Hospital mergers and acquisitions continued at a robust pace in 2011 as providers used consolidation and market share to elbow out competitors, improve economies of scale, and leverage better prices with vendors and insurers.
The top 10 hospital mergers and acquisitions in 2011 were valued at $5.6 billion, up from $3.8 billion in 2010, according to Sanford Steever, editor of The Health Care M&A Information Source, published by Norwalk, CT-based Irving Levin Associates. Hospital M&A carried a total value of about $7.3 billion in 2011.
In all of healthcare, including hospitals, drug and device makers, distributors, and health insurance companies, mergers and acquisitions were valued at about $236 billion in 2011, one of the busiest years in a decade, and up from $206 billion in 2010, Steever says.
"Activity is up over the previous year, although there haven't been any huge portfolio deals," Steever told HealthLeaders Media. "There has been a lot of activity in the middle market."
The year's two biggest hospital deals—each valued at more than $1.4 billion—include Highmark's acquisition of the five-hospital West Penn Allegheny Health System, and HCA's purchase from the Colorado Health Foundation of its 40% interest in the seven-hospital HealthONE system.
Most of the structural factors that drove M&As in 2010 were still in play this year. "The healthcare delivery system…remains fragmented. Hospitals will combine to create economies of scale, perhaps create some synergies by combining operations, and increase their patient base," Steever says. "The countervailing force is that the delivery of healthcare is local. So, you want to focus on the local but provide as broad a network as you can. If you're a member of a multi-hospital system, you probably have a better bond rating and more clout with vendors and insurers."
Steever says the passage of the Patient Protection and Affordable Care Act continues to play a big role in accelerating hospital M&As. "Before the Affordable Care Act was passed, the rate of hospital deals was very low because people didn't know what the outcome was going to be and they didn't know what the reimbursement protocol was going to be," he says. "Because of that they couldn't accurately calculate revenue and cash flow, and that made it hard to place valuations on businesses they wanted to buy."
"Once ACA passed activity took off, although a lot of it is vertical. You have hospitals buying physician groups and IT businesses to put together the elements of an affordable care organization," he says.
Steever says he expects that hospital M&As will continue at a healthy clip in 2012. "The only thing that could slow it down is dithering over the election and the direction that healthcare might take depending upon who wins the White House," he says.
"If healthcare becomes a big issue in the campaign, it will slow down the deal-making," he says. "The partners will take longer in their due diligence because they will want try to accurately value the deal, so they will have to compare a scenario where the Affordable Care Act continues to kick in versus one where it gets stripped out. They will have to produce valuations that take both scenarios into account. That just slows down deal-making but it is not going to stop it, because the underlying structural reasons exist regardless of what happens with the government."
Steever does not believe that access to capital will be a problem for the larger, stronger providers that are in a position to gobble up smaller competitors. "The capital is there and it is going to be there for those hospitals because they are fairly large. The smaller entities are still going to experience difficulty accessing capital," he says.
"Private companies are sitting on a huge wad of cash. There are some publicly traded companies have great cash flow, and some of the Catholic not-for-profits have great bond ratings and great tradition of fiscal responsibility and uncanny management," he says. "Access to capital is not a brake on this activity."
In our annual HealthLeaders 20, we profile individuals who are changing healthcare for the better. Some are longtime industry fixtures; others would clearly be considered outsiders. Some are revered; others would not win many popularity contests. All of them are playing a crucial role in making the healthcare industry better. This is the story of Wright L. Lassiter III.
This profile was published in the December, 2011 issue of HealthLeaders magazine.
"Organizations like ours are large and complex and if you are going to drive accountability in your organization, then everybody has to play a part in solving problems."
In September, Alameda County Medical Center was recognized as a Top Performer in Key Quality Measures by The Joint Commission, which placed the safety-net health system among the top 14% of 3,099 accredited hospitals in the United States.
That distinction marked the latest affirmation of a remarkable turnaround for the Oakland, CA–based six-facility public system, which only six years earlier had been near collapse. That turnaround trajectory started in 2005—and not coincidentally—with the arrival of Wright L. Lassiter III as CEO.
In the year before his arrival at age 41, the federal government had threatened to pull the health system's accreditation for a number of jaw-dropping infractions, the most notorious of which was the strangulation death of a physician by a patient at ACMC's John George Psychiatric Pavilion. A few months before Lassiter took the job another patient at the pavilion had hanged herself in a doorway.
