10 May 2011
Midwest Edition
Calendar
May 11-13
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Heat on Medtronic And Competitors
Scrutiny Over Canceled Contracts, Doc Payments
Medical device makers in general and ProPublica, a not-for-prot investigative news
Minneapolis-based service, reported that 12
Medtronic in Heart Rhythm Society & Foundation of the Heart Rhythm
particular are under Society's 18 board
Outside Sources of Revenue, Fiscal
scrutiny yet again members are paid
2010 Source: ProPublica
from federal ofcials, speakers or consultants for
physicians and the device manufacturers. The
press for their dealings group, which held its
with healthcare annual meeting last week in
providers. 19% San Francisco, recently set
While many a formal policy calling on
hospitals, physician members to disclose such
practices and medical ties.
schools have cracked The three largest
down on visits and 22% 51% manufacturers of
perks from implantable heart
pharmaceutical and debrillators, namely
device sales 8% Medtronic, St. Jude
representatives, Medical (in nearby St. Paul)
industry money still and Boston Scientic
ows freely into together gave $4
medical specialty million last year to the
societies. A All Other Heart Rhythm Society,
ProPublica Sponsorships according to
investigative report Educational Grants ProPublica. Those three
published Monday in companies accounted
USA Today calls into
Exhibitor Revenues for one-quarter of the
question yet again the society's 2010 revenue.
inuence such companies might have on "This is our business," newly installed HRS
treatment guidelines, reimbursement rates and President Bruce Wilkoff, M.D., a Cleveland
public funding of medical research.
Continued on Next Page
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In Brief
Allina Fires 32 For
Records Breach
Minneapolis-based Allina Hospitals
& Clinics has terminated 28
employees at Unity Hospital in
Fridley, Minn., and four more at
Mercy Hospital in Coon Rapids,
Minn., for taking unauthorized
looks at records related to a widely
publicized mass drug overdose at a
party in March.
The Minneapolis Star-Tribune
reported that the log Allina keeps to
track access to its electronic
medical records system helped the
health system identify 32
individuals who had no legitimate
medical reason to view the of the
11 teenagers and young adults
hospitalized because of their drug
use.
"They're making sure the
employees have a right and a
reason to know what's going on
with that patient," Lawrence Massa,
president and CEO of the
Minnesota Hospital Association,
explained to the Star Tribune.
A 19-year-old man died from
the overdose and the alleged drug
supplier has been charged with
third-degree murder.
Indiana, Ohio Launch
Medicaid EHR
Initiatives
Indiana and Ohio last week joined
13 other states in kicking off their
Medicaid incentive programs for
“meaningful use” of electronic
health records. Hospitals in those
states may earn Medicaid bonus
payments once they register online
then attest to meeting federal
standards for meaningful use of
certified EHR systems for at least 90
Continued on Page 3
NEWS
Medical Societies (Continued from Page One)
Clinic cardiologist, told ProPublica. "We
either get out of the business or we manage
these relationships. That’s what we've chosen
to do."
ProPublica said that Medtronic provided
a statement about how medical societies
"play an important role in educating
physicians about their devices." St. Jude did
not respond to questions, while Boston
Scientic would not comment for the
ProPublica story.
The Heart Rhythm Society made public
its sources of funding in response to a
December 2009 request from Sen. Charles
Grassley (R-Iowa), a longtime critic of
industry inuence on medicine. Grassley sent
the letters to 33 professional associations, but
most have not opened their books,
ProPublica reported. Grassley last week
penned a follow-up to several organizations
that didn’t follow through on promises to
disclose industry relationships. "There are a
lot of incestuous relationships that really
bother me," Grassley told ProPublica.
The organization agreed earlier this year
to cooperate with a U.S. Department of
Justice investigation launched after the
Midwest Health Labor Market Up
Cleveland Still Ranks Near Bottom Nationally
Several major Midwestern cities followed the
national trend toward greater demand for
healthcare workers during the early part of
2011, though the region still trails other parts
of the country in terms of labor market
strength, according to a new report.
The Labor Market Pulse Index, a
quarterly barometer of healthcare labor trends
compiled by San Francisco-based Health
Workforce Solutions, ticked up by 4% in the
rst quarter from the fourth quarter of 2010 .
Of the nation’s 30 largest metropolitan areas,
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Page 2
Journal of the American Medical Association
published a study showing that 22.5% of
patients who received heart debrillators did
not meet evidence-based guidelines for the
costly, invasive implantation.
