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Friday, July 10, 2009 LSU
releases snapshot of budget cuts LSU System to cut 400 positions LSU System campuses unveil austerity measures Veterans Affairs hospitals must maintain safety Jindal signs electronic medical records bill The Daily Advertiser | 07.10.09 Healthcare clinic opens in Ascension 'Conscience protection' law expanded LSUHSC research helps link schizophrenia to specific
DNA region Obama Warns of Return of Swine Flu in the Fall Democrats Open to Idea Of Forming Health Co-op Wall Street Journal | 07.10.09 Health-Care Overhaul Goals Prove Challenging Wall Street Journal | 07.09.09 Health Care Advisory Board | 07.01.09 - 07.08.09 Senate Weighs New Taxes To Fund Reform Health Care Overhaul Ignores Illegal Immigrants |
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LSU releases snapshot of budget cutsAssociated Press | 07.10.09BATON
ROUGE — LSU's main campus will furlough employees, stall pay raises and cut
funding for its art museum and award-winning press as a way to trim costs and
balance its budget this year, according to plans released Thursday. The
Martin's
plan for the main campus includes an average 3 percent cut to academic
programs and varying types of reductions to nonacademic areas, including
ancillary programs that rely on LSU to stay afloat, like LSU Press and its
literary publication, the Southern Review. Merit
pay raises won't be allowed, and nonfaculty
employees will be furloughed for 52 hours, an average 3 percent pay cut to
each employee. The
plan lacked specifics, and Martin said more details would come as each
department decides how to allocate its budget cuts. The
entire LSU System was cut by $52 million in state funds this year. Nearly all
of LSU's campuses released their budget-cutting plans online Thursday. The
http://www.nola.com/newsflash/index.ssf?/base/national-34/1247187966171300.xml&storylist=louisiana LSU System to cut 400 positionsThe Advocate | 07.10.09The
LSU System announced budget plans Thursday to lay off or eliminate close to
400 employee positions — far fewer than the more than 1,000 job losses feared. The
reductions include about 100 jobs axed on LSU’s flagship The
LSU systemwide cuts include LSU medical schools,
but not the state’s LSU-run public hospital system, which is coping with its
own reduction in state funds. “I
think they’re substantial,” LSU System President John Lombardi said of $52
million in budget cuts because of reduced state revenue. “But I don’t think
they’re as bad as we anticipated. “We’ll
function, but we won’t function well,” he added. “And it won’t be at a
sustainable level.” The
LSU System includes five academic campuses, a law school, agricultural
center, biomedical research center and two medical schools. The
plans released Thursday did include drafts, but not finalized budgets, for
the main LSU campus and the “General
comments do not a budget make,” Lombardi said of the drafts of the system’s
two largest schools. Martin
said the details will be completed shortly for the flagship campus. “We’re
so much bigger and more complex,” Martin said, noting that he is awaiting
details on what and who are being cut from 14 academic colleges. “We’re going
to do this right and not just fast.” The
main LSU campus employs nearly 3,300 people. The Martin
emphasized that ancillary units such as the LSU museums, LSU Press and Center
for Advanced Microstructures
and Devices are being cut more to avoid closing academic programs and laying off tenure-track faculty. Preserving the academic
core is key, he said. The
award-winning LSU Press, for instance, was getting $500,000 per year but
exceeding its budget and ending up with close to $1.5 million a year in state
funds, he said. Now the press will have to make do with $400,000 and
self-generated revenue. Martin
said he will help raise funds and even sell books on the street if needed.
But he said he will not close academic degree programs for the press. Academic
colleges will be cut 3 percent and non-academic departments 5 percent, he
said. Martin also wants mandatory furloughs — mandatory time off without pay.
For all employees who are not tenure-track faculty that will average 3
percent salary reductions. Gov.
Bobby Jindal and the Legislature worked out a last-minute compromise that was
finalized June 25 to limit the cuts so colleges could downsize more slowly,
preparing for more budget reductions at least through 2012. The
total state higher education budget cuts are nearly 45 percent less than the
original $219 million that Jindal proposed cutting. The
latest budget slices do not factor in $55 million already cut from higher
education in January. LSU’s
The
The
UNO
Chancellor Tim Ryan announced a reorganization plan to decrease the number of
upper-level administrators. The
changes would cut UNO from 27 top administrators to 18, eliminating two vice
chancellors, five associate vice chancellors and two deans. The
goal is to protect the classroom, Ryan said. But 20 vacant faculty positions
are being axed too, he said. Ryan said the fear of major cuts caused some
faculty to leave UNO. Once
these cuts are implemented, Ryan, Lombardi and Martin all said the focus
switches to planning for more anticipated cuts through 2012. LSU’s
campuses are implementing 5 percent tuition increases to help offset some
cuts. The tuition increase would generate more than $10 million for the LSU
System, including $7.1 million for the main campus. http://www.2theadvocate.com/news/50427772.html?showAll=y&c=y LSU System campuses unveil austerity measuresTimes-Picayune | 07.10.09By
BATON
ROUGE -- The campuses of the Louisiana State University System plan a
combination of staff layoffs and furloughs, cuts to nonacademic programs,
wage freezes and elimination of vacant positions as they adjust to a $52
million reduction in state support for the 2009-10 academic year, according to figures released Thursday. The
preliminary details emerged two weeks after the Legislature approved a budget
plan that cuts total state financing for its four public college and
university systems by about $100 million -- or less than half the amount Gov.
