Payers & Providers California Edition – Issue of March 3, 2011

8/7/2019 Payers & Providers California Edition Issue of March 3, 2011

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In Brief

Childrens Hospital LosAngeles Rebrands

Childrens Hospital Los Angeles hasintroduced a new logo and mottoas part of a rebranding process for

its new acute care facility.The new logo, a butterfly withdifferent colors on each portion ofits wings, replaces the hospitalsdecades-long use of threeoutstretched hands against arainbow-colored background.

Underneath the new logo isthe hospitals new tagline: Wetreat kids better. A statementissued by Childrens said the wordsreflected its top rankings inpediatric care.

Childrens Hospital LosAngeles is preparing to open a$636 million, 317-bed cutting-edgefacility this summer that will not

only expand our campus, but willtruly take our capabilities andpatient and family care to the nextlevel, said DeAnn Marshall, thehospitals chief marketing officer.Theres no better time to revitalizeour brand identity.

The hospital, located just westof downtown Los Angeles, also hasadded an apostrophe to its name.The apostrophe had been left out ofthe hospitals original incorporationdocuments and had not been usedin any official capacity for the past70 years.

New Loma LindaHospital Near Resolving

Ownership Issue

Loma Linda University MedicalCenters new campus in Murrieta isedging toward opening later thismonth, and likely will do so afterresolving a thorny ownership

Continued on Page 3

NEWS

CEO/COO/CFO COMPENSATION

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L.A. County DHS Will Expand NetworThree Hospitals to be Added for Waiver Complianc

The Los Angeles County Department ofHealth Services will contract with threeprivate sector hospitals in order toaccommodate the requirements of a recentlyenacted federal waiver that allows the state toexpand the Medi-Cal program.

The Los Angeles County Board ofSupervisors voted 4-0 on Feb. 22 to have theDHS enter into contracts with Antelope ValleyHospital Medical Center in Lancaster; UCLA-Santa Monica Medical Center via the UCBoard of Regents; an unidentied hospital inthe San Gabriel Valley; and several medicalgroups afliated with the hospitals.

The contracting is connected to thewaiver the Centers for Medicare andMedicaid Services granted to California lastNovember that allows an expansion of theMedi-Cal program in the three years prior toits mandated expansion under federalhealthcare reform. The federal government isproviding about $10 billion in additional

funding to expand Medi-Cal eligibility but haa variety of requirements attached to the extramoney.

The CMS required that we meet certaincriteria for accessibility of care, said DHSChief Deputy Director John Schunoff. Wedont meet them in terms of inpatient care.

Los Angeles County operates three acutecare hospitals near downtown L.A., in theSouth Bay and the northern San FernandoValley, and an extensive network ofcommunity and county-operated clinics.However, geographical specications underthe waiver meant coverage gaps for plannedhospital care exist in the northern, eastern anwestern portions of the county. Withoutplugging those gaps, the county would not beable to expand Medi-Cal coverage as rapidlyas originally envisioned.

Legislation (Continued from Page One)

implementation of the ratios in 2004. Thehospital sector has claimed compliance, butalso noted that doing so has cost millions ofdollars in additional permanent hires and thecontracting with traveling nurse agencies.

Ofcials with CNA and other unions saythat hospitals have been failing to complythrough the inappropriate use of licensedvocational nurses, or not properly replacingnurses when they go on work breaks, orfailing to add more nurses when patientacuity rises.

There has been an increase in concerns

and complaints, said Bonnie Castillo, theCANs director of government relations. Whawere hoping to do is put more pressure on thindustry to comply.

The California Hospital Association, thestates primary lobby, has yet to take a positioon the bill, according to vice president ofexternal communications Jan Emerson-Shea.However, the CHA objected to the originalstafng legislation and has fought priorattempts by the CNA to stiffen penalties fornon-compliance. None of those previous billshave been signed into law.

