Morning Breakouts

Latest California Healthline Stories

Health Net Announces 30% Jump in Q2 2011 Net Income

Insurer Health Net has announced that its net income rose by 30% from $45 million in the second quarter of 2010 to $58.3 million in Q2 2011. Health Net also reported that Q2 2011 revenue declined by 19.2% from $3.4 billion in Q2 2010 to $2.8 billion in Q2 2011. Officials said the change was tied to an adjustment in a military health care contract. Meanwhile, overall enrollment in Health Net plans dropped from 3.1 million in Q2 2010 to three million. Officials said the change was tied to an adjustment in a military health care contract. Meanwhile, overall enrollment in Health Net plans dropped from 3.1 million in Q2 2010 to three million. Payers & Providers.

State’s High Court To Review Redevelopment Agencies Plan

On Thursday, the California Supreme Court announced that it will hear a lawsuit challenging the legality of a plan to eliminate the state’s redevelopment agencies. As part of the budget passed in June, Gov. Brown signed two statutes that eliminated the agencies but allowed them to reopen if they pay the state a combined total of $1.7 billion. The California Redevelopment Association and officials from several small cities filed a lawsuit challenging the statutes. The state’s Supreme Court said that it would make a decision by mid-January and that the agencies can continue operating until then. San Francisco Chronicle et al.

Pastor, Two Associates Found Guilty of Medicare Fraud

On Tuesday, a jury found a South Los Angeles pastor and two associates, including his wife, guilty of committing Medicare fraud involving more than $14 million in improper claims to the federal government for high-powered wheelchairs and other costly medical equipment. Federal investigators launched a probe following complaints that the pastor and his wife used information from church congregants to establish several fraudulent medical supply businesses. The three defendants are scheduled to be sentenced in November. Los Angeles Times et al.

Health Care Providers Focus on Initiatives To Fight Chronic Conditions

Health care providers in California increasingly are focusing their efforts on treating chronic health conditions such as diabetes and heart disease. Medical personnel are using team-based initiatives and are engaging patients in managing their own conditions. HealthyCal.

CMS Unveils Mental Health Care Demonstration Project

On Tuesday, CMS announced a new demonstration project through which states can apply for Medicaid funds to provide care at psychiatric centers for beneficiaries with mental health emergencies. The project will allocate $75 million over three years to a limited number of states. CMS said that offering Medicaid payments to psychiatric facilities could ease the strain on hospital emergency departments. The Hill‘s “Healthwatch.”

Study Finds High Levels of Toxic Chemicals in Calif. Pregnant Women

A new study from UC-San Francisco researchers finds there are record high levels of banned chemicals in pregnant women in the state. The chemicals are used in flame retardants and are associated with a number of adverse medical conditions. Bay Citizen et al.

Monterey County Struggles To Insure Newly Eligible People

Monterey County officials estimate that 11,000 of the county’s 23,000 uninsured residents will become eligible for Medi-Cal as early as September through the state’s Low-Income Health Program — which uses federal funds, called the Bridge to Reform, to expand health insurance access before the federal health reform law’s Medicaid expansion plan takes full effect in 2014. However, despite the matching federal funds, county officials say they only can afford to insure 1,000 to 1,500 of the eligible residents this year. HealthyCal.

Senator: Attorney General Should Review Hospital Sale

Senate Health Committee Chair Ed Hernandez has sent a letter to state Attorney General Kamala Harris urging her to thoroughly review the proposed purchase of Victor Valley Community Hospital by Prime Healthcare Services. Prime Healthcare has been under scrutiny after recent reports of alleged Medicare overbilling. The attorney general’s office has the power to approve, deny or place conditions on the sale of not-for-profit facilities. California Watch.

Labor Board Orders New Vote for Kaiser Union Representation

The National Labor Relations Board is ordering a rerun of a 2010 union representation vote by more than 43,000 Kaiser Permanente employees. The decision comes after a judge found improper actions provided the basis for a new election. Bloomberg et al.

Anthem Blue Cross, Santa Clara IPA To Launch ACO

On Wednesday, Anthem Blue Cross and the Santa Clara County Individual Practice Association announced plans to launch an accountable care organization that is expected to provide coverage to about 25,000 of Anthem’s PPO enrollees beginning Jan. 1, 2012. Details about the partnership have not been released, but it is reported to be the first of its kind in Northern California. Coverage will be offered during the open enrollment in the fall. San Francisco Business Times, Payers & Providers.