Bobby Jindal originally proposed in his budget plan. When
increases in tuition is factored in, the total cut
to the LSU System is about $33 million, according to figures provided by a
university spokesman. After
the Legislature approved the $29 billion budget package, the heads of each of
the LSU campuses -- which include five four-year universities, two medical
schools, the Paul M. Hebert Law Center, the LSU Agricultural Center and the
Pennington Biomedical Research Center -- were asked to provide a preliminary
blueprint of what changes are in store. At
LSU's flagship campus in Nonacademic
units would be cut by an average of 5 percent, while academic departments
would take an average 3 percent cut. "Merit increases" for faculty
and staff will also be halted for the upcoming academic year. But
LSU Chancellor Michael Martin said the exact extent of the cuts has not yet
been determined. "It is a work in progress and will change as more
detailed information is received from individual units across campus over the
next few days," Martin wrote. At
the http://www.nola.com/news/t-p/capital/index.ssf?/base/news-7/1247203982308180.xml&coll=1 Agencies look at layoffsThe Advocate | 07.10.09Few
in state government appear to be headed for the unemployment line despite
tight budget constraints and earlier talk of big employee job layoffs. Only
a handful of state agencies have submitted employee layoff plans for required
state Civil Service approval. “I
think some agencies are waiting until they get their official budget letter”
detailing how they fared financially and personnel-wise, Civil Service
Director Shannon Templet said. So
far, agencies have been asking for and receiving the OK to go forward with
layoff-avoidance measures such as withholding merit pay raises, implementing
job furloughs and offering employees eligible to retire an incentive to do
so. State
revenue is expected to decline by $1.3 billion in the fiscal year that
started July 1. Agencies
have to get by with less money in the state’s $29 billion budget. The
U.S. Census Bureau said that, in 2007, The
Division of Administration reports that this fiscal year’s budget contains
1,335 fewer jobs. The
division was unable to detail how many of those are filled positions. The
Legislature approved a resolution sponsored by state Rep. Mert
Smiley, R-St. Amant, to study the number of state government
jobs that can be eliminated. Smiley
said he is not pushing for massive layoffs. Instead, he said he wants to
eliminate positions as they are vacated. “We’re
going to do this to take care of some financial problems we’re going to have
in the future,” Smiley said. State
agencies are trying to avoid major layoffs as they look at their employee
situations. State
Department of Health and Hospitals Secretary Alan Levine said he expects to
lay off no more than 100 employees in his sprawling agency, which has 12,130
employees. Most
employee layoffs — around 70 — will be connected with the closure of the New
Orleans Adolescent Home, he said. There also will be some employee layoffs at
the “We
have been slowing our hiring down in anticipation of having a lower
authorized position total,” Levine said. State
Agriculture Commissioner Mike Strain is grappling with a $12 million budget
cut. He
said he plans to reduce the shortfall by $5.5 million by refinancing debt
that he inherited when he took office. Despite
the budget constraints, Strain hopes to avoid putting anyone in the
unemployment line. The
agency, which has 710 employees, earlier downsized by 75 positions. “We
are going to try to avoid further layoffs if possible and do everything we
can to bring the department into budget,” he said. Strain
said more than 100 people are eligible for retirement. He
said he hopes to encourage at least some of them to retire by offering them a
package that allows them to collect up to 50 percent of their remaining pay
for the year. The
retirement incentive is a new layoff avoidance option. It
allows agencies to offer retirement-eligible employees a one-time, lump-sum
payment that cannot exceed 50 percent of the savings realized by the agency
in the fiscal year the employee retires. The
payment would come after the employee’s departure. The
state Departments of Insurance and Agriculture and Forestry offered the
retirement incentive. The
The
withholding of “merit” pay is being used primarily by colleges and
universities and throughout the LSU hospital system to reduce the number of
layoffs. At
LSU neither classified rank-and-file state workers nor unclassified employees
will get the pay increase. Most
state employees receive a 4 percent pay raise on their anniversary date. At
the Department of Corrections, 105 employees will mark their last day on the
state payroll July 26. The
affected employees work at the “Because
it is now a locally operated facility, there will be a loss of state employee
positions although it’s likely that a number of current state employees will
transfer over to the sheriff’s payroll and continue to work at the facility,”
she said. Laborde was uncertain how many workers will
make the transfer. Another
layoff plan approved for the Department of Social Services, involving
consolidation of some administrative functions, ended up with one employee
layoff. The
department’s spokesman, Trey Williams, said the agency is trying to eliminate
122 jobs by not replacing workers who leave. “We
don’t expect any major layoffs at all,” he said. The
agency has 4,900 employees. http://www.2theadvocate.com/news/50419857.html?showAll=y&c=y Veterans Affairs hospitals must maintain safetyTimes-Picayune | 07.10.09Colonoscopies
save lives by allowing doctors to find and treat cancer, but that life-saving
test turned into a potential health threat because of equipment sterilization
mistakes made at Veterans Affairs medical centers. Earlier
this spring, the VA sent out letters warning patients who received the
diagnostic procedure at three centers that they might have been exposed to
diseases, including HIV and hepatitis B and C. The risk stemmed from failure
to properly sterilize equipment between uses on different patients at medical
centers in But
even after that problem came to light and the VA launched a national safety
campaign, problems persisted. The VA performed surprise inspections in May,
but fewer than half of the 42 centers that were visited had proper operating
procedures and training guidelines for endoscopic procedures like
colonoscopies. "We
think there are systemic issues," said John Daigh,
the agency's assistant inspector general. That
seems clear, and the VA must take steps to ensure that all of its 153 medical
centers have the right training and procedures in place to protect patients. The
VA had to notify 10,000 veterans that they had been exposed to potential
infection and should be tested. Of that number, six tested positive for HIV,
34 for hepatitis C and 13 for hepatitis C. There's
no way to know for sure whether those patients were infected during
colonoscopies. The VA maintains that the chance is remote. But
it should have been beyond remote. Veterans' lives and health needlessly were
put at risk because equipment was not properly sterilized. That's
unacceptable. So is the worry that thousands of patients now must endure. http://blog.nola.com/editorials/2009/07/veterans_affairs_hospitals_mus.html For
Jefferson Parish's hospitals, it makes sense to join forces Times-Picayune
| 07.10.09 Jefferson
Parish's population and geography may justify having two publicly-owned
hospitals, one on each side of the That's
especially true as the hospitals continue to face post-Katrina losses from
higher labor costs and additional indigent patients in the absence of Now
parish officials have formed a 10-member board to look for combined ways to
stop the financial bleeding, and that's a welcome move. The
new board will explore cost-saving measures like merging some administrative
functions and combining the hospital's negotiating power to seek higher
reimbursement rates from insurers and better deals from suppliers. A
preliminary review concluded that combining administrative functions could
eventually save $4 million to $7 million a year. The
losses have not been exclusive to Jefferson Parish's institutions. The
Government Accountability Office last year concluded that the Jefferson
hospitals, Touro Infirmary, This
newspaper has supported efforts to tap federal aid to help hospitals cover
those losses. But funding secured so far has been insufficient to make up the
gap -- and future losses will keep piling up if hospitals don't do something
to lower their costs. The
Jefferson Parish-owned hospitals have tapped reserve funds to make up
deficits, but administrators say they can't keep that up for much longer
without having to cut services. That ought to bring some urgency to the new
joint effort. http://blog.nola.com/editorials/2009/07/for_jefferson_parishs_hospital.html Jindal signs electronic medical records billThe Daily Advertiser | 07.10.09BATON
ROUGE. (AP) — Gov.
