Stay in the know with Becker's Hospital Review's weekly news roundup of the nation's biggest healthcare news. Here's what you need to know this week.
1. Dr. Vivek Murthy confirmed as surgeon general
In a 51-43 vote, the Senate confirmed Vivek Murthy, MD, MBA, as the new surgeon general — the United States' first since July 2013, according to NPR. President Barack Obama nominated Dr. Murthy for the job more than a year ago. Although some senators questioned the 37-year-old's possible inexperience, the bulk of his opposition came from the National Rifle Association, according to the Washington Post. Based in part on a tweet Dr. Murthy wrote in 2012 that read, "Tired of politicians playing politics w/guns, putting lives at risk b/c they're scared of NRA. Guns are a health care issue," the NRA contended Dr. Murthy would pose a threat to the right to bare arms if elected. Earlier this year, Dr. Murthy stated his goals are centered on public health issues such as obesity and doesn't plan to use the position for gun control.
2. NECC founders charged in deadly 2012 meningitis outbreak
Back in 2012, The New England Compounding Center in Framingham, N.S., distributed products containing steroids that led to a nationwide meningitis outbreak, which resulted in 750 people falling ill and 64 deaths, according to a New York Times report. The NECC failed to comply with "even basic health standards," and mold and bacteria were in the air and on worker's gloved fingertips, leading to the contamination. Fourteen people are now being charged in the criminal case, including NECC co-founders Barry Cadden and Glenn Adam Chin, who were accused of racketeering resulting in the deaths of 25 patients. Mr. Cadden and Mr. Chin are in custody until the bail hearing.
3. Sony says employees' HIPAA-protected health information may be compromised
On Nov. 24, hackers sent messages to Sony employees telling them they had stolen thousands of gigabytes of company information in the form of emails and documents, which may have included employees' "HIPAA-protected information" in addition to information such as names, addresses, Social Security numbers, driver's license numbers, passport numbers, bank account numbers, credit card information and employment related information. Sony told employees in a letter on Dec. 8 that they learned "personally identifiable information that SPE received about you and/or your dependents during the course of your employment may have been compromised as a result of such brazen cyber attack," and offered employees one year of identity protection services free of charge.
4. 40 states get "F" grades for meager info on physician quality
The Health Care Incentives Improvement Institute failed 40 states and Washington, D.C., and gave four states a "D" for failure to make objective information on physician quality publicly available, according to a recent study. The HCi3 found transparent information is only available for 16 percent of clinicians on average, and some states have no data available. States that earned a "C" or higher provided a variety of information on physician practices such as patient satisfaction. HCi3 distributed the grades as follows: A: Minnesota and Washington; B: Maine and California; C: Massachusetts and Wisconsin; D: Mississippi, New Mexico, Ohio and Oregon; F: Remaining states and Washington D.C.
5. VA signs $16M contract with Watson to study PTSD
The Department of Veteran Affairs signed a $16 million contract with IBM to employ Watson to study post-traumatic stress disorder and the efficacy of various PTSD treatments, according to a report in The Washington Post. The VA's goal is to design more effective guidelines for managing PTSD patients. IBM's year-old Watson Group has many other similar contracts with health systems seeking to develop best practices for treating various diseases.
6. Illinois hospital blackmailed with release of patient data
Clay County Hospital in Flora, Ill., received an anonymous email that threatened to release some patient data unless the email sender receives a "substantial payment from the hospital." The hospital notified law enforcement and began investigating the source and scope of the threat. The forensic investigation determined that hospital servers remain secure and were not hacked. The compromised data relates to patients who visited a Clay County Hospital clinic during or before February 2012, and includes information such as patient names, addresses, Social Security numbers and birth dates. No medical information was accessed, and the hospital notified all affected patients of the breach.