This fresh scrutiny comes just days after
Senate Finance Committee Chairman Max
Baucus (D-Mont.) opened an investigation of
his own into Medtronic's decision to cancel
contracts with hospital group-purchasing
organizations Novation and Premier so the
company could sell products directly to
hospitals. Baucus said that the cancellations
could raise healthcare costs and reduce
already murky price transparency.
"Reports that these moves are fueled by
an attempt to discourage pricing transparency
for these cardiac and orthopedic products,
and increase cost to hospitals, are troubling,"
Baucus wrote in a May 2 letter to Medtronic
Chairman, President and CEO William A.
Hawkins III.
In the letter, Baucus also asked Hawkins
to explain a comment the Medtronic chief
made in March that he would be "shocked" if
competitors didn't also end contracts with
GPOs.
18 posted gains.
Healthcare labor demand in the rst
quarter was strongest in the Baltimore area,
which posted a 40% gain from the previous
quarter. Charlotte, N.C., ranked second. At the
bottom of the table was Las Vegas.
Though Cleveland was 29th of 30 with an
11% decline in hiring demand, St. Louis (7th
place), Detroit (14th) and Chicago (25th)
Continued on Next Page
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In Brief
consecutive days. Physicians and
other individual “eligible
providers” with at least 30% of
their patient populations on
Medicaid (20% for pediatrics) may
do the same.
In the Midwest, Iowa,
Michigan and Missouri already
have started their bonus programs.
The Centers for Medicare and
Medicaid Services expects Illinois
to join them in August and
Wisconsin at an unspecified time
this summer. Other states are
farther behind.!
Michigan Hospitals
Promise Healthier Food
Fifty hospitals in Michigan have
pledged to serve healthier food to
patients, staff and visitors as part of a
new plan by the Michigan Health &
Hospital Association to ght obesity
in the state.
Participants in the voluntary
Healthy Food Hospitals program can
earn as many as four stars from the
MHA by providing nutritional
information for food served in their
cafeterias, serving healthier beverages,
following American Heart Association
guidelines for pediatric menus and, by
2020, purchasing at least 20% of their
food from in-state producers.
“We’re attacking the obesity
issue by starting with ourselves
rst,”!Rob Casalou, CEO of three St.
Joseph Mercy Health System
hospitals, told AnnArbor.com. “What
can we do with our own people that
visit our campus? What can we
provide? Good food. We’ve got to start
at home, and then spread the word.”
St. Joseph Mercy Ann Arbor has
its own farm, while the Detroit Free
Press reported that Beaumont
Hospital in Royal Oak hosted a
weekly farmers market.
NEWS
Jobs (Continued from Page One)
registered double-digit gains on the index. The
Minneapolis-St. Paul and Kansas City areas
also reported rosier healthcare job markets.
Cleveland suffered because the state of
Ohio scrapped plans to build a new mental-
health hospital last quarter, though the future
could be brighter if Fairview Hospital wins
approval to expand its emergency department
and ICU, according to HWS.
The Detroit area gained in part due to St.
Joseph Mercy Saline expanding its short-term
rehabilitation unit and Detroit Medical
Overland Park Regional Will Expand
Hospital to Add Trauma Services, Revamp Rooms
Overland Park Regional Medical Center, an
HCA Midwest Health System property in
Overland Park, Kan., has announced a $121
million plan to make all of its patient rooms
private and expand trauma care.
The hospital will add more than 215,000
square feet of space, including a new, 72-bed
tower with private medical-surgical rooms for
acute and critical care, as well for orthopedic,
neuroscience, endoscopy and an expanded
cardiac catheterization lab. The addition also
will house a new emergency department for
the only trauma center in Johnson County,
Kan.
Existing facilities will be renovated as
Overland Park Regional makes all of its rooms
private, so capacity will remain close to the
current 343 beds, the Kansas City Star reports.
It will become the rst hospital in the county
to offer only private rooms, according to the
Kansas City Business Journal.
HCA Midwest will break ground on the
expansion before the end of the year and the
project should be completed by late 2013 or
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Page 3
Center’s Sinai-Grace Hospital continuing to
add clinical staff. DMC Huron Valley-Sinai
Hospital also won approval to add 23 private
rooms as part of a $7 million renovation, the
research report said.