Bobby Jindal signed the bill creating the program on Thursday, but the plan
is tied to federal stimulus money the state has yet to receive. The
bill allows the state health department to apply for the stimulus money to
dole out loans to health care providers for the purchase and implementation
of electronic health record systems. The
state budget includes $5 million in matching money required for The
law also allows the loan program to draw on other sources of funding if
available. Healthcare clinic opens in AscensionWAFB | 07.10.09The
So,
if you want to see a doctor for a runny nose, you could be in for a long
wait. But, some have no other choice. "Twenty-five percent of all
patients that come in the facility are uninsured," Guarisco said. According
to a study released by the Louisiana Health Insurance Society in 2007, 22
percent of the people who live in Ascension Parish are not insured. That
number struck a chord with the hospital and the parish. "We knew we
couldn't sit back and do nothing," Guarisco said. For
two years Parish
Health Director Kenny Matassa says visits will cost
between 5 and 25 dollars, depending on income. "Hopefully, the
government realizes that this is the way to go for primary care," Matassa said. He believes this is just the first step in
public and private entities working together to improve healthcare across the
board. Start-up
costs for the clinic were funded by a $500,000 grant through the Fransiscan Sisters Ministries. http://www.wafb.com/Global/story.asp?S=10651501 'Conscience protection' law expandedTimes –Picayune | 07.08.09Gov.
Bobby Jindal signed a law Tuesday expanding With
the backing of social conservatives and religious activists, the
administration said the measure is necessary to uphold the individual rights
of doctors, nurses, pharmacists and other workers whose personal beliefs
might clash with their professional responsibilities. Opponents,
led by Planned Parenthood and the American Civil Liberties Union, said that the
law, sponsored by Rep. Bernard LeBas, D-Ville
Platte, will restrict patient access to accurate information and timely
services. Advertisement New
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Now... LeBas' House Bill 517 allows "any
person . . . not to" provide abortions, distribute "abortifacient drugs," work on human embryonic
stem-cell research or cloning, or participate in euthanasia or
physician-assisted suicide. The drug provision is intended to include the
so-called "morning-after pill," but would not extend to routine
birth control. Providers
still must provide emergency care, as federal law mandates. The
measure also includes an unrelated change in state law to allow
intergovernmental transfers of cash from local governments to the state for
the purpose of securing greater Medicaid match payments from the federal
government. Sen.
David Heitmeier, D-New Orleans, attached the
proposal to LeBas' bill as it moved through the
Senate. The transfers will not be an option until federal economic stimulus
money runs out after fiscal 2011. But Heitmeier said
the transfers could yield more than $250 million annually for the state's
health-care system. Jindal
also signed Senate Bill 279 by Sen. Mike Walsworth,
R-West Monroe, that is designed to increase the
state's stock of emergency evacuation shelters, especially those that have
been retrofitted to become more storm resistant and better accommodate
evacuees. The
bill allows facilities owned or leased by the state or local governments,
such as schools and colleges, to be placed in service in emergencies, but
excludes hospitals and nursing homes. The bill says that the state Office of
Emergency Preparedness will select the best sites from a list compiled by
parish officials. The
governor has included $7.5 million in the state's construction budget to
renovate facilities owned or leased by the state or local government so they
can house more evacuees in state. The number of additional evacuees that
could be accommodated by the bill was not specified. http://www.nola.com/news/t-p/capital/index.ssf?/base/news-7/124703057228210.xml&coll=1 LSUHSC research helps link schizophrenia to specific DNA regionEurekalert.org | 07.10.09The
researchers recruited study participants, people with diagnoses of
schizophrenia or schizoaffective disorder, plus controls from the general
population. They analyzed data collected and also conducted a meta-analysis
of data from the Molecular Genetics of Schizophrenia, International
Schizophrenia Consortium and SGENE data sets – thousands of DNA samples. While
a single gene does not appear to be the source of the development of schizophrenia,
the researchers found variations on chromosome 6 that appear to be associated
with higher risk. These variations were found most often in people with
schizophrenia, leading the scientists to believe that these common variations
contribute to the development of schizophrenia. This area of chromosome 6, in
the same area where genes important to the immune system function, provokes
questions about whether or not treatments for autoimmune disorders might also
be helpful in treating schizophrenia. "Schizophrenia
can be a devastating disease, and while treatments are improving, there are
still people who do not respond or only partially respond," notes