7. Flu outbreaks cause US hospitals to restrict visiting hours
Hospitals across the nation are placing restrictions on patient visiting hours in an effort to contain the spread of the flu inside facilities. According to CBS Chicago, several Chicagoland area hospitals are restricting visitors due to the prevalence of the virus in the area. Advocate Christ Medical Center in Oak Lawn, Ill., is not permitting people under the age of 18 to visit patients because the flu has affected many children in Illinois already. Health systems and hospitals in both Minnesota and New York are placing similar restriction on visiting hours, subjecting visitors to flu-like symptom screenings and limiting the amount of visitors in a patient's room at one time. The flu this year is expected to be especially severe and the flu vaccine is less effective this year than in the past.
8. Cleveland Clinic adds Baylor Scott & White hospitals to cardiovascular network
Dallas-based Baylor Scott & White Health, the largest nonprofit health system in Texas, and Cleveland Clinic announced an alliance in which three Baylor Scott & White hospitals will join Cleveland Clinic's Cardiovascular Specialty Network. These three hospitals include Baylor Jack and Jane Hamilton Heart and Vascular Hospital in Dallas, Baylor University Medical Center at Dallas and The Heart Hospital Baylor Plano (Texas). The alliance will allow the participating hospitals and Cleveland Clinic to share best practices, coordinate care and aim to improve quality care and patient safety.
9. 275 CEO departures this year: Healthcare again leads all sectors in CEO turnover
The healthcare industry and computer industry tied for highest CEO turnover in November with 17 reported planned CEO departures, but the healthcare industry has seen the highest instances of turnover this year to date, with 275 departures, according to a Challenger, Gray & Christmas report. The computer industry reported 119. The three other industries leading in CEO turnover are government and nonprofit organizations (182 CEO departures), services (48) and energy (35). The most common reason for CEO departure in November was resignation, followed by retirement and stepping down, according to the report. California, Texas and New York reported the highest CEO turnover, with 160, 99 and 75, departures, respectively.
10. 257,000 clinicians face meaningful use penalties in 2015
Approximately 257,000 eligible professionals will face Medicare payment adjustments for failing to meet requirements of the meaningful use EHR incentive program, according to a Medscape report. Starting next month, penalized eligible professionals will receive 1 percent less in Medicare payments than they normally receive, and approximately 28,000 eligible professionals will receive 2 percent less. CMS will notify eligible professionals facing penalties by mail, along with instructions for providers wishing to challenge CMS' decision. Reimbursement penalties for hospitals that failed to meet meaningful use requirements began in October.
11. Tennessee Gov. Bill Haslam proposes alternative Medicaid expansion plan
Gov. Bill Haslam's (R) proposed alternative Medicaid expansion plan, called Insure Tennessee, is different from "traditional" Medicaid expansion, according to The Tennessean. Insure Tennessee has not been finalized and still needs to be approved by the state legislature. The plan, however, emphasizes "personal responsibility" through things such as co-payments, deductibles and other plans. The two options for coverage under the plan are the Volunteer Plan and the Healthy Incentives Plan. To be eligible, plan participants must earn 138 percent of the federal poverty level or less.
12. Medical device market to reach $361B this year
The medical device market is expected to expand significantly over the next three years, according to a Manufacturing Group report. The market is expected to grow 3 percent on average. The medical device market is expected to reach $361 billion by the end of 2014, and the Manufacturing Group predicts the market will reach $427 billion in 2018. Hospitals are the key customer for device companies. Big-name companies, such as Johnson & Johnson, GE, Siemens and Medtronic, are active in several medical device categories. While there are still many competitors in the market, the largest companies are consolidating at a quick pace.
13. Hospital Improvements for Payment Act of 2014 could have positive effect on ASC industry
The House Committee on Ways and Means has put forth the "Hospital Improvements for Payment Act of 2014," which would create an ASC representative position on the Advisory Panel on Hospital Outpatient Payment, according to a Regent Surgical Health report. Representative Kevin Brady (R-Texas) introduced the legislation, which also proposes to change Medicare's two-midnight rule, overhaul the Recovery Audit Contracts program and create a new hospital prospective payment system. The panel, consisting of 19 members, meets three times a year to advice CMS on coding, accounting and outpatient business office functions.