Former director of finance charged with embezzling $1.5M from UNC hospital

http://www.beckershospitalreview.com/legal-regulatory-issues/former-director-of-finance-charged-with-embezzling-1-5m-from-unc-hospital.html

Kimberly R Hobson

The former director of finance for UNC Regional Physicians was charged Tuesday with embezzling more than $1.5 million while she worked at High Point (N.C.) Regional Health, part of Chapel Hill, N.C.-based UNC Health Care.

The former High Point Regional Health employee, Kimberly Hobson, was charged with felonious embezzlement, according to the Winston-Salem Journal.

Hospital officials discovered the alleged embezzlement July 28 and subsequently fired Ms. Hobson.

She is being held at High Point jail on $1 million bail. Her next court date is set for Sept. 15.

The investigation into the alleged embezzlement is ongoing on the state and federal levels, according to the report.

IRS revokes hospital’s tax-exempt status for failure to comply with ACA rule

http://www.beckershospitalreview.com/finance/irs-revokes-hospital-s-tax-exempt-status-for-failure-to-comply-with-aca-rule.html

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The Internal Revenue Service has revoked the tax-exempt status of an unnamed nonprofit hospital for failure conduct a community health needs assessment, adopt an implementation strategy and make it widely available to the public.

In a letter dated Feb. 14, 2017, and released earlier this month, the IRS said it revoked the hospital’s tax-exempt status for failure to comply with section 501(r) of the Internal Revenue Code.

The ACA added new requirements that hospitals must meet to qualify as a tax-exempt facility under section 501(c)(3) of the Internal Revenue Code. Specifically, the ACA added section 501(r), which imposes four new requirements, one of which requires hospitals to conduct a community health needs assessment at least once every three years and adopt an implementation strategy to address community health needs identified in the assessment.

The IRS revoked the tax-exempt status of the unnamed hospital for what the agency referred to as “egregious failures when reviewed in the context of [section] 501(r).” Although the name of the hospital is not included in the letter from the IRS, previous correspondence from the agency identified the facility as a disproportionate share hospital and a critical care access facility.

The IRS noted a revenue agent met with the hospital’s CEO, CFO and COO during the audit, and the administrators made it clear the organization “had neither the will, the financial resources, nor the staff to follow through with the CHNA process.”

People Judge You by Two Criteria When They Meet You

http://thepowerofideas.ideapod.com/harvard-psychologist-says-people-judge-based-2-criteria-first-meet/?utm_content=buffere15ff&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

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Dignity Health, UCSF Health Announce Bay Area Collaboration

https://www.definitivehc.com/news/dignity-health-ucsf-health-announce-bay-area-collaboration?source=newsltr-news&utm_source=newsltr-news&utm_medium=email&utm_campaign=08-15-17

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Dignity Health and UCSF Health have formalized an affiliation that will combine the best of academic medicine and community-based care, increasing access to high-quality, affordable care and improving the overall health care experience for patients in the San Francisco Bay Area.

The affiliation will bring UCSF Health’s academic medical center expertise to three Dignity Health hospitals in the Bay Area: Sequoia Hospital in Redwood City, and Saint Francis Memorial Hospital and St. Mary’s Medical Center in San Francisco. The organizations also have signed a Letter of Intent for physicians at Dignity Health Medical Group Sequoia and at Dignity Health Medical Group Saint Francis/St. Mary’s, both services of Dignity Health Medical Foundation, to collaborate with UCSF clinical faculty in sharing best practices and improving access, quality, efficiency and coordination of care for shared patients. In addition, these three Dignity Health hospitals have joined the Canopy Health accountable care network, to provide a strong continuum of care as patients’ health needs transition between primary and specialty care.

