Category Archives: Health.Care

How many billions of dollars does it cost taxpayers to keep Kansas and Missouri prisoners healthy?

Source: The Kansas City Star Editorial Board, February 1, 2018

On Monday, a Kansas legislative committee on corrections got answers to questions they should have been asking all along. Rep. J. Russell Jennings, Chairman of the Committee on Corrections and Juvenile Justice Oversight, called the hearing after The Star detailed the nearly $2 billion Missouri and Kansas will pay to Corizon Health over a decade to provide health care to inmates. Despite the cost to taxpayers, legislative oversight has been lax, particularly in Missouri. That needs to change. The Tennessee-based company has been sued more than 280 times by inmates in Missouri and Kansas, which should be a red flag for lawmakers. … At Jennings’ request, the Kansas Department of Corrections detailed how a University of Kansas Medical Center team conducts monthly reviews of the care being provided to the state’s approximately 9,800 inmates at a cost of about $68 million a year. … The committee learned that Corizon was penalized more than $1.7 million in 2017 for infractions, including failing to meet staffing or compliance standards for mental health treatment. Corizon has been sued 48 times in Kansas since 2014. So far, there have been no adjudications, settlements or findings against the state, the University of Kansas Medical Center or Corizon. … Missouri has been even less responsive. A state grant once paid a nursing professor to oversee the contract. But then Corizon was allowed to begin paying the fee. So the person who was scrutinizing Corizon was paid by Corizon. ….

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Handpicked Cedar Haven owner lost control within months, to county’s surprise

Source: Daniel Walmer, Lebanon Daily News, January 26, 2018

The Lebanon County commissioners took great efforts in 2014 to ensure they sold the county-owned nursing home into good hands – but within months, those hands had been forced out of any involvement with Cedar Haven. Now, the union representing Cedar Haven nurses is involved in a bitter, three-month-old strike with current owner Stone Barn Holdings and its managing partner Chas Blalack. Union leadership says the county commissioners deserve some of the blame for not sufficiently scrutinizing the financial situation of the purchaser when it sold the home. …

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Lebanon County Commissioners letter to Stone Barn Holdings, the group that owns Cedar Haven
Source: Lebanon Daily News, January 26, 2018

The following is a letter from the Lebanon County Commissioners sent Jan. 18 to the owner of Cedar Haven nursing home, Chas B. Blalack with Stone Barn Holdings. …

Two months in: When will the Cedar Haven strike end?
Source: Daniel Walmer, WITF, December 21, 2017

The Cedar Haven Healthcare Center nurses’ strike reached its two-month point this week with little fanfare from the union – but behind the scenes, there have been nurses crossing the picket line, an aborted attempt at a negotiation and business dealings by Cedar Haven’s owner. … Here are the basics: There is still no contract agreement on the horizon. The parties met for a mediated negotiation session on Dec. 4, but Cedar Haven owner Stone Barn Holdings rejected it despite “movement” on the part of the union, said AFSCME Council Director Steve Mullen.

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Veterans Journal: VA revises regulations for vets’ emergency treatment reimbursement

Source: George W. Reilly, Providence Journal, January 21, 2018

… The nation’s largest federal union, the American Federation of Government Employees, sent a letter on Jan. 9 to the U.S. House and Senate Veterans’ Affairs leadership calling for an investigation into the two main contractors running the controversial Choice program that allegedly have defrauded taxpayers by nearly $90 million. The Veterans Choice Program allows eligible veterans to receive health care in their communities rather than waiting for a VA appointment or traveling over a distance to a VA facility. … In a September memo by the VA Office of Inspector General, titled “Accuracy and Timeliness of Payments Made Under the Choice Program Authorized by the Veterans Access, Choice, and Accountability Act,” it was found that at least two third-party administrators of the VA Choice Program had led to $90 million in improper charges to the American taxpayer. … The revelations of overcharging by third-party administrators is just the latest controversy plaguing the Choice program, which allows veterans to obtain quicker, local medical appointments than at a VA facility. Last month, the House Committee on Veterans’ Affairs voted along party lines to pass H.R. 4242 — VA Care in the Community Act — which would continue to funnel funding away from veterans’ first and best choice for health care at VA facilities, and sticking them in the back of the line at unaccountable, private, for-profit providers. …

