From:  AMC/NOMA Staff

SUBJECT:  AMC/NOMA Notables

 

Date:  February 11, 2002

 

AMC/NOMA provides print materials through fax blasts, our magazine – The Cleveland Physician, fact sheets, mailers and through our Web site at www.amcnoma.org.  Periodically the physician members with email addresses will receive the AMC/NOMA Notables.

 

Ohio Health Care Provider Joint Negotiation Act receives proponent hearing

 

The Academy of Medicine of Cleveland/Northern Ohio Medical Association’s President, Ronald A. Savrin, M.D. was first to give proponent testimony supporting House Bill 325, the Ohio Health Care Provider Joint Negotiation Act.  Representative Jim Trakas (R- Independence), the bill’s sponsor, provided sponsor testimony on the bill in early January to the House Insurance Committee.  Rep. Trakas emphasized that the public would benefit from this legislation as it would allow medical experts to determine what coverage would be medically necessary rather than the health insurers.

               

Dr. Savrin testified that “(health) plans present physicians with non-negotiable contract terms that a reasonable business person would never agree to” and that “as health plans continue to merge and consolidate, the decision-making authority over the health care of our patients will be controlled by a small group of managers.”

 

Dr. Savrin also noted that managed care plans “impose many unfair utilization procedures and transfer all patient care liability to the physician” and that “some insurance plans require physicians to agree to insure against any and all claims - and certain policies extend liabilities to persons outside the physician’s own practice.”  While conceding that, in some cases, managed care has encouraged physicians and hospitals to look for cost cutting opportunities, he also feels that the majority of their influence has been unfavorable.

 

Also providing proponent testimony was State Representative William Seitz, an antitrust attorney from Cincinnati, Ohio.  Rep. Seitz stated that “passage of the bill is necessary to level a very unlevel playing field that exists between our medical provider community and dominant managed care/insurer power buyers who have their own federal antitrust exemption.”

 

The bill is designed to provide a pro-active, market-driven solution to the imbalance of power in the health care market by waiving anti-trust laws and allowing medical providers to jointly negotiate patient care issues with insurance companies and HMOs.  The bill, which is modeled after legislation already in place in Texas, will represent the broad and common interests of physicians and patients on issues that affect access, quality and the cost of health care.  The bill will also allow for independent health care providers to join together to negotiate non-fee related contract terms with insurers.  Some of these terms include definition of medical necessity, patient referral standards and procedures, utilization review criteria, and payment methods and timing. 

 

The passage of this type of legislation has become a necessity in recent years due to the consolidation of insurance companies.  In the last six years, the number of insurance companies has dropped from 18 to six, creating an imbalance of power between health care providers and the insurance entities.  It has also been reported that more than 27,000 of the 140,000 bills introduced in state legislatures across the nation have been in response to the current state of the health care industry

 

Medical Malpractice Insurance, Tort Reform, and Supreme Court Races

At a request by Governor Bob Taft to look into the professional liability insurance situation, the Ohio Department of Insurance found the market in Ohio to be adequate and competitive and believes premium rates will continue to increase over the next year.  Governor Bob Taft has requested the Department to continue to gather additional information on the market, factors influencing the market, and the consequences of various types of governmental intervention.  At the current time, no legislation has been introduced to directly address the liability insurance problem; however, some tort reform bills are pending before the Ohio General Assembly.

 

Many believe that tort  reform will assist in keeping professional liability premiums lower; however, this cannot take place unless there is a change in the present composition of the Ohio Supreme Court.  The current justices have handed down a number of decisions that have had a negative impact on the practice of medicine in Ohio.  Thanks to the Ohio Supreme Court, the comprehensive tort reform package that was effective in January, 1997 was ruled unconstitutional in August, 1999.

 

The Ohio electorate will have one more chance this year to change the composition of the Ohio Supreme Court.  Under the current Supreme Court, Justices Alice Robie Resnick, Andrew Douglas, Francis Sweeney and Paul Pfeifer have a judicial philosophy of “making law”; while Justices Thomas Moyer, Deborah Cook, and Eve Stratton have the philosophy that justices should “interpret the law”.  Many physicians and businesses believe Ohio needs to get back to the traditional philosophy of having the courts “interpret the law” written by the Ohio General Assembly.

 

Health Care Workforce Shortage Task Force

 

As part of the 2002-2003 Biennium Budget Bill, a Health Care Workforce Shortage Task Force was created to study the shortage of health care professionals and workers in Ohio.  The Task Force, which is Chaired by J. Nick Baird, MD, Director of the Ohio Department of Health, is to propose a statewide plan to address this problem.  The Task Force consists of twenty-one members, and is primarily made up of physicians, nurses and other health care professionals.  Also serving on the Task Force are State Representative Sally Conway Kilbane ( R – Rocky River ) and State Senator Tim Ryan ( D – Niles ).  The group has been meeting monthly since August of 2001 and is scheduled to continue meeting through June of 2002.  