"I had some reservations about pursuing the job as I began to understand what some of the issues were. I had some natural trepidation about 'Is this something that is a wise career move?'" says Lassiter, who chose ACMC over the relative security of his executive post at JPS Health Network in Dallas. "I had a combination of private hospital experience with a public hospital inclination. This specific set of skills is very important."
"When I came out here my hope was that I could engineer the type of turnaround that would create a sustainable path for the organization," he says. "It wasn't just about money and quality indicators. It was about driving a different kind of culture. That stuff doesn't take a short period of time."
It wouldn't be accurate to say that there was a crisis in leadership at ACMC before Lassiter arrived, because there was no leadership. ACMC had chewed up and spat out 10 CEOs in the 10 years before him.
"What I inherited was the view that the CEO was a turnstile and a place of instability," he says. "Because the CEO role rotated so much, there was a fair amount of churn in the senior leadership and there was instability in leadership and direction."
ACMC's finances were a disaster. The health system's balance sheets were hemorrhaging red ink. ACMC owed the county about $200 million, with no immediate prospects for repayment. The mostly unionized staff was mired in a status quo culture of frustration, suspicion, and apathy.
Even with that uncertainty, Lassiter took the job because he was assured by the system's newly appointed board that it would support a change in culture. The public had also demonstrated its support for the mission before his arrival when it approve a sales tax hike that would generate about $75 million annually for the health system.
With the system's financial problems apparently stabilized, Lassiter says he planned to spend his first few weeks at ACMC "learning and listening to understand what the key priorities were, and then deciding where to go." That listening tour was scotched within the first week, however, "when I arrived and the first set of financials I saw showed that the organization was losing about $1 million a month," he says. "That was not something that was projected in the budget and it was something the board had not been made aware of. I had to plug a hole in a ship that was leaking oil badly. That was first priority."
With challenges come opportunities. Rather than wielding a budget cleaver and chopping staff, Lassiter hired a like-minded C-suite team that engaged staff to find savings across the organization and that would result in fewer job eliminations.
"We used a team approach to garner revenues, enhance cost savings, and find contract savings," he says. "We also had a (Centers for Medicare & Medicaid Services) survey of our psychiatric facility that happened six days on the job that wasn't particularly flattering.
It was the first time in my career that I had had a survey go that badly. I used that as a rallying cry for the organization and I challenged the organization. 'Do we believe we should go from survey to survey riding correction plans, or are we going to focus on creating discipline to demonstrate that we are better all the time?'"
While the first months on the job proved stressful, Lassiter says they also demonstrated his commitment to the mission, and his willingness to listen.
"I thought it was important early in my career—and still to some extent now after a number of years—to make sure that the organization understands that the problems can't get solved in just the CEO's office, the proverbial ivory tower," he says. "Organizations like ours are large and complex and if you are going to drive accountability in your organization, then everybody has to play a part in solving problems."
Now, after six years, ACMC still faces challenges, including the prospect of lower Medicare and Medicaid payments. However, Lassiter believes ACMC has turned a corner. In addition to The Joint Commission recognition of improved quality, ACMC has also eliminated its leadership turnstile, and is operating—mostly—in the black. The system now looks to generate between $3 million and $5 million in net income each year, has whittled down its debt to the county to about $140 million, and plans to repay the debt by 2018.
From his office window, Lassiter can monitor construction of ACMC's $670 million expansion. When he walks the hallways he encounters dedicated professional staff providing quality care, often to the most vulnerable people in our society.
The son of an ordained minister, Lassiter says he gains spiritual fulfillment from the success of ACMC. "You get great satisfaction creating a high reliability, high quality, high patient experience organization and one that treats the people who don't have lots of options," he says. "So, to take care of this population is one of those things that gets me up in the morning."
This article appears in the December 2011 issue of HealthLeaders magazine.
In our annual HealthLeaders 20, we profile individuals who are changing healthcare for the better. Some are longtime industry fixtures; others would clearly be considered outsiders. Some are revered; others would not win many popularity contests. All of them are playing a crucial role in making the healthcare industry better. This is the story of Min-Shin Chen.
This profile was published in the December, 2011 issue of HealthLeaders magazine.
"The way I look at it is not what could have been, but this is our new life."
A "good day" for family caregiver Min-Shih Chen is often measured by what doesn't happen for his wife Gloria, 71, who is battling Parkinson's disease.
"A good day for her is there are no incidents. She is cared for. She is content. There are no expected illnesses or difficulties," says Chen, 68, of his wife of 42 years. "It's a good day when I can take sufficient care of her. If my wife has a good day, then that makes me happy."
