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Marion Regional Healthcare System Acquired by Community Health System Subsidiary – More Join “For Profit” Publicly Traded Hospital System in South Carolina

CHS is the largest hospital company bought and sold on the stock exchange.  We are starting to see more non profits moving to the “for profit” areas of businessimage.  Again with company subsidiaries sometimes we might miss who is actually the owner as it is one step up the ladder to see the ultimate owner as in this case whereby a subsidiary of CHS has made the acquisition.  CHS mentions their QHR subsidiary on the website, which provides some online tools to answer some basic questions for anyone to use and query. 

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The website seems to offer a little bit of everything to include sales and merger transaction assistance.  You can see from the screenshot below they are focusing on marketing help for hospitals experiencing financial issues.  In addition to the hospitals under their own umbrella they consult and provide management/consulting services to another 150 hospitals that are independent of CHS ownership. 

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The acquisition will include negotiating for new physician recruits and capital investments.  CHS has 122 hospitals in 29 states currently and you can see below they company generated over $12 billion in revenues, not sure what the profits were here, but this appears to be just the revenue generated only.   We are starting to see more “for profit” acquisitions such as the one recently announced in Massachusetts.

Caritas Christi Health Care Sold to Private Equity Firm Cerberus For $830M - Massachusetts

How many non profits will we have left in time?  BD 

From the website of CHS

“Headquartered in a suburb south of Nashville, Tennessee, the organization is committed to building a network of thriving hospitals vital to the imageresidents and economic development of the communities served. With the belief that community hospitals often suffer from a lack of capital and have difficulty recruiting physicians and retaining high levels of management expertise, the company has assisted local hospitals in meeting these challenges and has proven itself to be an established leader in this industry segment. For the fiscal year that ended December 31, 2009, CHS generated $12.1 billion in revenues.”


MARION — Marion Regional Healthcare System has been acquired by a subsidiary of Community Health Systems Inc., the parent company of Carolinas Hospital System in Florence and four other hospitals in South Carolina, including two in the Pee Dee. 

The acquisition includes 124-bed Marion County Medical Center, which, effective Wednesday, will operate as Marion Regional Hospital. The transaction also includes 92-bed Mullins Nursing Center, and nine local physician practices and clinics: Advanced Medical Associates Internal Medicine, Aynor Medical Center, Marion County Surgical Center, Marion Medical Center OB/GYN, Marion Medical Group Internal Medicine, Marion Pediatrics, Mullins Surgical Associates, Pee Dee Pediatrics and Total Family Care.

Marion Regional Healthcare System is a private, nonprofit organization that operates Marion County Medical Center, Aynor Medical Center and the Mullins Nursing Center. It also operates nine hospital-owned practices providing pediatric care, internal medicine, general surgery, family medicine, and obstetrics and gynecology.

Marion Regional Healthcare System under new ownership | SCNow

Whistle Blower Suit Filed at Rush University – Orthopedic Surgery Safety and Medicare Violations

This case goes back to surgical procedures done at the hospital a few years ago questioning safety and whether or not the surgeons were in the room the entire time during procedures.  The government has not intervened thus far.

From what I read here part of the issue seems to involve the compensation one doctor received from Zimmer Holdings for training other doctors, over $2 million and that’s a big chunk of change that seems to play here with this case.  Whistle blowers do stand to gain financially with cases that are proven.  BDimage

A group of doctors at Rush University Medical Center's prestigious orthopedic department routinely overbooked their schedules and relied heavily on residents to perform surgeries, violating federal Medicare billing rules, according to a newly unsealed whistle-blower lawsuit filed in U.S. District Court in Chicago.
The suit alleges that in one instance, a surgeon never entered the operating room to supervise a procedure. In others, a surgeon monitored residents performing operations via video feed while simultaneously performing his own operations in nearby rooms.

The lawsuit, filed by another Rush surgeon, Dr. Robert Goldberg, along with a former hospital executive, portrays Rush's orthopedic center as a business focused on quantity over quality, risking patient health in pursuit of "monetary rewards and celebrity status." To do that, doctors sidestepped specific Medicare billing rules that require teaching physicians to be present during critical portions of procedures, the suit said.

Among the group, Dr. Richard Berger is the most high profile. He pioneered "minimally invasive" hip-replacement surgery and for many years was a star consultant for Zimmer Holdings, an implant-maker.

In a statement, the hospital said, "Rush believes that the lawsuit has no merit and intends to vigorously defend the case."

On April 22, 2004, the complaint alleges, Sheinkop, who performs hip and knee replacements, never entered operating room 9 to perform a knee replacement on a 67-year-old patient. He performed another procedure in operating room 7.

In 2008, the Tribune reported about his relationship with Zimmer Holdings, which paid Berger handsomely, more than $2 million in 2007, for training other doctors and promoting Zimmer devices.

Rush, Dr. Richard Berger named in whistleblower suit - chicagotribune.com

Botox Given Approval in the UK for Migraine Headache Relief

The FDA has not cleared for use here in the US yet, but we might be getting closer as they have approved Botox for use to releive muscle spasms in the wrist and finger area so we just need to travel a little further up north perhaps.  BD

FDA Gives the Ok for Botox To Be Used for Muscle Spasms In the Wrist and Finger Areas of the Hand

Those seeking the secret of eternal youth have long sought Botox to ease the cosmetic pain of wrinkles, but UK patients will soon be able to use the imageproduct to help with the more medically important issue of headaches.

The UK medicines regulator on Friday announced a world first with the decision to approve Botox for the prevention of severe migraine, in the latest extension of the growing medical as well as aesthetic uses of the drug produced by US-based Allergan.

The Medicines and Healthcare Regulatory Agency granted approval for its prescription in adults suffering from headaches for at least 15 days each month, of which at least eight days are with migraine, including sensitivity to light, nausea and numbness.

