6 things wrong with hospital medicine

https://www.kevinmd.com/blog/2018/09/6-things-wrong-with-hospital-medicine.html

Image result for hospitalist movement

In 2002, when I began my first hospitalist job, I was a dyed-in-the-wool hospital medicine convert, convinced that the transfer of inpatient care to true specialists in hospital medicine (hospitalists) would dramatically improve the quality and efficiency of inpatient care, increase patient satisfaction and decrease costs.

By 2008, I had developed serious doubts, which prompted me to publish an editorial in the Journal of Hospital Medicine, entitled “The Expanding or Shrinking Universe of the Hospitalist” (2008) that attempted to raise a red flag of concern about hospitalists, in general, failing to become “hospital medicine specialists” and instead accepting the inferior role of “triage shift workers.”

Now, in 2018, I believe it is more appropriate to raise a white flag of surrender. I could write a book on the topic, but briefly, here are the six pillars of what went wrong with hospital medicine, in my opinion.

 

First pillar. In the first decade of the hospitalist movement, private hospitalist management groups (and hospital-employed hospitalist groups) popped up quickly all over the country, jockeying aggressively for market share, and working with a simple equation: a hospitalist physician was a fixed cost, and his/her patient load (primarily) was revenue. So the larger the patient load per hospitalist, the greater the profit. Young hospitalist applicants — almost all fresh out of training, in debt, hungry for income and already accustomed to long hours of work — were easily lured to the hospitalist positions offering the highest salaries, which were logically accompanied by the highest patient loads. Rising salaries were repeatedly celebrated by hospitalist leaders as evidence of the growing value of hospitalists, whereas they were more likely a result of the above market forces.

 

Second pillar. The high workloads resulted, quite naturally, in hospitalists aligning themselves in ways that increased patient encounters but minimized effort, which largely meant deferring responsibility for patient care and clinical decisions to others; that is, primarily, a liberal use of specialist consultations. In my experience, hospitalist progress notes quickly evolved into something like this: “Acute kidney injury, per nephrology; Chest pain, per cardiology; Cellulitis, per infectious disease.” Next patient. Time-consuming tasks, like end-of-life care discussions, were whittled down to a single line: “Consult palliative care.” (One hospitalist colleague actually explained to me once how he strategically avoided patients whose families were currently in the room, since he had to see over 30 patients a day on weekends and couldn’t spare the time for any family discussions.) Obviously, this short-sighted approach to a new medical specialty was a death blow to almost all of the claimed benefits of the hospital medicine movement.

 

Third pillar. With hospitalists increasingly dominating inpatient care, hospital administrators found that they could use this captive group of young doctors to increase hospital revenue by raising the case-mix index with “proper documentation.” Whereas comprehensive documentation of one’s clinical findings and decision making is certainly an essential part of quality inpatient care, the unspoken goal of the hospitals was to push the case-mix index higher and higher. A troponin of 0.05 became an NSTEMI. A cough and temperature of 99.5 became sepsis or severe sepsis (if there was a slight creatinine bump or relative hypotension) — and why not add acute respiratory failure, if someone happened to catch a low oxygen saturation reading (from a malpositioned pulse oximeter). In a darkly comical twist, the risk management mantra that “if you don’t document it, it didn’t happen” was tragically flipped into its false corollary: “If you do document it, it did happen”; that is, “oxygen saturation dropped to 85 percent on room air,” “patient was in severe respiratory distress,” etc. Unfortunately, this gray area of potentially exaggerated documentation muddies the clinical communication between clinicians, not to mention issues of ethics and law.

 

Fourth pillar. In much the same way, hospitalists were placed in the center of “level of care” assignments; that is, observation status versus inpatient status. Specifically, if an inpatient stay could be justified, by a “good” hospitalist’s “improved” documentation, the hospital could increase revenue by two to three times over an observation stay. Hospitalists were given subtle encouragement to transform things like atypical chest pain, UTI, or tingling fingers into life-threatening conditions, requiring complex decision making, and fraught with numerous potentially serious complications, and absolutely requiring more than two midnights to evaluate and treat properly. Once again, the ideal of a careful and proper diagnosis, with an appropriate plan of care in an appropriate setting, was profaned. Clinical decision making often blurred into a form of hospitalist doublespeak which obscured the actual severity of illness to achieve desirable metrics, earn a bonus or negotiate a better contract next cycle.