Buccola, principal investigator on the LSUHSC study. "Understanding the
underpinnings of this illness will open doors to new and potentially better
treatments." According
to the National Institute of Mental Health, schizophrenia is a chronic,
severe, and disabling brain disorder that affects about 1.1 percent of the The
LSUHSC research team, which included LSUHSC Assistant Professor of Clinical
Psychiatry, Margaret Baier, MD, and Erich Conrad,
MD, LSUHSC Assistant Professor of Psychiatry, as well as Sherri Chalona, completed the work while evacuated from The
research was supported by funding from the National Institute of Mental
Health and the National Alliance for Research on Schizophrenia and
Depression. "Scientists
have been looking for schizophrenia susceptibility genes since the early
1900s," says Buccola. "This study shows that these genes can be
found and sets the stage for future research." http://www.eurekalert.org/pub_releases/2009-07/lsuh-lrh070809.php When Doctors Make MistakesNew York Times | 07.10.09By
PAULINE W. CHEN, M.D. I
met Ed (not his real name) during internship, the year after we both
graduated from medical school. Built like a competitive wrestler, Ed was an
Ivy League college graduate and one of his medical school’s top students, a
27-year-old who wanted nothing more than to become a general surgeon. Like
me, he was enamored with the fearlessness that seemed to characterize the
specialty. At a dinner during our first month on the job, Ed told the rest of
us, “I love that nothing scares a general surgeon.” A dreamy look passed over
his well-chiseled face as he continued, “They can take care of it all.” Ed
was determined to be that kind of surgeon and applied his intelligence and
good nature to the huge workload we always had at hand. One night when I was
on call I found Ed, who was supposed to have gone home for the night, in a
patient’s room. A small mound of discarded alcohol swabs, blood-stained gauze
pads and used test tubes stood by his side as the patient, an older woman,
laughed and encouraged him on. When Ed saw me, he smiled sheepishly. “I never
learned to draw blood in medical school,” he said. “It takes me a few tries.”
The patient patted Ed’s hand and nodded as he continued, “If I can’t draw
blood, how am I ever going to be able to operate?” But
several months later, I learned that Ed had gotten in trouble one night for
not responding to a nurse’s page about a critically ill patient. “He must
have been overwhelmed,” I thought, remembering that only a few nights earlier
I had likewise forgotten a nurse’s request after several trauma patients rolled
into the emergency room and I never returned to the wards as promised. I
silently vowed to do better the next time and now hoped that Ed would do the
same. But
a couple of weeks later, I heard that Ed overslept and missed morning rounds.
A month later he was publicly reprimanded for examining and placing undue
pressure on a patient’s freshly sewn incision. And a month after that, he was
placed on probation because he had pulled a surgical tube out of a patient
when it should have stayed put. Suddenly
it seemed as if Ed, the promising young surgeon, had disappeared into a
vicious cycle of errors and mishaps and couldn’t pull himself out. But
Ed, the friend, had gone missing, too. He stopped smiling when we passed one
another in the halls and refused to meet up with the rest of us for meals.
“I’ve got to read,” he would say, his face stony. “I’ve got to study.” He
still roamed the wards at all hours, but now he was like a man possessed.
With his list of patients crumpled in one hand and a pen in the other, Ed
studied patient charts and reports for hours, furiously jotting notes down on
his list. Despite
his efforts, Ed continued to stumble. He soon developed a reputation for
being testy, not only with other doctors and nurses but with patients. He
argued, lost his temper and was too rough during procedures. One afternoon I
heard Ed’s voice bellowing from a patient’s room: “But I never said that to
you! Why did you have to tell the senior doctor that? You got me into
trouble!” Ed
finally gave up on becoming a surgeon. In trying to understand what had
happened to our once aspiring colleague, the other young doctors and I talked
about how stress is inevitable and surmised that those who collapsed under
the pressure were probably better suited to other lines of work. We
speculated that Ed lacked a certain sense of humility. But
all of our ruminations finally boiled down to this: each of us was only one
misstep away from that lonely and vicious cycle of errors that could
unexpectedly and irrevocably spiral out of control. In
the years since, I have worked with other doctors who have had similar
experiences. And while the discussions at disciplinary meetings and at
morbidity and mortality conferences tend to focus (and rightly so) on the
effects of these physicians’ errors on patients, there is rarely any time
devoted to how such errors affect doctors and their subsequent interactions
with patients. I
called Dr. Colin P. West recently, a practicing general internist and the
associate director of the internal medicine residency training program at the
Mayo Clinic in “What
we are learning is that there’s clearly a cost for doctors and patients,” Dr.