FT.com / Companies / Pharmaceuticals - Botox approved for use as migraine medicine

Members of Congress Not Locking Down Their Home Wireless Networks with Passwords Now Angered At Google For Snooping with Street Views?

This is an excellent example of members of Congress being the “non participants” in technology if this is the case.  Everybody knows, Best Buy tells you as well as imageother retailers to secure your wireless network.  These are the folks making laws that serve on Committees like Homeland Security!

I don’t need to really say a whole lot more as this is very public knowledge on how to put a password on your wireless network and how do these folks understand making new laws that entail technology?   Many members have announced retirement in part I believe due to this fact.

One More Member of Congress Announces Retirement – I Think We are Up to 35 Now – It’s Complicated!

We talk about healthcare literacy and security, well let’s make our first stop here before we go attacking others for their lack of knowledge. 

HHS National Plan to Improve Health Literacy – Not Going To Happen Until We Focus on Using Technology (The Tool for Literacy) Which Includes Role Models at HHS And Other Places in Government

Public officials take notice, your lack of computer literacy is showing big time today and you can definitely fix that.  BD 

Advocacy group Consumer Watchdog released a report this week claiming that "Google's WiSpy snooping could have sucked up and recorded communications from members of Congress, some of whom are involved in national security issues". The BBC quickly picked up on the story, reporting that Google's Street View "snoops" on Congress members, but overlooks one important piece of the puzzle: If these people are involved in issues of national security, why haven't they put a password on their wireless network?

Apparently, they found that Representative Jane Harman of California - chair of the Intelligence Subcommittee of the Homeland Security Committee - was among a group of nearly 20 high level government officials whose home networks "could have been breached by Google."

Google Spies on Congress? Maybe Congress Should Lock Its Wifi

Humana Buys Hummingbird Coaching Services to Include Adherence Rx Subsidiary With Compliance Algorithms

And we have one more coaching firm and software added to the portfolio of Humana today.  You can see one of the under laying focuses here is compliance to taking medications, and we see that all over the place today, so much to the point that these efforts are somewhat becoming just another web portal.  Insurance imagecompanies want compliance with medications and behavioral patterns and thus we keep seeing more and more popping up and this one offering financial incentives to those who don’t require as much “coaching”.  I don’t know about you but I am so busy today multi tasking and trying to work, I don’t have the time.

I also wonder about how some of this information is handled with confidentiality too as subsidiaries and health insurance lines are not always real clear today and few laws protect privacy, but for those who want to enroll, here’s one more for Humana.  The algorithms will run and give an analysis and grade you.  I didn’t see any mention of use of biometrics on the site at this point but the comments state that “a live health coach is essential to achieving real behavior change”.  Data analytics and ROI analysis come complete with all the other services.  I guess I read and see so many of these in the process of doing this blog that they all run together and look about the same anymore as they are all algorithmic processes that eventually lead to earning money for investors. 

Humana also owns and operates their own subsidiary called “LifeSynch” which as of today said to come back as they are revising the website.  BD  

From the website:

“AdherenceRx Patient Adherence Pathways can range from intensive behavioral health coaching for high risk patients to more automated reminder messaging, virtual coaching, patient incentives and financial support programs for those patients who do not require more mediated (‘coach intensive’) support. At the low end of activation, individuals tend to be passive in managing their health and typically fail to see the connection between their own behaviors and health outcomes.

At the high end, individuals understand that relationship and have become strong self-managers across a constellation of behaviors. However, even high-activation-level individuals may benefit from coaching to stay on course in times of change or stress or to close gaps to best practice self-care.”

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Humana Inc. (NYSE: HUM) announced today that it has acquired Cincinnati-based Hummingbird Coaching Services for an undisclosed amount. Hummingbird Coaching, a pioneer in scalable, affordable and results-driven coaching, can be a comprehensive turn-key coaching program, an enhancement to a medically based coaching protocol and a platform that makes coaching programs more efficient.

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“Benefits will accrue to Humana members as well as purchasers of LifeSynch products.”

"Hummingbird's flexible, user-friendly platform and coaching expertise are market differentiators that significantly strengthen Humana's vision to help members achieve lifelong wellbeing," said Patrick Gotcher, president of LifeSynch, Humana's health and wellbeing subsidiary. "Benefits will accrue to Humana members as well as purchasers of LifeSynch products."

Humana announces acquisition of Hummingbird Coaching Services

Health Net Expands Savings-Focused HMO Plans in California

Employers now have yet one more plan to look at when evaluating employer based health insurance, a job that most HR departments are beginning to dislike imageaccording to recent news.  How many plans does one have to look at I heard recently myself and not to mention the time and expense on his part. 

So as the health insurance cookie continues to crumble a bit, we have more data and pricing to look at.  As health insurance exchanges come into being, it will be interesting to see if the insurers will somehow make it easier and simpler for consumers to choose a plan too, as with all the complicated algorithms to sort through today, it’s a mess.  BD  

Health Net of California, a subsidiary of Woodland Hills-based Health Net, Inc., is launching and expanding cost-saving network plans for employers throughout the state, the health insurer announced.

The company is expanding its Silver HMO Network plan in Northern California and launching the Bronze HMO network in Southern California.

The network plans are designed to provide employers with premium savings, with the Silver HMO Network offering up to 15 percent less for the same plan designs as its full statewide network.

The network consists of nearly 5,000 contracted primary care physicians and specialists.

