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Monday, May 5, 2003
ODI Releases Med Mal Report
As mandated by Senate Bill 281, tort reform legislation effective in April, the Ohio Department of Insurance (ODI) last week delivered a final report to address the feasibility of a patient compensation fund (PCF). The study looked at similar funds in other states and analyzed its ability to help stabilize Ohio’s medical malpractice insurance marketplace.

Among other things, the report recommended applying the non-economic damage caps specified in SB 281 without the PCF providing coverage above the caps. If the PCF covers these added costs, it could negate the economic benefits of both the PCF and damage caps, and cause cost shifting between economic and non-economic damages.

The report also suggested that Ohio’s PCF be funded through a rate per physician or per bed for hospitals and have provisions based on different practice specialties and past experience. It recommended placing limits on attorney contingency fees to increase payments to the injured parties without adding to the total cost, and establishing a medical review board to help determine the merits of a claim before it goes to trial. The report is available at www.ins.state.oh.us/Documents/05-01-03FinalReport.pdf.

In separate action, ODI scheduled the first meeting of the Ohio Medical Malpractice Commission, created by SB 281 to monitor the effects of the tort reform bill and investigate medical malpractice problems and issues. Frank Pandora, Senior Vice President and General Counsel for OhioHealth, was appointed to represent hospitals on the commission.

OHA will provide continued updates on the possible patient compensation fund and other medical malpractice legislation introduced this year. (Rick Sites, ricks@ohanet.org)


Tuesday, May 6, 2003
President Signs Smallpox Comp Bill
President George W. Bush has signed into law H.R. 1770, the Smallpox Emergency Personnel Protection Act of 2003, legislation that allows hospitals to provide smallpox vaccinations without fear of liability if someone they vaccinate should become ill.

H.R. 1770 also includes a compensation fund that pays up to $50,000 a year for those sustaining a disability after vaccination and a death benefit of $262,000. Congress has approved $43 million to fund the bill. (Carol Jacobson, carolj@ohanet.org)

National Hospital Quality Study Underway
Hospitals still have time to participate in the initial phase of the The Quality Initiative: A Public Resource on Hospital Performance, a national effort to advance quality care and improve patient safety through the voluntary collection and reporting of hospital quality performance information. Sponsored by the American Hospital Association (AHA), the Federation of American Hospitals and the Association of American Medical Colleges and supported by numerous accreditation and other organizations, the initiative seeks to help hospitals take a leadership role in defining quality and responding to the public’s increasing desire to access hospital quality information.

The initiative will begin by evaluating 10 measures in the care of heart attacks, heart failure and pneumonia and will eventually expand to a larger set of measures. Many hospitals already gather this data, making it easier for the information to be compiled and ready for public release this summer. Additional information can be found at www.aha.org under "What's New." OHA's Board of Trustees will discuss OHA's position on this quality initiative at its June Board meeting.

Wednesday, May 7, 2003
Taft Considers Supreme Court Candidates
With confirmation of Justice Deborah Cook’s appointment to the Sixth Circuit Court of Appeals this week, Gov. Bob Taft must appoint a new member to Ohio’s Supreme Court to fill her former position. Cook showed strong support for hospitals during her time on the court, on issues such as tort reform, and it is critical that her successor expresses similar support.

The governor’s legal counsel and chief of staff are currently interviewing nine candidates and plan to make recommendations to the governor by the end of the week. Taft hopes to meet with the candidates and make a decision by next week. Current candidates include Michael Corrigan, Cleveland; William Batchelder, Medina; Judith Christley, Trumbell County; Richard Knepper, Toledo; Mark Painter, Cincinnati; Stephen Powell, Middletown; Columbus Municipal Judge James Green; former appeals judge Terrence O’Donnell, Cleveland; and Franklin County Board of Elections Director Guy Reece.

OHA will provide an update when the governor selects a candidate. (Rick Sites, ricks@ohanet.org)

OHA Annual Meeting Supports Foundation Efforts
OHA has sent out the programs and registration materials for its 2003 Annual Meeting, “Touching Lives, Strengthening Communities.” The event, to be held June 9-10 at the Greater Columbus Convention Center, includes an auction with proceeds going to the Foundation for Healthy Communities which, since 1994, has funded 94 hospital and community-based health initiatives.

The Foundation will host a booth in the main concourse to distribute information and sell tickets for the auction. With the tickets selling at $20 for 10, and total donations up to $5,000 receiving matching funds, the Foundation hopes to raise a significant amount to put toward additional grants for hospitals. Greenback, or play money, with information on the auction was mailed with the programs to remind participants to stop by the booth to buy tickets for auction items.

The program and registration materials, as well as additional information on the 2003 Annual Meeting, are available on OHA’s Web site at www.ohanet.org/annualmeeting/.


Thursday, May 8, 2003
National Women’s Health Week Spreads the Word
As part of the National Women’s Health Week 2003, the U.S. Department of Health and Human Services is coordinating National Women’s Check-Up Day next Monday, May 12. Health care providers in Ohio and throughout the nation are invited to participate in this initiative to encourage preventive health services.