Continued on Next Page
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Page 3Payers & Providers

Longer ALOS!*

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NEWS

In Brief

dilemma with a local medicalgroup. Physician Group of Murrietaowns a 45% stake in the 106-bedhospital. However, passage of thePatient Protection and AffordableAct last year forbid some jointly-owned hospital ventures. LomaLinda officials were unable toobtain a waiver from the federalgovernment to exempt thisarrangement, meaning the newfacility may not be able toparticipate in the Medicareprogram until the ownership issueis addressed.

Hospital spokespersonKathryn Stiles said thatnegotiations between Loma Lindaand the physicians were ongoing,but declined to discuss themspecifically.

Weve always maintainedthat we would seek Medicarelicensure, and we expect this to befully resolved before the hospitalopens, Stiles said.

Portnoy NamedPractice Fusion CFO

Jason Portnoy, a venture capitalfirm co-founder and former topexecutive with PayPal, has beennamed chief financial officer forSan Francisco-based electronicmedical records firm PracticeFusion.

"Both Practice Fusion and ourusers stand to gain from Jason'sleadership. He has intimate

knowledge of start-up operations aswell as experience driving growthand expansion for some of theworld's most sophisticatedtechnology companies," saysPractice Fusion Chief ExecutiveOfficer Ryan Howard.

Prior to joining PracticeFusion, Portnoy was co-founder ofClarium Capital Management LLCand CFO ofPalantir Technologies.

Practice Fusions primaryproduct is a cloud-based electronicmedical record physicians may useon Apple Computers iPad.

HEALTHCARES BEST ADVERTISING VALU]

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Kaiser Holds Hospital CompetitionSeeking Design For Smaller, Greener Facility

In an effort to push cutting-edge design,Oakland-based Kaiser Permanente is holdinga contest to create a template for a smallerand greener hospital.

Kaisers Small Hospital Big Idea is

soliciting entries from architects, architecturestudents and other interested parties.

The winner would receive up to$750,000 to develop their concept further,and could ultimately contract with Kaiser tohelp construct the design.

The contest centers on the creation of a100-bed facility tentatively slated to be built inLancaster in northeastern Los Angeles Countyby 2020. However, the design could be usedas a template for Kaisers hospital constructionin other parts of the country, according toKaiser spokesperson Susan McDonough.

People are moving farther and farther o(from urban centers), and this wouldaccommodate their needs, McDonough sai

In addition to cutting down on drivingtimes, the hospital template would likely use

green concepts intended to exceed Kaiserspledge to increase renewable energy resourcby 27% and cut energy use by 20% over thenext decade.

McDonough noted that the use of suchcontests is fairly commonplace in thearchitecture world, but that it is relatively rarin healthcare. Kaiser has never held such acompetition, she added.

Kaiser will announce a jury for thecompetition later this month, and announcethe winner in May.

Contract (Continued from Page One)

The contracts would go into effect on July1 and essentially benet the three privatesector hospitals by allowing them to collectfederal matching funds for Medi-Cal for adultpatients who previously had no coverage.

The two hospitals identied by DHS Antelope Valley and Santa Monica-UCLAMedical Center are operated by a hospitaldistrict and the University of California, publicentities that enable them to collect paymentsdirectly from the federal government.

Schunoff would not disclose the name ofthe hospital in the San Gabriel Valley, citingongoing negotiations.

Antelope Valley CEO EdwardMirzabegian noted that his hospital wouldcontinue to treat the same patients, but the

pact would allow his 390-bed facility anopportunity to be paid.

If they qualify for Medi-Cal, at least Iget something out of it, he said, adding thatthe hospital currently provides $6.5 million

a month in charity and uncompensatedcare.Ofcials with UCLA-Santa Monica

Medical Center could not be immediatelyreached for comment.

County DHS would not make anypayments to the hospitals, but it will pay upto $2 million to medical groups thatcontract with the facilities, according toSchunoff and DHS memos.

The contracts with the private sectorhospitals would expire at the end of 2013,when federal reform kicks in and Medi-Calexpansion can occur outside the boundaries

of the waiver, Schunoff said.
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Payers & Providers Page

In The Godfather Part Two, someoneopened the drapes on the Coreleonesbedroom. Unlike Moe Greene, they dodgedthe gunfire, but still nearly paid a terribleprice for this breach of privacy. Providerswho leave the drapes open on theirpatients privacy face dangers nearly asgrave.