“Health care works best when we collaborate to offer the best thinking and the latest medical advances to our patients,” said Shelby Decosta, senior vice president and chief strategy officer for UCSF Health. “Dignity Health’s focus on excellent care, as well as the humanity of that care in a community setting, is the perfect balance for UCSF Health’s depth of knowledge and specialty services. Together, we can draw upon each other’s expertise for quality and service improvements, and best practices, and to provide specialty care with shorter wait times and a better patient experience.”

This new affiliation will enhance medical, surgical and related health care services in the Bay Area by bringing together UCSF’s and Dignity Health’s expertise, while providing patients with a more seamless experience between primary and specialized care in a community hospital setting.

“UCSF Health is an excellent partner in the Bay Area, and we are looking forward to a collaboration that provides increased patient access to high-quality care,” said Todd Strumwasser, MD, senior vice president of operations for Dignity Health Bay Area. “We are pleased to welcome UCSF physicians to our community hospitals, and offer patients a continuum of care never before available in the Bay Area.”

The alliance brings together the two longest-serving health providers in San Francisco, and reflects a long-standing and evolving relationship between Dignity Health and UCSF Health – two health systems known for their clinical excellence and missions to provide quality, affordable care to all, including the underserved. Dignity Health and UCSF Health have previously collaborated to improve pediatric burn care, acute rehabilitation, and cardiac arrhythmia, among other conditions.

 

Trump administration, HHS stepping away from Affordable Care Act promotion, bundled payments

http://www.healthcarefinancenews.com/news/trump-administration-hhs-stepping-away-affordable-care-act-promotion-bundled-payments?mkt_tok=eyJpIjoiWlRsaE56QTFZMk00WVdVdyIsInQiOiJPV2NZVXpmSXoxY2s2blNFdG9DYmt0UHh1bnkzc0NcL0R3YnpCcEhqdm5lWVwvNlJrN2xDVlwvUFZ5ZFBzOElGY253OGFMZWVKVnh5a3dTSDM1RFwvdFN3cklQTGd0NmN0YzFrQjIrK21WUW5UTWhaUXVUdUhZZU41dGNwcUtvYmZUaEMifQ%3D%3D

New bundled payment models for cardiac care may be on chopping block, along with changes to joint replacement.

Lacking a repeal and replacement bill for the Affordable Care Act, President Trump appears to be following through on his Twitter promise to “let Obamacare implode.”

The Trump administration and the Department of Health and Human Services is distancing itself from several groups which in the past have helped market open enrollment, according to talkingpointsmemo.

HHS has not reached out to the Latino Affordable Care Act Coalition, the United Methodist Church, the American Congress of Obstetricians and Gynecologists, the American Medical Student Association, the National Urban League, the National Latina Institute for Reproductive Health, the National Hispanic Medical Association, and the National Partnership for Women and Families, according to the report.

Open enrollment in the ACA marketplace starts November 1.

The new bundled payment model for cardiac care coordination and cardiac rehabilitation may also be on the chopping block, along with unspecified changes to the joint replacement model, according to a proposed rule published August 10 in the Office of Management and Budget.

The models were introducted by the Centers for Medicare and Medicaid Services’ Innovatoin Center, or CMMI, run by Patrick Conway, MD, who last week announced he was leaving CMS to head Blue Cross Blue Shield North Carolina.

HHS Secretary Tom Price, an orthopedic surgeon appointed by the president, has consistently voiced his opposition to mandatory bundled payment programs.

Chinese billionaire Tianqiao Chen makes big stock buy in CHS, brings stake to 22.1%

http://www.healthcarefinancenews.com/news/chinese-billionaire-tianquo-chen-makes-big-stock-buy-chs-brings-stake-221?mkt_tok=eyJpIjoiWlRsaE56QTFZMk00WVdVdyIsInQiOiJPV2NZVXpmSXoxY2s2blNFdG9DYmt0UHh1bnkzc0NcL0R3YnpCcEhqdm5lWVwvNlJrN2xDVlwvUFZ5ZFBzOElGY253OGFMZWVKVnh5a3dTSDM1RFwvdFN3cklQTGd0NmN0YzFrQjIrK21WUW5UTWhaUXVUdUhZZU41dGNwcUtvYmZUaEMifQ%3D%3D

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The purchases were made through Chen’s various Shanda affiliates, documents showed.