 

Fifth pillar. In addition, utilization review nurses were pressing hospitalists to get fixed-DRG patients out of the hospital as quickly as possible, to increase profit margins and make room for more patients and more revenue. This rapid-fire inpatient management r encouraged “good” hospitalists to order a shotgun round of tests and consultations up front on their admitted patients, and ultimately led to a lot of unnecessary testing, and a lost reliance on a proper history and exam, serial assessments and a cognitive, algorithmic approach to diagnosis and treatment — all further diminishing the clinical acumen of highly-trained individuals who truly could have been, in a different world, hospital medicine “specialists.”

 

Sixth pillar. Quality measures, supposedly aimed at improving patient outcomes, were an additional blow, as they unfortunately led physicians to do things that were not consistent with good clinical judgment. For example, in a case I saw, a patient presented with an acute tonic-clonic seizure, and their lactic acid level was markedly elevated (of course, from the seizure); but they were treated for sepsis with a fluid bolus and broad-spectrum antibiotics, because if someone saw the lactate level, the case would “fall out.” Similarly, triple antibiotic regimens were inappropriately used for viral bronchitis because of a stated concern for health care-associated pneumonia. Basically, non-thinking was being promoted in the service of higher quality scores — not higher quality.

 

Although these pillars are surely not generalizable to all hospitalist programs, especially academic ones, the hospitalist movement as a whole is a perfect example of how administrative and market forces in health care can largely extinguish the incredible potential of a new specialty. And that’s sad.

 

 

 

California health system’s bankruptcy challenged by employee union

https://www.beckershospitalreview.com/finance/california-health-system-s-bankruptcy-challenged-by-employee-union.html

Image result for California health system's bankruptcy challenged by employee union

El Segundo, Calif.-based Verity Health System, the nonprofit operator of six hospitals, filed for bankruptcy protection Aug. 31. The bankruptcy proceedings are being challenged by SEIU-UHW, a union representing 2,000 workers at Verity Health hospitals.

The hospitals were originally owned by Los Altos, Calif.-based Daughters of Charity Health System. The financially troubled system began seeking a buyer for the hospitals in 2014, and Integrity Healthcare, a company created by BlueMountain Capital Managementtook over the facilities in 2015 and renamed them Verity Health System. Billionaire Patrick Soon-Shiong, MD, bought Integrity in July 2017, according to the Los Angeles Times.

Dave Regan, president of SEIU-UHW, expressed concern about Verity entering bankruptcy.

“When Verity bought these hospitals from Daughters of Charity four years ago, they made promises to these communities that they would not lose access to the care they needed,” he said in a press release. “Now it looks like Verity’s billionaire owner wants to go back on those commitments.”

In the bankruptcy filing, Verity seeks court permission to sell the hospitals from any liens and encumbrances. SEIU-UHW contends this shows Verity’s “intent to nullify their obligations both to their union collective bargaining agreements and the conditions of sale imposed by former Attorney General Kamala Harris when Verity purchased the hospitals.”

By challenging the bankruptcy filing, SEIU-UHW intends to ensure the hospitals are kept open and continue to meet pension obligations and maintain current services and levels of employment.

 

 

6 latest healthcare industry lawsuits

https://www.beckershospitalreview.com/legal-regulatory-issues/6-latest-healthcare-industry-lawsuits-091018.html

Related image

From national healthcare organizations refiling a lawsuit over 340B drug pricing program cuts to a Georgia physician accused of submitting thousands of false claims to Medicare, here are the latest healthcare industry lawsuits making headlines.  

1. CHS, Quorum say investors weren’t duped into buying stock at inflated prices
Franklin, Tenn.-based Community Health Systems and Brentwood, Tenn.-based Quorum Health urged a federal judge not to grant class certification in a shareholder lawsuit alleging Quorum’s stock was trading at an inflated price after its spinoff from CHS.

2. Georgia physician allegedly submitted 4,500 false claims for unnecessary lead poisoning treatments
Federal investigators allege Charles Adams, MD, a physician in Fort Oglethorpe, Ga., injected thousands of patients with a lead poisoning treatment they didn’t need, and billed the government $1.5 million for medically unnecessary treatments.