 

To address licensure standards and barriers in the current scope of practice, the Task Force is considering the option of a centralized and standardized licensure system, which would attempt to streamline a portion of the administrative burden of the licensure boards.  A centralized and standardized system would create fiscal efficiency for the state in licensing health care professionals in their role to protect the public.  Items being considered by this system include:  a comprehensive healthcare workforce licensure database; citizen complaints; alternatives to discipline for chemical dependency /practice problems; and educational program accreditation.   The Task Force is also exploring opportunities to improve the current system of educating students for careers in health care by building a better educational system.  The group is also looking at creating opportunities for demonstration projects that maximize technology and reduce the human resource demand, which may address the predicted shortage of health care workers once the baby boom generation begins to age.  Such projects may include: paperless charting (links to large databases); mechanized beds and monitoring equipment; use of robotics in pharmacy; and a “safe harbor” from licensing requirements, with assurances for patient safety.  The Task Force is also considering roles the State of Ohio could play in the recruitment and retention of health care workers.

 

Advanced Practice Nursing Formulary Effective February 1, 2002

 

The Advanced Practice Nursing Formulary, as drafted by the Committee on Prescriptive Governance (CPG), is posted on the Ohio Board of Nursing’s website at www.state.oh.us/nur.  This draft document of the formulary incorporates the CPG recommendations through November 19, 2001.  A revised formulary should be posted by March, 2002.  The implementation of the nurses prescriptive authority began February 1, 2002, when the State Nursing Board’s rules became effective; however, as yet, no certificates to prescribe have been issued.  The CPG Committee will meet periodically throughout 2002 and will continually establish, maintain, and revise the formulary.    

 

CMS:  Beneficiary Complaint Program to be revised

     The Center for Medicare and Medicaid Services has released plans to overhaul the Beneficiary Complaint Program.  Objectives of the new program will include:  satisfaction among 80% of complainants; recommendation of quality improvement plans in an as yet undetermined percentage of complaints; resolution of communication issues in a percentage of complaints; completion of reviews within accepted timeframes in 90% of cases; and a minimum threshold of reliability in case review.

     New strategies for the program will also include case managers to improve beneficiaries' understanding of the process and the use of mediation to resolve disputes between beneficiaries and providers.  Case managers will also offer the complainant a single point of accountability, explain the complaint process, and update the complainant on the status of the complaint.

     CMS plans to help prepare for changes in the complaint program by providing support and networking opportunities.  Testing for the new process will begin this spring, using pilots for case manager implementation, improved letters to beneficiaries and providers, and surveys of beneficiary satisfaction.

HIV/AIDS reporting rule may change    

     The Ohio Department of Health is proposing a change to its rules on reporting HIV/AIDS and is meant to protect physicians who provide information on HIV/AIDS cases.  Physicians are currently required to report AIDS cases since the early 1980s, and laboratories are required to report tests indicating HIV infection since 1990.  The proposed ODH rule change will require physicians to submit reports on HIV patients to the Department.

     The following two new reporting requirements are also included.

* Cases of CD4 and T lymphocyte counts below 200 cells per microliter or a CD4 + lymphocyte percentage of less than 14 when an HIV infection has not been ruled out as the cause.

*Cases of perinatal exposure to HIV and any subsequent test results on every exposed newborn infant or child until such time that either an HIV infection or a seroreversion status that is negative is confirmed.

     The CD4 T lymphocyte reporting will improve the completeness of AIDS case reporting and laboratories will be required to report low CD4 and T lymphocyte counts.  ODH staff will contact that physician of any person not previously reported as an AIDS case to determine if the person is HIV infected.  If the person is HIV infected, the physician will be asked to complete an AIDS case report.   Case reporting of perinatal exposure to HIV will allow ODH to follow children until the child is either HIV infected or at a seroreversion status that is negative is confirmed.     The ODH proposed rule changes must be approved by the Public Health Council which will hold a public hearing addressing the proposal later this month.  The rules will then be forwarded to the Joint Committee on Agency Rule Review for consideration.

Note:  “AMC/NOMA Notables” includes links that provide direct access to Internet sites other than the AMC/NOMA site, the AMC/NOMA takes no responsibility for the content or information obtained on those other web sites, and we do not have any editorial or other control over those web sites.  Additional information on these topics may be available on our web site at www.amcnoma.org.