Sonoma West Medical Center’s Drug-Testing Venture’s Legality Called Into Question
“I want the district to conduct a full review of the legality and propriety,” said Jim Horn, a board member with the Palm Drive Health Care District. “Because even if something is legal it may not be proper for us to be billing insurance companies 10 times what the same service would cost an independent lab.”
Santa Rosa Press Democrat:
Sebastopol Hospital’s Drug-Screening Program Questioned
Both the legality and propriety of a multimillion-dollar drug-testing venture between Sonoma West Medical Center in Sebastopol and a medical laboratory company in Florida are being further questioned following a CBS News investigation televised nationally earlier this week. The news report alleged the Reliance Laboratory Testing, headed by its principal partner, Aaron Durall, set up a nationwide network of drug-screening shops inside rural hospitals around the country, cashing in on rural hospital reimbursement rates as much as 10 times the rate charged by regular lab companies. (Espinoza, 3/28)
In other health system news —
Ventura County Star:
County Contract Grows To $9M For Ventura County Medical Center Retooling
A Chicago consultant will be paid up to $9.8 million to guide changes in the management of Ventura County Medical Center. Composed of two hospitals and assorted clinics, VCMC serves large numbers of low-income patients and is largely self-supporting. But officials say they need help from Huron Consulting Services to prepare for major changes in how health care is funded and to boost the bottom line. Financial results are off the mark for the medical center this fiscal year. The institution reported unaudited losses of $9 million for the first seven months of the fiscal year ending in January. Officials had budgeted a net income of $928,000. (Wilson, 3/28)