3. Premera Blue Cross accused of destroying evidence in data breach case
The plaintiffs in a class-action lawsuit against Premera Blue Cross, which involves a 2014 data security incident, claim the payer “willfully” destroyed evidence that would have provided details of the breach.

4. Hospitals refile lawsuit against CMS over $1.6B in 340B cuts
The American Hospital Association, along with several other national healthcare organizations and hospitals, refiled their lawsuit against HHS to reverse Medicare payment cuts for drugs purchased through CMS’ 340B drug pricing program, the AHA announced Sept. 5.

5. Medical center owners allegedly double billed insurers, altered patient records as part of $80M scheme
Four people were charged in an $80 million Medicare fraud scheme that involved providing unnecessary medical treatment to patients.

6. Physician imposter allegedly diagnosed patient at California hospital
A 23-year-old man is accused of impersonating a physician at California hospitals.

 

 

Dignity Health’s timekeeping software denies nurses overtime pay, lawsuit alleges

https://www.beckershospitalreview.com/legal-regulatory-issues/dignity-health-s-timekeeping-software-denies-nurses-overtime-pay-lawsuit-alleges.html

Related image

Three nurses, who all worked for San Francisco-based Dignity Health at one time, filed a lawsuit against the health system Sept. 10, alleging seven of its regional hospitals denied them overtime pay, according to the Sacramento Business Journal.

The lawsuit, which is seeking class-action status, alleges the seven Dignity hospitals use timekeeping software that avoids paying nurses overtime.

Registered and licensed practical nurses at Dignity Health hospitals typically arrive 20-30 minutes before their shifts begin and stay 10-20 minutes after their shifts end for preparatory purposes, the lawsuit claims. However, nurses aren’t paid for this additional work because the timekeeping software allegedly rounds to the nearest hour.

“The result is RNs and LVNs are only paid for exactly 12 hours of work each shift (which is consistent with their paystubs), regardless of when they actually clock in or out,” the lawsuit states, according to the Sacramento Business Journal.

In an emailed statement to the Sacramento Business Journal, Dignity Health said it is reviewing the complaint and that it typically does not comment on pending litigation.

The following seven California hospitals are listed in the complaint: Woodland Memorial Hospital; Mercy General Hospital in Sacramento; Mercy Hospital of Folsom; Mercy San Juan Medical Center in Carmichael; Mercy Medical Center Redding; Methodist Hospital of Sacramento; and Sierra Nevada Memorial Hospital in Grass Valley.

 

 

Envisioning new roles for the health system

It’s obvious that if we’re going to make healthcare a sustainable proposition for the nation, we have to address the elephant in the room—inefficient, high-cost hospital systems that are built and incentivized to maximize reimbursement, not outcomes. One of our core beliefs is that we’re not going to fix that problem without engaging health systems in the work. The notion that we’re going to “disrupt” hospitals and make them “obsolete” is the worst kind of wishful thinking, a David-and-Goliath fantasy that doesn’t us any closer to a real solution. What’s needed are re-envisioned health systems that transform the way they organize and deliver care in a way that drives real value for consumers. Over the next several weeks in this space, we’re going to share one of our core frameworks for working with health systems to advance that goal. We’ll lay it out piece by piece, and then discuss some of the major implications for health system leaders.
 
We start with a conceptual depiction of the status quo. We describe today’s health system as “Event Health” because most providers are in the business of single-serve interactions with patients, paid on a fee-for-service basis. And indeed, many of the healthcare needs that consumers have present as “events”—acute episodes of illness that can be addressed with a one-time service interaction. For instance, I may have a sinus infection and need treatment, and a single visit to urgent care solves the problem. But across the stages of their lives, consumers have other kinds of health needs as well: some are episodic, with multiple events taking place over a defined time period (think pregnancy and childbirth, joint replacement, heart surgery). And some are just conditions that need to be managed over an extended period (diabetes, depression, cancer). But our health system is a hammer looking for nails—addressing health needs of every type with an event-driven model. Next week, we’ll begin to discuss alternative organizing principles for the health system that moves beyond this “Event Health” approach.