Health Net Expands Savings-Focused Insurance Plans | San Fernando Valley Business Journal

White House Commission Established to Evaluate Risks and Benefits of Synthetic Genes – Ethics and Safety

Now with the ability of scientists to modify bacteria and other organisms with gene sequencing to advance personalized medicine and cures, George Church and others have recommended governmental control in the area of ethics in particular.  If in the hands of the wrong people, such as terrorists the technology could in fact product virus or and drug resistant bacteria. image

They addressed the fact that DNA synthesizers can even be purchased on EBay.  The FBI is right in here with interest as well.  Recently in the news salmon and the FDA looking at whether or not to allow fish to our food chain that have been altered, and is this safe.  This is an example of how some of the properties of genetic changes can have an affect and granted the fish are probably minimal in areas of concern, but it’s fish today and who knows what tomorrow.

FDA Close to Giving OK to Genetically Engineered Sterile Salmon – For Human Consumption

What is needed said the team is regulation to prevent accidental release of designed organisms in to the environment where they could re-produce and run the eco system.  You can read more about George Church at the link below as genomic research and sequencing was his project. 

George Church Harvard Scientist Discusses the World of the Personal Genome Project – The Basis for Personalized Medicine from Someone Who Lives with Dyslexia

We have already seen mathematical formulas used on Wall Street for profits when it comes to the paying side of healthcare and ethics in this area continue to be questioned and for very good reason. 

Technology Has Been Abused for Profit –Algorithmic Formulas Used to Further the Stance of Greed on Wall Street and in Healthcare Organizations Traded on the Exchanges

We have rogue algorithmic code running all over the place with little or no supervision and/or laws to regulate, so this commission is a good idea to be alert and aware before synthetic genes, and of course there will be those who will want to profit here, gets out of control, so this is an area with Wall Street to not be overlooked as well with investors who could drive some of the synthetic gene technology over to areas where it should not go.  BD  image

NEW YORK (GenomeWeb News) – A White House-appointed group charged with reviewing bioethics spent the day yesterday hearing about synthetic biology, its potential value and its risks, from a range of experts as part of an effort to produce a report requested by President Barack Obama.

In its premiere meeting, The Presidential Commission for the Study of Bioethical Issues heard from representatives from industry, academics, and proponents and critics of synthetic biology. Speakers at the meeting included Synthetic Genomics' Founder J. Craig Venter and the Massachusetts Institute of Technology's George Church, who also serves as an advisor to a number of genomics and synthetic biology companies.

Just days after the J. Craig Venter Institute reported in May that it had created the world's first synthetic genome and inserted it into a microbe that then booted up and replicated, President Obama tasked the commission, which is chaired by University of Pennsylvania President Amy Gutmann, with looking into the field and developing the report.

Church told the group that he is highly optimistic about controlling synthetic biology and making sure it is used in positive ways, but, he added, "we need to have surveillance and enforcement."

White House Commission Dives into Synthetic Biology | GenomeWeb Daily News | GenomeWeb

Two Private Equity Firms to Buy Medical Care Provider Multiplan – ValuePoint Plan Connects to UnitedHeatlhGroup

The deal is worth 3.1 billion so a large acquisition in progress.  Multiplan is the largest independent PPO in the US since 2006.  You can see trending with health imageinsurance and managed care coming once again to the forefront of investors and how this plays out we are not sure yet.

The entire idea here with MultiPlan is to save money and there are links on the site for payers, providers and patients.  The company is some what of another 3rd party in healthcare that runs cost algorithms and located providers within their participating networks, they process and help file medical claims.  

The ValuePoint program will get providers and patients enrolled and affiliated with United HealthGroup via AARP for insurance coverage, so this is what it appears to be a mainstream marketing effort here with more providers, patients and payers with United.  We keep seeing United popping up with s long reaches all throughout healthcare today and even in some areas you might not even think about and the link below is from April of 2010.

United Healthcare Profits Continue to Rise $1.2 Billion in Profit From $23 Billion Revenue

In essence the investors appear to be banking on the fact that more will be enrolling through MultiPlan and using Optum Health Allies from United Health Group and using their algorithms for saving money and wellness.  You can follow the link below to find out about a few more of the UnitedHeatlhGroup subsidiaries and what they are doing where I had mentioned the fact that private equity groups are out looking to invest in the payer side of healthcare.  We pay for all these groups imagethrough higher premiums for the algorithms they provide to keep cost contained, an extra added 3rd party situation that exists all through out the US system. 

Consumer Watchdog Warns Sebelius on Health Insurers – Good Reason for This as Insurer Subsidiaries Are in The Game to Play Just As Private Equity Groups Diversify and Collaborate Holdings

I often wonder if we didn’t have so many middle people involved with so many transaction fees if the cost to consumers would drop.  BD

From the MultiPlan Website:

“Founded in 1980, MultiPlan is the nation's oldest and largest supplier of independent, network-based cost management solutions. With more than half a million healthcare providers under contract, an estimated 40 million consumers accessing our network products, and some 70 million claims processed through our networks each year, we're the right choice for healthcare payers and providers, who today face unprecedented cost and competitive pressures.image

We're large enough to offer solution breadth and depth, yet nimble enough to tailor our solutions to the evolving needs of payers and providers. And, we're also the only company that can offer access to the leading independent national primary PPO, as well as our complementary network and fee negotiation services through a single electronic claim submission.”

As a participant in the ValuePoint by MultiPlan network, you can expect to see patients who are members of the OptumHealth Allies/UnitedHealth Allies discount program. OptumHealth Allies (also marketed as UnitedHealth Allies) is a discount program administered by OptumHealth Allies, Inc., a UnitedHealth Group company. OptumHealth Allies is not insurance; rather, it is a money-saving program that offers discounts on many health and wellness products and services. However, OptumHealth Allies is sometimes used in conjunction with an insurance program, as is the case with AARP.”image

July 9 (Bloomberg) -- BC Partners Ltd., manager of a 5.8 billion-euro ($7.4 billion) private equity fund, and Silver Lake Partners of the U.S. said they agreed to buy medical-care provider Multiplan Inc. 

