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Monday, May 17, 2004
Gov. Bob Taft last week spoke on the medical malpractice crisis in Ohio, citing the connection between the makeup of the Ohio Supreme Court and the fate of a new law limiting jury awards for non-economic damages in medical malpractice cases. He predicted the law would better stabilize insurance rates after being upheld by the state’s Supreme Court.
Senate Bill 281, enacted in December 2002, caps awards in medical malpractice lawsuits as one measure to address the medical liability insurance crisis in Ohio. The legislation’s ability to withstand a constitutional challenge eventually will be in the hands of the Supreme Court. He noted that a court focused on judicial restraint and not seeking to rewrite the law would probably uphold this law. But he emphasized the tenuous position of the current court, with only a 4-3 philosophical majority for judicial restraint, and called upon local business leaders and others to preserve the balance of the court in this November’s election.
Gov. Taft voiced concern about Ohio doctors, specifically those in specialty areas, who are leaving due to the state's medical liability insurance crisis. He said other legislative steps are also under consideration. For more information on the medical liability insurance environment in Ohio, visit www.ohanet.org/med-mal/.
PHC Hears Testimony, Rules Near Implementation
OHA and several long-term acute care hospital CEOs testified before the
Public Health Council (PHC) May 6 regarding the proposed revisions of
the Hospital Registration rules and Nurse Aide Registry rule.
OHA supports the Hospital Registration rules but suggested continuation of the code’s 30-day length of stay limitation for long-term acute care hospitals be removed so the duration of admissions is governed by medical considerations alone. After the testimony, the Ohio Department of Health recommended the rule be reviewed in two years unlike the typical five-year review for regulations.
The Nurse Aid Registry revision will allow nurse aides’ experience in a hospital setting to meet criteria necessary to remain on the state registry. OHA supports this revision so hospitals can reference the state registry when hiring nurse aides, as it denotes quality of care.
The revised regulations are expected to take effect by August. (Rick Sites, ricks@ohanet.org)
Tuesday, May 18, 2004
OHA’s proposed legislation regarding tax-exempt bonds was voted out of the House Health and Family Services Committee last week 21-1. House Bill 239, sponsored by Rep. Tony Core (R-Rushsylvania), would modify the statute regarding the issuance of tax-exempt bonds, amending the revised code to authorize the Director of the Department of Development or the Ohio Higher Educational Facility Commission to issue tax-exempt bonds.
Representing OHA, Richard Kane of Columbus law firm Bricker & Eckler, LLP, testified before the committee that the measure re-enacts 20-year-old language regarding state issuance of revenue bonds for nonprofit hospitals that was struck down on a technicality. He said it also makes changes regarding the financing. HB 239 also:
HB 239 heads to the House floor for a vote May 25. (Bridget Gargan, bridgetg@ohanet.org)
Sales Tax Repeal Won’t See Nov. Ballot
The issue of whether to repeal a one-cent temporary state sales tax
increase will not appear on ballots this November. Supporters of the
repeal, set to expire June 30, 2005, submitted petitions in December but
received multiple challenges from across the state. Judge Dale Crawford
of the Franklin County common pleas court this month established a
schedule for the case that goes into August and beyond the deadline for
submitting initiatives for the fall ballot. Repeal advocates are still
pushing for the initiated bill to be sent to the General Assembly.
The OHA Board of Trustees voted to oppose the proposed repeal, with more than $650 million in Medicaid funding on the line if the short-term one percent tax hike is revoked. (Bridget Gargan, bridgetg@ohanet.org)
Wednesday,
May 19, 2004
Congress Attempts Federal Tort Reform Again
The U.S. House of Representatives last week passed H.R. 4280, known as
the Help Efficient, Accessible, Low-Cost, Timely Healthcare (HEALTH) Act
of 2004, by a vote of 229-197.
The legislation, sponsored by Rep. James Greenwood, would allow for unlimited economic awards to successful litigants, but limit non-economic (pain and suffering) awards to $250,000. Other key provisions include periodic payments of future damages over $50,000, reform of the joint and several liability rule, and a limitation of plaintiff attorney contingency fees. The measure was introduced earlier this month as a package of House bills targeting increased access to health coverage under consideration during Cover the Uninsured Week.
With the passage of the HEALTH Act, the tort reform battle turns to the U.S. Senate once more. The Health Coalition on Liability and Access called on the Senate “to break the logjam on medical liability reform by passing the bill as soon as possible.” However, the bill will likely face difficulties since it is identical in substance to H.R. 5, which passed in the House last year but was tabled in the Senate, and was introduced during a close presidential election year.
For more on the medical malpractice insurance crisis, visit
www.ohanet.org/med-mal/. (Jonathan Archey,
jonathana@ohanet.org)
Ohio BWC Offers Workplace Safety Classes
The Ohio Bureau of Workers’ Compensation (BWC) will offer workplace
safety classes in several cities around the state during June.
The courses, which are offered at no additional costs to employers with active BWC policies, provide information for the practical application of safety and health principles, development of a safety culture, and regulatory standards. Employers and employees from a variety of fields can gain information about workplace safety in their specific industries, including health care.
According to the BWC, the courses are an effective way to protect your work force and positively impact your bottom line. In addition, the information gained during safety classes can help businesses maintain a positive safety record and save money on premiums. For more information or to register for classes, visit www.ohiobwc.com or call 1-800-OHIOBWC.
