NEWS BRIEFS
NEWS BRIEFS
GAO releases report on surety bonds
In early March the General Accounting Office (GAO) released its long-anticipated report on surety bonds, recommending that the Health Care Financing Administration (HCFA) continue to require financial guarantee bonds of home health agencies and that they be capped at $50,000 for all agencies.
In it’s report, "Medicare Home Health Agencies: Role of Surety Bonds in Increasing Scrutiny and Reducing Overpayment," the GAO suggested that Congress consider exempting those agencies which, after a period of time, have demonstrated fiscal responsibility.
The GAO found that while the repetitive scrutiny that accompanies financial guarantee bonds may be beneficial for new agencies, those with a history of fiscal responsibility benefit little, if at all. The GAO also recommended the elimination of the need for agencies to purchase separate bonds for both Medicare and Medicaid, and the option of substituting Treasury notes or other federal debt obligations for surety bonds.
Among its other findings, the GAO noted that of home health agencies, only 40% were able to secure a surety bond before regulations were rescinded. And contrary to HCFA’s claim that the finance guarantee bonds were necessary because of the organization’s concern for Medicare overpayments, such uncollected sums were responsible for less than 1% of Medicare’s spending for home care in 1996.
The GAO also stated its belief that HCFA’s requirement for home health agencies to obtain bonds equal to 15% of their Medicare revenues is "unnecessarily burdensome."
New publications, video series available
The Oncology Nursing Society is developing a four-part video series geared to building stronger patient-care skills. Oncology Nursing Today, which will be released over the coming year, will be produced in partnership with the Stratos Institute for Healthcare Performance.
Covered in the series will be the following topics: basic genetics for the oncology nurse (March 1999), pharmacology 2000 for the oncology nurse (June 1999), the management of physical assessments and supportive cancer care (September 1999), and complementary therapy options for patients (December 1999). For further information, please contact Stratos Institute for Healthcare News Performance at (949) 388-2100.
The 1999 Directory of Healthcare Strategic Management and Communications Consultants provides health care executives with a listing of industry consultants specializing in strategizing, market development, marketing, planning, and public relations.
The publication, which has been released by the Society for Healthcare Strategy and Market Development, a membership group of the American Hospital Association (AHA), lists consulting firms according to geography, specialty, Web site, and alphabetically. Cost is $30 for members and $40 for nonmembers. For more information, please contact AHA at (800) AHA-2626.
JCAHO opens toll-free hotline
The Joint Commission on Accreditation of Healthcare Organizations (JCAHO) now has a toll-free complaint hotline. Created in response to a recent consumer forum, the hotline will provide patients, families, and caregivers with a forum for sharing their concerns regarding quality of care issues at accredited health care providers. Matters concerning billing, insurance, and payment disputes however do not fall under JCAHO’s jurisdiction, nor do those regarding labor relations or individual personnel.
Individuals wishing to register a complaint can call (800) 994-6610 weekdays between the hours of 8:30 a.m. and 5 p.m. (Central Time).
Tenet announces changes, hospital acquisitions
Tenet Healthcare Corp. in Santa Barbara, CA, has announced several changes, among them that Stephen Newman MD has been named vice president of operations for company subsidiary Tenet HealthSystem. Newman, previously the CEO of Columbia/HCA Healthcare Corp.’s three-hospital Louisville Healthcare Network, will oversee nine hospitals from his headquarters in New Orleans. He replaces Richard Freeman, who has been named as CEO of Philadelphia’s Medical College of Pennsylvania Hospital, which was recently purchased by Tenet.
Also in the news, Tenet Healthcare Corp. has won the right to purchase two Massachusetts hospitals, both of which were previously owned by Columbia/HCA Healthcare Corp. Tenet will pay $75 million for an 80% stake in MetroWest, a two facility group comprised of the 281-bed Framingham Union Hospital and the 194-bed Leonard Morse Hospital in Natick.
As part of the agreement, Tenet has agreed to several stipulations, among them that it will extend Columbia’s commitment to keep open both hospitals’ emergency rooms and medical/surgical services. Additionally, the firm has committed to $16.1 million in capital expenditures in addition to between $6 million and $8 million in special project funding.
Accreditation for Integra
The Integra Group, a home care and ancillary service preferred provider organization, has earned a full two-year accreditation from the American Accreditation HealthCare Commission/ URAC, and in doing so has become the first home care network to receive this seal of approval. Integra counts more than 1,000 provider locations across the country and offers 17 categories of specialty services to its more than 6 million eligible members. Among the offerings are durable medical equipment, home health care services, home infusion and skilled nursing.
HFMA elects chairman
Richard J. Henley, FHFMA, FACHE, has been named by the Healthcare Financial Management Association as its newest chairman. During his tenure he plans to concentrate on ensuring that health care finance professionals have access to all the information they need "to recognize ethical threats and act accordingly." In addition to his new role, Henley serves as executive vice president and treasurer for Vassar Bros. Hospital in Poughkeepsie, NY.
L.A. workers unionize
By an overwhelming majority (16,250 to 1,925) Los-Angeles area home care workers have agreed to affiliate with the Service Employee International Union.
Many of these 75,000 employees worked for public agencies, which service primarily low-income patients, and had little or nothing in the way of employee benefits.
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