The two firms will be “equal equity partners,” they said today in a statement, without disclosing the terms of the acquisition. They are purchasing the New York-based network of health-care providers from Carlyle Group and Welsh, Carson, Anderson & Stowe in a transaction valuing the company at $3.1 billion, said two people with knowledge of the deal.

BC, Silver Lake Agree to Acquire Health-Care Provider Multiplan - BusinessWeek

FDA Reviewing First Shipment of Synthetic Blood From Arteriocyte – Umbilical Cord Yields 20 Units of Blood

This is a DARPA project and the price is a bit steep for $5000.00 per unit right now, but if FDA approved and the company can get production costs down a bit, this could be a real product and first area to see the blood would be the military since this is a DARPA project.  The time is not bad either, 3 days. 

This could certainly stand to help hospital blood supplies as well.  BD  image

Perhaps ranking behind only bullets and water, blood is one of those things you really don't want to run out of on the battlefield. But better battlefield medicine -- as well as some of the more malicious combat techniques employed by insurgent guerrilla fighters -- mean more soldiers are surviving their injuries, and that puts military blood banks in a bind. But a DARPA program launched in 2008 is coming to fruition, potentially providing medics an endless stream of universally accepted O-negative blood through a process known as blood pharming.

A company awarded nearly $2 million to develop this genetically engineered blood product has shipped off the first shipment to the FDA, hoping the regulators will approve it for use in trauma wards everywhere. The biotech company, Arteriocyte, can turn an umbilical cord into 20 units of blood in about three days at a cost of about $5,000 per unit. That's a bit steep, but if the FDA approves the blood product and the company is able to scale the production method, fake blood could be the real deal.

If Arteriocyte can get the cost down, pharmed blood could replace the donated stuff within five years, though the brass may push the FDA to fast-track it if necessary. Hopefully the coming years will see a reduced need for large quantities of battlefield blood, but it's good to know we could churn out a vast supply in a pinch.

First Batch of DARPA's Synthetic Blood Delivered to FDA, Could Be on Battlefields Soon | Popular Science

Whistle Blower Case - National Cardio in Orange County Settles Lawsuit for 3.6 Million – Fraudulent Billing Medicare, TriCare and Health Insurance Carriers

This is an interesting company whereby the patient would wear the device and send it to National Cardio who would interpret the information and bill for the imageservices provided.  The 2 whistle blowers in this case get about 1/2 a million for their efforts.  With the new wireless devices that use blue tooth and other wireless technologies, it may seem that businesses like this will either change their methodologies and devices in time, in which case new technology would make it more difficult to create the type of fraud this company was accused of as information will be “real time” instead of sending a device via FedEx to the labs/offices for reporting.  BD 

An Orange County company that provided heart monitoring services has agreed to pay $3.6 million to settle a lawsuit in which the company is accused of defrauding government healthcare programs, the U.S attorney’s office said Thursday. 

The lawsuit alleged that National Cardio Labs LLC; the company’s manager, Adrienne Stanman; and Stanman’s husband, Robert Parsons, a former manager, defrauded Medicare, TRICARE, and health insurance carriers contracted through the federal government, according to the U.S. attorney’s office.

National Cardio Labs, based in Santa Ana, Aliso Viejo and Irvine, was operating as an independent diagnostic testing facility that received, analyzed and printed out data from heart monitors and other medical devices, authorities said.

Stanman and Parsons, both from Laguna Niguel, are accused of knowingly submitting false healthcare claims for cardiac and blood pressure diagnostic testing to the federal health insurance programs between January 1998 and February 2004.

The lawsuit was dismissed and the settlement finalized on May 13. Stanman, Parsons and National Cardio Labs paid the federal government almost $2.3 million, and agreed to the government keeping an additional $584,000 that had been seized by the FBI as part of an asset forfeiture action, the U.S. attorney’s office said. The defrauders must pay the balance of $720,000 by July 21.

The whistleblowers, named as James Cast and Stanton Crowley, will receive $1,115,614 from the settlement, according to the U.S. attorney’s office.

Orange County firm accused of defrauding federal healthcare programs settles case for $3.6 million | L.A. NOW | Los Angeles Times

Face Transplant Includes Tear Ducts That Cry and Chin that Grows Hair - Paris

The entire procedure took 24 hours and the patient was one who had a rare genetic imagedisorder with heavy tumors on his lips.  Dr. Laurent Lantieri did another recent surgery on a man who’s face was damaged by gunshot. 

This was the first time when eye lids were included in the procedure.  Nerves will need to grow and attach; however the article said the patient already has tears.  BD

PARIS — A 35-year-old man with a genetic disorder has an entirely new face – including tear ducts that cry, and a chin that sprouts stubble – thanks to a rare full-face transplant performed by a French surgeon and hailed as a new advance in improving the lives of the disfigured.

Dr. Laurent Lantieri, one of the few doctors in the world who has performed face transplants in the past, said Thursday that the patient, named Jerome, "gave me two thumbs up" after the June 27 operation at the Henri-Mondor hospital in the Paris suburb of Creteil.

"We can see that he already has tears, so that's not a problem," Lantieri told AP Television News in his office in Creteil, where skulls adorn his desk. It will be another few months, however, before doctors can be sure the patient can blink correctly, he said.

