Morning Breakouts

Latest California Healthline Stories

FDA Issues Restrictions for Antibiotic Use in Livestock

On Wednesday, FDA announced new restrictions on the use of a class of potent antibiotics known as cephalosporins in healthy animals out of concern that overuse of the drugs could promote resistance and produce strains of bacteria harmful to humans. The restrictions, which will take effect on April 5, will make it illegal to give the antibiotics as a preventive treatment for healthy livestock. However, veterinarians still will be permitted to use them to treat specific illnesses. Public health advocates applauded the new restrictions, but many industry advocates say FDA has exaggerated the dangers of the use of antibiotics in livestock and contend that there is no scientific evidence to support their claims. New York Times et al.

Sutter Health Makes $400M Investment Into Its Retirement Plan

Sutter Health has announced that it contributed $400 million into its retirement plan and that the plan is now fully funded for its 45,000 workers. However, a California Nurses Association official states that the pension plan remains inadequate. San Francisco Business Times, Sacramento Bee.

Report: Many Hospitals Not Reporting Medical Errors, Adverse Events

A new report from the HHS Office of Inspector General finds that hospital workers are reporting only one out of every seven adverse events involving Medicare beneficiaries. Medicare officials say they plan to develop a list of events that must be reported. New York Times.

DOJ To File Its First Brief in Supreme Court Case on Health Reform Law

Today, the Department of Justice will file its first brief to the Supreme Court in a case challenging the federal health reform law. The brief is expected to focus on whether Congress has the constitutional authority to require U.S. residents to purchase health insurance. The Hill‘s “Healthwatch.”

Private Insurers To Compete With State-Based Exchanges

Several large private health insurers have begun forming health insurance exchanges to compete with the public exchanges created under the federal health reform law. The private exchanges believe they can offer better-priced plans than those in the public exchanges. The private exchanges could offer coverage in two ways: one would offer a variety of health plans from one company, while the other would include a choice of plans from several companies. American Medical News.

HHS Rule Aims To Streamline Electronic Transfer of Funds

On Thursday, HHS released an interim final rule detailing standards for the electronic transfer of funds in the health care industry. The rule was mandated by the federal health reform law. The new rule outlines the standards for the format and content of the data that a health insurer sends to its bank when it seeks to pay a claim to a health care provider electronically. The rule also requires the use of a trace number to automatically link medical bills from health care providers with payments from health plans. HHS noted that the interim final rule became effective Jan. 1, and all HIPAA-covered health insurers must comply with the regulations by Jan. 1, 2014. HHS estimated that the new standards would reduce administrative costs in the health care industry by $4.5 billion over the next 10 years. Modern Healthcare, Healthcare IT News.

California Hospital News Roundup for the Week of January 6, 2012

UC-San Diego Medical Center will pay a $115,000 penalty to settle a federal complaint about the hospital’s screening process for immigrant job applicants. Meanwhile, Tri-City Medical Center recently unveiled plans for a $593 million expansion of its Oceanside campus.

New Stockton Medical Prison on Track for 2013 Opening

During a media tour on Thursday, officials from the California Department of Corrections and the construction firm Clark/McCarthy said that work on the California Health Care Facility — a nearly $1 billion prison medical facility in southeast Stockton — is well underway and on track for completion by summer 2013. The 31-building, 1.2 million square-foot facility is slated to open by the end of 2013 and provide long-term medical and mental health care to up to 1,772 state inmates. The facility — which will include prisoner housing, medical and mental treatment facilities, a central kitchen and administration building — will employ 2,400 physicians, nurses and correctional staff and have an annual payroll of $220 million. Stockton Record.

San Mateo Long-Term Health Care Center Faces Closure

On Thursday, San Mateo County health service officials said they plan to recommend that the county Board of Supervisors close the Burlingame Long-Term Care Center because of the nearly 49-year-old facility’s age and because the county faces $9 million in state budget cuts. County Health System Chief Jean Fraser said that state and federal funding covered the cost of operating the 230-patient facility last year and that the recommendation is “a policy decision,” adding, “The state doesn’t support our type of nursing.” The Board of Supervisors is expected to reach a final decision by Feb. 14. If the board accepts the recommendation, the facility would close within the next 16 months. San Jose Mercury News.

Health Programs Face Significant Cuts Under Brown’s Budget Plan

Gov. Brown has released a $92.6 billion state budget proposal for the next fiscal year. Brown is seeking millions of dollars in cuts to health and human services programs, but some lawmakers are expressing opposition to the plan. San Francisco Chronicle et al.