 

California’s Verity system files bankruptcy, faces $175M in annual losses

https://www.healthcaredive.com/news/californias-verity-system-files-bankruptcy-faces-175m-in-annual-losses/531524/

Image result for hospital bankruptcies

Dive Brief:

California-based Verity Health System filed for Chapter 11 bankruptcy late last week. The nonprofit operator blamed ongoing losses and debt, along with aging infrastructure and an inability to renegotiate contracts, for its tenuous operating position. The system secured debtor financing of up to $185 million, and plans to keep its six hospitals open during the bankruptcy proceedings.

The Friday filing follows a statement in July noting that Verity was exploring different avenues to pull the system out of its slump, including the potential sale of some or all of its hospitals and other facilities.

Last year, billionaire investor and entrepreneur Patrick Soon-Shiong purchased Integrity Healthcare, the company that manages Verity, with the intent to revitalize the system and upgrade its technology while continuing to serve lower-income populations. Yet, “after years of investment to assist in improving cash flow and operations, Verity’s losses continue to amount to approximately $175 million annually on a cash flow basis,” and more than $1 billion overall, Verity CEO Richard Adcock said in the company’s bankruptcy announcement.

Dive Insight:

The company has been struggling for a while and can “no longer swim against the tide” of its operating reality, which includes a legacy burden of more than a billion dollars of bond debt and unfunded pension liabilities, an inability to renegotiate burdensome contracts, the continuing need for significant capital expenditures for seismic obligations and aging infrastructure,” Adcock said.

Verity’s problems come in an caustic environment for U.S. hospitals, many of which are suffering from costs that are rising faster than revenues. Credit rating agency Moody’s warned just last week that the nonprofit provider industry was on an “unsustainable path.”

A recent MorganStanley analysis found that about 18% of American hospitals were at risk of closure or performing weakly, a high figure in historical context. Only 2.5% of hospitals closed over the past five years, yet Moody’s estimated 8% of the 6,000 hospitals studied were apt to close their doors. Additionally, more nonprofit hospitals suffered credit downgrades in 2017, and Moody’s revised its outlook for the hospital sector from stable to negative.

But it’s not only industry pressure that’s causing Verity to fold. Another burden is the management of Soon-Shiong, who’s been hit with backlash for the way he runs his businesses and methods.

The South Africa-born surgeon and investor purchased the hospitals in July 2017, following a 2015 acquisition by New York hedge fund BlueMountain Capital Management. The system had struggled financially for years and needed the influx of cash both buys gave it.

“There’s going to be a huge capital need,” Soon-Shiong said at the time. “There’s been little investment because these hospitals could not afford it.” He said he planned to bring in new equipment and technology, along with expanded oncology, transplant, cardiology and orthopaedic services. Through his company NantWorks, Soon-Shiong funneled more than $300 million into the system within the year, but Verity’s losses continued to mount.

At the time of the acquisition, Soon-Shiong, who has founded and sold multiple biotech companies and now owns a stake in the Los Angeles Times and L.A. Lakers, heralded the charity work done by the hospital, but said the restructuring was “inevitable” due to years of underinvestment.
Touted plans to revitalize the flagging hospital system didn’t pan out, and some of Soon-Shiong’s critics say it was intentional.

“It has become crystal clear by the bankruptcy announcement that he virtually had no intention of keeping these hospitals open and to continue to serve the poor,” San Mateo County Supervisor David Canepa told news outlets following the announcement.

Labor unions are similarly displeased. SEIU-UHW representative David Miller reportedly said “there were other paths out of this” and that it’s a “very destructive approach,” as the bankruptcy filing could put employee pensions at risk.

But in the press release, Adcock said the bankruptcy filing was the best thing for all involved, and told Reuters that the 1,650-bed, 6,000-employee company has already received interest from more than 100 parties. Potential suitors include large national operators. Any sales will now be supervised by the bankruptcy court and approved by regulators

 

 

Hospitals eye making generics for 20 drugs that they say are overpriced or in short supply

https://www.cnbc.com/2018/01/18/hospitals-plan-to-create-their-own-generic-drug-company.html?__source=sharebar|facebook&par=sharebar

Image result for Hospitals eye making generics for 20 drugs that they say are overpriced or in short supply

Several hundred hospitals that plan to form their own generic drug company are eyeing making “about 20” pharmaceutical products whose existing versions either cost too much or are in short supply for no good reason, the CEO of one of those hospitals said Thursday.