Full Face Transplant With Eyelids: French Team Completes Historic Operation (VIDEO)

Jasmine Substituting for Valium – Has the Same Molecular Mechanisms And Works on Mice – Patented

The research is strong enough and substantiated to earn a patent for their discovery so in time perhaps we might be sniffing our way to sleep.  I happen to like the smell of Jasmine myself so no problem there and I wonder if Jasmine will become a “controlled substance” in time.  I hope not as I like growing it in my back yard.image

This also stands to give a new meaning to aromatherapy.  The researchers also hope to achieve stronger effects by changing the chemical structure so we can look forward to Jasmine or Jasmine Extra Strength in the near future (grin).  This would be nice if the habit forming properties are not prevalent as they are in the drugs we take today.  BD  

In collaboration with Dr. Olga Sergeeva and Prof. Helmut Hass from the Heinrich Heine University in Düsseldorf, researchers from Bochum led by Prof. Hanns Hatt have discovered that the two fragrances Vertacetal-coeur (VC) and the chemical variation (PI24513) have the same molecular mechanism of action and are as strong as the commonly prescribed barbiturates or propofol. They soothe, relieve anxiety and promote sleep.

The RUB researchers have now performed a large screening study in which they tested hundreds of fragrances to determine their effect on GABA receptors in humans and mice. The two fragrances vertacetal-coeur (VC) and the chemical variation (PI24513) were the strongest: they were able to increase the GABA effect by more than five times and thus act as strongly as the known drugs. The "cross check" with genetically modified GABA receptors in transgenic mice which no longer responded to propofol confirmed that the mechanism of action is the same: the altered receptor also no longer responded to the fragrances.

"We have discovered a new class of GABA receptor modulator which can be administered parentally and through the respiratory air," says Prof. Hatt. "Applications in sedation, anxiety, excitement and aggression relieving treatment and sleep induction therapy are all imaginable. The results can also be seen as evidence of a scientific basis for aromatherapy." By changing the chemical structure of the scent molecules, the researchers hope to achieve even stronger effects

Intoxicating fragrance: Jasmine as valium substitute

Physician Confronts Hospital In Modesto California – Corporate Medicine and The Risk of “At Will” Physician Employees Leads to Endangerment of Patients With Peer and Board Decisions

This is an interesting case and ruffled feathers along with the facts from what I read here seem to be mixed in.  The hospital fired the doctor who works for a physician’s group; however, doctors in California are covered under the whistle blower statutes.  He wants to be able to come back and practice at the hospital once imageagain. 

California law extends whistle-blower protections to physicians...

I hear stories from doctors as to what happens at hospitals and like anywhere else there are personality conflicts but when it comes to caring for a patient and life saving therapies and surgical procedures, that has to be set aside.  Since being fired he has his own practice open and sits on a few advisory panels so his accreditation doesn’t seem to be at risk with others trusting his judgment.  

Two incidents the story recalled was with a nurse who refused to use a defibrillator to resuscitate a kidney dialysis patient and the nurse said the patient should have been given medication first, again none of us there who are reading this can judge here and the patient records and conditions at the time are the key. 

Another patient was not admitted when the bowel had been perforated during surgery and appeared to be in septic shock and the hospital would not send the patient to intensive care.  The information is all confidential until decisions are made.  The hospitalists do have a work group sometimes called “the consultants” that they need to contact in many issues before making decisions and we are seeing more and more of this occurring today, sometimes when not urgent or when a patient is not in the state of life threatening illness or injury there is time and other times there is not.

Utilization managers once the patient has been discharged will play the role of a Monday morning quarterback afterwards and evaluate all the decisions made by the doctors to see where cost items were out of line or if they felt other decisions should have been made and this can get sticky at times.  It’s always easier after the fact to look back which can be helpful to learn from, but today with the big emphasis on “cost” this can be in jeopardy of growing out of balance too.  Sometimes doctors are told in staff meetings that they “are not meeting their quotas”, so you ask what is this?

Quotas are the base dollar amounts needed by hospitals to meet their bills and if admissions are down, there’s not much that can be done and pressure to admit marginal cases should not be pushed and again it comes back to the doctor.  If doctors are pushed into admitting more patients, it’s a double edge sword as later when utilization gets a hold of the records, they can be disciplined or fired for admitting patients who didn’t need to be there.

At any rate this will be an interesting case to follow and see the outcome.  It doesn’t sound like he needs the money but is rather trying to address his part in bringing around an awareness with hospital management and doctors working there.  We have this big issue with control over doctors at the City of Hope here in California for another example.  It would seem that a full on whistle blower suit would have been initiated if it were money, but can’t say for sure.  BD 

City of Hope Files Lawsuit Against Their Own Doctors – Wants MDs Join For Profit Medical Group & Terminating Nearly All Physician Research Current Contracts

Dr. Mark Fahlen isn't afraid to criticize what he calls "corporate medicine" and the pressures exerted on doctors working for large health care systems.

According to Fahlen, his complaints about nursing practices at Modesto's Memorial Medical Center got him in trouble with hospital administrators.

He is seeking reinstatement to the hospital's medical staff and won a battle last month when a judicial review panel reversed a decision to deny his hospital privileges.

He is now waiting to hear if he can continue treating patients at Memorial, an affiliate of Sacramento-based Sutter Health. 

"I feel very happy that the (review committee) was strong enough to stand up to Memorial and stand up to corporate medicine and make the right decision," said Fahlen, a kidney specialist in Modesto for seven years.

Nurses at Memorial had their own complaints about Fahlen. And it appears hospital officials believed he was too confrontational with staff and that his conduct interfered with patient care.

Fahlen said that instead of addressing his concerns about nursing practices and patient care, he was fired in May 2008 from the Gould Medical Group, a large physicians group closely aligned with Memorial.

"I have spent $200,000 in legal fees since this started," he said. "I think the public has a right to know what the risks of corporate medicine are and the risks to doctors who are at-will employees.

Fahlen, who started his own practice after leaving Gould, is known for more than being a loose cannon. He is serving a second year as director of the Department of Medicine at Doctors Medical Center and serves on Stanislaus County's Community Health Center board, an advisory panel for the county's federally qualified health clinics.

He said Gould fired him three months after he was given a raise from $212,000 to $274,000 a year. A Gould spokesman declined comment about Fahlen because it's a personnel issue.