West said. “There’s probably a certain amount of stress that’s constructive,
but when you deal with it for too long and take it too far, that’s when work
suffers.” While
doctors should strive for as few errors as possible, “you can’t go through
training without making an error unless you are not taking care of patients,”
Dr. West said. “And if you are really invested in the care of patients,
there’s a personal cost when things don’t go well.” That
cost can extend to patients. Doctors who are depressed are as much as two
times more likely to make subsequent errors than doctors who are not. “From
the point of view of the patient,” Dr. West observed, “it’s important whether
the doctor treating you is experiencing symptoms of depression or burnout.” And
while Dr. West’s research focuses on doctors-in-training, he added, “I don’t
think that as a practicing physician you ever stop thinking about how you
could have done better, even sometimes with those events you probably
couldn’t have prevented.” Greater
support for doctors from both the training process and patients could help to
improve patient outcomes and strengthen the patient-doctor relationship. “In
21st century medicine, there’s no reason for a patient to accept suboptimal
care,” Dr. West said. “At the same time, patients need to balance their
expectations against the reality of the physician experience. And the medical
establishment needs to do a better job of helping patients understand what
physician lives are really like.” “This
doesn’t mean that physicians need to be coddled,” Dr. West continued, “but
they need to be supported from within and by patients. They need to be
supported in developing those relationships that help them to flourish. The
reward is a stronger physician-patient bond. And that leads to more effective
health care for everybody.” http://www.nytimes.com/2009/07/09/health/09chen.html Obama Warns of Return of Swine Flu in the FallNew York Times | 07.10.09By
DONALD G. McNEIL Jr. BETHESDA,
Md. — The Obama administration warned Americans on Thursday to be ready for
an aggressive return of the swine flu virus in the fall, announcing plans to
begin vaccinations in October and offering states and hospitals money to help
them prepare. “The
potential for a significant outbreak in the fall is looming,” President Obama
said by telephone link from With
good planning, “we may end up averting a crisis,” Mr. Obama said. “That’s our
fervent hope.” The
summit meeting was jointly led by the secretary of health and human services,
Kathleen Sebelius; the secretary of homeland
security, Janet Napolitano; and the secretary of education, Arne Duncan. It
gathered health and school officials from across the country and took
questions by video link from the governors of several states, most of whom
wanted to know who would pay for preparations like the vaccination drive. Vaccinations
will begin in October only if tests scheduled to begin in August prove that
the vaccine is safe and effective. Even then, officials expect only tens of
millions of doses to be ready, so they will have to decide who is vaccinated
first. The most likely candidates, Ms. Sebelius
said, are school children, health care workers, pregnant women and people
with asthma or other conditions that make the flu riskier. While
health officials were careful to warn that there was no evidence that the flu
had mutated into a more dangerous form, they noted that it seriously
disrupted some cities, including “This
flu is not over,” said Dr. Thomas R. Frieden, the
new head of the Centers for Disease Control and Prevention, describing its
continuing spread in more than 50 summer camps, the large numbers of cases
seen in Chile, Argentina and Australia, which are now at the beginning of
their flu season, and the initial detections of three cases resistant to the
drug Tamiflu. At
the flu’s peak in May, Mr. Duncan noted, 726 schools were closed across the Officials
from New York and Texas described the difficulties they had in deciding which
schools to shut down and how hard it was to explain why they picked those
they did. Both
schools and businesses need to prepare for the possibility of several weeks
of high absenteeism, Ms. Napolitano said. She also reminded governors that
not only the obvious services, like hospitals and schools, would be affected. “As
a former governor, I can say: make sure your payroll continues,” she said.
“Whoever processes your checks, make sure they have
a backup.” Ms.
Sebelius outlined actions the federal government
was taking. It will offer $260 million in “preparedness grants” to states and
cities for the vaccination drive and $90 million to hospitals preparing for
surges of cases. (Congress has already appropriated $1 billion for vaccine
ingredients and up to $7.5 billion more for testing, buying and distributing
vaccine if health officials decide it is safe and effective.) The
Health and Human Services Department is also remaking its Web site,
www.flu.gov, to be the central repository of information for everyone,
including parents, school officials and doctors. And it will hold a contest,
asking Americans to film their own public-service announcements about flu. “This
is a YouTube challenge to everyone,” Ms. Sebelius
said. “The best will be aired nationwide.” Health
officials said that they were aware of fears that a Tamiflu-resistant
strain of the virus was already spreading silently in the The
worry stems from a single case found in a teenage girl who flew to Hong Kong from
The
girl was never dangerously ill, was not treated with Tamiflu
and recovered. But the sequence of her virus, released last week by the
authorities in The
fact that the girl had a resistant strain without being treated suggests that
she caught an already resistant virus from someone else, presumably in The
Centers for Disease Control and Prevention has intensified its monitoring in Therefore,
Dr. Frieden said, “it does not appear to be
widespread.” Different
strains of virus “compete” with one other each year, and the drug-resistant
strains do not always win. But a Tamiflu-resistant
strain of seasonal H1N1 flu utterly crushed its rivals during the last
American flu season, rising to 99 percent of sequenced samples. Also,
Tamiflu-resistant strains can sometimes be
successfully treated with Relenza, another
neuraminidase inhibitor, with older drugs like rimantadine,
or even with larger Tamiflu doses. Cadets
Tested for Swine Flu http://www.nytimes.com/2009/07/10/health/10flu.html Democrats Open to Idea Of Forming Health Co-opWall Street Journal | 07.10.09By
PATRICK YOEST and COREY BOLES Senate
Majority Leader Harry Reid and Sen. Charles Schumer said they were amenable
to considering a cooperative -- perhaps in lieu of a government-run insurance
plan -- to compete with private insurers as part of the effort to reduce the
country's health-care costs and expand coverage to uninsured Americans. The
public competitor should "keep the companies honest … be available right
at the beginning to everybody, and have the strength to borrow," Mr.
Schumer said. "If it can do those things in a co-op form, I think we're
open to it." Looking
Back at Federal Plans for Health-Care Coverage Journal
articles on changes to health-care coverage from the 1940s through 1960s * Multibillion Dollar Medical Plan
Drafted By Federal Officials (March 17, 1945) * President Suggests * Social Security Measure Would Add 15
Million Persons, Boost Payroll Tax, Spend Large Sum on Hospitals (May 25,
1945) * Insurance Companies, Nonprofit Plans
Score Gains Among Elderly (July 16, 1962) President
Barack Obama has pushed for the establishment of a government-run health plan
in the overhaul, but many Republicans have opposed a public plan, saying it
would pose unfair competition to private insurers. It
was unclear whether Republicans would support a health cooperative, which
could require a heavy infusion of start-up funding from -- and initial
management by -- the federal government. A co-op with close ties to the
government might be viewed by Republicans as a predecessor to a
government-run plan. "I've
heard more positives than negatives on co-ops from Republicans," said
Sen. Olympia Snowe, a moderate Republican from The
White House and Democratic leaders hope to pass health-care legislation by
autumn. The challenge is how to pay for the overhaul, which is estimated to
cost upward of $1 trillion over 10 years. http://online.wsj.com/article/SB124716190913918993.html#mod=djemHL Health-Care Overhaul Goals Prove ChallengingWall Street Journal | 07.09.09By
JANET ADAMY Reaching
both of those numbers at the same time is turning into one of hardest tasks
for Congress and the White House. The nonpartisan Congressional Budget Office
has found that several initial efforts either sailed beyond the targeted
price tag or left many people without insurance. [Health
overhaul graphic] The
CBO said this week that one Senate proposal, when combined with certain
expansions to the Medicaid program, would cost about $1.1 trillion over a
decade and still leave 15 million to 20 million Americans uninsured in 2019.