Chinese billionaire Tianqiao Chen is once again raising eyebrows in the healthcare sector, after significantly increasing his stake in struggling healthcare organization Community Health Systems, which is based in Franklin, Tennessee.

According to a filing with the Securities and Exchange Commission, now owns 22.1 percent of CHS‘ outstanding shares of common stock after buying up roughly 9.8 million additional shares over the last week. The price per share varied from $6.1 to $8 per share.

The purchases were made through Chen’s various Shanda affiliates, documents showed.

The big stock buy will inevitably be viewed by at least some as a move to take a bigger interest in the struggling company, something that has been speculated about in the past when Chen first came on the scene and bought a large block of stock in the company last year.

A spokesperson for Shanda Group issued the following statement. “Shanda maintains a good relationship with the CYH management team and intends to engage with them regarding business and operations, and the status of CYH’s ongoing turnaround strategy.”

CHS has been in the news lately as it forges ahead with its ambitious divestiture plan to offload 30 hospitals in hopes of alleviating its billions-large debt load and tightening up its operations. So far the company has sold 20 of those hospitals and has plans in the works to unload the remaining ten. It has also said in a recent earnings call that they are entertaining plans to sell even more, but no definitive details have been released.

What Will You Do When One of Your Employees Is Outed Online For Their Activism?

https://www.eremedia.com/tlnt/what-will-you-do-when-one-of-your-employees-is-outed-online-for-their-activism/?utm_source=Marketo&utm_medium=Email&utm_campaign=TLNT%20Daily-2017-08-17T05:30:00.000-07:00&mkt_tok=eyJpIjoiTUdRek5UTTVaREpoTWpnMyIsInQiOiJRSTl0K210V003czlJRDJ3bmtzNW9IbVBiSHhcL3BvbzdFK0pGMlBOK2E0YUFhRmlaTElCWmYxV2hGV1VVMEpHTm43Wm1GMHlUekl0SnZ5cHA0QUdaUXJRVExJNkIzcWhhWDhlbjAzUXA5K3hoU0prTHZITnhDbGd0S1l1bFBicTUifQ%3D%3D

It should be no secret to anyone that political activity and tensions are currently high in the US. And by now, everyone in HR has heard about the Top Dog restaurant employee who resigned as a result of his participation in the Charlottesville turmoil and the Google employee who was fired because of his controversial “diversity manifesto.”

Rather than just being news items, these cases should be treated as illustrative examples of the recent dramatic increase in political sensitivity in and around the corporate world. Executives and HR should treat them as a wake-up call and begin asking themselves a question that has become extremely pertinent. And that question is:

Does our firm have a formal plan of action covering what to do and how to limit the damage if one of our employees is publicly ridiculed as a result of what is known as Internet shaming?

If you’re not familiar with the term “Internet shaming” in the corporate world, it is when a firm’s employee is publicly exposed and ridiculed on the Internet for something they did that was controversial.

The need for a social controversy plan

The need for a policy and an action plan relating to political and social controversy increases every day for a variety of reasons. They include the combined impact of a higher number of public marches, the proliferation of mobile phone videos of these protests and the rise of Internet and social media websites (e.g. YesYoureRacist Twitter account) that actively use pictures/videos to shame individuals and their employer. Unfortunately, this shaming often results in the public making the connection (fairly or not) between an individual’s actions and the company that employs them. And that becomes a major corporate issue when that employee shaming leads to on-site protests, a loss of customers and damage to your firm’s product and employer brand image.

