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Washington Highlights: December 12, 2008

Study Finds Significant Financial Impact Due to Cost Shift from Inadequate Medicare and Medicaid Reimbursements

Milliman Inc. Dec. 9 released a study demonstrating low Medicare and Medicaid reimbursements to hospitals and physicians lead to significantly higher health insurance costs for consumers and employers. Milliman is an independent consulting firm that was engaged by the American Hospital Association (AHA), America's Health Insurance Plans (AHIP), the Blue Cross Blue Shield Association (BCBSA), and Premera Blue Cross.

The report found that there is a "cost shift" of almost $90 billion due to the under payments of Medicare and Medicaid to hospitals and physicians forcing consumers and employers to close this gap. Richard Umbdenstock, president and CEO of AHA said, "As businesses struggle to cut costs to match sagging revenues, employee health benefits are increasingly at risk. The faltering economy makes fair payment by Medicare and Medicaid more important than ever." "As Congress and the new administration focus on health care reform, they should confront this issue (cost shifting)," said Karen Ignagni, AHIP president and CEO.

Information:
Travis W. Crytzer, Legislative Analyst
AAMC Government Relations
tcrytzer@aamc.org
(202) 828-0418

Joint Commission Releases Sentinel Event Alert on HIT Implementation

The Joint Commission on the Accreditation of Healthcare Organizations (JCAHO) Dec. 11 released a "Sentinel Event Alert" warning that the implementation of health information technology (HIT) and related medical devices without proper design and adoption strategies may negatively affect the quality and safety of patient care. The commission provides 13 recommendations for health care organizations to implement such technologies safely.

The alert indicates that the exclusion of clinicians and other staff in HIT planning, lack of provider consideration on the impact of technology on care processes and workflow, and faulty or outdated technology are the primary contributors to technology-related medical errors.

Suggestions among the 13 specific actions to improve patient safety include:

  • Looking for possible workforce process risks and resolving these issues prior to putting technology into place;
  • Involving clinicians and staff who ultimately will use the technology;
  • Training everyone who will be using the technology and providing frequent refresher courses;
  • Developing clear policies on who is authorized to use and is accountable for technology; and
  • Continually seeking ways to improve safety and discover errors.

The alert notes that organizations should pay particular attention to certain information management standards related to planning the management of information; safeguarding of data and information against loss, destruction and tampering; and the requirement for a disaster recovery plan for information systems. JCAHO also reminds organizations to follow leadership standards that address designing new processes and establishing a safety program and to "consider the use of any technology in relation to the standards and be aware of potential dangers to patients."

Information:
Will Dardani, Constituent Services Specialist
AAMC Health Care Affairs
wdardani@aamc.org
(202) 828-0541

National Biosecurity Board Considers Screening of Select Agents Researchers

The National Science Advisory Board for Biosecurity (NSABB) met Dec. 10 to review the status of several ongoing projects, including possible heightening of security measures for personnel working with select agents. The board received presentations from witnesses, including Capt. Kenneth Cole, Ph.D., medical director in the Office of the Special Assistant to the Secretary of Defense for Chemical and Biological Defense and Chemical Demilitarization Programs, on efforts to ensure the reliability of military and federal personnel working with select agents. Concerns have been heightened following revelations in July 2007 connecting an employee of the Army's Fort Detrick laboratory with the 2001 anthrax attacks.

Dennis Kasper, M.D., director of the Channing Laboratory at Harvard Medical School and NSABB chair, presented preliminary findings and recommendations of an NSABB working group on "Personnel Reliability Programs" that could include further screening of investigators using select agents. While the measures under consideration by the working group could extend to investigators in academic laboratories, the board was critical of adopting measures that would be counter-productive to important research with select agents. A final report from the working group is expected in late January for review by the new administration.

The Department of Health and Human Services is planning to release an advanced notice of proposed rulemaking (ANPRM) revising the select agent regulations early in 2009. The purpose of the ANPRM is to solicit public comments on proposed revisions. The NSABB also received recommendations for further outreach and education on issues of "dual-use research," e.g., biological research that could be misused to harm society, and received a status report on its proposed framework for oversight of dual-use research, which is currently under review by the National Science and Technology Council.

