$2 cigarette tax hike: Doctors and hospitals fight tobacco industry

http://www.sacbee.com/news/politics-government/capitol-alert/article101382077.html

Chart showing tobacco tax allocation

Doctors have long argued that low reimbursement rates are undermining the Medi-Cal system. While more Californians are seeking treatment, the state hasn’t done enough to increase funding to provide care, Corcoran said. Reimbursement rates are not up to par with the cost of practice, making it difficult for physicians to accept Medi-Cal patients, he said.

“It is a broken system,” Corcoran said. “Physicians want to be able to take care of patients. There’s not a lack of desire or a lack of willingness. It’s whether you can actually sustain a practice for all of your patients and provide that level of care that areas need and deserve.”

Medi-Cal is expected to balloon to 14.1 million patients in the current budget year, nearly double the number of Californians using the government-funded health care program four years ago, according to the state. Officials attribute the increase to the federal health care overhaul that expanded subsidized insurance. With a shortage of Medi-Cal doctors, advocates say patients in rural areas and other pockets of the state lack adequate access to care.

During budget talks, the Brown administration has pushed back against the need for rate increases. The administration pointed out that struggling providers can request reimbursement in full and questioned whether higher rates will result in better care.

Surge in hospital-owned physician practices poised to increase healthcare costs

http://www.healthcaredive.com/news/surge-in-hospital-owned-physician-practices-poised-to-increase-healthcare-c/425881/

  • Independent physicians and physician-owned practices could soon become a rare breed, suggests a new analysis by Avalere Health and the Physicians Advocacy Institute (PAI) released Wednesday.
  • The study found the percentage of physicians employed by hospitals or health systems rose 86% from 2012 to 2015, from 95,000 to more than 140,000.
  • As of mid-2015, 38% of all U.S. physicians were employed by hospitals and health systems, findings show.
  • Also from 2012 through 2015, hospitals acquired 31,000 physician practices, resulting in one in four medical practices being hospital-owned.

CEO Power Panel: Are your physicians ready for reform?

http://www.modernhealthcare.com/article/20160903/MAGAZINE/309039989?utm_campaign=socialflow&utm_source=twitter&utm_medium=social

Modern Healthcare CEO Power Panel

Like it or not, ready or not, MACRA is coming.

Anxiety is rippling through the healthcare industry as the initial reporting period for Medicare’s new payment system for physicians fast approaches. Modern Healthcare’s latest CEO Power Panel survey reveals leaders are bracing for uncertainties and challenges generated by the law, formally titled the Medicare Access and CHIP Reauthorization Act.

This coming phase will be extremely painful for doctors, CEOs worry, even as they applaud the overarching goal of paying for healthcare on the basis of quality over quantity. They are keenly aware of the near-term challenges of managing these growing pains and of successfully mitigating potential negative consequences. But they are also optimistic—even confident—that patients and physicians stand to benefit in the long run.

Brooklyn surgeon in Medicare billing scheme convicted of fraud, faces 40 years in prison

http://www.nydailynews.com/new-york/nyc-crime/brooklyn-surgeon-convicted-medicare-fraud-faces-40-years-article-1.2731355

Dr. Syed Ahmed faces over 40 years in prison.

A Brooklyn surgeon is facing more than 40 years in prison after a federal jury convicted him of a massive Medicare fraud that included claims he’d performed 600 procedures on one person.

Dr. Syed Ahmed was found guilty of all six counts late Thursday night in Brooklyn Federal Court. The jury had deliberated about four hours.

Prosecutors alleged that Ahmed, a specialist in weight loss surgery and wound treatment, billed Medicare for over $7 million in procedures, many of which were not performed on patients, prosecutors alleged.

Assistant U.S. Attorney Patricia Notopoulos told the jury that Ahmed billed Medicare for 5,000 surgeries over a three-year period, including 600 alleged procedures on an elderly woman.

Doctors allegedly sold prescriptions to gang members profiting for cash from burglaries

http://www.dailybreeze.com/general-news/20160829/doctors-allegedly-sold-prescriptions-to-gang-members-profiting-for-cash-from-burglaries?utm_campaign=CHL%3A+Daily+Edition&utm_source=hs_email&utm_medium=email&utm_content=33586521&_hsenc=p2ANqtz-9msbgMq33CAV0cspL5iTwKupEdrhcwzy2x9HBry8CXgmM2MLDVXfy1hNprqz1aiXkgDR-Os7j0X1Ptfa8vDbWpaWM-ZA&_hsmi=33586521

Image result for operation money bags

Two doctors have been charged with selling prescriptions for powerful drugs to gang members who allegedly bought them with profits from thousands of residential burglaries committed in the South Bay and across Southern California, prosecutors said Monday.

