Morning Breakouts

Latest California Healthline Stories

Endoscope Maker Linked to Outbreaks Reserves $450M for Potential Settlement in Marketing Investigation

Medical device maker Olympus — which has come under fire recently for its production of endoscopes that were linked to a superbug outbreak at two California hospitals this year — has reserved nearly $450 million for an anticipated settlement in response to a U.S. investigation into its marketing. Olympus told shareholders about the investigation in February. The company did not disclose specifics about the investigation but said the focus was on potential violations of laws that prohibit companies from paying kickbacks to physicians and other customers. Los Angeles Times.

Opinion Piece Touts Calif. Bill That Would Address Medi-Cal ‘Same-Day’ Visit Rule

In a U-T San Diego opinion piece, Henry Tuttle — CEO of Council of Community Clinics — touts a bill that would allow federally qualified health centers and rural health centers to receive Medi-Cal payments on a per-visit basis. He notes that currently, Medi-Cal does not reimburse providers for “same-day visits,” which can pose an obstacle to those referred to a behavioral health specialist, andAB 858 is an important part of the overall solution.” U-T San Diego.

CDC Investigating Live Anthrax Shipment Error

Army officials say that human error is likely not to blame for a shipment of live anthrax that inadvertently ended up at 18 labs in nine states and an Army lab in South Korea. Officials say CDC is conducting an investigation at Dugway Proving Ground in Utah where the samples originated. AP/KPCC’s “KPCC News.”

Brown Opposes Extra Spending in California Budget

At a California State Association of Counties conference on Wednesday, Gov. Brown said that he was opposed to extra spending as the state works to build up its rainy day fund. Competing spending proposals recently released by the state Senate and Assembly both assume that the state will get about $2.5 billion more in revenue than estimated in Brown’s revised fiscal year 2015-2016 spending plan. Capital Public Radio’s “KXJZ News.”

Calif. Lawmakers Take Action on Several Health-Related Bills

In advance of the June 5 deadline for bills to be approved by at least one body of the state Legislature, California lawmakers have advanced bills related to childhood vaccine requirements, the state’s prescription drug database, physician-assisted suicide and health care for undocumented immigrants. However, several other health-related bills were blocked. Sacramento Bee‘s “Capitol Alert” et al.

California Hospital News Roundup for the Week of May 29, 2015

California Attorney General Kamala Harris has approved two acquisitions, including Adventist Health’s acquisition of Lodi Memorial Hospital Association and Stanford Health Care’s purchase of the ValleyCare Health System. Children’s Hospital of Orange County has received $5 million from a private donor to help treat childhood mental health issues.

HHS To Provide $112M in Grants To Fight Heart Disease

On Tuesday, HHS announced that it will provide $112 million in grants to help physicians at smaller practices combat heart disease, which is the top cause of death in the U.S. The funding will go toward creating regional expert groups to assist 5,000 small-practice providers who serve about eight million patients. Small practices generally do not have as many resources as larger organizations. The Hill.

Bay Area Hospital Systems Report Rise in Birthrates

Officials at John Muir, Kaiser Permanente, Lucile Packard, Stanford and UC-San Francisco hospital systems in the San Francisco Bay Area say they are seeing gradual increase in birthrates since the economic downturn. Observers attribute the rise to the improving economy, a population surge, more affiliated facilities and increased health insurance under the Affordable Care Act. San Jose Mercury News.

CMS’ Proposed Medicaid Managed Care Rule Poses Hurdle for States

Some experts say state Medicaid agencies might have inadequate staff and budgets to handle the regulations included in CMS’ newly proposed Medicaid managed care rule and that some states could experience decreased participation from insurers. However, others applauded the proposal for instituting quality measures for Medicaid managed care plans. Modern Healthcare.

Analysis: ACA Will Add $274B in Administrative Costs Through 2022

An analysis of CMS data estimates that the Affordable Care Act will add nearly $274 billion in new administrative costs to the U.S. health system through 2022. The figure represents 22.5% of the $2.76 trillion the federal government is projected to spend on the ACA between 2012 and 2022. CNBC et al.