Chen is one of the estimated 65 million Americans—roughly 29% of the population—who provide a total of $375 billion in uncompensated healthcare each year for a family member. That is more than double the $158 billion that is spent on homecare and nursing home services, according to estimates from the National Alliance for Caregiving and AARP.
Gloria Chen was diagnosed with Parkinson's in 2004, and since then it's been a tactical retreat against the relentless degenerative disease. When Gloria, a retired music therapist, was still able to walk, Chen took her to a physical therapist and watched the treatments, using what he learned to help his wife. He devised a set of portable parallel bars in their Ann Arbor, MI, home to help her exercise.
"Since last year she has lost more and more of her mobility. Before that, I had transformed my home more like a physical therapy gym. We did a lot more physical therapy twice a day, to keep her mobility as long as possible. But eventually it was lost," Chen says. "I can no longer do walking with her."
The Chens' life now revolves around four daily "cycles" starting around 8 a.m. and ending around 8 p.m. Each cycle lasts about three hours, and involves bathing, feeding, administering medications, rest, and moving Gloria—who has been rendered nearly speechless as the disease progresses—from her bed to her wheelchair, from her wheelchair to her recliner, and back again.
"She can no longer eat solid food, so I give her a nutritional supplement. She has trouble drinking through the straw so I let her drink as much as she can and then I spoon feed her the rest. Then I transfer her from her wheelchair to her recliner. So, she rests and then I work around the household," says Chen, who retired from his job as an IT professional three years ago to care for his wife full-time. "I get her up and bring her to the dining room table because I really want her to feel her life as normally as possible. On the dining room table I give her medication, and this repeats four times a day. Also, I take the opportunity when she is more mobile at the time, we do physical therapy exercises."
Chen usually gets a couple of hours in between the four cycles during the day when his wife is napping. He keeps up with household work and doing home modifications to adapt to her abilities. For himself, "I do exercises, and I have a garden. I am doing fine," says Chen.
Shifting Gloria from her bed to her wheelchair and the recliner are often the most challenging part of the day, Chen says, because they both weigh about 130 pounds. "I learned techniques from when she was in rehab and also learned some techniques from the physical therapist," he says. "Now because she has lost so much ability, I have to use a lift to get her to bed."
Chen says it could be worse. He says they are fortunate because they have Medicare, good retirement benefits, and secondary insurance through a commercial provider, and he doesn't have to leave her alone to go to work. "We still have to pay a fair amount of out-of-pocket expenses for copay and her supplies. But we planned our retirement for the worst-case scenario, so financially I am okay," he says. "I also know many caregivers are in real financial hardship."
When time allows, he is also a frequent contributor to a website established by the National Family Caregivers Association. "I started joining the network trying to just exchange ideas on how to take care of our loved ones. But then I found that the emotional aspect of supporting other caregivers is probably more common than just sharing ideas about how to take care of loved ones," he says. "And it is my social outlet, my outside contact. Sometimes we have new people join and the first thing they realize is 'Oh, I am not alone.'"
In the three years since he became a full-time caregiver for his wife, Chen has learned to adjust. Providing care for a love one requires a change in priorities and expectations, and he refuses to get depressed. "The way I look at it is not what could have been, but this is our new life. So, I no longer compare us with how other people live or how we used to live," he says. "I just think about how we can get the most out of the circumstances, and treasure whatever quality of life we still have left."
This article appears in the December 2011 issue of HealthLeaders magazine.
In our annual HealthLeaders 20, we profile individuals who are changing healthcare for the better. Some are longtime industry fixtures; others would clearly be considered outsiders. Some are revered; others would not win many popularity contests. All of them are playing a crucial role in making the healthcare industry better. This is the story of Alex Blau, MD, and Brad Cohn, MD.
This profile was published in the December, 2011 issue of HealthLeaders magazine.
"This was just something we needed and we were surprised that it didn't exist."—Alex Blau, MD
While working the overnight shift at San Francisco General Hospital, Alex Blau, MD, and Brad Cohn, MD, found themselves at the corner of necessity and invention. The two young physicians in training were in their third year of medical school at the University of California San Francisco in 2008, and they were frustrated by their inability to communicate with patients from the Bay Area's diverse racial and ethnic communities.
