KAISER PERMANENTE: TWO CALIF. HOSPITALS FAIL INSPECTION

      Two Kaiser Permanente hospitals in Northern California are
 again facing the loss of their Medicare and Medicaid
 certification "unless they can correct problems with medical care
 by November 14," San Francisco Chronicle reports.  Walnut Creek
 and Martinez hospitals, which operate under a joint license,
 "avoided the loss of their certification to treat Medicare and
 Medicaid patients by submitting a written plan in August whose
 goal was to correct long delays in emergency treatment and other
 problems."  However, officials with the Health Care Financing
 Administration said yesterday that the hospitals "did not show
 that the problems had been corrected during a September 23 on-
 site inspection.  Chronicle reports that during the inspection,
 the hospitals "satisfied concerns about emergency services,
 administrative oversight and medical record-keeping," but
 "quality control and nursing services still fell short."  If
 these services fail to measure up during the November 14
 inspection, "the hospitals would no longer get paid for treating
 Medicare patients, who account for about 20% of Kaiser's income
 in Northern California."  Kaiser must submit a "written
 correction plan by next Friday" in anticipation of the inspection
 (Hytha, 10/10).