In St. Louis, BJC HealthCare, SSM Health
Care and St. John’s Mercy Health Care
together have nearly 1,400 job openings. On
the downside, Shriners Hospitals for Children
has again pushed back plans to build a new
facility on the Washington University Medical
Center campus.
early 2014. Hospital ofcials expect to add
about 130 jobs once the new space is
operational.
"The announcement of this expansion is
an opportunity to thank our physicians and
healthcare professionals for their dedication to
quality patient care, which will be further
enhanced with these improvements to the
medical center," HCA Midwest Health System
President Steve Corbeil said, according to the
Star.
"This is an unprecedented investment in
Overland Park Regional Medical Center and
will allow us to further advance services and
facilities we provide our community and the
surrounding areas we serve," added hospital
CEO Gay Nord.
The general contractor for the project, J.E.
Dunn Construction Co., has led construction
projects at several other Kansas City-area
hospitals, including Children’s Mercy
Hospital, University of Kansas Hospital, St.
Luke East and HCA-owned Research Belton
Hospital.
]
Payers & Providers
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OPINION Page 4
Hospital CEOs Cannot Be Wallflowers
Risks Aside, They Need to be in The Public’s Eye
The hospital or health system CEO is arguably and transparent things a hospital CEO can do to
one of the most important individuals in any preserve and enhance the public’s trust in their
community.! This role has evolved over the hospital and its leadership.! In my rst job as a
years from primarily a nancial expert focused hospital executive in Ann Arbor, Michigan, I was
on ensuring the institution’s scal viability to fortunate to work in a large private hospital with a
someone who can also long history of community
collaborate artfully with his or involvement.! The organization’s
her medical staff, negotiate chief executive was well known,
successfully with unions, highly respected and cared deeply
navigate the independent hospital about the community and its
through a system merger or other citizens.! His vision resulted in a
collaborations, reach out to local rapid diversication beyond just
businesses, assess patient the acute care inpatient setting
satisfaction surveys and more.! into mental health, chemical
Because of this, the potential dependency, childcare, health
power of the hospital president’s promotion, wellness programs and
voice as a community leader has beyond.!
never been greater. !!!!!!That CEO was living proof that
!!!!!!Unfortunately, not unlike it is insufcient for a hospital
university presidents who were leader to simply serve on a bank
once striking gures on the public By Ritch K. board or belong to Rotary or volunteer
stage, too few hospital CEOs make it Eitch for the Red Cross.! He or she must also
a priority to be visible outside the meet with community members in
walls of their institution.! Fewer still are their workplaces and visit with physicians where
comfortable jumping into the fray to share with they practice to better understand his
their local public where they stand on the constituencies’!varied and very needs.! And he
pressing debate currently taking place regarding needs to regularly articulate the hospital’s values,
Medicare, Medicaid or health care reform in mission and vision in a clear and consistent
general.! I nd this troubling and believe that it manner.
is the role of today’s health care CEO to !!!!!!So, too, it is the role of hospital boards to
advocate for something beyond his or her encourage their presidents to update the
institution’s necessary but parochial needs. community on major health policy issues, to
!!!!!!It is not difcult to understand why most of support them when they take a stand that will
today’s hospital leaders are uncomfortable directly impact the community and to hold them
speaking out on the major health care issues of accountable for living the hospital’s values every
the day.! The potential backlash to unpopular day.!
opinion is strong and often immediate –!a !!!!!!Hospital leaders must not fail in their
microcosm of the polarization of Americans on obligation to be a vital force of information,
issues of substance.! And with powerful social education and enlightenment.! Especially in these
media tools now at play, the angry voices can contentious times when so much is at stake and
bang the drum more loudly than ever.! the world is changing so rapidly, both the
!!!!!!Any hospital president who speaks out in an community and the hospital will be richer as a
attempt to enlighten his or her community runs result of these efforts.!
the risk of potentially alienating fellow
executives, hospital board members, medical Ritch K. Eich, Ph.D., is the former chief of
staff, employees, local business leaders, elected communications and public affairs at Stanford
ofcials and others.! The risk is especially high University Medical Center and former chief of
when that same CEO is simultaneously public affairs for Blue Shield of California.!
attempting to build market share, cement
relationships and court donors.!!
!!!!!!However daunting, taking a stand on major
health policy issues is one of the most important
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Payers & Providers MARKETPLACE/EMPLOYMENT Page 5

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! !

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*New England Journal of Medicine, 2004.

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