Because of Medicare's size and position in the healthcare market, it is likely that this policy will be quickly adopted by Medicaid and private insurers. A one-year experiment with expanded competitive bidding that was recently conducted by Medicare yielded cost savings of 42 percent, without reducing the quality of care, and was hailed as a great success. But if competitive bidding is predicated on supplying equipment at the lowest possible price, something has to give. And more likely than not, that something will be patient care.
Profitability at hospitals in Philadelphia and its Pennsylvania suburbs improved slightly last year, but the revenue growth rate continued sliding, according to an annual report by the Pennsylvania Health Care Cost Containment Council to be released Thursday. The report, showed that the overall operating profit margin at 41 area for-profit and nonprofit hospitals edged up to 4.4 percent from 4.3 percent. Curt Schroder, regional executive for the Delaware Valley Healthcare Council, cautioned against taking much comfort from the report, which for most hospitals covers the 12 months ended June 30. In the first six months of the current fiscal year, through December, Schroder said profit "margins, both operating and total margins, have taken a pretty steep decline."
Unionized healthcare workers have voted to authorize a strike against hospitals operated by five health systems in the Twin Cities. About 91 percent of 3,500 members of the Service Employees International Union Healthcare Minnesota voted in favor of the strike during two days of voting this week, according to a union news release Tuesday, May 15. If the union ultimately calls a two- to five-day strike, it would affect eight hospitals in the metro area. Workers represented by SEIU Healthcare Minnesota include nursing assistants, emergency room technicians, maintenance workers and food service personnel.
Debra Carey, CEO of SUNY Downstate Medical Center's hospitals is the latest exec to defy a state panel that recommended mergers and closings at cash-strapped Brooklyn hospitals. A string of refusals to follow the panel's recommendations is an embarrassment for the Cuomo Administration, healthcare advocates say. But some experts expect the hospital honchos will ultimately change course and follow the advice because state money is needed to shore up failing finances. In addition to Carey, executives at Brookdale and Wcykoff also rejected the recommendations.
Speaking to both state and national audiences, Governor Deval Patrick defended the idea of government promoting near universal healthcare, even as he called on lawmakers, healthcare providers, and the business community to work jointly on controlling its cost. The twin targets reflected his role both as leader of the state and a top surrogate speaker for President Obama. The Democratic president is defending his federal healthcare overhaul from criticism by Mitt Romney, the presumptive Republican presidential nominee who enacted the state's healthcare reforms when he preceded Patrick as Massachusetts governor.
Illinois Gov. Pat Quinn may use an executive order to establish a health insurance exchange, a website where consumers could comparison shop for insurance that's a key piece of President Barack Obama's healthcare law, according to Quinn's chief healthcare adviser. Michael Gelder, the governor's adviser, said the Legislature's workload on Medicaid and pension reform makes it unlikely lawmakers will be able to pass legislation authorizing an insurance exchange during the current session, which is scheduled to end later this month. Looming federal deadlines leave the governor with two choices: calling the Legislature back into special session or issuing an executive order, Gelder said.