Detroit Medical Center service workers seek new contract, decry “penny-pinching”

Source: Sarah Cwiek, Michigan Radio, January 21, 2018
 
The Detroit Medical Center is still trying to reach a new contract with some unionized workers at its five Detroit hospitals, after service and maintenance workers overwhelmingly rejected a tentative contract agreement earlier this month.  Those workers, who range from janitorial staff to equipment technicians, say the first deal offered by the DMC’s for-profit owner, Tenet Health Care, was simply “inadequate.”  “They want to give us about a 30-cent wage increase, and yet they’re increasing our insurance premiums anywhere from 24-39%. And so basically, we’re just falling backward,” said Donna Stern, a Children’s Hospital of Michigan employee and a unit chair with the American Federation of State, County and Municipal Employees Local 140. …

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DMC Surgery Hospital remains closed; housekeeping outsourcing nearly settled
Source: Jay Greene, Crain’s Detroit Business, January 22, 2015

Detroit Medical Center’s Surgery Hospital in Madison Heights is still closed more than six months after a torrential rain flooded it along with much of Southeast Michigan. DMC officials still haven’t decided what to do with the shuttered hospital in which all the employees have either been laid off or transferred within the eight-hospital system. …. On DMC’s plan to outsource its environmental services department to Sodexo USA, Conrad Mallett Jr., DMC’s chief administrative officer, told Crain’s that negotiations are moving steadily and a final resolution is expected by Feb. 1. …. In October, U.S. District Judge Avern Cohn ruled that DMC needed to engage in arbitration with the housekeepers union – the American Federation of State, County and Municipal Employees Council 25 – before it signed a contract with Sodexo.

DMC workers protest hospital’s plan to outsource job
Source: Holly Fournier, The Detroit News, October 27, 2014

About 70 employees of the Detroit Medical Center’s environmental services department rallied Monday to protest the hospital’s plan to outsource housekeeping jobs to a company called Sodexo. Their protest came moments before a 3-hour hearing Monday in Detroit’s federal court to address the hospital’s plan. The hearing continues with oral arguments Wednesday morning.

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Editorial: Self-dealing by nursing home owners threatens patient care

Source: Editorial Board, St. Louis Post-Dispatch, January 14, 2018

The outsourcing of logistical support services, which became commonplace in the U.S. military in the 1990s and later was adopted by state prison systems, has now come to dominate the nursing home industry. And while nursing homes, unlike the military or prisons, are not part of federal or state governments, Medicaid pays for the care of 62 percent of all nursing home patients, amounting to $55 billion in 2015. … In a remarkable story published Dec. 31, Kaiser Health News reported that the owners of nearly three-quarters of the 15,600 nursing homes in the United States buy a wide variety of goods and services from companies in which they have a financial interest or control. Nursing home owners can rent the land to themselves at above-market rates, or own the staffing company that provides nursing care and management. These business dealings, known as related-party transactions, offer efficiencies that can hold down costs and help minimize taxes. … In the nursing home industry, however, with its reliance on taxpayer dollars, related-party transactions can also encourage insider dealing, maximizing profits for the outside vendors while siphoning off funds needed for patient care and staffing. If a nursing home gives a no-bid contract for, say, linen services, to a firm controlled by the nursing home’s owners, it often pays inflated prices. … For nursing home owners, a complex web of related-party transactions can offer a shield against lawsuits or governments seeking restitution for Medicaid overpayments. This is outrageous. …

The Privatization Agenda Goes Bust

Source: Tom O’Leary, Jacobin, January 18, 2018

The collapse of Carillion, the mammoth UK government contractor that went bankrupt Monday, was wholly made in Britain, although it has negative consequences internationally. The reason for Carillion’s bankruptcy, which puts vital public services and thousands of jobs at risk, is that the firm and its component companies grew fat during the first phase of neoliberal economic policy and could not cope with the more recent phase, austerity. The immediate cause of the collapse is a failed acquisition spree since the crisis began. Yet the underlying cause is the disastrous relationship successive governments have had with the private sector. Whether the Thatcher, Major, and Blair governments believed the nonsense they spouted about the superior efficiency of the private sector is immaterial. Only the willfully ignorant could ignore the litany of failed privatizations and the extortion of PFI “public-private initiative” contracts that followed their policies. The real purpose of Thatcherite economic policy, which has become widely known as neoliberalism, was precisely to hand state resources and revenues to the private sector. …