Drs. Sonny Oparah, 75, of Long Beach and Edward Ridgill, 64, of Ventura surrendered Friday to federal authorities hours after Torrance police led some 400 police officers on raids in South Los Angeles that resulted in the arrests of 13 gang members allegedly involved in the burglary scheme.

The physicians face charges that could send them to prison for the rest of their lives.

“Operation Money Bags” resulted from nearly four years of investigation to not just arrest and prosecute suspected burglars, but tie their crimes to their gangs, using gang-related sentencing laws that could add years to their prison terms for the break-ins.

But it turned into much more.

Unintended Consequences

http://altarum.org/health-policy-blog/unintended-consequences

Altarum InstituteAltarum Institute

How does it feel knowing the clinical decisions our physicians make affect their pocketbook? MIPS, or the Merit-based Incentive Payment System, is now the law of the land. MIPS attempts to incentivize physicians based on quality measures, use of electronic health records, practice improvement approaches and cost of care. The Centers for Medicare and Medicaid (CMS), is tasked with working out the details of the program, which aims to take us from a system where physicians are incentivized to “do something” to patients to one in which “quality” is the predominate goal.

Here’s my quandary: As a Geriatrician, I have practiced a lower cost approach to care my whole career. I try to avoid acute hospitalization, medications and procedures in my frail older patients. Why?  Because my experience, as well as a growing body of evidence-based literature, supports this approach. I should be wholeheartedly embracing this new approach to physician incentives. So, why do I feel sick when I think about it?

Hospitals more likely to admit children with private insurance

http://www.fiercehealthcare.com/payer/hospitals-more-likely-to-admit-children-private-insurance?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiTXpNd1lqZGlNR0U1WkRJeCIsInQiOiJLOWhzWGhXZ2FrUHdBMEg5d1VNTnppNTR6TEh5XC9tQjI1bDgxcVlUUWNcL1wvSWt0SkRUck9vYm90K1VuSlZJUGFpQ3RubDhPdjFFTWZFUEF1S3RDTUlpZ0VQbmtJRmYyOVg5ZHk0T3RiUUZYRT0ifQ%3D%3D

Medicaid on paper and a stethoscope Medicaid on paper and a stethoscope

New research shows hospitals are more likely to admit children with private insurance over those with publicly funded plans, particularly during times when there are limited inpatient beds, an indication that reimbursement rates play a role in how hospitals manage pediatric patients in the emergency room.

Researchers from the National Bureau of Economic Research studied billing patterns for children in New Jersey that visited an emergency room between 2006 and 2012. The economists found that children with Medicaid or Children’s Health Insurance Program that presented to the ER with flu symptoms were 10 percent less likely to be hospitalized than those with private plans, according to the Washington Post.  During peak flu season, when there was a shortage of inpatient beds, children between 2 and 10 years old on Medicaid and CHIP were 20 percent less likely to be admitted.

Pasadena doctor who falsely claimed patients were terminally ill is sentenced to four years for fraud

http://www.latimes.com/local/lanow/la-me-ln-pasadena-doctor-prison-20160824-snap-story.html?utm_campaign=CHL%3A+Daily+Edition&utm_source=hs_email&utm_medium=email&utm_content=33409508&_hsenc=p2ANqtz–KDKuU4PH1yztKbkXarPsY58B6-80M433Uz-u6qd86BDE6zJ4zbv5sPgwskL5rfPSDgOeUJw0jeuHlEK79jrfz4jh2Jg&_hsmi=33409508

Image result for false claims for hospiceImage result for false claims for hospice

A Pasadena doctor convicted of falsely certifying that more than 79 patients were terminally ill as part of a scheme to bilk Medicare and Medi-Cal was sentenced by a federal judge to four years in prison.

U.S. District Judge S. James Otero also ordered Boyao Huang, 43, to pay $1,344,204 in restitution last week. In May, Huang was found guilty of four counts of healthcare fraud at the conclusion of a two-week trial that centered on a ploy to defraud the government of $8.8 million by making it pay for hospice-related services. Huang could have received up to 10 years in prison for each of the counts.