For more information on participating with National Women’s Health Week 2003, visit www.4woman.gov/whw or call 202.690.7651. The Web site includes suggestions for celebrating the week such as offering free screenings to the community, sponsoring wellness walks and providing free health information and holding a town hall meeting on a major women’s health issue. It also includes links to other participating facilities and events in Ohio and throughout the country.

Hospitals Lead the Way
Hospitals throughout Ohio continue to excel in areas beyond basic health care and offer additional services to the communities they serve.

The communication department of Akron General Medical Center received two Awards of Distinction from The Communicator Awards for its Before Baby maternity services CD-ROM and information packet. It also was named a Silver Winner of the 2003 Aster Awards for Excellence in Medical Marketing for these products.

A national leader in pollution prevention, Fisher-Titus Medical Center, Norwalk, received an H2E Partners for Change Award at last week’s American Hospital Association (AHA) Annual Meeting for its efforts to reduce waste and eliminate mercury. The Friends of Southern Ohio Medical Center, Portsmouth, was also recognized at AHA’s meeting, honored for raising funds to construct a $1.2 million facility to accommodate community events with proceeds purchasing hospital items such as a cobalt unit, mammography van, cardiac monitors and a cardiac catheterization table.

Cynthia Moore-Hardy, President and CEO of Lake Hospital System in Painesville, will also be honored this month with a YWCA Greater Cleveland Woman of Achievement Award to recognize her commitment to her career and community. (Mary Yost, maryy@ohanet.org)


Friday, May 9, 2003
OHA Unveils Med Mal Help
To assist hospitals in helping physicians cope with their skyrocketing medical liability premiums, OHA announces the OHA Sponsored Deductible Program (SDP). The SDP is not an insurance program, but it provides a financing mechanism that will enable some physicians to reduce their professional liability insurance premiums.

The program will help physicians, mostly those in high-risk specialties such as obstetrics or surgery, interested in assuming the risk of either a $50,000 or $100,000 per claim deductible on their professional liability coverage, written through participating carriers. Physicians who purchase a policy from their carrier will pay about 30 percent less for a policy with a $100,000 deductible and 15 percent less for a $50,000 deductible through SDP.

Under SDP, participating hospitals provide collateral for their participating physicians to obtain policies with deductibles and, if a loss is incurred, to obtain a loan at favorable rates from Fifth Third Bank of Central Ohio. Hospitals contribute a $1,000 per physician administrative fee, $10,000 per physician collateral fee, and possibly an additional $10,000 per physician collateral assessment. The physician who obtains a loan is responsible for repaying it, but the collateral in the SDP guarantees repayment to Fifth Third should the physician default. Collateral contributions may be repaid to hospitals if physicians do not default on loans or if loan default experience is sufficiently favorable.

OHA encourages member hospitals to review information about the SDP on OHA’s Web site at www.ohanet.org/SDP/ to decide if the program is right for them and their medical staffs. If interested, hospitals should return an interest form, also available online, to SDP at OHA’s address to begin the process for participation. SDP is one of several OHA strategies to address Ohio’s medical malpractice insurance crisis. (Rick Sites, ricks@ohanet.org)

Board Moves on Med Mal, Supports Conflict Bill
The OHA Board of Trustees at it last meeting approved earmarking $10 million from OHA reserves for the potential creation or acquisition of an insurance company to ensure the availability and affordability of medical liability insurance in Ohio. Also part of OHA’s strategy to address the medical malpractice insurance crisis in Ohio, the Board reviewed the OHA Sponsored Deductible Program (SDP), created by OHA to help physicians reduce their cost of medical liability coverage by providing a guaranteed financing mechanism when they purchase professional liability insurance with a deductible (see related story above). More information is available online at www.ohanet.org/SDP/.

Focusing on pending legislation, Board members signed a letter to the House Health and Family Services Committee to respond to inaccurate statements made in recent testimony about House Bill 71, legislation that would clarify public policy in Ohio to extend physician conflict-of-interest statutes to include inpatient hospital services.

The Board also heard updates on state and federal advocacy efforts. Providers avoided cuts in this biennium’s state budget, which is pending in the Senate. However, providers could be at risk for future cuts for the next biennium. Providers also avoided cuts to Medicare and Medicaid on the federal side, but a $400 billion Medicare prescription drug program not yet been funded could put hospitals at risk for future cuts.

The Board was also updated on the Hospital Care Assurance Program, new fundraising goals of the Coalition to Protect America’s Health Care, and progress on OHA and member hospitals’ right to sue the state for not providing lawful oversight of the Medicaid managed care program. (Jim Castle, jimc@ohanet.org)

Looking to Reduce Costs?
If so, you won’t want to miss the American College of Healthcare Executives (ACHE) education session Sunday, June 8 to learn about Six Sigma, an innovative approach to reducing costs while maintaining or enhancing quality. The all-day session runs from 9 a.m. to 4 p.m. at the Greater Columbus Convention Center and is worth 6 Category 1 credits in continuing education. The registration fee is $495 per person.