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Carillion directors to be investigated
Source: BBC, January 16, 2018

The government has ordered a fast-track investigation into directors at the failed construction firm Carillion. The UK’s second biggest construction firm went into liquidation on Monday, after running up losses on contracts and struggling with heavy debts. The business secretary has asked for an investigation by the Official Receiver to be broadened and fast-tracked. The conduct of directors in charge at the time of the company’s failure and previous directors will be examined. Carillion’s business is now in the hands of the official receiver, which is reviewing all of Carillion’s contracts. The company employed 43,000 people worldwide, 20,000 in the UK, and had 450 contracts with the UK government. …

Carillion’s Government contracts could have been stopped by a single law. Why wasn’t it used?
Source: Hazel Sheffield, Independent, January 16, 2018

Carillion is part of what is known as ‘the shadow state’: a group of large companies secretively awarded government contracts to run Britain’s public services. There are others. …

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America’s Rural Hospitals Are Dangerously Fragile

Source: Brian Alexander, The Atlantic, January 9, 2018

… Last November, however, Circleville’s voters chose another direction, one that, in other places, has resulted in an economic hit to the community—mostly in the form of job losses and stagnant wages—as well as a lowered quality of care. At the urging of city and county leaders, and Berger’s administrators, residents voted to allow local politicians and the hospital’s board to begin a process to turn Berger, one of the last publicly owned and operated hospitals in the state, into a nonprofit private corporation. Following that, Berger would most likely be integrated into a larger regional system, probably the Columbus-based nonprofit Ohio Health, with which Berger has an ongoing relationship. …
 
… Hospitals have been struggling—especially independent public and/or nonprofit hospitals located in smaller cities and rural towns. Last year, for example, the National Rural Health Association, a nonprofit, estimated that 673 rural facilities (with a variety of ownership structures) were at risk of closure, out of over 2,000. And with the new tax legislation, and events like the merger of the drugstore chain CVS and the insurer Aetna, the turmoil looks to get worse. In response, stand-alone nonprofit hospitals have been auctioning off their real estate to investors, selling themselves to for-profit chains or private-equity firms, or, like Berger, folding themselves into regional health systems. …

Home care registry bill on Gov. Charlie Baker’s desk could lead to lawsuit

Source: Shira Schoenberg, MassLive, November 15, 2017
 
A bill creating a registry for home care workers is back on Gov. Charlie Baker’s desk, to the dismay of home care workers who are considering a court challenge.  “This legislation exposes these essential frontline direct care workers to enormous privacy and due process violations,” wrote advocates for the home care workers in a statement.  The bill, H.3821, would require home care workers who work for state-contracted agencies to include in a database their name, home and mailing addresses, gender, job title, and training or certifications. The information could be reported to labor unions, home care worker agencies and private organizations that have state contracts to connect people with elder services. …

Consultant: BRF lacks cash, experience to adequately manage hospitals

Source: KTBS, October 10, 2017
 
Biomedical Research Foundation’s lack of cash could cause the state to lose funding for free and low-cost health care at the former public hospitals the foundation operates in Shreveport and Monroe.  Documents obtained by KTBS through an open records request show state officials are concerned the hospitals could lose Medicaid funding. That federal money helps cover the cost of treating poor people without insurance at the hospitals BRF operates as University Health through a wholly-owned subsidiary.  In September, state officials put BRF on notice it had breached its contract to operate the hospitals, in part because BRF has failed to pay doctors at LSU Medical School in Shreveport for treating patients. BRF also owes the state for a lease on the hospital property. …

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$135M boost going to LSU hospital managers under new deals
Source: Melinda Deslatte, Associated Press, October 27, 2016