Dr. Marc Harrison, chief of Utah-based Intermountain Healthcare, during an interview on CNBC’s “Closing Bell,” would not identify the existing drugs that the new company wants to replicate on its own, or have done on a contract basis.

Harrison said, “We think it will be early ’19 before our first drugs come to market.”

And he said the group also is hoping to possibly get additional financing from “philanthropists who are sick of this activity” by drug companies that is “creating shortages and driving prices in an irrational fashion.”

Intermountain is leading the collaboration with several other large hospital groups, Ascension, SSM Health and Trinity Health, in consultation with the U.S. Department of Veterans Affairs, to form a not-for-profit drug company. The groups together represent more than 450 U.S. hospitals.

Harrison said on “Closing Bell” that the project was spurred by feedback by patients who at times were saying “they can’t get ahold of drugs or they’re way too expensive.”

“We’re experiencing that in the hospital as well, and we’ve been thinking about this for a couple of years now,” Harrison said.
“We worked hard to come up with a plan … now is the time to get to work.”

He said that one of the big problems in the pharmaceuticals market today is that some “individuals and groups have gone ahead and gotten sole control over a given drug.”

“They create shortages and drive the prices up, and our patients can’t get ahold of the drugs we need,” Harrison said.

“We as a team will do the opposite,” he said. “We’ll make sure drugs are available in good quantities and reasonable prices.”
Harrison said the members of the consortium will contribute funds to finance the new drug company.

“Over time, the business plan says we’ll get our money back,” he said.

Harrison also said that he expects the new firm to provide just a small fraction of pharmaceutical products that the hospitals have to purchase.

“We expect that the vast majority of drugs we buy will still come in the same channels we have always gotten them,” he said. “We think most pharmacies are doing a great job and drug manufacturers are doing a great job.”

“We’re only interested in those organizations that are creating shortages and driving drug prices up in an irrational fashion,” Harrison said.

 

 

 

 

Bon Secours finalizes merger with Mercy Health

https://www.fiercehealthcare.com/hospitals-health-systems/bon-secours-finalizes-merger-mercy-health?mkt_tok=eyJpIjoiWTJSa1kyWTVPR1F6T1dZNSIsInQiOiJGTjlCOStnaytPRkNHZ3pZM3ZwRzczWm1KUVZ4ZHV2TU1VenV4b1VFelNFM3pXcloySWxnSmFHcEdqamUzXC9TUVBEckNIaE01cFhEcG5JNTVwMFpsZUptRTBtQ2k2eFR0YmllQVB4cnU4S2E0dUtTbm54SEdLZ3FiNE5Od29FVmIifQ%3D%3D&mrkid=959610

handshake / shaking hands

Bon Secours Health System and Mercy Health finalized their merger on Wednesday, creating the fifth largest Catholic health system in the U.S.

The new leadership team, to be led by President and CEO John M. Starcher Jr., former chief of Mercy, took effect immediately upon the announcement, officials said.  The merger comes about six months after the organizations first announced plans to integrate.

Officials said the combined nonprofit health system will provide nearly $640 million annually in charity care and community benefit programs.

In February, it was first announced Bon Secours—a not-for-profit Catholic health system with operations in Maryland, Virginia, South Carolina, Kentucky, Florida and New York—intended to merge with Mercy Health, a Catholic health ministry in Ohio and Kentucky.

The two organizations represented $8 billion in net operating revenue and $293 million in operating income, according to an announcement about the merger. The combined systems will include 57,000 associates and more than 2,100 employed physicians and advanced practice clinicians.

The new system will have more than 10 million patient encounters across seven states, with 43 hospitals, more than 1,000 care sites and more than 50 home health agencies, hospice agencies, and skilled nursing and assisted living facilities.

Officials said they were able to finalize the deal so quickly because of “early alignment of similar cultures and grounding in mission-based” care. They also said no outside resources were used to organize the agreement between the two organizations, but Deloitte Consulting was hired to assist with operational integration.

Leaders of the newly formed health system include Chief Operating Officer Brian Smith, Chief Clinical Officer Wael Haidar and Chief Financial Officer Debbie Bloomfield.