Physician faces off against Modesto hospital - Sacramento News - Local and Breaking Sacramento News | Sacramento Bee

Recall of Tylenol Expands on Adult Products – Smelly Chemical Issue – Bar Coding with Tags Really Needed To Alleviate Confusion and Problems Finding Products

More recalled products and this issue goes back to the adult products that were recalled a while back.  You can read about the prior posts on the children’s products imagebelow.

Johnson and Johnson McNeil Healthcare Group Recalls Children’s Over the Counter Liquid Medications

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Actually the FDA, drug and device companies are setting up for a BP style problem with recalls the longer they continue to do nothing. 

Is a Non Technical FDA Recall System Like Another BP Oil Spill Waiting to Happen One Day

When you stop and think about the software end of things with devices (especially those that require software) think about your operating system updates you get with Windows, Apple, Linux and so on.  Even the big guys are constantly updating and improving their software and those are entire operating systems, so this part of the issue with devices is not going to go away any time soon, but we need to learn to live with it and adapt and be able to react quickly with a system that gets to hospitals, consumers, doctors immediately. 

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Tracking Medical Device Recalls – Sounds Like A Good Place for a Microsoft Tag Data Base at the FDA

Here’s another reiteration on my little campaign here on how to handle recalls and be sure and cast a vote on the poll if you would value being able to use your cell phone to find recalled drugs and devices immediately.  This is the answer for both devices and drugs and enables the consumer and would make it easier for the FDA to regulate compliance too, so everyone wins here. 

Microsoft Tags on CBS Early Show – Wake Up FDA, Pharma and Medical Device Companies –Scan Those Drugs, Medical Devices and Synchronize with an FDA Tag Data Base – Recalls, Theft Tracking and More….

There have been requests to establish a UDI for devices and Johnson and Johnson has a few of those going on too so why not solve the entire problem with one solution that is simple and easy for anyone to use. 

 

Visit msnbc.com for breaking news, world news, and news about the economy

 

One other little side note here too is that the Tags will work with PHRs too so one technology that solves many issues as the device Tag can be stored in Google Health or HealthVault.  Here’s how they work with a PHR/EHR too. 

Microsoft Tags in Healthcare – Comments and Demonstration at “Microsoft Connected Conference” with Surface

There’s even work in progress to use Tags to adhere to the new DEA authentication requirements, so why create a glut of new software solutions when one can be used efficiently so solve many. 

RAZCODE (Microsoft Tags) Using Smart Phones to authenticate MDs When e-Prescribing Controlled Substances

This just goes to substantiate needing leaders with some in depth knowledge of Health IT and software capabilities and the inability to see beyond a simple UDI solution when a bigger and probably much less expensive program/software would do the trick and a lot more, non participants have a hard time seeing value. 

HHS National Plan to Improve Health Literacy – Not Going To Happen Until We Focus on Using Technology (The Tool for Literacy) Which Includes Role Models at HHS And Other Places in Government

We have leaders throwing money around but yet they don’t participate themselves and do not make for very good role models at all.  BD

The New Brunswick, N.J., company made a large recall of those drugs and over-the-counter products, saying about 70 people were sickened by the smell. The odor was linked to a chemical in shipping pallets.

Recall of Tylenol, other drugs widens - Health - More health news - msnbc.com

Bluegrass Family Health HMO Closes up Shop in Kentucky at the End of the Year 2010

The smaller HMO/Health insurance firm states they could not compete and find contracts that compete with Blue Cross.  We could see more of this as many individuals have opted for the less expensive PPO plans which offer a high deductible and basically are there to cove a “big” event.  HMO premiums by comparison imagehave become non affordable to many and thus the HMOs are feeling the pinch and we have this happening here in California too. 

Overall over 6000 individuals are affected and will need to shop for new coverage.  BD  

About 276 employers in Tennessee will have to shop for new insurance carriers as Bluegrass Family Health of Lexington, Ky., pulls out of the state.

Last week, Bluegrass told the state that it would stop issuing or renewing small and large group health coverage statewide at year-end. The company cited difficulty competing with non-HMO plans after Tennessee increased a state tax on the premiums collected by health maintenance organizations.

The tax increase from 2 percent to 5.5 percent — the most allowable under the law — was projected to raise $136 million a year to help defray costs of the state's TennCare program. For the recent first quarter, Bluegrass paid $265,437 under the new premium tax rate after paying $82,078 a year earlier

Insurer's exit from TN may put small firms in bind | tennessean.com | The Tennessean

Merck Set to Close 8 Research and Development Facilities – Kendall Square in Cambridge MA Included

This is both a continued merging of resources with the purchase of Schering Plough and better utilization of present facilities.  Merck is heavy in cash resources too imageand a few months ago purchased Millipore in Massachusetts which is an outsourcing company involved in many areas of R and D to include clinical trials so now that they own Millipore, the need for their own internal research and development could be a duplication or as usual more effectively done cost wise with an outsourced company.  Millipore has many international locations.

Merck Buying Millipore in Massachusetts for $6 billion – Life Sciences and Chemicals Acquisition

Also earlier this year Microsoft purchased their Rosetta Biosoftware so things are changing a a lot of rethinking an new organizations going on.

Microsoft Acquires Rosetta Biosoftware – Merck Becomes Microsoft Life Sciences Client

Merck is also making it’s presence in the Biosimilar business and this could also stand to enhance this effort as well with creating biosimilar or follow me drugs at a smaller fraction of the cost of what we see on the market today. 

Merck Purchases Insmed – Biosimilar Biotech Drug Company

It certainly appears that diversification is the name of the game here as recent purchases will enable the company to cover more than just single market areas and actually sell some services to other pharma companies in the process.  One thing too that Merck has done in their chemical division is manufacture the the component that makes our computer screens come to life, as the chemical division puts a lot of profit to the bottom line with their product being used in many computer monitors we have today.  BD 

Questions about where Merck’s cost-cutting ax would fall have been answered.