Thursday,
May 20, 2004
Legislation passed last week outlines how Ohio will use its share of the national tobacco settlement over the next two years. Hospitals are eligible to receive a portion of the funding to reduce tobacco consumption and address other state health priorities.
House Bill 434, sponsored by Rep. Charles Calvert (R-Medina), provides $108 million to the Tobacco Use Prevention and Control Foundation (TUPCF), created in 2000 to develop and implement programs designed to decrease tobacco use in Ohio. The two-year allocation will be transferred into TUPCF's endowment fund, of which $20 million will be used to support a media campaign against youth smoking and $20 million will be used on smoking-cessation programming.
The bill also provides nearly $600,000, for state fiscal years 2005 and 2006, to OHA's Foundation for Healthy Communities to help hospitals that provide pulmonary rehabilitation services. More than 50 Ohio hospitals submitted applications for this funding. The foundation will also receive $800,000 over two years to help hospitals provide medical, preventive and outreach services to uninsured pregnant women and children. Hospital can access more information on available funds at www.ohanet.org/HealthyCommunities/tobacco/applytobacco.htm. Applications for pregnant women and children grants are due May 31. (Jeff Klingler, jeffk@ohanet.org)
New Albany Surgical Hospital Investor Looks to Sell Share
The corporate investor in the New Albany Surgical Hospital has
approached Central Ohio’s three hospital systems - Mount Carmel,
OhioHealth and Ohio State University Medical Center - about buying its
stake in the hospital. Surgical Alliance Corp., based in Nashville,
Tenn., is looking to sell its 33 percent share of the 42-bed niche
hospital. Roughly 30 Columbus-area orthopedic physicians own the
remaining shares. The hospital opened in December prior to the 18-month
federal moratorium on new specialty hospitals.
Additional Insurer Downgraded
A.M. Best Company has downgraded medical liability insurance carrier
Preferred Professional Insurance Company (PPIC), based in Omaha, NE,
from an A- (Excellent) to a B++ (Very Good). A.M. Best considers
carriers with a B++ as financially secure. PPIC provides insurance in
Ohio to physicians affiliated with a number of Catholic health systems,
including Catholic Healthcare Partners, Catholic Health Initiatives, and
Trinity Health Corporation. PPIC wrote approximately $5.75 million in
Ohio premium in 2002.
For more information on A.M. Best Company, visit www.ambest.com/ and to learn more about the current medical malpractice environment in Ohio, visit www.ohanet.org/med-mal/. Find out more about OHA Insurance Solutions, Inc., a new company created by OHA to help stabilize Ohio's medical liability insurance market, at www.ohainsurance.com/. (Rick Sites, ricks@ohanet.org)
Friday, May 21, 2004
Federal Budget Plan Spares Medicaid
The U.S. House this week passed a budget blueprint for fiscal year 2005 that does not instruct the Energy and Commerce Committee to find $2.2 billion in savings from FY 2005-2009, which likely would have come from Medicaid. The 2005 budget plan allocates $228 billion for Medicare and $252 billion for Medicaid, the State Children’s Health Insurance Program and other health programs. The budget plan now heads to the Senate for a vote. (Jonathan Archey, jonathana@ohanet.org)
OHAIS Licensed to Write Hospitals
OHA Insurance Solutions, Inc., (OHAIS) is now licensed by the Ohio
Department of Insurance to write hospital professional liability and
hospital general liability insurance. OHAIS expects to issue policies to
hospitals beginning in early June. Hospitals seeking liability insurance
are required to capitalize their premium to be eligible for coverage.
OHAIS began insuring physicians in January and has written policies for
about 50 physicians for $1.6 million in premium across the state to
date. OHAIS was created by OHA in 2003 to restore stability and
predictability to Ohio’s medical liability market. Contact Susan
Stanfield,
sstanfield@ohainsurance.com, or Ron Wade,
rwade@ohainsurance.com, or
call 614.255.4840 with questions. Find more about OHAIS at
www.ohainsurance.com.
Patient Protection Act Benefits Hospitals, Consumers
Ohio’s Patient Protection Act has proven beneficial to health care
providers and consumers alike. According to the Ohio Department of
Insurance (ODI), the act has saved Ohioans nearly $5 million since May
2000-including more than $1 million last year.
OHA lobbied legislators to support the bill, which benefits hospitals by giving health care providers more flexibility and control in dealing with patients’ health plans. In addition to other benefits, the bill has expansive health plan review processes that allow a health care facility or an authorized person to initiate an appeal to a health insuring corporation on behalf of an enrollee with the enrollee’s consent, and has mandatory direct access to obstetricians and gynecologists, allowing health care providers to more easily focus on preventative care.
Gov. Taft signed the act into law in July of 1999, expanding protection for Ohio’s health care consumers by allowing qualified consumers to appeal the denial, reduction or termination of health care services by their health care carrier. Over 1,800 cases have been conducted in the 44 months since the program began. Ohioans can take advantage of the service at no personal cost.
For more information, visit www.ohioinsurance.gov or call ODI’s consumer hotline at 1-800-686-1526. (Bridget Gargan, bridgetg@ohanet.org)