The C-suite also includes Chief Administrative Officer Mark Nantz, Chief Enterprise Risk Officer Jeff Oak, Chief Legal Officer Michael Bezney, Chief Community Health Officer Sam Ross and Chief Sponsorship and Mission Officer Sr. Ann Lutz.

The merger is part of ongoing consolidation across the industry including a planned merger between Dignity Health and Catholic Health Initiatives as well as a merger between Partners HealthCare in Massachusetts and Care New England Health System in Rhode Island.

 

 

 

 

Bundled Payment Program Does Not Drive Hospitals to Increase Volume

https://www.commonwealthfund.org/publications/journal-article/2018/sep/bundled-payment-program-does-not-drive-hospitals-increase?omnicid=EALERT1467649&mid=henrykotula@yahoo.com

Lower extremity joint replacement

The Issue

In 2013, the Centers for Medicare and Medicaid Services (CMS) introduced a voluntary program for hospitals called Bundled Payments for Care Improvement (BPCI). Under this alternative payment model, CMS makes a single, preset payment for an episode, or “bundle,” of care, which may include a hospitalization, postacute care, and other services. Evaluations of the program for lower extremity joint replacement surgery (e.g., a hip or knee replacement) have found that it reduced spending. But experts wonder if bundled payments could encourage hospitals to perform more surgeries than they would otherwise or to cherry-pick lower-risk patients. Commonwealth Fund–supported researchers explore these issues of volume and case mix in the Journal of the American Medical Association.The authors used Medicare claims data from before and after the launch of BPCI, comparing markets that did and did not participate in the program.

What the Study Found

3.8%

increase in mean quarterly market volume in non-BPCI markets after the program was launched

4.4%

increase in mean quarterly market volume in BPCI markets after the program was launched

  • Participation in the BPCI program was not significantly associated with an overall change in the volume of surgeries performed.
  • The mean quarterly market volume in non-BPCI markets increased 3.8 percent after the program was launched. For BPCI markets, the increase was 4.4 percent.
  • The analysis found only one change in case mix: patients who had previously used skilled nursing facilities were slightly less likely to undergo a lower extremity joint replacement surgery at a hospital participating in BPCI.

The Big Picture

Results from this study alleviate concerns that hospitals’ participation in voluntary bundles may increase the overall number of joint replacement surgeries paid for by Medicare. In particular, the savings per episode observed in prior BPCI evaluations are not diminished or eliminated by an increase in procedure volume. The findings do raise concerns: if patients with prior use of skilled nursing facilities are less likely to undergo procedures at BPCI-participating hospitals, perhaps it is because hospitals avoid them based on perceived risk. On the other hand, the authors note, these decisions could have been based on clinically appropriate factors, like risk of complications.

The Bottom Line

Hospital participation in a bundled care program did not change overall volume, thereby alleviating the risk of eliminating savings related to the program. In addition, participation was generally not associated with changes in case mix.

 

 

 

6-hospital Verity Health files for bankruptcy

https://www.beckershospitalreview.com/finance/6-hospital-verity-health-files-for-bankruptcy.html

Image result for hospital bankruptcy

El Segundo, Calif.-based Verity Health, which operates six hospitals in Northern and Southern California and maintains ties to billionaire former surgeon Patrick Soon-Shiong, MD, filed for bankruptcy Aug. 31, Reuters reports.

Verity Health CEO Richard Adcock told Reuters he expects the system to remain in bankruptcy protection for at least a few years as it restructures and continues working with potential buyers.

The bankruptcy announcement comes on the heels of several deals that left the system with more than $1 billion in pension liabilities and bond debt. Verity Health reportedly secured a $185 million loan to remain operational.

Mr. Adcock added the system has been losing nearly $175 million per year on a cash flow basis.

In July, Verity Health revealed it is examining all strategic options, including a sale, of some or all of its hospitals. Mr. Adcock told Reuters the system has received a number of offers, including from several large national hospital operators.

Dr. Soon-Shiong, who has founded and sold several biotech companies and recently purchased the Los Angeles Times and other newspapers for $500 million, acquired Verity Health’s management company in 2017. At the time, he said his goal was to revitalize the health system, which has come to employ 6,000-plus people as of 2017.

Mr. Adcock said the health system is re-examining all of its contracts, including the management deal with Dr. Soon-Shiong, Reuters reports.