Cayuga Medical Center is paying $3.5 million to settle allegations it improperly used Medicare and Medicaid money to pay for expenses of private medical practices that employ doctors recruited to the area by the Ithaca hospital. The settlement resolves a whistleblower lawsuit filed on behalf of the state and federal governments, which alleged that the hospital recruited doctors to the area using financial agreements that violated the federal Stark Law.
Gov. Rick Scott's plan to cut about $2 billion in public funding to hospitals that care for the poor is devastating and even ridiculous, say hospital leaders who predict patient care will suffer if it is enacted. Scott's fellow Republicans in the Legislature say they don't like his plan, either. But they admit that the hospitals—which took a considerable hit last year—will face another swipe of the ax.
MetroHealth System's management announced Wednesday an unaudited $2.7 million net loss for 2011 rather than the $1.1 million net loss it warned Cuyahoga County leaders to expect earlier this year. Even so, MetroHealth's leaders said they were "positively joyful" about 2011's year-end results.
WellPoint Inc.'s fourth-quarter net income sank 39 percent as medical claims increased, mostly because of a $50 million hit from the health insurer's Medicare Advantage business. But the company forecast earnings growth in 2012. The performance led to a rare miss of Wall Street expectations, and WellPoint's full-year earnings outlook also fell short of analyst forecasts.
Franklin-based hospital operator Community Health Systems has announced that it has entered into a definitive agreement to purchase the assets of Memorial Health Systems in York, PA. CHS will buy the 100-bed Memorial Hospital, the Surgical Center of York and other outpatient and ancillary services. Among the deal's provisions is a promise to build a larger replacement hospital within five years of the closing date. The deal, which covers about 1,000 workers, is still subject to regulatory approvals.
University of Maryland officials soon will begin working to help Prince George's County overhaul its healthcare system. The university will conduct a survey of county residents in late January and will question residents on their state of health, access to primary care, and general attitude toward the quality of health care facilities in Prince George's County. Feedback will help the county and university officials as they make plans to build a new $600 million regional medical center in the county.