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Monday, October 20, 2003
Cancer Caucus Seeking Hospital Rep
Rep. Jim Carmichael (R-Wooster) has formed a bi-partisan Cancer Caucus in the Ohio legislature and is now seeking a volunteer to represent hospital interests. The mission of the caucus is to examine and implement public policy issues dealing with the diagnosis and treatment of cancer. Working closely with the caucus is the Ohio/West Virginia Hematology Oncology Society. Their first initiative is to seek insurance coverage for specified routines associated with clinical trials.

Those interested in obtaining additional information or serving on the panel should contact Bridget Gargan, OHA Vice President, State Policy and Advocacy, at bridgetg@ohanet.org.


Tuesday, October 21, 2003
OIG Releases ODJFS Audits
The Office of the Inspector General (OIG) of the U.S. Department of Health and Human Services recently issued the final reports of two audits of the Ohio Department of Job and Family Services (ODJFS).

The first report reviews Medicaid fee-for-service payments for beneficiaries enrolled in Medicaid managed care. Through a sample, the OIG found that ODJFS made improper payments and identified a portion subject to refund. The OIG recommended that ODJFS audit the fee-for-service payments not included in the initial audit. ODJFS saw much of the error as the result of the Centers for Medicare and Medicaid Services April 2000 mandate to reinstate individuals who lost eligibility based on the loss of cash benefits and resisted additional auditing.

The second audit reviewed the implementation of the Medicaid drug rebate program and found that ODJFS has adequate controls, policies and procedures in place to keep accurate records and safeguard funds, but recommended improvement in collecting interest for unpaid or late payments and dispute resolution. ODJFS disagreed with the findings, citing that drug manufacturers also hold responsibility in calculating interest payments. To view the reports, visit oig.hhs.gov.


Wednesday, October 22, 2003
Award Promotes Nursing Education
The Columbus-based Osteopathic Heritage Foundation (OHF) has awarded $346, 812 to Columbus State Community College to expand its health care facilities and add equipment for nursing training. The funds will help the college increase its nursing student enrollment by 52 percent this fall, bringing 260 more potential graduates into a workforce seeking qualified professionals.

Nearly half of the money awarded will fund a second human patient care simulator to enable nursing students to build their skills, confidence and decision-making ability, and the award will also secure 12 patient care beds and bedside computers, 14 equipment mannequins and other lab equipment. With Ohio facing a current and continued shortage of nurses and other staff, OHA supports efforts to offer qualified students with educational opportunities in the health care field. For more information, contact Rick Vincent at OHF at 614.737.4370 or Matt Kelly at Columbus State Community College at 614.287.2437.


Thursday, October 23, 2003
Board Gives Thumbs Up on Public Opinion Campaign
At its last meeting, the OHA Board of Trustees gave OHA approval to develop a statewide public opinion campaign in 2004, to be funded by voluntary assessments on member hospitals. The campaign will communicate hospital concerns related to Ohio’s medical malpractice insurance crisis. Member hospitals will soon receive more information about participation in the campaign.

Additionally, the Board reviewed progress of legislation to stop the proliferation of physician-owned, limited-service hospitals in Ohio. House Bill 71 is pending in the Senate House Health Committee after passing the full House last month. OHA’s goal is passage of the bill by the end of the year, provided OHA concerns with provisions outlining credentialing language and notice of intent grandfathering are addressed. Hospitals are encouraged to continue advocacy efforts in the Senate with the same intensity that was present during House deliberations by contacting senators in support of the bill.

The Board was also updated on OHA’s new medical malpractice insurance company, expected to be licensed in time to write Jan. 1 renewals for physicians and hospitals. Information about investment in the new company will be available soon.

The slate of officers for the 2004 OHA Board of Trustees was also accepted. OHA’s 2004 Board chair is Thomas Selden, who will depart as president and CEO of Parma Community General Hospital mid-November for his new position as president and CEO of the Cleveland Clinic Health System, Eastern Region, beginning in December. James Kingsbury, senior vice president of Fort Hamilton Hospital, will serve as chair-elect. Cathleen Nelson, president and CEO of St. Charles Mercy Hospital, Oregon, was elected secretary/treasurer. Also approved are new Board members: Gregory Nowak, administrator of Coshocton County Memorial Hospital; Stanley Korducki, president of Wood County Hospital, Bowling Green; David Meckstroth, president and CEO of Upper Valley Medical Center, Troy; James Meyer, president of MedCentral Health System, Mansfield; and Alan Bleyer, president Akron General Health System.

Finally, the Board discussed recommendations about the Joint Commission on Accreditation of Health Care Organizations’ recently proposed new medical staff standard regarding unilateral amendment of bylaws, and emergency department overcrowding and periodic performance review standards. (Jim Castle, jimc@ohanet.org)

OSU’s Reed Fraley to Join OHA Leadership Team
Reed Fraley, head of the Ohio State University Health System for the past 14 years, will become senior vice president of OHA early next year after retiring from OSU. “OHA is excited about the experience, skills and insight Reed Fraley brings to the association’s leadership team. Ohio hospitals will benefit as Reed helps OHA provide new leadership to enhance hospitals’ work with their governing boards and as he strengthens OHA’s work on issues affecting multi-hospital health systems,” said Jim Castle, OHA president and CEO. Fraley announced his retirement on Thursday, effective Jan. 31, 2004.


Friday, October 24, 2003
Myriad of Factors Impact Escalating Hospital Spending
Spending for hospital services is on the rise - and rising. From 1997 to 2001, the total national spending for hospital care grew $83.6 billion or 22.7 percent, from $367.6 billion to $451.2 billion. Major forces driving hospital spending include increasing patient utilization and mounting costs for hospitals to provide care as new, expensive technologies emerge and workforce concerns continue to tap into hospitals’ bottom lines.

A whopping 55.4 percent of the total increase in hospital spending from 1997 to 2001 is directly related to increased patient demand for care. The costs of new medical equipment and technology, pharmaceuticals and other supplies accounted for 24.1 percent of the increase in spending on hospital care between 1997 and 2001. Labor costs totaled 38.8 percent of the increase of that same five-year time period. Important to note is the $15 billion in savings between 1997 and 2001, attributed to improvements in hospital efficiency, which offset spending by 18.3 percent.

Further methods to stop the runaway health care spending train include better management of health care utilization and benefits. Also important is improved patient education on using health benefits appropriately for optimum health. For more information, see OHA’s October Healthbeat at www.ohanet.org/healthbeat/2003/healthbeat1003.htm.

GAO Report Adds Fuel to Fire on Specialty Hospitals
Another report this week from the General Accounting Office (GAO), Congress’ investigative arm, adds ammunition to arguments for legislative action to stop the growth in specialty hospitals. The GAO found specialty hospitals-increasingly operated for profit and owned by physicians-tend to be located in states without certificate of need law, are less likely to offer emergency services, treat smaller percentages of Medicaid patients and are nearly twice as profitable as general hospitals. The full report is available online, www.gao.gov/new.items/d04167.pdf. (Mary Yost, maryy@ohanet.org)