Actors Susan Sarandon and Tim Robbins weighed in on the medical-tower aspirations of St. Vincent's Hospital Manhattan during a New York City Landmarks Preservation Commission meeting. At issue is the hospital's "hardship-status" application before the commission in support of the institution's $1.6-billion development plan. St. Vincent's has said that it will have to shut its doors if it cannot build a new hospital, representatives said that the hospital has no choice but to build on its current property. The hospital project seeks to demolish five buildings in the Greenwich Village Historic District to permit the construction of a 299-foot-tall medical building and a 233-foot-tall luxury condominium.
President Bush has vetoed a bill designed to protect doctors from a 10.6% cut in their reimbursement rates when treating Medicare patients. The White House supports rescinding the pay cut, but objects to the way the legislation would finance the plan by reducing spending on private health plans. Lawmakers are under pressure from doctors and the elderly patients they serve to void the rate cut, which kicked in on July 1. As a result, both chambers of Congress are expected to move quickly to try to override the veto.
The California Assembly has approved a bill to toughen the state's power to fine insurers for failing to pay medical bills. The issue is whether the state needs extra legal powers to penalize health maintenance organizations and preferred provider organizations that are found to regularly underpay their bills to doctors, radiologists, anesthesiologists and other specialists. Assemblyman Jared Huffman said his bill was needed to put "teeth into our state's healthcare watchdog." But the measure now goes to Gov. Arnold Schwarzenegger, who is under pressure from HMOs and his own regulators to issue a veto.
Massachusetts Gov. Deval Patrick has proposed asking businesses, insurers, and hospitals to kick in about $100 million to close a gap in funding for the state's health insurance law. Consumer groups praised the proposal, saying patients were asked to pay more when copayments and deductibles for subsidized health plans were increased earlier this year, and now it is time for others to step up and pay their share. But business and insurance industry leaders are opposed to Patrick's plan, saying it is unfair to ask them to pay more, especially during an economic downturn.
University of Iowa officials have named Kenneth Kates, a healthcare consultant with Alvarez & Marsal in Chicago, CEO of U of I Hospitals. Kates will take the U of I post Sept. 15 and be paid an annual salary of $540,000. Kates succeeds Donna Katen-Bahensky, who resigned Dec. 5 after leading the hospital since 2002. University officials said they did not renew Katen-Bahensky's contract because she did not support a reorganization of the hospital and the U of I Carver College of Medicine.
American Health Network, a large physician practice with offices in Ohio and Indiana, and Anthem Blue Cross and Blue Shield have settled a longstanding dispute over reimbursement for care. The disagreement between the two organizations intensified in 2007 when American Health Network stopped accepting new Anthem patients at two of its offices due to declining reimbursement rates. Ben Park, MD, chief executive of American Health Network, said his practice is satisfied with the agreement that keeps it part of the Anthem network of providers. American Health Network has about 50 locations with approximately 160 physicians in areas including primary care, general surgery, pediatrics, and obstetrics and gynecology.