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Monday, December 3, 2001
JCARR Approves Rules Governing APNs Prescriptive Authority
The Joint Commission on Agency Rule Review today approved a set of rules governing the prescriptive authority of advance practice nurses (APNs). APNs were granted prescriptive authority by House Bill 241, sponsored by Rep. Nancy Hollister (R-Marietta), passed last session.

Once the Ohio Board of Nursing (OBN) adopts the rules and sets their effective date, APNs can apply for their required 1-year externships in which they can begin prescribing drugs and therapeutic devices. OHA anticipates OBN will adopt the rules during its January meeting and is expecting a Feb. 1 effective date for the rules. APNs must have completed 36 hours, 45 hours after Oct. 1, 2004, of planned classroom and clinical study before applying for prescriptive authority.

OHA is planning to hold a seminar for member hospitals regarding prescriptive authority of APNs. Stay tuned for more information about the seminar, which will also address reimbursement issues. This advancement for APNs is due to support not only by Hollister but also by Rep. Merle G. Kearns (R-Springfield), the original sponsor of legislation in the movement toward granting nurses prescriptive authority. (Jean Scholz, jeans@ohanet.org)

DAILY NEWS CLIPS

For your daily health care news digest, go to the Hannah News Service's StateHealthClips.com.

Fewer foreign patients admitted since Sept. 11
Cleveland Plain Dealer
Sunday, December 2, 2001

A protracted war in the Middle East could drain a major income stream from Cleveland's health-care giants and the local economy, which already has felt the pinch of tightened international travel conditions. 

Hospital won't ignore poor
Columbus Dispatch
Saturday, December 1, 2001

When Doctors Hospital North announced plans to evolve into an urgent-care center, neighbors and activists for the poor feared the hospital would abandon those who need it most.

Hospitals prepare for the worst
Dayton Business Journal
Monday, December 3, 2001

Are Dayton-area hospitals prepared to deal with a biological weapon attack in the region?  


Tuesday, December 4, 2001
OIG Issues Ambulance Restocking Safe Harbor 
The Office of Inspector General of the Department of Health and Human Services (OIG) today issued the long-awaited anti-kickback safe harbor for ambulance restocking. The final rule, effective Jan. 3, 2002, establishes protection for certain arrangements in which a hospital replenishes drugs, supplies and linens used by an ambulance provider during the transport of a patient to the hospital. 

Concerned about OIG pronouncements questioning ambulance restocking practices, OHA asked Congress to enact a safe harbor in statute through the Community Safety Act of 1999 (H.R. 557, 106th Congress), sponsored by Rep. Bob Ney (R - St. Clairsville). In addition, last year, OHA submitted comments to the OIG with concerns about the OIG's proposed regulatory safe harbor. OHA's concerns were addressed in the final rule, which allows hospitals to distinguish between for profit and non-profit ambulance companies and eliminates the requirement of governmental emergency medical service oversight of restocking programs.

The final rule categorizes restocking arrangements into three types: 1) general restocking (at no charge or at some charge, whether or not fair market value); 2) fair market value restocking; and 3) government-mandated restocking. The OIG imposes four general conditions for all restocking and adds specific conditions for each type of arrangement to meet the safe harbor. The OIG emphasizes that compliance with a safe harbor is voluntary – failure to fit within the safe harbor does not necessarily mean the arrangement is illegal. Each situation must be evaluated on a case-by-case basis.

Watch for OHA Bulletin 01-039 to be mailed to member hospitals on Friday with a summary of the final rule. The rule is also published in the Federal Register at frwebgate1.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=49027027468+0+0+0&WAISaction=retrieve. (Mary Gallagher, maryg@ohanet.org)

Portions of Stark II, Phase I Rules Delayed
Monday the Centers for Medicare and Medicaid Services (CMS) announced a one-year delay in the effective date of certain physician self-referral prohibitions. Phase I of the Stark II regulations, published January 4, 2001, were due to become effective January 4, 2002. The CMS interim final rule published in the Federal Register delays until January 6, 2003, the portion of the Phase I rules concerning percentage physician compensation arrangements. 

The arrangements at issue take into account a percentage of fluctuating or indeterminate measures -- and therefore are not "set in advance." Many commenters complained that hospitals, physician group practices, academic medical centers and medical foundations frequently use percentage compensation methodologies. These entities would have to restructure or renegotiate thousands of physician contracts to comply with the percentage compensation provisions of the Stark II rules. The interim final rule can be found in the Monday, Dec. 3 Federal Register at frwebgate6.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=476466135224+0+0+0&WAISaction=retrieve.  Phase II of the Stark II rules are expected in 2002. (Mary Gallagher, maryg@ohanet.org)

DAILY NEWS CLIPS

For your daily health care news digest, go to the Hannah News Service's StateHealthClips.com.

