cost $68.5 million. Building green added $557,014 to the final price tag. Yet while half a million dollars seems like a lot of money, the benefits may outweigh the cons.

Despite criticism, Kaiser builds on

As it attempts to build a $285 million hospital and medical complex in Hillsboro, Kaiser Permanente better hold its anchor steady. Tuality, Providence and Legacy are expected to mount challenges once Kaiser files a certificate of need application later this summer. If Kaiser makes it through all the hurdles, the new hospital will open in mid-2009.

Transparent bill holds opaque future

Unlike other contentious legislation, not a single lobbyist stood up to oppose what many employers and consumer advocates consider essential to rein in escalating health costs — the truth about hospital charges. Among those seen whispering in the hallways of the State Capitol when Senate Bill 1040 had public hearings were lobbyists representing Kaiser and Providence, while their competitors — Regence and Health Net — bared their souls. Not a single hospital administrator testified. As everyone knows, both Kaiser and Providence are insurers as well as hospital owners.

From Kaiser’s perspective, “we’ve been neutral on the bill until now and have not taken a position,” said Dan Field, government affairs director, who’s surprised the bill is still alive.

Dually eligible set to lose designation

Low-income seniors and people with disabilities will get less access to drugs and pay greater out-of-pocket costs next January when the federal Medicare Modernization Act takes effect, according to a study released in June by the Kaiser Commission on Medicaid and the uninsured.

Some physicians, pharmacists and long-term care providers will also have more trouble doling out prescription drugs to patients who are eligible for Medicaid and Medicare.

The 50,000 dually eligible in Oregon will no longer receive prescription drugs through the Oregon Health Plan, but will fall under the new Medicare drug plan. Nationally, 2.5 million people will be impacted.

PacifiCare brokers deal with United

Physicians may not realize it yet, but they’ll definitely benefit from the merger between PacifiCare Health Systems and United Healthcare Group once the Securities and Exchange Commission approves the deal. The $8.1 billion buy-out includes $198 million for Howard Phanstiel, 56, chairman and CEO of PacifiCare. He’ll receive 90 percent of that money in stocks and has signed a two-year contract with United Healthcare Group where he’ll become an executive vice president and also has a four year non-compete clause, said Tyler Mason, public relations spokesman for PacifiCare.

Also in this issue...

  • OSU faculty rankled by Samaritan choice
  • Technicians forced to empty their pockets
  • Dentists expand field
  • Quality corporation takes over torch
  • Leapfrog Group jumps into Oregon
  • < Back to 2005 Archive



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