"In healthcare your greatest diagnostic tool is your ability to communicate, to obtain a decent history and a physical exam from your patients. This is difficult to do with patients you can't easily communicate with," says Cohn, 29, now a resident in anesthesiology at UCSF and San Francisco General Hospital. "Patients who don't speak the same language as their providers sometimes do not have the opportunity to give that vital piece of information they need to in a timely fashion."
So, the pair came up with the idea for MediBabble—an iPhone/iPad app that allows clinicians to better communicate with nonEnglish-speaking patients during the initial exam and history-taking.
"Understanding a patient’s needs is really critical in developing an app that helps people."—Brad Cohn, MD
"This was just something we needed and we were surprised that it didn't exist," says Blau, 35, an emergency physician who has since left medicine to develop MediBabble. He is also medical director at Doximity Inc., in San Mateo, CA. "We both had iPhones and we thought ‘why isn't there an app that helps us? We can now walk around with computers in our pockets and impressive interface ability. Why don't we have a quick language app that allows us to play some questions for our patients?' Then we realized that we were perfectly situated to do it ourselves."
MediBabble—which is free and does not require Internet access once it is downloaded—focuses on the history-taking process during the initial patient interview.
"We specifically rewrote all of basic medical history taking," Blau says. "It turns out that most of the information we look to get as physicians is fairly predictable, depending upon a patient's complaint. We were able to organize history taking in a standard fashion, the way most physicians will approach it, based on patients' chief complaints and wrote out all of the questions that a physician would want to know the answer to."
Blau and Cohn and their small technical support staff at the company they formed—NiteFloat Inc. —had the questions translated by native speakers into six languages: Russian, Spanish, French, Cantonese, Mandarin, and Haitian Creole—the last of which was rushed into production to help clinicians in the earthquake relief effort on Haiti.
"Say a patient comes in complaining of chest pains," Blau says. "You simply pull up chest pain section and it will have the list of questions organized in the chronology you would normally want to ask as a clinician. You tap on your device and it will play those recordings that have been laid down by these professional interpreters out of the speakers of your device. It would be like they are hearing the interpreter in the room with them."
Blau stresses, however, that MediBabble is no substitute for a flesh-and-blood translator. "The tricky part obviously is how do you understand their response?" Blau says. "We wrote this history so it is all closed-ended questions that require only ‘yes' or ‘no' responses or gestural responses, such as pointing to a body part or holding up a number of fingers to indicate pain on a scale of 1 to 10."
Cohn says they intentionally limited MediBabble's ability to obtain information from patients. "You can't give information to a patient using MediBabble," he says. "This is for an emergency situation where collecting data quickly will allow you to improve the patients' health or allow you to get critical health information. It boils down patient responses into a format where you don't need to actually speak their language to understand their replies. But in order to give that information back to a patient you need to work with a medical interpreter."
The response to MediBabble has been strong. Since it was launched in February 2011, more than 15,000 clinicians have downloaded it. MediBabble was also voted the No. 3 new app of 2011 for internists and residents by the influential physician-review Web site iMedicalApps.com, which called it a "most superior" translation device.
Blau says NiteFloat wants to expand the breadth of the questions, the languages offered, and the content. "Right now it is focused on broad emergency and primary care complaints. But we have had a lot of specialists request additional content in areas such as OB/GYN and anesthesia," Blau says. Plans are also under way to launch an "internationalization feature" that will allow, for example, Russian speaking physicians to communicate with Spanish speaking patients.
While it's not charging a fee for MediBabble, NiteFloat asks users to donate money. "We have no plans to charge for the service. We continue to pay for MediBabble's development ourselves, but we're looking for foundation support," Cohn says. "We are technically not a non-profit, but we are also technically not profitable."
The growth of medical apps is exploding, with thousands of offerings for medical professionals and patients. For healthcare applications to be effective, Cohn says, there will always be a need for the physician's perspective. "You can build an app for what you know best," he says. "The more you work in the system as a physician, the more you can identify true need. The more time I spend with patients, the more I come to appreciate their struggles and what benefits them. Understanding a patient's needs is really critical in developing an app that helps people."
Sometimes people in the healthcare industry over think issues. It's all done with the best intentions, but a simple concept such as patient satisfaction can be made to appear as complex as ICD-10. Set up a study committee. Earmark funding. Conduct a survey. Mount a marketing plan. Hire a consultant.
A story last week in The Kansas City Star provides an excellent example of how common sense customer service can have a profound impact on patient satisfaction.