!!!!!!Last week we discussed promotingmedical information security andavailability with those whose onlyexperience with patient medical recordswas being the patient providing the

information for that record.! We noted thatcurrent news reports of celebrity snoopingand stolen medical information helped usin explaining the need for protectingpatient information.

!!!!!!To stress the need to protect patientconfidentiality, we often share with criticalparties in our patient ombudsman workappropriately redacted medicalrecords. Most who see themimmediately grasp what is at risk:a vast amount of personal andsensitive information on anindividuals health, history, and

financial matters. This exerciseserves also as a reminder thatpatient records document care and are anintegral part of a patients treatment course.

!!!!!!The risk for breaches are only goingto grow as providers meet the demand forinteroperability when they expand theirElectronic Medical Record systems tointegrate with other providers EMRs and atthe same time make them available topatients via easy internet access. RegionalHealth Information Organizations (RHIOs)will further promote access across providerorganizations to needed patient

information, but they also provide manymore junctures where a violation of privacymight occur.

!!!!!!The Health Information Technologyfor Economic and Clinical Health Act(HITECH) passed in 2009 both giveth andtaketh away: HITECH is paying for theseregional networks and for the rapidadaptation of interoperable EMRS indoctors offices, while concurrently settingfines for breaches, which could soar intothe millions of dollars per violation.

!!!!!!Recently Massachusetts General

Hospital agreed to pay $1 million in finesFebruary when an employee lost 192 patierecords associated with its infectious diseoutpatient practice on a subway. At virtuathe same time, the HHS Office of Civil Rslapped another $4.3 million fine on CignHealth, a clinic operator in Maryland.

!!!!!!Providers have been mostly ensurthere are severe consequences when amedical record is breached.! Most recentlthree employees at University Medical Cewere swiftly fired for inappropriatelyaccessing medical records of the Tucson

shooting victims.!!!!!!Virtually all of the providers we hobserved in and out of bankruptcy were ato keep their patient records secure. Theoperational risks for an institution in analready precarious financial state were toosteep to allow a breach to occur. Many weunderfunded care settings with few electr

resources and safety net providers areoften staffed by elderly practitioners wresisted changes in how they recordinformation.

!!!!!!Even absent such severe punishmwe find far more feel-good stories o

compliance than not. The respect for tHealth Insurance Portability andAffordability Act and for the rights ofindividual patients almost always transcengreed and sloppiness. Unlike administratofar from the care setting or clerks engagedclaims processing, providers are part of thcare process and know the value of keepinthe record safe and available.

!!!!!!So with every horror story that mathe headlines, there at least 100 medicalrecord directors, ER docs, practice managcharge nurses or CEOs who get it right.

We have yet to meet the person who

leaves the unencrypted laptop on the subwInstead, we are far more likely to see thedrapes protecting those records tightly shu

OPINION

The Offer Providers Cant RefuseFinancial Penalties For Security Breaches Are Univer

By Jerry

Seelig

and Rick

Cussigh

Jerry Seelig and Rick Cussigh operate Seel

+Cussigh HCO LLC, a Culver City-based

patient ombudsman firm.

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+1%+B*/%)*+H@!^-++!]-20%)*56!(&)*+(40>*-./0)*+@B-: Op-ed submissions of up to 600 words are

welcomed. Please e-mail proposals to

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MARKETPLACE/EMPLOYMENTPayers & Providers Page 5

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INTERIM CFO, ACUTE CARE HOSPITAL

Seeking strong nancial leaders with ve or more years of experience as a hospital chiefnancial ofcer.The ideal candidate will have considerable knowledge of healthcare nancial operational policies/procedures, as well as proven experience with hospitals in transition or in turnaround situations. Mastersdegree or CPA preferred.

Current interim position available in California government hospital. Candidate must be willing to traveland live on-site during the week days for three to twelve months.

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Payers & Providers MARKETPLACE/EMPLOYMENT Page 6

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Payers & Providers California Edition – Issue of March 3, 2011