Currently, about 46 million The
Senate Health, Education, Labor and Pensions Committee at first developed a
plan that offered generous subsidies to lower-income Americans to help them
buy health insurance. The proposal would require most people to carry
insurance or pay a penalty. When
the price tag came in too high, lawmakers whittled the subsidies, which
helped the cost problem but made it difficult for people to buy insurance.
"The more you're going to make people pay, the harder it is to say to
them, 'You must buy it,'" said David Cutler, a professor of economics at
Keeping
the federal cost to around $1 trillion or less is critical because the White
House is emphasizing that the plan won't increase the deficit -- meaning
savings must be found for every dollar spent. video
Congress
Weighs Bill For Health Care Reform 1:40 Lawmakers
are making progress in reducing costs in a healthcare reform bill they'd like
to pass in August. WSJ's Janet Adamy looks at
recent developments that help smooth over some of the bumps they've had in
their debates. "Rising
costs are crushing us," Vice President Joe Biden said Wednesday.
"They're crushing families, crushing businesses, crushing state budgets
-- and they are crushing the health-care industry itself." Mr. Biden
trumpeted a deal with the hospital industry to cut government payments
through Medicare and Medicaid by $155 billion over a decade, savings that could
be used to fund an overhaul. According
to a CBO estimate last week, the Senate health committee's proposal would
cost $611 billion over 10 years. That estimate didn't include the cost of
expanding Medicaid, the federal-state insurance program for the poor, because
that's outside the committee's jurisdiction. The CBO said Tuesday that
expanding Medicaid to a new batch of Americans with incomes as high as
$33,000 a year for a family of four would add $500 billion to the cost of the
proposal. The
high cost estimates and prospect that millions would remain uninsured has
left negotiators scrambling for ways to make the numbers work. The Senate
Finance Committee, which is working on a parallel health bill, has discussed
delaying the Medicaid expansion until 2013. That would reduce the 10-year
cost of the bill. The committee is considering a narrower expansion of the
program than the one calculated by the CBO, so the measure may result in a
smaller reduction in the uninsured number by the end of the 10-year period. Republicans
say the expansion of public programs would undercut the current
employer-based health-insurance system. Sen. Mike Enzi of Another
way to bring down the number of uninsured while keeping down the cost is to
enact stricter mandates on businesses to offer health insurance and
individuals to have it. However, those mandates are politically sensitive and
carry costs of their own -- albeit not directly paid by the government. http://online.wsj.com/article/SB124715437709418457.html#mod=djemHL Top 10 implications of reformHealth Care Advisory Board | 07.01.09 - 07.08.09As
For
providers, the import of the reform debate being advanced by the Obama
administration now actually has increasingly less to do with expanding
coverage. Rather, as policy makers have sought sources of savings and revenue
to pay for potential coverage expansion, they have convinced themselves that
the delivery system is imbalanced, inefficient, and rife with unproductive
incentives. And, moreover, with major investments through the stimulus
program—EHR adoption, specialty care effectiveness, bolstering primary
care—Obama-era delivery system reform has begun. So,
whether to pay for universal coverage, ease the burden of escalating health
care costs on the economy, or simply extend the solvency of the Medicare
trust (or all of these), CMS, Congress, and the White House will seek to
overhaul the delivery system in the coming months and years. Admittedly,
the specific details of delivery system reform proposals are yet to be
finalized, but many common themes exist across diverse constituencies. In our
analysis, the implications from this consensus are: *
The transition to outcomes-focused reimbursement will materially increase
risks to revenue growth. *
Operating efficiency will challenge top-line growth as the driver of future
inpatient profitability. *
Bundled payments and other reimbursement innovations will make specialty care
more rare and less profitable. *
Rewards in primary care practice will evolve to focus on coordination,
chronic disease management, and population health. *
Total cost management will begin to supplant fee-for-service incentives in
the health system business model. *
All providers will maintain tighter and fewer affiliations across the
delivery system. *
M&A strategy will expand in scope to focus increasingly on (functional)
vertical integration. *
Information-driven care, not simply information technology adoption, will
ascend as a competitive differentiator. * Consumer-driven health care will be driven
(further) to the margins. * New regulatory frameworks and entities
will emerge. In
this memo, I will address the first item in this list. Future writings will
cover others. 1.
Transition to outcomes-focused reimbursement will materially increase risks
to revenue growth Many
new reimbursement schemes are being proposed to make the delivery system more
efficient, bundling being the most common. All of these proposals do or will
proceed under the label of “value-based purchasing,” deemphasizing the
inherent payment risk shifted to providers. The risk arises from the fact
that these new payment schemes will not be implemented in a budget-neutral
way. Rather, they will be structured in a “negative sum” (as opposed to
zero-sum) fashion to penalize the lower-tier performers and redirect the
money that would have gone to them to other parts of the delivery system or
to fund coverage expansion. Expect
this risk to manifest in three distinct areas: Clinical
outcomes—To many, the likeliest change in
reimbursement appears to be the evolution of the ongoing CMS “core measures”
program from paying for reporting to paying for outcomes. In the Senate
Finance Committee’s treatment of this topic, they proposed eventually putting
up to 5% of each hospital’s Medicare reimbursement at risk based on
performance against outcomes metrics. Providers would be force-ranked and
lower performers would not recover the full withhold. Lowest performers may
receive none. Productivity—In
the Medicare market-basket update calculation, CMS does not factor in
potential productivity gains that lower the input costs of providing care.