Akron General makes bid for Edwin Shaw
Akron Beacon Journal
Tuesday, December 4, 2001

Akron General Medical Center is offering to pay Summit County $1.35 million to take over its respected rehabilitation hospital and move it to Akron.

2 more hospitals shut out Clinic doctors
Cleveland Plain Dealer
Tuesday, December 4, 2001

They're at it again.
Two more hospitals in the University Hospitals Health System have become the latest to lock out physicians with ties to the Cleveland Clinic, prompting the Clinic to trumpet patient choice.

Health Alliance OKs supply-buying deal
Cincinnati Enquirer
Tuesday, December 4, 2001

The Health Alliance of Greater Cincinnati, the Tristate's largest health care system, hopes to save tens of millions per year by hiring a San Francisco-based company to handle most of its supply purchasing.  


Wednesday, December 5, 2001
Medicare Regulatory Reform Bill Passes House  
A bill intended to help reduce the regulatory burden on hospitals was voted out of the U.S. House yesterday and is on its way to the Senate.

H.R. 3391, the Medicare Regulatory and Contracting Reform Act, passed the House unanimously, by a 408-0 vote. The legislation creates specific time frames for the release of new regulations, prohibits a retroactive requirement for compliance with new rules, and prohibits sanctions or recovery of overpayments if providers follow erroneous guidance released by the Department of Health and Human Services (HHS). H.R. 3391 would also allow providers up to three years to repay overpayments in cases of hardship, or five years in cases of extreme hardship and establishes a task force to revise the Emergency Medical Treatment and Labor Action (EMTALA). The legislation would require the Secretary of HHS to establish a process for enrollment of providers in Medicare, establish an appeals process for disenrolled providers and also provides for competitive bidding procedures for Medicare contractors.

Both OHA and the American Hospital Association support the legislation. Ohio cosponsors of the bill are Reps. Sherrod Brown (D-Elyria), Rob Portman (R-Cincinnati) and Ted Strickland (D-Portsmouth). With the economic stimulus package and other bills being fiercely debated in the final days of session this year, it is likely a vote in the Senate would not take place until January. Hospitals are encouraged to contact Sens. Mike DeWine (R-Columbus) and George Voinovich (R-Columbus) to urge their support of the bi-partisan measure. (Jonathan Archey, jonathana@ohanet.org)

DAILY NEWS CLIPS

For your daily health care news digest, go to the Hannah News Service's StateHealthClips.com.

'Survey' against hospital move
Middletown Journal
Wednesday, December 5, 2001

According to a group opposed to Middletown Regional Hospital moving to Warren County - the group calls itself "Keep Out" - results of a "survey" are clear.

Council allocates funds for construction of new health-care center
Columbus Daily Reporter
Wednesday, December 5, 2001

Columbus City Council members unanimously approved an ordinance this week to construct a new health-care center on the city's east side.


Thursday, December 6, 2001
Comments Requested on 7th Statement of Work Contract
The Office of Clinical Standards and Quality at the Centers for Medicare and Medicaid Services (CMS) is requesting comments on the draft 7th Statement of Work for the next Quality Improvement Organization, formerly Peer Review Organization, contract cycle. The draft is available online at www.hcfa.gov/quality/5b.htm. Please note the short turn-around time for comments, which are due by Dec. 19. Comments should be submitted to CMS by e-mail at 7sowcom@cms.hhs.gov. Attachments to the draft are currently under development and are not yet available for review or comment.

The Statement of Work emphasizes public reporting of performance measures for selected provider types: community-based quality improvement projects with hospitals, managed care plans, physician offices, home health agencies, and nursing homes; and beneficiary protection activities.

OHA plans to share comments with the American Hospital Association, who will be submitting comments to CMS. OHA asks that hospitals submitting comments to CMS also share them with Rosalie Weakland at OHA, 614/221-7614 or rosaliew@ohanet.org, so OHA can ensure hospitals’ concerns are addressed.
(Rosalie Weakland, rosaliew@ohanet.org)

OPPS Rule Part Two Released
The Centers for Medicare and Medicaid Services (CMS) on Nov. 30 released the second part of the final rule on the 2002 Medicare outpatient prospective payment system (OPPS). The first portion of the rule, issued Nov. 2, pertains to Medicare payments to hospitals for “pass-through” devices, drugs and biological products. The second part of the rule covers specific ambulatory payment classification (APC) payment rates.

Both parts of the rule go into effect Jan. 1, but the delay in the release of the rule, combined with an unusually large number of changes to computer software required to update the payment system, will force CMS to delay processing outpatient hospital Medicare bills with services dates on and after Jan. 1, 2002, for at least three months. While at press time final word from CMS had not yet been received, OHA anticipates CMS will order contractors to hold post-Jan. 1 bills until further notice, and, upon request, to pay hospitals a monthly advance payment equal to 90 percent of the average monthly receipt for the last quarter of 2001. The first advance payment can be expected at the end of January. Once the 2002 payment system is up and running, CMS will order contractors to pay 2002 outpatient Medicare bills on a first-received basis.

