Morning Breakouts

Latest California Healthline Stories

Hospital Group Leader Expects More Hospitals To Drop Out of Medi-Cal

Jim Lott of the Hospital Association of Southern California said he has no doubts that more hospitals will cancel their contracts with Medi-Cal because of inadequate payments. A state spokesperson said comprehensive health care reform is the answer to the problem. Ventura County Star.

Health Costs Will Determine Future Federal Budgets

Congressional Budget Office Director Peter Orszag writes in an opinion piece that increases in the cost of health care will be the “primary determinant” of the nation’s long-term budget outlook but adds that there “remains the promising possibility of restraining health care costs without incurring adverse health consequences.” Wall Street Journal.

Tax Legislation Proceeds Without Medicare Package

House and Senate leaders failed to reach an agreement on a Medicare package that would delay a scheduled cut in payments to physicians, thus missing an opportunity to attach the package to a bill on the alternative minimum tax. Lawmakers were unable to agree on whether to include payment cuts to Medicare Advantage plans. CongressDaily, et al.

Hospital Association, Nurses Union Face Off on Retrofitting Delay

A law approved this week will give some hospitals until 2020 to meet seismic safety standards. A hospital group argues that financially struggling facilities need the extra time, while the California Nurses Association maintains the delay will put lives at risk. KPCC’s “AirTalk.”

Widening Budget Deficit Poses Challenge to Health Care Reform

New estimates have put California’s budget shortfall over the next 18 months at about $14 billion, compared to a $9.8 billion forecast last month. The new projection could have implications for a deal on health care reform and other legislative priorities. Assembly Democrats are holding a meeting Thursday to discuss health care reform and the budget. San Diego Union-Tribune et al.

Stem Cell Agency Overseer Steps Aside During Probe

The CEO of the Burnham Institute will recuse himself from his duties as a member of the California Institute for Regenerative Medicine’s oversight board while a state ethics commission determines whether he violated conflict-of-interest policies by contesting a rejected grant to Burnham. Sacramento Bee et al.

Review Questions 40% of Auditor’s Decisions on Medicare Claims

CMS attributed the high percentage of challenged claims to discrepancies in how auditors from PRG-Schultz International interpreted CMS policies. The auditor has rejected more than 90% of claims submitted by California rehabilitation hospitals for knee and hip replacements. Sacramento Bee.

Democrats Reconsider Budget Plan After Bush Veto Threat

House Appropriations Committee Chair David Obey plans to introduce a revised $933 billion package that will include the 2008 Labor-HHS-Education appropriations bill and the 10 other unapproved spending bills with the amount of domestic spending that President Bush has requested. Wall Street Journal et al.

Some Hospitals Win Reprieve on Deadlines for New Construction

A law signed by Gov. Schwarzenegger will give hospitals facing financial hardships until 2020 to comply with state seismic safety standards, while a newly approved risk-assessment tool will let some hospitals push back construction efforts to 2030. Opponents of the changes say the delays will jeopardize the lives of patients and hospital personnel. Los Angeles Times.

House Lawmakers Might Attach Medicare Package to Tax Legislation

The Democrats’ Medicare package includes a one-year delay in a scheduled physician payment cut, a reduction in payments to Medicare Advantage plans and a one-year extension of the State Children’s Health Insurance Program. CongressDaily et al.