President Obama and the Senate Finance Committee have both endorsed
considering changing the reimbursement formula to include presumed efficiency
gains. With the influence of the Congressional Budget Office over scoring the
costs of various coverage expansion proposals, it is likely a good bet that
when it comes to scoring the cost savings that will fund expansion, such
hard-edged changes in payments could appear very valuable. Total
cost—Reimbursement schema in this arena expand cost accountability across the
typically siloed providers in the care continuum
and beyond the time of direct interaction of provider and patient. The Senate
Finance Committee has suggested that bundling physician and hospital
inpatient payments, bundling inpatient and post-acute payments, and incenting
providers to reduce population-based costs are all worth considering. In
suggesting consideration, the committee also assumed providers would become
more efficient at providing care due to the natural incentives to
collaborate, so combined payments should be smaller than the sum of the
current separate reimbursements. For
more information In
subsequent memos, I’ll share my thoughts on the implications of these
changing incentives on margin performance, investment strategy, and physician
integration. In the meantime, if you’d like to discuss these issues in
greater depth, please consider registering for the Health Care Advisory
Board’s ongoing Special CEO Sessions or its upcoming National Meeting for
Member Executives, which will launch in September and focus on preparing your
hospital or health system for success in the new health care economy.
Finally, we would be happy to host one-on-one discussions about the
implications of reform for your organization. Please feel free to reach out
to me directly at roadesc@advisory.com or 202-266-5326 or Matt Eirich, managing director of the Health Care Advisory
Board, at eirichm@advisory.com or 202-266-5371. Ongoing
analysis—Top 10 implications of health care reform 07/08/2009 As
2.
Operating efficiency will challenge top-line growth as the driver of future
inpatient profitability The
hospital lobby and Obama administration have announced an agreement that will
see Medicare hospital reimbursements cut by over $150 billion across the next
decade in order to help fund insurance coverage expansion (see related
stories in the July 7 Daily Briefing and today’s issue). The very existence
of such negotiations, let alone the two sides reaching a compromise,
highlights what we’ve been calling the “negative- sum” (as opposed to
zero-sum) nature of achieving near universal coverage—if one constituency is
getting more through reform, budget realities dictate that others receive
less. Still unclear at this point is the scope of this agreement. For
instance, does it account for new reimbursement proposals that would put
hospital payment at risk for outcomes or readmissions, which could also be
implemented in a way to create budget savings? More clear
than the particulars of implementation, however, is the direction of future
funding: payment schemes will place downward pressure on revenue growth. As a
result, hospital and health system executives will attempt to maintain excess
margin by rebalancing their focus between clinical and operational efficiency
on the one hand and top-line growth on the other. This
shift represents no small change in strategy. Across this decade, hospital
profitability has been driven by rapidly expanding revenues through building
new capacity, purchasing new technology, and introducing new services. The
success of these efforts diminished the relative importance of cost control
and also added to the expense base of many organizations. As a consequence,
hospitals were able to expand margin despite a cost per discharge that
outstripped economy-wide inflation. And the depth of the financing change
will likely be matched by the intensity of the challenge. If the historical
precedent of the Balanced Budget Act serves as any guide, a reduction in the
annual Medicare market-basket update will challenge many organizations in
maintaining margins. As
hospitals and health systems seek margin enhancement opportunities, they may
focus on emerging opportunities in a “reformed” delivery system: *
IT and productivity—Given the historic incentives to implement and utilize
information technology introduced through the Obama administration’s economic
stimulus package, many provider organizations may be in the strongest
position ever to lower cost and bolster productivity through technology. This
applies not only to automating currently manual tasks but also leveraging the
growing asset of digitized data to analyze their operations for improvement
opportunities. *
Physician preference items and comparative effectiveness research—With the
Institute of Medicine’s recent publication of comparative effectiveness
research priorities, hospitals may find eventual support to revise device and
drug utilization and care protocols based on objective research. Capitalizing
on new findings to rationalize the technology-component cost of patient care
may ultimately lower the cost of care associated with physician orders while
maintaining quality. *
Revised business case for alternate care management strategies—With potential
reductions in inpatient payments but additional payments to sub-acute care
providers and physicians operating “medical homes,” strategies to ensure
patients, especially low-reimbursed medical patients, are treated in the most
clinically appropriate and cost-effective setting may receive fresh energy.
