While healthcare finance news from the various states continues to contain job cuts and increases in the number of uninsured, there have been some positive developments in the last week. In Florida, for instance, Gov. Charlie Crist signed legislation that would streamline the enrollment process for the state's KidCare program. And contrary to the bad investment news at most U.S. hospitals, Florida's Boca Raton Community Hospital actually saw its investments increase in value over the past year. In Texas, Methodist Health System continues to build, breaking ground on a new orthopedic facility. Other health systems, which have had to halt shovel-ready projects, might want to ask Methodist CEO Stephen Mansfield what he's doing right.
ALABAMA
The University of Alabama at Birmingham Health System plans to eliminate 164 positions and shift 81 workers into jobs now held under contracts for non-patient care support services. The cuts will affect employees at UAB Hospital, UAB Highlands and the UAB Health System in Birmingham, Ala. The cutbacks come after a productivity performance review under the Bridge to the Future plan initiated last fall by Will Ferniany, CEO of UAB Health System. Ferniany says the plan's goal is to ensure that UAB is positioned to meet healthcare delivery, educational and financial demands while providing the highest quality of care. Workers whose positions are eliminated will receive severance packages and support that includes outplacement services, special consideration for rehire and extended access to UAB's employee assistance services.
CONNECTICUT
Officials at Greenwich Hospital in Greenwich, Conn., say they are planning to lay off close to 80 workers. Greenwich Hospital president Frank Corvino blamed the layoffs on a decrease in patient volume and cuts in funding. Corvino said most hospital departments would be affected but patient care and safety would not be compromised. The hospital recently eliminated nearly 160 positions and instituted a hiring and salary freeze.
FLORIDA
Boca Raton Community Hospital has regained profitability, according to its fiscal third quarter report to its bondholders. The hospital's parent corporation, BRCH Corp., earned $8,434 on revenue of $96 million in the third quarter ending March 31, an improvement from a $20.9 million loss on revenue of $92.5 million for the same period of 2008. The south Florida hospital's operating expenses of $84.8 million in the third quarter were $13.4 million less than a year ago. Unlike many other hospitals, BRCH also saw a gain on investments, to the tune of $4.7 million. The hospital still plans to report a loss for the 12 months ending June 30, but hospital CEO Jerry Fedele says the loss should be significantly less than that reported for the previous year.
FLORIDA, II
An additional 54,000 children will be eligible for the Florida KidCare program, the state's health insurance program for children in low-income families. Gov. Charlie Crist (R) signed legislation streamlining the process for determining eligibility and reducing the amount of time necessary to enroll. Children with special healthcare needs will automatically be enrolled in the program. The Florida Hospital Association strongly supported the legislation because it reduces barriers to coverage. The KidCare program currently enrolls more than 1.6 million children.
INDIANA
The state of Indiana's health insurance plan for low-income adults has reached the federal cap placed on the number of childless adults it can serve. The Healthy Indiana Plan has put about 6,000 "noncaretaker'' adults on a waiting list for the program. About 34,000 noncaretaker adults and 10,000 caretaker adults are enrolled in the plan. The state cannot change the 34,000-person cap without permission from the Centers for Medicare & Medicaid Services.
KANSAS
The Kansas Health Policy Authority is eliminating 14 jobs, including an executive position, to reduce costs. Authority spokesman Peter Hancock said the authority's operational budget has been cut by $3.5 million for the fiscal year that begins July 1. The authority is also reducing spending with the contractor that processes claims for payment under Medicaid and the State Children's Health Insurance Program. That move is expected to save $3.6 million. The KHPA is responsible for coordinating a statewide health policy agenda that incorporates effective purchasing and administration with health promotion strategies. The agency also compiles and distributes uniform healthcare data to provide consumers, payers, providers and policy-makers with trend data to improve healthcare decision-making.
NEW HAMPSHIRE
New Hampshire may become the first U.S. state to allow young adults to buy health coverage from a federal-state program that provides low cost, comprehensive insurance. The state House passed a bill that will allow low- and moderate-income adults under 26 to buy into the state's Healthy Kids insurance program for about $200 a month. The plan provides health insurance for children of qualifying families and offers comprehensive coverage including vision, dental and prescription drugs. Administrators of the program testified that adding new adults would not cost the program any money, since adult premiums will cover the costs of insurance and administration.
NEW YORK
Hospitals in Queens, N.Y., are in a state of crisis because two hospitals in the borough closed just weeks before the swine flu outbreak hit, according to New York City Comptroller William Thompson. St. John's Queens Hospital in Elmhurst and Mary Immaculate Hospital in Jamaica closed March 1 after the state Health Department closed four Queens hospitals that it said weren't needed. Thompson said the city and state should have done more to prepare for the loss of St. John's and Mary Immaculate.
OHIO
A subsidiary of Franklin, Ohio-based Community Health Systems has acquired the remainder of the shares of Affinity Medical Center, a 268-bed hospital in Massillon, Ohio. The subsidiary of Brentwood, Tenn.-based QHR completed the purchase of the joint venture minority interest of Akron General Medical Center for an undisclosed price. The hospital is now wholly owned by QHR. Community Health Systems is the nation's largest publicly traded hospital company and owns, operates or leases 122 hospitals in 29 states, representing some 18,000 beds.
OREGON
Oregon legislative leaders have announced a deal that will insure 60,000 new adult lives under the Oregon Health Plan through 2013, funded by a new hospital tax. Over the past several months, the Oregon Hospital Association has been working with a legislative negotiating team to forge a solution to expand access to care through the expansion of the Oregon Health Plan. The hospital assessment will fund the addition of an average of 50,000 adults to the Oregon Health Plan from 2009-2011. That number will grow to a total of 60,000 adult lives from 2011-2013. The new state funds will allow Oregon to drawn down additional federal match dollars, up to $1 billion for reimbursements to Medicaid providers.
PENNSYLVANIA
Pennsylvania Gov. Ed Rendell (D) wants to allow an additional 30,000 seniors to enroll in the state's prescription-drug program for older residents. According to the Philadelphia Inquirer, Rendell is working with state House Democrats to push through legislation that would raise the current income eligibility limits for seniors to qualify for the state's PACENET program. The governor's proposal would increase the PACENET income limits for single seniors from $23,500 to $30,000 and for married couples from $31,500 to $40,000. It would also increase the amount the state pays to pharmacies when they fill PACENET prescriptions: from $4 to $7 for brand-name drugs and from $4 to $12 for generic medications. Rendell says he would pay for the expanded program by requiring pharmaceutical companies to give the state the same drug rebates that it gives to Medicaid.
TEXAS
The Dallas-based Methodist Health System has started construction of a $60 million, 32-bed orthopedic hospital in Addison, Texas. The new Methodist Hospital for Special Surgery will be the first orthopedic hospital in the Dallas area. Methodist is undertaking a series of aggressive expansion projects. A $38 million, 60,000-square-foot is hospital under construction in McKinney, Texas, while the second phase of a new $37 million Mansfield, Texas, hospital will be completed in the fall. Methodist also announced a 20-year operating lease of the Richardson Regional Medical Center, a 205-bed acute care facility.
WASHINGTON
Budget cuts may soon force 36,000 low-income people from Washington's Basic Health Plan, a state-subsidized insurance program. The state Legislature has cut the program's two-year funding nearly in half, and the state must determine how to cut the plan's 100,000-person membership down to a target of 64,000 by January 2010. Basic Health is open to all Washington residents who earn less than twice the poverty level, or $36,620 for a family of three.