The pharma giant said today it would wind up operations at eight research sites and eight manufacturing facilities in order to achieve the projected $3.5 billion in savings the company promised as part of its purchase of Schering-Plough. You can read the complete Dow Jones Newswires story here.

The plans announced today get the company to between $2.7 billion and $3.1 billion of the way to its target, Merck says.

Research sites being shuttered over the next two years are in Montreal, the Netherlands (three facilities), Denmark, Germany, Scotland and Cambridge, Mass. Manufacturing plants are in Italy, Portugal, Mexico (two sites), Brazil, Argentina and Miami Lakes, Fla. Merck will also phase out chemical manufacturing at one site in Singapore but will continue to make drugs there and at another Singapore facility that was part of Schering-Plough.

Together with prior site closures, Merck's global manufacturing network will shrink to 77 facilities from 91 at the close of the Schering merger. This includes 29 animal-health plants slated to become part of a planned joint venture with Sanofi-Aventis SA's (SNY) Merial unit.

Merck Will Scrap 8 Research, 8 Manufacturing Facilities - Health Blog - WSJ

Domestic Medical Travel Increasing as Hospitals Across The US Begin To Compete for Procedures and Pricing

This is a lot better than having to leave the US; however you will still need to see if your health insurance will cover as all policies differ and they are so confusing imagetoday.  Earlier this year I wrote about Lowes negotiating surgical procedures for the heart for all their employees who elect to travel to the Cleveland Clinic and Lowes picks up all the bills entirely.  According to this article Lowes had asked their insurers to work on this project with them and got tired of waiting so they went out and negotiated their own contract. 

Lowe's And Cleveland Clinic Strike Up a Domestic Medical Tourism Contract – Heart Surgery for Employees and Dependents

Four other large employers including an airline and a bank are looking a the Lowe’s plan that may soon announce similar agreements with medical providers.  If same city competition is not enough, there may be more for hospitals on the horizon.  One thing to also be aware of too, depending on what type of a procedure you need, don’t low ball for price and make sure the hospital can provide the services an doctors you may need – again this varies based on what type of care and surgery you need and it can be simple or very complicated.  BD 

One company mentioned here in the OC is Newport Orthopedic Institute in Newport Beach and the center started offering flat rates with domestic travel companies 2 years ago.  What is also interesting is to see their notice on the website relative to United Health Care asking patients to ask them to support a new contract as at present it’s not reimbursed at the same levels as other carriers and contains articles about how much the United CEO earns too.  So you can see right here, check with your insurance carrier as United seems to have more issues than most, as that is what I see and hear more of anyway in southern California.  BD

When employee John McNally needed a knee-replacement operation, Alpha Coal West offered to pay his travel expenses if he would have the surgery in Fort Collins, Colo., a five-hour drive from his home near Gillette, Wyoming.  image

The Colorado surgery center had data showing good results with such operations, and it charged far less than the hospital in Gillette. Despite feeling "every bump on the way back," McNally was so pleased with the outcome of the operation that he returned to Colorado a few months later to have his other knee done.

A lot is at stake. Hospital care accounts for more than one-third of the nation's $2.5 trillion annual health spending tab. And spending on hospital care — which rose nearly 6% last year — is expected to accelerate, government data show, driven both by increased use and rising prices. Employers with domestic travel programs say they save money in part by negotiating a single rate, which includes fees for surgeons, anesthesiologists and all medical care up until the patient is discharged.

It could shake up the hospital industry by fostering "a truly national competition," says consultant Jim Unland of the Health Capital Group in Chicago.  Still, the domestic travel movement faces challenges. It could backfire, Unland says, if employers and insurers focus solely on cost, rather than quality. While most programs are voluntary, large financial incentives can blur the line between choice and necessity. Medical providers have balked at making their discounts public. And it isn't clear how many workers are willing to travel long distances, particularly those with young children.

James Caillouette, co-owner and surgeon at the Newport Orthopedic Institute in Newport Beach, Calif., says doctors and hospitals had better get over their anger and embrace the new model. Two years ago, the center began signing flat-rate prices with domestic travel companies.

Domestic medical travel is taking off for surgery deals - USATODAY.com

MonoSol Rx Announces FDA Approval of Zuplenz® Oral Soluble Film Medication – Stops and Prevents Nausea with Chemotherapy and Radiation Treatments

The medication is given in a film format the dissolves in your mouth, thus no need for water.  The drug is to be used for the prevention of Chemotherapy-induced, Radiotherapy-induced, and Postoperative Nausea and Vomiting.  For cancer patients needing treatment from the drug, this could make therapy with chemo and imageradiation treatments a little easier to stop the nausea without having to dump another medication into the IV.  This is the first such drug approved by the FDA in this delivery system.  BD 

From the website:

“ MonoSol Rx is a leading drug delivery company specializing in the development and commercialization of thin film pharmaceutical and over-the-counter (OTC) drug products. The Company’s thin film formulations offer significant patient benefits, including convenience, taste and potentially greater efficacy. Each thin film strip is small in size — about the size of a postage stamp, utilizes drug taste-masking technology and dissolves rapidly in the mouth without the need for water”

WARREN, N.J. and BALERNA, Switzerland, July 7 /PRNewswire/ -- MonoSol Rx, the developers of PharmFilm® technology and a drug delivery company specializing in film pharmaceutical products, in collaboration with  APR Applied Pharma Research s.a. of Switzerland ("APR") and Labtec GmbH of Germany, today announced that its partner, Strativa Pharmaceuticals, the proprietary products division of Par Pharmaceutical Companies, Inc. (NYSE: PRX), has received approval from the U.S. Food and Drug Administration (FDA) for Zuplenz® (ondansetron) oral soluble film ("OSF") for the prevention of postoperative, highly and moderately emetogenic cancer chemotherapy-induced, and radiotherapy-induced nausea and vomiting.  Zuplenz is the first oral soluble film product approved by the FDA as a prescription medication. 