Additional detail, including an analysis of the rule, is included in OHA Bulletin 01-040, mailed this week and available to members online at www.ohanet.org/bulletinsview.asp. (Charles Cataline, charlesc@ohanet.org)

DAILY NEWS CLIPS

For your daily health care news digest, go to the Hannah News Service's StateHealthClips.com.

Money no cure for Medicare HMOs, report says
Cleveland Plain Dealer
Thursday, December 6, 2001

A billion dollars might sound like a lot of money, but a federal report says it didn't make much of a difference to Medicare HMO plans.

Hospital chief: 'We're moving'
Middletown Journal
Thursday, December 6, 2001

Middletown Regional Hospital Chief Executive Officer Doug McNeill weathered critical questions Wednesday from members of Concerned Armco/AK Steel Retired Employees about the hospital's planned move to Warren County.

Hospital gets grant for lab
New Philadelphia Times-Reporter
Thursday, December 6, 2001

DENNISON — Twin City Hospital’s Laboratory Services Department has received a $7,000 grant from the newly formed Tuscarawas County Community Foundation. The funds will be used to purchase a Class II Laminar Flow Biological Safety Cabinet for the microbiology department of the lab.


Friday, December 7, 2001
Medical Malpractice Insurance Market Continues to Harden  
The Ohio State Medical Association (OSMA) is urging Gov. Bob Taft to appoint a special task force to study the hardening of the medical malpractice insurance market in Ohio. OSMA told the governor the lack of availability and affordability of coverage for physicians could lead to limitations in access to care and increases in overall health care costs.

The medical malpractice insurance market has been growing tighter in Ohio and across the nation. Both rising jury awards, extensive underwriting growth and underpricing during the 1990s are contributing factors. According to the International Risk Management Institute, in 1999 for every $1 medical malpractice insurers were receiving as premium, they paid out $1.26 in losses and expenses. As a result, insurers nationwide have been hiking their rates. The situation is worse for physicians, who are seeing their premiums rise at higher rates than hospitals.

In some markets, such as eastern Pennsylvania, South Florida and Texas, insurers are pulling out altogether and in some cases insurers are experiencing dire financial conditions. Recently companies such as Frontier and Reliance have been liquidated or become otherwise inactive, and in August, PHICO was placed under state rehabilitation in Pennsylvania.

OHA is actively following the issue, supports OSMA’s request of the governor, and has been advocating passage of legislation to alleviate the situation, including bills on peer review protections and joint and several liability. An educational program is being planned for late January. Watch for more details to come. (Rick Sites, ricks@ohanet.org)

Lab Billing Investigations Conclude in Ohio  
The hospital lab billing investigation in Ohio has come to a close. The latest and final batch of settlements were announced this week by Auditor of State Jim Petro. The settlements with 75 hospitals in the Southern District of Ohio total $22 million.

The federal government alleged hospitals were overbilling Medicare and Medicaid because of the way bills for outpatient lab tests were presented to the government. According to the investigation, hospitals billed separately for tests the government said should have been grouped. Since the investigation began in 1996, the billing rules for outpatient lab tests have been changed.

As a result of a settlement reached in a lawsuit challenging the lab investigations filed by OHA and the American Hospital Association (AHA) against former Secretary of Health and Human Services Donna Shalala, Ohio hospitals are longer be required to file detailed annual compliance reports with the Office of Inspector General in the Department of Health and Human Services (HHS). The compliance reports had been part of the agreements hospitals had been required to sign with the federal government.

The billing investigation involved nearly every hospital in Ohio. The project resulted in settlements totaling $46.8 million with 185 hospitals in Ohio. The investigation has spread to other parts of the country where it is still ongoing. (Mary Gallagher, maryg@ohanet.org)

DAILY NEWS CLIPS

For your daily health care news digest, go to the Hannah News Service's StateHealthClips.com.

Health officials- Who will pay meningitis medicine bill?
Sandusky Register
Friday, December 7, 2001

Two weeks after hundreds of students and employees of Woodlands Elementary School in Huron were given antibiotics to prevent or treat possible meningitis exposure, the question arises about who will pay for the medicine.

Grant given to Union Hospital
New Philadelphia Times-Reporter
Friday, December 7, 2001

The project to expand Union Hospital at Dover has received financial support through a $25,000 grant from the Tuscarawas County Community Foundation.

From employee to volunteer, local woman has been with the hospital since 1939
Alliance Review
Friday, December 7, 2001

Martha Hundt received recognition for the more than 500 hours she had served as a hospital volunteer auxiliary Pink Lady in recent years. But Hundt can recall past times as a hospital employee when life at Alliance Community Hospital was much different.