Since 1999, The Star report notes, The University of Kansas Hospital in Kansas City, KS, has relied on medical technician Paula Miller to lead a customer service training program. Miller's trained about 12,000 staff—from the C-suite to physicians to parking lot attendants—on the finer points of making patients happy. As a result, patient experience scores have gone from the single digits to the high 90s.
The curriculum at KU Hospital—as it's explained in The Star piece—is basic because the message is fundamental: Treat people with respect. Miller encourages her students to look people in the eye, speak gently and respectfully, and use titles like Mr., Mrs., and Ms., when appropriate.
While the story has a feel-good element to it, there is also a bottom-line component. We all know that starting next October dollars will be attached to higher Medicare patient satisfaction scores.
There are several takeaways from the story that can be applied by any healthcare organization willing to make an effort. The best part of the story is that KU Hospital didn't need a complex program, an arcane marketing scheme, a big consultant contract, a bright and shiny ad campaign, or a new customer service department with pricey specialists to get the job done.
Hospital leadership saw a need and identified the right person to lead the program.
Miller dedicates four days a week to her job as a medical technician. Every Wednesday, she leads customer service training for new employees.
While KU Hospital has not dedicated a large financial commitment to the customer service program, leadership has clearly invested a personal commitment to its success. Miller was picked by KU Hospital President Bob Page to lead the program in 1999, and her efforts still carry the vocal and visible support of the C Suite. That makes a huge difference. If staff doesn't believe that leadership is behind an initiative, it will fail. Hospital workers are remarkably adept at sniffing out a fraud.
The KU Hospital customer service program is well-structured with definite goals. And, it applies to all new hires. That is critical. The quickest way to kneecap such a program would be to exempt from participation a select caste of workers or executives. That sends the immediate and negative message to the rest of the staff that customer service is merely another mandate from on high to be obeyed by some and not a core value embraced by all.
Miller reminds her students that patients and their families are not always at their best when they are in the hospital. They could be in pain, or frightened, confused, or anxious. Miller encourages employees to empathize with these people who may be going through a traumatic experience. The new hires are left with the understanding that courtesy and respect are job requirements, not electives.
"There's plenty to do here. But patients should never get the feeling that we're too busy to take care of them," Miller told The Star. "People are not numbers. They're people, whether they're patients or co-workers. And when we treat each other the way we want to be treated, that's excellent service."
None of this is complex. This is not gene therapy or face transplant surgery. This is about common sense and courtesy at its most basic level. This is about treating people the way you want to be treated —the stuff our parents taught us. It doesn't take long to learn but once learned it goes a long way. This is something everyone can do.
The message from KU Hospital is as clear as its return on investment.
Primary care physicians say pervasive and stubborn social barriers such as a lack of access to adequate housing, transportation, and nutritious, affordable food may impact patient health as much as access to direct medical care, a survey shows.
The online survey of 1,000 primary care physicians, including 310 pediatricians, was conducted in September and October on behalf of the Robert Wood Johnson Foundation.
"What really becomes clear is that when you think about providing care, we have to think about more than just the medical service delivery system," Jane Lowe, team director for the Vulnerable Populations Portfolio at RWJF tells HealthLeaders Media.
"We have to think about how do we help physicians connect their patients to other providers or to services that are going to have as much impact on their health outcomes as the physician visit will have?"
They survey found that:
85% of physicians say unmet social needs are directly leading to worse health for all Americans.
85% of physicians say patients' social needs are as important to address as their medical conditions. This is especially true for physicians (or 95%) serving patients in low-income, urban communities.
76% of physicians want the healthcare system to cover the costs associated with connecting patients to services that meet their social needs if a physician deems it important for overall health.
Only 20% of physicians feel confident or very confident in their ability to address their patients' unmet social needs.
Physicians said that if they had the power to write prescriptions to address social needs, these would represent 1 out of every 7 prescriptions they write— or an average of 26 additional prescriptions per week.
Lowe says the survey reflects a tremendous frustration on the part of primary care physicians who every day see barriers to good health that their patients face in the world beyond the office visit.
One common example of a stubborn environmental barrier that is cited by physicians is childhood asthma triggered by mold in substandard housing.
"If you are a physician, particularly a pediatrician, and you know the asthma could be easily managed if the environmental factors were changed, that has to be enormously frustrating," she said.
Lowe says the long-term costs of frequent asthma attacks have to be measured along with the short-term costs of frequent trips to a pediatrician or the emergency department.
"Asthma one of the biggest single causes of school absenteeism and it causes children to fall further and further behind in their studies," she said. "It has tremendous implications for their growth and development not just physically but socially, emotionally, and educationally."