Information:
Stephen Heinig, Lead Science Policy Analyst
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488

Lieberman, Collins Seek Tougher Biological Research Regulations

Senate Homeland Security and Governmental Affairs Committee Chair Joe Lieberman (I-Conn.) and Ranking Member Susan Collins (R-Maine) Dec. 11 announced they would draft legislation to tighten oversight of high containment laboratories around the country that could handle deadly biological pathogens. The announcement came at the close of a hearing called to discuss the findings of the congressionally mandated "Commission on the Prevention of Weapons of Mass Destruction Proliferation and Terrorism," led by former-Senators Bob Graham and Jim Talent. The report concludes that a terrorist attack with a biological or other weapon of mass destruction was "more likely than not" by the year 2013.

Information:
Stephen Heinig, Lead Science Policy Analyst
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488

President-elect Obama Nominates Daschle as HHS Secretary

President-elect Obama officially announced Dec. 11 his selection of former-Senator Tom Daschle to be Secretary of Health and Human Services (HHS). Obama also announced Daschle will also be director of a new office of Health Care Reform. Obama said, "He will be responsible not just for implementing our health care plan, he will also be the lead architect of that plan." Although the economic situation will be the first priority, Obama has signaled a health care overhaul will be next in line for his administration.

Obama also announced a series of Health Care Community Discussions to be held anytime from Dec. 15 to Dec. 31. The transition team will offer moderator kits for individuals who would like to host these discussions in their community. Former-Senator Daschle plans to attend some of these discussions in person.

President-elect Obama Announces Gen. Eric Shinseki as VA Secretary

President-elect Obama Dec. 7 announced that he will nominate General Eric Shinseki to be Secretary of Veterans Affairs. General Shinseki is a former Army Chief of Staff and 38-year Army veteran who served two combat tours in Vietnam. He is the recipient of numerous decorations, including the Bronze Star, the Purple Heart, the Legion of Merit, and the Army, Navy, Air Force, and Coast Guard Distinguished Service Medals. In his announcement, President-elect Obama stressed the "need to build a 21st Century VA that will better serve all who have answered our nation's call" by "cutting red tape and easing transition into civilian life ... eliminating shortfalls, fully funding VA health care, and providing the benefits our veterans have earned."

On the Hill...

Senator Saxby Chambliss (R-Ga.) defeated challenger Jim Martin (D) in a Dec. 2 runoff election, blocking Democrats' hopes for a filibuster-proof, 60-seat Senate majority. One Senate seat remains outstanding as a recount of ballots proceeds in Minnesota; the state Canvassing Board is scheduled to meet Dec. 16 to review ballots challenged by Senator Norm Coleman (R) and Democrat Al Franken.

President-elect Barack Obama Dec. 1 nominated Senator Hillary Rodham Clinton (D-N.Y.) to be Secretary of State. If she is confirmed, New York Governor David Paterson (D) will appoint a successor who will fill her Senate seat until a special election in 2010. The winner of the special election will run again for a full term in 2012. The governor reportedly is considering several candidates for the seat, including: Caroline Kennedy, New York Attorney General Andrew Cuomo, Buffalo Mayor Byron Brown, and state legislator Tom Suozzi. Several House Democrats are also reportedly contenders: Reps. Carolyn Maloney, Kirsten Gillibrand, Steve Israel, Brian Higgins, Nydia Velazquez, and Jerrold Nadler.

Election officials in Ohio Dec. 8 certified Democrat Mary Jo Kilroy's victory over Republican Steve Stivers for the state's 15th district House seat. Ms. Kilroy will be the first Democrat in 42 years to hold the seat, and will succeed retiring Rep. Deborah Pryce (R).

Republican challenger Anh "Joseph" Cao Dec. 6 defeated Rep. William Jefferson (D-La.) in a House election delayed one month as a result of Hurricane Gustav. Mr. Cao, an immigration attorney, is the first Vietnamese-American elected to Congress. Rep. Jefferson has been the subject of a corruption probe and faces trial on charges of money laundering, racketeering and bribery, though no date has been set.

Louisiana voters Dec. 6 also elected physician John Fleming (R) over challenger Paul Carmouche (D) to fill the 4th district seat vacated by retiring Rep. Jim McCrery (R). Board certified in Family Practice, Dr. Fleming was a Medical Officer in the United States Navy and was named Louisiana Family Doctor of the Year in 2007.

One House race remains in limbo. The Virginia State Board of Elections Dec. 1 certified Democrat Tom Perriello's 0.23 percent victory over incumbent Rep. Virgil Goode (R). Rep. Goode has requested a recount.