New reimbursement incentives could offer compelling opportunities to consider
substantial changes in care delivery for many patient populations. Learn
more—Register today for the Health Care Advisory Board National Meeting This
is the second memo in an ongoing series of analyses intended to help members
prepare for delivery system reform (access our first memo here). It
represents a portion of our ongoing research, publishing, and consultative
supportive for members during this time of uncertainty and potentially
disruptive change. We encourage members who would like to discuss these
issues in greater depth to consider registering for the Health Care Advisory
Board’s ongoing Special CEO Sessions or its upcoming National Meeting for
Member Executives, which will launch in September and focus on preparing your
hospital or health system for success amid delivery system reform and the new
health care economy. Finally, we would be happy to host one-on-one
discussions about the implications of reform for your organization. Please
feel free to reach out to me directly at roadesc@advisory.com or 202-266-5326
or Matt Eirich, managing director of the Health
Care Advisory Board, at eirichm@advisory.com or 202-266-5371. For
the latest health reform news To
access the Daily Briefing’s Washington Health Wire—providing special coverage
of the policies, people, and political forces shaping health reform—please
visit www.advisory.com/policy. Senate Weighs New Taxes To Fund Reform
Kaiser Health News | 07.10.09
"Senate
Finance Committee Chairman Max Baucus (D-Mont.) presented his members
Thursday with more than a dozen ways to pay for health care legislation,
ranging from new fees on industry to an income-tax hike on couples making
more than $1 million a year," Politico reports. "Faced
with a $320 billion hole in his reform plan, Baucus revisited options that
were considered in the past, but never emerged as top-tier options because he
believed taxing employer-provided health benefits was the best way to provide
that revenue. The Senate Democratic leadership nixed the idea this week,
saying the caucus could not support it because it would hurt the middle
class. ... Instead of relying on one major source of funding, the committee
will have to piece together revenue from a variety of places." Possible
funding sources include "broadening the 1.45-percent Medicare tax on
earned income to 'passive income,'" levying a "five-percent surtax
on individuals who earn more than $500,000 and couples that make $1
million," taxing employer-provided health benefits "at a higher
level than had been considered," "capping the tax break on itemized
deductions at 28 percent," issuing "tax credit bonds to pay for the
proposed Medicaid expansion," charging fees to drug companies and hospitals
and raising taxes on sodas and sugary drinks. The Finance Committee will also
"renew their efforts to find more savings in the health system,"
but "the challenge is convincing the Congressional Budget Office to
recognize these initiatives as true cost-savers" (Brown and Rogers,
7/9). Roll
Call adds that Sen. Olympia Snowe, R-Maine, said
that a value-added tax was off the table (Drucker,
7/9). Meanwhile,
Majority Leader Harry Reid, D-Nev., did "an about-face" when he said he supports the Finance Committee's
"efforts to strike a deal," Roll Call reports in a separate
article. His statement of support was "a stark contrast" from
Tuesday, when he urged Baucus "to rein in his pursuit of GOP support for
a package for fear it would cost too many Democratic votes." On
Thursday, however, Reid was "effusive in his praise for the Finance
Committee's work." He also "reaffirmed that he is committed to the
August deadline" (Drucker, 7/9). The
Wall Street Journal reports that Reid and Sen. Charles Schumer, D-N.Y., "said
they were amenable to considering a [non-government] cooperative – perhaps in
lieu of a government-run insurance plan – to compete with private
insurers." Schumer said that a public competitor should "keep the
companies honest … be available right at the beginning to everybody, and have
the strength to borrow…If it can do those things in a co-op form, I think
we're open to it." Whether Republicans would support such a cooperative
remains unclear, because "a co-op with close ties to the government might
be viewed by Republicans as a predecessor to a government-run plan" (Yoest and Boles, 7/10). In
addition, "Senators working on health-care legislation are considering
provisions to pare back the billions of dollars in tax breaks enjoyed by U.S.
hospitals," The Wall Street Journal reports in a separate article.
"More than half of the 5,482 hospitals in the Baucus
and Sen. Charles Grassley, R-Iowa, are floating a proposal that would require
hospitals "to offer a minimum amount of charity care, limit charges to
the uninsured and tame their collection practices -- or face an excise
tax." Nonprofit hospitals would "have a lot to lose. In a report
issued in December 2006, the Congressional Budget Office estimated nonprofit
hospitals were spared $12.6 billion in taxes annually, on top of the $32
billion in federal, state and local subsidies the hospital industry as a
whole received each year" (Martinez, 7/10). http://www.kaiserhealthnews.org/Daily-Reports/2009/July/10/Senate-Action.aspx Health Care Overhaul Ignores Illegal Immigrants
Kaiser Health News | 07.09.09
"As
Congress wrangles with overhauling the health care system, there is one
population not being discussed. No proposal for a national health plan would
cover the nation's estimated 11 million illegal immigrants," NPR
reports. But "analysts say the notion that illegal immigrants drain the
health system is overblown. Simply figuring out how many undocumented
immigrants lack insurance is not easy," although the Lewin
Group has estimated that the number is about 6.1 million, which is "only
about half the total population of undocumented immigrants." John Sheils of the Lewin Group
"says many illegal immigrants use false documents to work on the books,
with regular tax deductions and benefits." Paul
Fronstin of the Employee Benefit Research Group
"says illegal immigrants are younger, and so generally healthier, than
the overall population, and studies show they go to the doctor far less than
the native born. He estimates their total share of the health care system at
about 1 or 2 percent, with only a small slice of that paid for in public
money. About $1 billion a year is paid by Emergency Medicaid, a federal
program that covers emergency care for patients who would otherwise be
eligible for Medicaid but can't prove their legal status. Sheils
estimates that an additional $5 billion is uncompensated in any way. He says
that's a blip on the national health care system — some two-tenths of 1
percent — but it can hurt when it falls disproportionately on hospitals, say,
along the southern U.S. border." Carla
Luggiero of the American Hospital Association
"has seen more and more hospitals face the burden of caring for illegal
immigrants in the past decade. Some have had to raise fees. Others qualify
for extra federal subsidies if they have an especially large number of Medicare
or Medicaid patients. Luggiero says this can be a
way to indirectly cover part of the cost of caring for the undocumented. … Luggiero says if Congress does not include illegal
immigrants in any health plan, hospitals will look for those federal payments
to continue. They would also like lawmakers to revive a separate subsidy that
reimbursed hospitals several hundred million dollars for care of the
undocumented in recent years but has expired" (Ludden,
7/8). http://www.kaiserhealthnews.org/Daily-Reports/2009/July/09/Illegal-Immigrants.aspx
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