Morning Breakouts

Latest California Healthline Stories

Unnecessary Treatments, Tests Cost $6.8B in 2009

In 2009, unnecessary treatments and screenings resulted in about $6.8 billion in medical costs, according to a study published recently in the Archives of Internal Medicine. For the study, physicians at Mount Sinai Medical Center and the Weill Cornell Medical College examined the cost of common medical practices that a previous study by the Good Stewardship Working Group found were overused. The new study found that complete blood cell counts were ordered in about 56% of routine physical exams, which accounted for about $32.7 million in unnecessary costs. Physicians ordering brand-name statins before using generic drugs accounted about $5.8 billion in unnecessary costs. The researchers cited physician training, defensive medicine and patient expectations as reasons for inappropriate treatments and testing. Kaiser Health News/Washington Post.

Report: Calif. Earns ‘B’ Grade as Premature Birth Rate Declines

A March of Dimes report card finds that the rate of premature births in California fell to 10.3% in 2009, down from 10.9% in 2007. The report card gave California a “B” grade, while the U.S. received a “C” grade overall. Sacramento Bee, Sacramento Business Journal.

Grass Valley Nursing Home Cited, Fined for Patient Death

On Monday, the California Department of Public Health issued a Class AA citation to the former Meadow View Manor nursing home in Grass Valley over the death of a patient. The citation is the most severe penalty under state law, with a fine of $75,000. In February, a nursing assistant used a mechanical chair lift to remove the patient from a bathtub, a task that should have been handled by two staffers, investigators said. The patient sustained serious head and neck injuries after falling forward and died four days later. An official at the nursing home — which was purchased in June by San Marcos-based Plum HealthCare Group and renamed Crystal Ridge Care Center — said staff have been provided with advanced clinical training and support to ensure they are able to prevent and respond to falls. It is unclear whether the facility will appeal the fine. AP/San Francisco Chronicle, Grass Valley Union.

Editorial Defends Right To Sue States Over Medicaid Cuts

An American Medical News editorial argues that “doctors and Medicaid recipients have standing to sue the state for failing to pay rates as required under the equal access provision of the Medicaid law.” The U.S. Supreme Court is hearing a case to determine whether physicians and Medicaid beneficiaries can sue states over provider reimbursements. The case stems from Medi-Cal reimbursement cuts approved by the California Legislature in 2008 and 2009. The editorial states that the “whole point of an insurance program is that it provides actual treatment when it’s needed — not a whittled-down payment that jeopardizes access to care,” adding that states “should ensure that and be held accountable when they don’t.” It concludes, “Medicaid recipients and the doctors who treat them — those most affected by cuts — deserve to have their day in court to keep the system honest.” American Medical News.

Stanford Adverse Event Initiative Saves $3.2M in Annual Liability Costs

A new report published by the Institute for Healthcare Improvement says that Stanford University’s hospitals and clinics have cut annual liability premiums by $3.2 million after starting a program to reveal and investigate reports of adverse events. American Medical News.

Health Care Providers Say Medi-Cal Cuts Will Hinder Access to Care

California health care providers are warning that a 10% reduction in Medi-Cal payments that the federal government recently approved will reduce beneficiaries’ access to care. Some doctors say the cuts could force them to stop seeing Medi-Cal patients. Fresno Bee et al.

Congress Urges IRS To Assess Hospitals’ Tax Exemption Policies

Congress is calling on federal regulators to re-examine federal tax exemption and charity care guidelines for not-for-profit hospitals. Louisiana Rep. Charles Boustany has suggested that not-for-profit facilities might not be complying with tax-exempt rules. New York Times.

Los Angeles Hospital Cited for Infection Control Issues

Federal officials have cited Harbor-UCLA Medical Center for failing to maintain cleanliness in its operating rooms and safeguarding patients from possible infection. Earlier this year, CMS sent the county-operated hospital a letter warning that it could revoke Medicare funding. The county has submitted a corrective action plan, and hospital CEO Delvecchio Finley said the facility has addressed all of the concerns that inspectors raised. Los Angeles Times.

Obama Signs Executive Order Addressing Rising Shortages of Rx Drugs

On Monday, President Obama issued an executive order aimed at addressing shortages of medications that treat life-threatening illnesses. The Obama administration also plans to release two reports that attribute prescription drug shortages to market dysfunction. AP/Washington Post et al.

Medical Marijuana Advocates Sue Obama Administration

Last week, the medical marijuana advocacy group Americans for Safe Access filed a federal lawsuit against the U.S. attorney general and a federal attorney for California. The lawsuit claims that the Obama administration’s recent crackdown on the state’s medical marijuana dispensaries subverts state and local medical marijuana statutes. Joe Elford, the group’s attorney, said that the lawsuit aims to restore the sovereign right of the state to set its own public health policies. Meanwhile, a spokesperson for lawyers who represent dozens of medical marijuana dispensaries said that group also is preparing a lawsuit. San Diego Union-Tribune et al.