In the past, at least in the US, many firms have been operating under the legal principle that activities outside of work and that an employee’s personal beliefs are none of an employer’s business. However, when an employee’s actions or publicly exposed beliefs hurt the company or its employees, in my view a firm must at least consider revisiting its existing approach to employee activities.

Top 10 “Should I fire a controversial employee” action steps to consider

You should of course always consult with legal counsel before taking any action. But as part of your policy review process, here are 10 steps you should consider.

  1. Make a strong business case – You can’t expect executives to take action until they fully understand the dollar consequences of an action. So start by working with the CFO’s office to identify and then quantify in dollars all of the possible negative consequences that may result when an employee is publicly shamed. These consequences should include on-site protests, boycotts, employee turnover, employee brand/recruiting damage and damage to product sales and your product brand image.
  2. Consult with your corporate counsel – There are many complex legal issues involved so work closely with legal counsel. Also be aware that some states (e.g. California) specifically prohibit the firing of employees for lawful activities outside of work. And it’s also true that the laws and employee expectations are completely different in each country around the world. If you have a union, you should also consider involving them.
  3. Be aware that every available solution has negative consequences – Be aware from the start that, unfortunately, there are no perfect solutions to political controversies surrounding your employees. And that means that whatever solution you select will have many negative downsides. Prevention is the highest impact action, so begin by warning your employees to avoid controversy. Ignoring the problem is the solution with the highest negative consequences. However, firing or releasing controversial employees can also result in a backlash (e.g. marches are planned this weekend on Google headquarters and elsewhere protesting the firing of the employee who wrote the diversity manifesto).
  4. Educate your employees and applicants – Because your employees will likely be thinking about this issue already. It’s critical that you quickly let them know your expectations and provide them with illustrative examples of activities that they should avoid. You should also have a process for answering anonymous questions in this area. And if your policy extends to job applicants, you may want to add a social media check to your hiring process so that you don’t hire already controversial employees.
  5. Clearly define the activities that are prohibited/questionable – Perhaps the most difficult task is clearly defining what is acceptable behavior and what is not. Start by assuring employees that you are politically neutral and that you will look at damaging behaviors across the political spectrum. Whatever boundaries you set, it’s critical that you pretest them to ensure that they are clear to your employees. In most cases, it is easier to legally terminate an employee if violence or illegal activities are involved. It is also sometimes easier to terminate if the controversial employee is highly visible or if they are a manager.
  6. Specify the possible outcomes – If you are going to sanction or even fire employees for controversial beliefs or actions, you need to make those punishments crystal-clear. Some possible actions include: asking the employee to disavow, suspension, encouraging them to resign, or termination. In some cases, it may be wise to simply provide the employee with a severance package if they voluntarily leave and agree not to sue and if they stay out of the public limelight.
  7. Monitor what’s happening – As long as the political climate is highly charged, your social media employees could be asked to pass on any possible social media issues in this area. Internal employee forums and affinity groups could also be monitored. You might also encourage your employees to make HR aware when they spot potential issues.
  8. React quickly – No one that I have encountered has ever suggested that a delay is a good thing. So be able to react within a day or two if you want to minimize the damage to your firm.
  9. Reveal the actions that you take – The company’s image may continue to be damaged if you fail to make the public aware of the corporate actions that you took to resolve the controversy.
  10. Learn from each event – Finally, because this problem will be continually evolving, it’s important to learn from your errors and those made by other firms. And then, continually update your policies and processes to reflect the latest best practice approach.

Final thoughts

The free-speech article of the Constitution only protects citizens against government actions. So if you are a private employer, rather than the Constitution, you need to consider other elements including local employment laws and the best interests of your employees, customers and shareholders.

Because this is a highly complex and risky area, I expect many firms to do nothing. However, that can be a major mistake because in the near future you are likely to see many more protests that are videoed, an increase in Internet shaming and many more controversial tweets and Internet exchanges covering your employees and contractors. As a result, in my view, the time to at least begin the conversation on how to improve your reaction is today.