Lowe says primary care physicians simply don't have the time to chase down and correct the socio-economic conditions that lead to adverse health effects for their patients. With that in mind, Lowe says she hopes the survey will bolster support for a RWJF-funded program called Health Leads that is now underway in about a half-dozen cities across the nation.
Health Leads relies on trained volunteer college students working with healthcare providers to identify social issues such as substandard housing or poor nutrition that may adversely impact patients' health. In addition, some hospitals team up with legal aid attorneys and other interdisciplinary teams that include social workers who take on substandard housing issues and other barriers.
"We are not naïve to think that physicians are going to do this," she says. "The most hopeful thing about this survey is that physicians are recognizing that there are these unmet social needs that are important to address, even though they don't know what to do about it."
Closing a safety net hospital kicks up a significant ripple effect for primary care physicians and underscores the need to involve those providers in the planning and aftermath of such a disruptive process, a study has found.
"The primary care doctors were trying to figure out what they were going to do," study lead author Kara Odom Walker, MD, told HealthLeaders Media. "They were really frazzled by the whole upheaval and trying to deal with it the best way they could. There was a lot of rich conversation that did not make it into the study."
The study found that many of the primary care physicians complained of profound professional and personal upheaval owing to the disruption of the care network. "A lot of medicine is informal networks of care where you call your friend, your local gastroenterologist who has been there forever to see your patient in who needs to be seen sooner than later," Odom Walker says.
The disruptions included reduced access to specialty care, overcrowding at nearby hospitals and emergency departments, delayed and poorer quality of care for patients, reduced communication and disrupted patient connections, and a loss of colleagues and opportunities to teach residents and medical students, the study reported.
"The usual way of doing business was completely disrupted and patients were confused," Odom Walker says. "It wasn't that their doctors' doors were closed, but patients felt like 'Oh my goodness what should I do next?' They were showing up with more acute issues at their physicians' offices or running out of medicines because a lot of these patients go to the emergency room and use it to refill prescriptions."
The study calls for greater input and participation from primary care physicians when a major disruption such as hospital closures loom in a healthcare delivery system.
"When a hospital closes or downsizes they really do need to think more about what happens to the primary care doctors because oftentimes they are not at the table," Odom Walker says. "Primary care doctors really know what is happening at the ground level but they are too busy seeing patients and keeping the doors open on their hamster wheel. They do experience the impact and they need to know what alternative strategies are available to get patients into care."
Odom Walker says she was not surprised to hear about the disruption within the MLK service area. However, she was surprised to learn that physicians from outside of the service area also were impacted by the hospital's closure.
"This was a safety-net hospital where mostly uninsured patients went. So you wouldn't expect private-pay patients and physicians who are mostly serving insured populations to be affected, but there is a ripple effect," she says.
"Even within the nearby Kaiser system, because those patients didn't have anywhere else to go, they just showed up in the ED and they couldn't be turned away. Then there were referrals through the ED with specialty care. You saw those delays building up."
The study did not specifically examine the emigration of physicians from the area after MLK closed, but Odom Walker says there is anecdotal evidence to support their departure.
"People did talk about how their colleagues were leaving and not going down the street—they were going to different parts of the state or out of state," she says. "It was not so much in primary care, but many of the specialists who were committed to serving an underserved population said, 'If I can't practice here anymore I will go somewhere else.'"
Odom Walker says she's not sure what could have been done differently when MLK closed.
The hospital lost its accreditation and shuttered with little warning. "But if more primary care physicians were at the table they would have thought about how to get the word out a little better so patients wouldn't have experienced so many delays in care, or put off getting medications refilled, that there were doctors still in the area to take care of them, and an action plan to get them to the care that is needed," she says.
With Medicare and Medicaid facing possible budget cuts, Odom Walker says it's time to develop some uniformed procedures for hospital closings so that other communities aren't thrown into disarray if their safety-net hospital shutters.
"That would be an important next step—thinking through who, what, when, where, and how to do this in a way that doesn't affect people's lives," she says. "Right now there is no true oversight of a hospital closing. It is a contract with the community and no one is there to oversee that bond."
Healthcare created 17,200 jobs in November—a healthy increase from the 11,600 jobs created by the sector in October.
Healthcare remains a leading source of job creation in the overall economy, and was responsible for 14.3% of the 120,000 new jobs across all sectors in November, data from the Bureau of Labor Statistics shows.
