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Monday, November 18, 2002
More Med Mal Bills Introduced
The medical malpractice insurance issue continued to heat up last week with the introduction of another slate of tort reform bills.

Likely to receive the most attention is House Bill 665, introduced by Rep. Tim Grendell (R-Chesterland). The medical malpractice legislation is a variation of Senate Bill 281, pending in the Senate Insurance, Commerce and Labor committee. Both bills would cap non-economic jury awards and limit contingency fees for personal injury lawyers, among other things. However, HB 665 would cap non-economic damages and non-catastrophic injuries at $500,000, whereas SB 281 would cap damages at $300,000. HB 665 would also limit damages for catastrophic injuries at $1 million. Grendell said he believes the bill addresses the problems that have resulted in previous malpractice tort reform legislation’s failure to satisfy constitutional amendments. HB 665 has been assigned to the House Civil and Commercial Law committee.

Sen. Eric Fingerhut (D-Cleveland) and Rep. Ed Jerse (D-Euclid) also introduced a package of bills that would reinstate the Joint Underwriting Authority, create a commission to monitor medical malpractice insurance rates, increase penalties for frivolous lawsuits and prevent price gouging.

Both House and Senate leadership have expressed support for passing legislation in the lame duck session to help address the medical malpractice insurance crisis. The legislature will likely compromise on legislation that includes components of both SB 281 and HB 665. OHA supports SB 281 and is currently reviewing HB 665. (Bridget Gargan, bridgetg@ohanet.org)

House Panel Passes Drug Repository Bill
The Ohio Senate has passed legislation requiring the Ohio Pharmacy Board to establish a drug repository program for the collection and redistribution of prescription drugs in their original unopened packaging. House Bill 221, sponsored by Rep. Kirk Schuring (R-Canton), attempts to provide drugs to individuals unable to afford them by making available unused drugs that would otherwise be discarded.

OHA offered its supports for the intent of the legislation after a number of changes were made addressing patient safety. The bill also includes an OHA amendment clarifying that the program is voluntary for pharmacies, and language providing liability protections for hospitals that choose to donate unused pharmaceuticals and pharmacies that choose to participate in redistributing drugs. (Jeff Klingler, jeffk@ohanet.org)

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(Editor’s note: StateHealthClips.com has gone to a subscription service. Please note that the link to access clips will change daily. If you visit www.statehealthclips.com, you will be required to enter a subscriber password. No password is required for the link published in HEALTH e-NEWS Plus.)

Tuesday, November 19, 2002
House Conflict of Interest Bill Introduced
An additional piece of OHA-supported legislation to extend state law on physician conflict of interest to inpatient hospitals was today introduced in the Ohio House. Testimony on House Bill 666, sponsored by Rep. Jon Peterson (R-Delaware), will be given tomorrow.

HB 666 is a companion bill to Senate Bill 309 introduced last week. The two pieces of legislation are being considered by the House and Senate health committees. The legislation ensures that physicians who are investors in specialty hospitals will not be in a position to make medical decisions based on concerns for profit on their investments. State law currently prohibits physicians from referring patients to home health services, clinical laboratories or pharmacies in which they have an ownership interest, and these pieces of legislation would add inpatient hospitals to this list. (Jeff Klingler, jeffk@ohanet.org)

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Wednesday, November 20 2002
Hospital Reps Weigh in on Conflict of Interest
The House and Senate health committees heard testimony today on legislation ensuring that physicians who are investors in specialty hospitals will not be in a position to make medical decisions based on concerns for profit on their investments.

This morning Rep. Jon Peterson (R-Delaware), sponsor of House Bill 666, testified to members of the House Health and Family Services Committee that the purpose of the legislation is not to oppose specialty hospitals or physician opportunities but to protect community hospitals. He emphasized that HB 666 would simply extend state law on physician conflict of interest to inpatient hospitals.

During the afternoon session, testimony was offered to the Senate Health, Human Services and Aging Committee on Senate Bill 309, the companion bill to HB 666. Two OHA Board members -- TriHealth President John Prout and OhioHealth President Joe Calvaruso -- and a hospital board member spoke to the committee, as well as the bill’s sponsor, Sen. David Goodson (R-Bexley). The hospital representatives spoke on the need to ensure hospitals’ ability to continue providing unprofitable, yet necessary, services by maintaining those existing services that draw profits. To read the full text of these testimonies and access additional information on the conflict of interest issue on OHA’s Web site, visit www.ohanet.org/government/state_correspondence.asp. (Jeff Klingler, jeffk@ohanet.org; Mary Yost, maryy@ohanet.org)

Congress Fails to Pass Provider Relief
Despite ongoing advocacy efforts from OHA and its member hospitals, the U.S. Congress recessed for 2002 without passing provider relief legislation for Medicare and Medicaid.

Congress also failed to complete the necessary government spending bills, passing a continuing resolution to maintain government funding at current levels until Jan. 11, 2003, the planned start of the 108th Congress. Upon their return, members of the new Congressional session will work to pass a large omnibus bill containing all of the postponed appropriations and various other pieces of legislation. Hospital advocates will push for the addition of provider relief to this bill and several members of the Ohio delegation have shown support for such action.

