Stay in the know with Becker's Hospital Review's weekly roundup of the nation's biggest healthcare news. Here's what you need to know this week.
1. Medicare cuts payments to 758 hospitals for HACs
In fiscal year 2016, 758 hospitals will have their Medicare payments reduced under the Hospital-Acquired Condition Reduction Program for being among those with the highest rates of HACs. The 758 that will see Medicare payment cuts are in the worst performing quartile out of 3,308 hospitals subject to the HAC Reduction Program. These facilities will have their Medicare payments reduced by 1 percent for all discharges occurring between Oct. 1, 2015 and Sept. 30, 2016. CMS said 54 percent of the hospitals that were in the worst performing quartile in FY 2016 were also in that quartile in FY 2015.
2. Fitch Ratings revises U.S. health insurance rating to negative
Fitch Ratings revised its outlook for the U.S. health insurance industry from stable to negative, according to a report. The rating revision is based on several factors, including "anticipated acquisition-related increases in financial leverage and reductions in interest coverage for U.S. health insurers." From a ratings perspective, Fitch believes these increases outweigh the acquisitions' earnings and benefits. The revision is also based on profitability concerns regarding health exchange sourced membership.
3. Commonwealth Fund ranks states' health systems
The Commonwealth Fund released its fourth "Scorecard on State Health System Performance," which found "extensive variation" among states but also that most states have improved in its 42 indicators of health. The report grades and ranks the 50 states and the District of Columbia on 42 indicators grouped into five categories: access and affordability, prevention and treatment, avoidable hospital use and cost, healthy lives and equity. This year's report measures change in performance during 2013 and 2014, including the effects of the Affordable Care Act's health insurance expansion.
4. MaineGeneral Health suffers cyberattack
Augusta-based MaineGeneral Health is warning patients and employees of a potential data breach. On Nov. 13, the FBI notified MaineGeneral some of its data was found on an external website. This website is not accessible by the general public. MaineGeneral then launched an internal investigation into the cyberattack. The health system is still working with the FBI. Compromised data includes birth dates, emergency contact names, addresses and telephone numbers for patients referred by a physician to MaineGeneral Medical Center for radiology services since June 2009.
5. HCA's EHR shut down over the weekend
Hospital Corporation of America, based in Nashville, Tenn., experienced an EHR outage over the weekend, and the outages primarily affected HCA's Florida facilities, according to a MedCity News report. HCA confirmed the outage was related to a hardware storage issue. Additional reports indicated the outage also affected areas of the East Coast. The issues have since been resolved.
6. FTC, state regulators oppose Penn State Hershey, PinnacleHealth merger
The Federal Trade Commission notified Penn State Milton S. Hershey (Pa.) Medical Center and Harrisburg, Pa.-based PinnacleHealth System it intends to oppose the planned integration of the two health systems. Pennsylvania Attorney General Kathleen Kane also opposes the merger. The Pennsylvania Office of Attorney General said it will join a complaint for a temporary restraining order and preliminary injunction the FTC will file Dec. 9 to block the deal.
7. Gulf Coast Medical Center's transplant program on probation after donor death
The Organ Procurement and Transplantation Network placed Gulf Coast Medical Center's transplant program on probation after a kidney donor died, the OPTN announced Wednesday. The Fort Myers, Fla.-based hospital, which is part of Lee Memorial Health System, had voluntarily stopped performing living donor kidney transplants following the death of the live donor, which the hospital said resulted from a "rare surgical complication," The News Press reported. The death was ruled to be an accident.
8. Maine's health insurance co-op halts sale of individual plans
Maine's only health insurance co-op — Lewiston-based Community Health Options — will stop selling individual plans on its website after Dec. 15 and will stop selling plans through the marketplace after Dec. 26. The co-op will continue to sell group plans and accept plan renewals. Once the only profitable co-op in the nation, Community Health Options — which serves 76,000 members in Maine and New Hampshire — started losing money in November due to higher-than-expected insurance claims, according to the report. Kevin Lewis, Community Health Options' CEO, said the co-op has enough funds to compensate for the expected $18 million shortfall, and will resume individual sales in the near future.
9. BJC to close Missouri hospital
St. Louis-based BJC HealthCare will close Parkland Health Center-Weber Road in Farmington, Mo., which was formerly named Mineral Area Regional Medical Center, no later than Jan. 31, 2016, according to a St. Louis Post-Dispatch report. Most clinical services have already been relocated to another Parkland Health hospital in Farmington.
10. Layoffs hit Detroit Medical Center
Detroit Medical Center will lay off employees, eliminate open positions and overall reduce its workforce by 1 percent, officials told Crain's Detroit Business. The medical center won't know the exact number of layoffs or labor reductions until employees have been informed of the workforce changes and decide on new positions offered to them. However, if DMC does reduce its workforce by 1 percent, about 125 employees out of the system's 12,500-person workforce would lose their jobs.
11. Mold discovered at VA hospital in Pittsburgh, temporarily shuts ICU down
The Veterans Affairs Pittsburgh Healthcare System shut down its University Drive intensive care unit for the time being after technicians discovered mold during routine maintenance of the heating, ventilation and air conditioning system.