Through the first 11 months of 2011, healthcare created 295,100 jobs—more than the 263,400 healthcare jobs created in all of 2010. Healthcare is on a pace to create 321,000 new jobs by year's end. So far this year, the 295,100 new healthcare jobs represent more than 24% of the more than 1.2 million non-farm jobs created in 2011.
Hospitals created 8,700 new jobs in November. The 83,200 new hospital jobs so far in 2011 are more than double the 37,300 new hospital jobs reported in all of of 2010, BLS data show.
Ambulatory services, which includes physicians' offices, created only 4,700 new jobs in November, after reporting 17,000 new jobs in October, 23,400 new jobs in September, and 20,200 new jobs in August. Ambulatory services have been responsible for 58% (171,800) of new jobs in healthcare so far in 2011, and created 166,100 new jobs in 2010.
Physicians' offices created 63,700 new jobs in the first 11 months of 2011, compared with 25,300 jobs created in that subsector for all of 2010. Physicians' offices created 2,700 jobs in November and 8,000 jobs in October after posting 9,700 new jobs in September.
BLS data from October and November are preliminary and may be revised considerably in the coming months.
More than 14.1 million people worked in the healthcare sector in October, with more than 4.7 million of those jobs at hospitals, and more than 6.2 million jobs in ambulatory services, which includes more than 2.3 million jobs in physicians' offices.
In the larger economy, the nation's unemployment rate dropped from 9% to 8.6%—its lowest level since March 2009—fueled by 120,000 nonfarm payroll additions. Nonetheless, 14 million people were unemployed. The number of long-term unemployed, defined as people jobless for 27 weeks or longer, was 5.7 million in November, essentially unchanged from October, and represented 43% of the unemployed.
A study this month in the journal Academic Pediatrics provides a pithy example of a persistent disconnect for the wellness movement in the healthcare workplace.
The study by researchers at the UCLA School of Medicine and the RAND Corp. examined the menus at 14 children's hospitals in California and found that only 7% of the nearly 400 entrees were considered healthy.
"As health professionals, we understand the connection between healthy eating and good health, and our hospitals should be role models in this regard," Lenard Lesser, MD, the primary investigator on the study, said in a media release. "Unfortunately, the food in many hospitals is no better—and in some cases worse—than what you would find in a fast food restaurant."
While the study concentrates on children's hospitals in California, it is not unreasonable to suggest that these poor nutritional standards could be found in many other hospitals across the nation. If so, the study illustrates that while many hospitals talk the talk on improving nutrition, staff, patients, and visitors at hospital cafeterias still chew the fat.
Most—if not all—hospitals ban tobacco use, so they probably don't sell cigarettes in the gift shop. Why then should the standards be different for unhealthy food? Health issues related to overweight and obesity are key healthcare cost drivers. We all know that. So why promote it?
Simply stated, if your workplace wellness initiative features a weight loss program—or especially if you're contemplating heftier health insurance premiums for heftier employees—you shouldn't be selling cheese fries and sugary drinks in the lunchroom.
Yes, it's a matter of choice and will power. But why, as champions of healthier living, would hospitals provide a temptation to people who are trying to improve their health? Would you wave a Marlboro in front of an ex-smoker?
The UCLA/RAND study found that many hospitals provided healthy alternatives such as fruit, but that less than one-third of the hospitals provided point-of-sale signage that offered nutritional information or promoted healthy eating.
Even worse, 81% of the hospitals offered high-sugar items such as cookies and ice cream near the cash register—which any tabloid news junkie or candy bar fiend at your local supermarket will confirm is Ground Zero for impulse buying.
In addition, half of the hospitals in the study did not indicate to consumers that they carried healthy entrees, and 44% did not have low-calorie salad dressings. Cracker Barrel and Shoney's do that!
There is some good news. While the findings were released this month, the study was conducted in July 2010 and the researchers said that since then some hospitals have taken steps to eliminated unhealthy offerings. For example, some have eliminated fried foods, lowered the prices for salads, and hiked prices for sugary drinks, or eliminated them altogether.
Lesser said it best: "If we can't improve the food environment in our hospitals, how do we expect to improve the health of food in our community? By serving as role models for healthy eating, we can make a small step toward helping children prevent the onset of dietary-related chronic diseases."
Phrases such as "practical-minded" and "consensus-builder" are used a lot when friends and colleagues of Marilyn Tavenner talk about the No. 2 administrator at the Centers for Medicare and Medicaid Services.