To prepare for the possibility that provider relief will not be addressed by Congress, and that the more than $53 million in potential HCAP cuts will become a reality, OHA will address alternative solutions with members at its regional meetings the week of Dec. 16. For more information on OHA’s regional meetings, visit www.ohanet.org/regional.htm. (Jonathan Archey, jonathana@ohanet.org)

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(Editor’s note: The news clips are being password-protected on the OHA Web site. OHA members will be notified separately of the password. HEALTH e-NEWS Plus subscribers can still access news clips through the daily e-mail without a password.)

Thursday, November 21, 2002
Senate Passes Cap on Non-Economic Damages
Senate Bill 281 today passed the Senate by a 22-9 vote. Prior to passing the Senate, the legislation was amended to increase the limit on non-economic jury awards from $300,000 to a range between $500,000 and $750,000. SB 281 would also limit contingency fees for personal injury lawyers. The bill now heads to the House Civil and Commercial Law Committee and is likely to be considered in conjunction with House Bill 665, which caps non-economic damage at $500,000 and catastrophic damages at $1 million. (Bridget Gargan, bridgetg@ohanet.org)

Hospital Concern on Unfunded Mandates Expressed
Registered nurse and OHA Director of Health Policy Jean Scholz testified recently before the Public Health Council addressing the difficulty hospitals face when confronted with unfunded mandates such as the universal newborn hearing screening. Scholz emphasized hospitals want to continue to partner with the Ohio Department of Health, addressing public health problems such as infant hearing impairment, but questioned the wisdom of adding new expense and hospital staff demands when hospitals are facing difficult financial pressures and health care worker shortages. Several members of the Public Health Council expressed concern about unfunded mandates enacted by the legislature.

House Bill 150, requiring universal newborn hearing screening using physiological tests, was passed earlier this year without adequate funding despite OHA advocating for aid to hospitals. Look for an upcoming bulletin on this legislation on OHA’s Web site at www.ohanet.org. (Jean Scholz, jeans@ohanet.org; Rick Sites, ricks@ohanet.org)

Correction: Yesterday’s HEALTH e-NEWS Plus incorrectly named Joe Calvaruso as president of OhioHealth. Calvaruso is president of Mt. Carmel Health System. We are sorry for the error.

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Friday, November 22, 2002
Peer Review Law Receives Testimony
Testifying on behalf of OHA, Catherine Ballard with Columbus law firm Bricker & Eckler this week stressed the importance of passing Senate Bill 179, which would modernize Ohio’s peer review law. Testifying before the House Civil and Commercial Law Committee, Ballard noted the law would protect the peer review process, not an individual practitioner. Ballard noted support for a provision of the bill that creates a rebuttable presumption for a claim of negligently credentialing a physician as long as the Joint Commission on Accreditation of Health Care Organizations or the American Osteopathic Association has accredited the hospital.

Ballard also advocated for incident and risk management reports to be included as protected peer review documents to ensure the confidentiality of the health care professionals writing the reports. She also testified that SB 179, sponsored by Sen. Lynn Wachtmann (R-Napoleon), would protect Ohio’s peer review privilege by allowing immediate appeals to disclosure orders for peer review information. Finally, Ballard supported expansion of Ohio’s peer review statues, last updated in 1967. (Bridget Gargan, bridgetg@ohanet.org)

Board Supports Med Mal; Conflict of Interest Efforts
The OHA Board of Trustees at its latest meeting supported continued efforts of OHA on medical malpractice and conflict of interest.

The Board voted to support the OHA Medical Malpractice Task Force in its continued research of options to address the medical malpractice insurance crisis in Ohio. OHA will begin to develop two possible risk-financing models to help physicians secure and maintain medical malpractice insurance and will solicit feedback from members at the regional meetings planned for next month.

Additionally, the Board expressed interest in supporting OHA’s continued work towards resolving the conflict of interest issue. OHA-supported legislation on the issue would prohibit physicians from referring patients to inpatient facilities in which they have an ownership interest.

In other action, the Board voted to adopt guidelines developed jointly with the Ohio State Medical Association to govern the release of medical records and peer review records when a health care facility or physician office closes. (Jim Castle, jimc@ohanet.org)

OHA Welcomes New Board Members
OHA extends thanks to outgoing 2002 Board Chair Jack Bartell and welcomes the incoming 2003 chair, Thomas Sieber, Genesis HealthCare System, Zanesville. Bartell will continue to sit on the Board through 2003 as Past Chair. Thomas Selden, Parma Community General Hospital, was elected Chair-elect and James Kingsbury, The Fort Hamilton Hospital, was elected Secretary/Treasurer.

Additionally, six new Trustees-at-Large will assume their duties in 2003: Thomas Bralliar, MD, Cleveland Clinic Foundation; William Andrews, Licking Memorial Health Systems; Richard Frenchie, UHHS Geauga Regional Hospital & UHHS St. Michael Hospital, Chardon; Phillip Hearing, Southeastern Ohio Regional Medical Center, Cambridge; Andrew McCulloch, Mercy Health Partners - Western Ohio Region, Springfield; and Walter Wielkiewicz, MD, Zanesville, who will serve as the Ohio State Medical Association representative. The new Board members and officers were elected at OHA’s annual membership meeting preceding the November Board meeting. (Jim Castle, jimc@ohanet.org)

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