The private operators of LSU’s charity hospitals and clinics are in line for a $135 million boost in their payments as part of new deals struck by Gov. John Bel Edwards’ administration, and the university’s medical schools will benefit from some of the new money. State lawmakers are being asked Friday to increase financing for the privatization deals to nearly $1.3 billion in the current budget year, only four months after lawmakers were told the previous level of funding was sufficient. … The money for the hospital and clinic operators is part of a larger budget adjustment requested by the Louisiana Department of Health at Friday’s meeting of the joint House and Senate budget committee. Jeff Reynolds, chief financial officer for the health department, said $135 million is a financing increase for the private managers that have taken over LSU’s hospitals, clinics and patient services. He said the additional payments are part of the renegotiated deals recently worked out by the Edwards administration. … The renegotiated privatization deals crafted by the Edwards administration included provisions in which some of the hospitals will be paying more money for the services of LSU’s doctors who work at the hospitals. … Henry said he wanted to know why the dollars weren’t available when lawmakers were crafting the budget in June, when they were told the previous level of agreed-upon financing was sufficient for the privatization agreements. …

Negotiating over, Edwards makes offers on LSU hospital deals
Source: Melinda Deslatte, Associated Press, September 7, 2016

Gov. John Bel Edwards’ administration will make its offer Thursday to the operator of LSU’s hospitals in Shreveport and Monroe for a renegotiated contract with the state, as the governor pushes to rewrite all the LSU hospital privatization deals. Edwards’ lead negotiator on the contracts, Commissioner of Administration Jay Dardenne, said Thursday’s presentation to the Biomedical Research Foundation of Northwest Louisiana is the last offer to be made. … Dardenne wouldn’t provide details about what changes are being sought in the north Louisiana hospitals’ deal — or any others. But he said negotiations are over and hospital operators can either take or leave the reworked arrangements offered. … Former Gov. Bobby Jindal privatized nine LSU-run hospitals and their clinics through no-bid contracts, with the earliest deal starting in April 2013. In most instances, the management company of a nearby hospital took over operations. Three contracts closed an LSU hospital — in Baton Rouge, Lake Charles and Pineville — and shifted its services to private hospitals. The Edwards administration says the deals were too hastily slapped together, with terms that aren’t favorable to the state. … LSU System President F. King Alexander described the arrangement to have the foundation, known as BRF, run the Monroe and Shreveport hospitals as dysfunctional from its start in October 2013. Alexander said the research foundation, which runs the two hospitals as the University Health System, doesn’t have the resources or experience, isn’t paying bills on time and isn’t providing enough support to the LSU medical school in Shreveport. BRF and University Health leaders say Alexander’s accusations are untrue and LSU’s Shreveport medical school has financial problems of its own making. They say the research foundation’s hospital management has improved health care. …

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Daily understaffing persists at Grand Rapids Home for Veterans

Source: Amy Biolchini, MLive, August 10, 2017

Understaffing at the Grand Rapids Home for Veterans continues to be a problem, according to an follow-up audit released by the state. That’s after the home entered into a new staffing contract in fall 2016. … However, most other major problems at the Grand Rapids Home for Veterans identified in a blistering state audit in February 2016 have largely been resolved, the report found. …

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Blame for poor care at Grand Rapids veterans home sits at the top, Dems say
Source: Amy Biolchini, MLive, July 27, 2017
 
Democratic State Representatives Winnie Brinks and Tim Greimel say Republican Attorney General Bill Schuette hasn’t gone far enough to hold officials with the Grand Rapids Home for Veterans and the state accountable for the poor conditions at the facility.  “Why did it take so long to get some action? For years, our veterans were literally calling for help, pressing the help button beside their bed, and hearing silence,” Brinks, D-Grand Rapids, said at a Thursday, July 27, press conference in front of the home.  This week Schuette announced felony charges for falsifying medical records against 11 former nursing assistants who worked for the former contractor, J2S Group Healthforce. His investigation found there wasn’t enough evidence to bring criminal charges over the five worst complaints about member treatment, in some of which veterans died. …

Did a 2011 lawsuit against Grand Rapids Home for Veterans predict the future?
Source: David Bailey, WZZM, July 25, 2017
 
The lawsuit was filed by veteran Anthony Spallone intending to stop the on-going privatization at the time.  Gov. Rick Snyder recommended taking state-employed care aides out the home and replace them with nurse aides hired by local contractor J2s.  It was a contentious environment at the time as state aides lost their jobs and were replaced by people they considered to be less-skilled, less-experienced and cheaper.  Union leaders did everything they could to stop the job losses including filing Spallone’s lawsuit.  It alleged the privatization would lead to substandard care and contended J2S had a quote “dangerous track record of care”.   Spallone’s attorney at the time was adamant veterans could be put in terrible situations with the privatization. …

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