Tavenner, who has served as a nurse, HCA executive, and Virginia health secretary, was nominated by the Obama administration last week to replace Donald Berwick, MD, as administrator at CMS.
By most accounts, the low-key and soft-spoken Tavenner will not bring to the top job at CMS the "visionary" status that Berwick enjoyed among the healthcare intelligentsia. The comments of Tavenner's friends and colleagues, however, suggest that she is a highly competent expert in healthcare administration who is also not laden with the issues that made Berwick's tenure contentious. Berwick assumed office as a recess appointment by the Obama administration nearly 18 months ago. He leaves CMS on Dec. 2, weeks before his term was to expire. Republicans vowed to block his confirmation.
"She is not going to be a bomb thrower. She is not going to be tossing political hand grenades," says Virginia State Sen. Edd Houck, D-Fredericksburg. Houck worked with Tavenner when she was secretary of Virginia Health and Human Resources from 2006 to 2010 under Democratic Gov. Tim Kaine.
"I keep coming back to the same word, she is so pragmatic in working toward a mutual result that if folks would let that attribute come through they would find that she is a true professional," Houck says. "She has been in healthcare her whole life. She is not a politician. She is a healthcare practitioner."
Although she served under a Democratic governor, Houck says Tavenner worked well with Republicans in the Virginia Senate. "Marilyn was agile and sensitive to the partisan differences. She was politically astute," he says.
Erik Swensson, MD, the CMO at Capella Healthcare, has known Tavenner for 26 years and saw her rise in the ranks from nurse to CEO at what is now HCA's CJW Medical Center in Richmond, VA. Since then, Tavenner has served as a regional executive for HCA.
"She is very comfortable in her own shoes. She knows who she is. She knows what she wants to do but she also understands how to get things done and what things can and cannot be," Swensson says. "CMS is in an extremely difficult setting given the politics of the country. But for somebody who has taken care of patients, dealt with physicians one on one, dealt with hospitals on multiple levels, and on the private side and the state side and now on the federal side, she is one of the very few people who would have that experience."
Swensson sat on the board at Johnston-Willis Hospital when Tavenner applied for the CEO job.
"We had more-senior applicants, but I remember when Marilyn had her time before the board she said 'You all know me. I know you. I know what this hospital needs. I know what it takes to run it. I know I haven't been a CEO before but I can do this job and I won't let you down,'" Swensson says. "She said it with sincerity that we knew Marilyn had, so we gave her the job, and she didn't let anybody down."
Later, when Johnston-Willis merged with nearby Chippenham Hospital, "Marilyn brought them together and without much rancor," Swensson says.
"She saw who the players were and she saw what their issues were and she talked to them and got things resolved. It wasn't like Marilyn was coming in with Marilyn's vision of 'this is what you have to do.' Her attitude was 'let's find out how we are going to get it done.'"
Laurens Sartoris, president Virginia Hospital and Healthcare Association, has known Tavenner for years, and says that while she brings a formidable level of expertise to the job, she is not a mere policy wonk or a technocrat.
"When you use the term technocrat there is almost a pejorative sense to it," he says. "To be a technocrat and try to run something means you probably get lost in the weeds. Marilyn doesn't get lost in the weeds. Not that there isn't an important place in the world for policy wonks but I would never characterize Marilyn as someone with her head in the clouds."
In many respects, Sartoris says, Tavenner reflects the character of the people in rural Henry County in western Virginia, where she was raised. "Her feet are very firmly planted," he says. "She is also a person of few words. She doesn't talk to hear herself think and for a long time she has been used to getting to the nut of the problem and trying to address it without a lot of the other distractions that may surround it."
"It is the way she has always been. See a problem. Analyze it. Come up with an approach you are going to take and make the decisions," he says. "Considering the job she is going into, decision making is an important part of process with all those different pots boiling on the CMS stove right now."
Sartoris declined to speculate on the suggestion that Tavenner was picked because she provides a sharp contrast to Berwick.
"I can't say why the White House picked her, but I can tell you why I would pick her," he says. "Marilyn has the necessary management skills to deal with a large and extremely complex organization and be a quick decision maker, using appropriate analysis of the appropriate facts presented. That is the Marilyn I have known for a long time."
Houck says he believes Tavenner could flourish at CMS if Congress will give her the chance. "If they could lay aside the partisanship and work with Marilyn, I think they will find she is very easy to work with in terms of trying to get a mutual agreeable result," Houck says. "But I am not sure that is part of the equation in Washington these days."
