Tuesday, April 15, 2003
Illegal Med Mal Insurer Ordered to Cease Activity
The Ohio Department of Insurance (ODI) yesterday ordered First Actual American Insurance Company (FAAIC) to stop its illegal operation in Ohio. The Oregon-based insurer allegedly offered medical malpractice insurance to Ohio doctors through an unsolicited free quote, though it is not licensed to do business in Ohio. FAAIC claimed it could save doctors 30 to 50 percent on current premiums.

AHA Hospital Surveys Reaching Deadline
More than 122 Ohio hospitals have completed, or are in the process of completing, the 2002 American Hospital Association Annual Hospital Survey. OHA reminds the remaining hospitals to ensure that surveys are completed for their facilities. The information provided will enable OHA and AHA to provide statewide data in a variety of areas, including the economic impact of hospitals.

The original deadline for completion was today, but AHA will continue to accept submissions until April 30. Hospitals can complete the survey online at www.ahasurvey.com. For additional information or questions, contact Virginia Swan at 614.221.7614 or virginia@ohanet.org, or Dorothy Morgan at 614.221.7614 or dorothym@ohanet.org.

Approximately 50 to 100 specialty hospitals are operating nationwide with more and more in the works, especially in cardiac care and orthopedics. According to the study, the three factors driving the specialty hospital boom include overpayment for certain cardiac and orthopedic services combined with underpayment for other services by private and governmental insurers, which prompts investment in specialty hospitals focusing on profitable services; physicians’ desire for more control over working conditions; and physicians’ desire to increase their income by capturing a portion of facility profits if they are owners.

The physician ownership problem is not new to Ohio, which has pending legislation to prohibit physicians from referring patients to facilities in which they have an ownership interest. House Bill 71, sponsored by Rep. Jon Peterson (R-Delaware), would recognize the conflict that exists when physicians refer patients to inpatient hospitals they own by extending existing provisions in state law prohibiting physician self-referral to hospital inpatient services, along with home health, clinical laboratories or pharmacies.

The HSC study is available online at www.hschange.org/. More information about Ohio’s conflict of interest issue is available online at www.ohanet.org/advocacy/state/issues/default.htm#conflict. (Mary Yost, maryy@ohanet.org; Jeff Klingler, jeffk@ohanet.org)

Thursday, April 17, 2003
Budget Resolution Spares Medicaid, Medicare
Congress last week passed a final budget resolution that included none of the proposed cuts to Medicare and Medicaid. The resolution sets the spending limits for the fiscal year 2004 budget debate, which will continue through the summer.

Congress Helps Protect Hospital Associates
Last week Congress passed the Smallpox Emergency Personnel Protection Act of 2003. This legislation provides compensation for people who voluntarily receive the smallpox vaccine and suffer negative effects due to receiving it. The bill now goes to President George W. Bush for his signature and should become effective within the next several months.

Friday, April 18, 2003
Quality of Care in Ohio, U.S. Hospitals Put to the Test
With the Internet bringing information to the fingertips of a growing number of people, in Ohio and nationwide, the concept of rating and ranking the quality of hospitals continues to develop and receive both positive and negative attention.  

Ratings have the potential to improve quality of care by spurring poorly rated hospitals to improve their standing while providing an ongoing incentive for top-rated facilities to continue their efforts. With access to credible information, consumers also could make more informed decisions about their care. On the other side of the coin, publicly available report cards could unintentionally encourage physicians to accept only healthier patients to maintain a good record and low mortality rates. Ensuring the accuracy of the information is also difficult because the data used is often several years old and each of the various reports currently available use independent measurements and data and therefore may not accurately reflect hospitals’ continuing efforts or correspond with other similar studies.             

Last December, a national Hospital Quality Information Initiative was launched to advance quality care and improve patient safety by collecting, and sharing with consumers, information on patient care in hospitals throughout the U.S. For more information on this initiative, visit www.kaisernetwork.org/healthcast/fah/12dec02.  

As the debate over the collection and publishing of hospital quality data continues, OHA’s Research and Educational Foundation Board encourages Ohio hospitals to participate with the voluntary Hospital Quality Information Initiative. With appropriate methods and safeguards, this information can help Ohioans play a central role in the health care they receive.