MonoSol Rx Announces FDA Approval of Zuplenz® Oral Soluble Film... -- WARREN, N.J. and BALERNA, Switzerland, July 7 /PRNewswire/ --

The Hospitalist Company (IPC) Designated by Medicare as a “Qualified Registry” for Physician

In case you have not heard of this company, they provide physicians for hospitals, in other words doctors that work on staff but are not direct employees of the hospital, contracted instead.  In 2008 the company was awarded the Physician Entrepreneur of the year award.  This is a public company that is traded on the stock imageexchanges.  As you may or may not be aware, when you are admitted to a hospital you may not be seeing your primary care physician, but rather your treatment and case is turned over to a doctor who works full time at the facility and then coordinates all your records and care back to your primary care MD when you are released.

With the new designation from CMS this means their data is order and accurate and their software is working in compliance with Medicare, so off electronically the information goes.  Just last week they added one more physician’s group in Texas. 

The Hospitalist Company Acquires Austin Hospital Physicians Group – Contracted Physicians for Hire

There are 90 Qualified Registries for 2010 at CMS and IPC is the only hospitalist company to qualify.  BD 

NORTH HOLLYWOOD, Calif., July 7 /PRNewswire-FirstCall/ -- IPC The Hospitalist Company, Inc. (Nasdaq: IPCM), a leading national hospitalist physician group practice company, announced today that the Centers for Medicare & Medicaid Services (CMS) has approved the Company as a Qualified Registry for certain clinical measures specific to inpatient care in acute and sub-acute facilities. As a Qualified Registry, IPC will submit quality data directly to CMS in compliance with the Physicians Quality Reporting Initiative (PQRI), a quality assurance program established in 2006 by CMS, for the 2010 reporting year.

Adam Singer MD, Chairman and CEO of IPC, commented, "Clearly IPC has demonstrated to the satisfaction of CMS that we have fully integrated quality controls into the workflow of our providers and into the operations of the company. The driving force behind our commitment to building a complete and extensive quality control system is the constant improvement in the quality of care for our patients." 

Medicare Designates IPC The Hospitalist Company as a Qualified Registry for Physician... -- NORTH HOLLYWOOD, Calif., July 7 /PRNewswire-FirstCall/ --

Petaluma Health Center Get Loan From United Health Group (Capital Access) Who Purchased Their Tax Exempt Bonds

Health insurers are now lenders for small financing for capital between $1 and $5 million for smaller healthcare groups or hospitals.  If you do a search you can find imageother healthcare facilities where United has extended loans.  United pays the cost of the loans with their own internal “grant” program that goes along with the load to cover the costs. 

From the website: 

“The Capital Access Small Issuance Program offers tax-exempt bond financing at interest rates often lower than those of conventional loans, maturity and term structure design flexibility, and a dedicated team of underwriters and program investment professionals that help streamline the overall financing process. Issuance costs are subsidized by UnitedHealth Group and PacifiCare of California through the current Grant Program.”

This is one huge company involved in more than just health insurance premiums and have a lot of financial ties all over the place either directly or through their subsidiaries. 

Consumer Watchdog Warns Sebelius on Health Insurers – Good Reason for This as Insurer Subsidiaries Are in The Game to Play Just As Private Equity Groups Diversify and imageCollaborate Holdings

Their subsidiary bought a Chinese Gateway company that will help facilitate selling more Chinese drugs/devices here in the US and in other places in the world?  Is this one way the insurer is looking to keep costs for healthcare down in the US?  Remember all these subsidiaries of big companies exchange data and work together today and as such how does the intelligence data they collect I ask sometimes. 

UnitedHealth subsidiary (Ingenix Subsidiary I3) Acquires ChinaGate – Working to Sell Chinese Products Globally

It’s all about the money and investing so the money by all means is a good deal but what happens if payments are not made or get behind?  It is kind of a double edge sword here in a way as the financial folks will want the money.

Hospital Legal Cases And Wall Street – Paying Penalties to Get Out of Derivative Markets Pushing Finances Over the Edge and Into the Red

Also posted today at the link above is a post about larger hospitals and their problems with investors, bonds and Wall Street so remember UnitedHealth Group is openly traded on the stock exchange and the first area of responsibility by law is dividends.  You can read more about that side of the story at the link below on how they are paying out higher dividends as announced in May of 2010.  BD 

UnitedHealth To Pay Out Higher and More Frequent Dividends to Share Holders, No Caps on Earnings for Executives or What Is Spent on Lobbying Says the Board

As a side note, it is interesting how the name has changed from UnitedHealthcare to UnitedHealth Group fairly recently.  BD

Petaluma Health Center, a Federally Qualified Health Center that offers primary care and mental health services, received $5.87 million in capital lending to help the organization deliver quality primary health care services to residents in southern Sonoma County. 

UnitedHealth Group purchased Petaluma Health Center's tax-exempt revenue bonds through the California Health Care Investment Program, which gives California health care entities access to capital at rates that are highly competitive with those of conventional financing. Additionally, given the dollar size of the bond issue, Petaluma Health Center also qualified for a cost of issuance subsidy of about $620,000, which covered nearly the entire amount of the organization's bond issuance costs. The cost of issuance was subsidized by UnitedHealth Group's Capital Access Small Issuance Program.

UnitedHealth Group Invests $5.87 Million in Petaluma Health Center to Enhance Health Care Access in Southern Sonoma County - MarketWatch