Articles Posted in Michigan Healthcare News

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The Detroit Medical Center (DMC) recently announced that it has saved more than $5 million in costs in 2009 due to its system-wide Electronic Medical Records (EMR).  This is the second consecutive year that the DMC has experienced cost-savings due to the EMR system. 

The system, which started to be implemented in 1998, cut costs by effectively preventing medication errors and monitoring important hospital tasks.  DMC leaders expressed enthusiasm not only for the cost-savings, but also for the improved quality of care for patients.  In the DMC press release, the DMC’s Chief Medical Information Officer, Dr. Leland Babitch, stated that the reduction in medication errors is “…a major gain for patients – especially given the fact that medication errors account for the majority of accidental deaths and injuries at U.S. hospitals.”
The DMC’s press release comes at a time when the Obama Administration is encouraging electronic health record (EHR) systems across the country.  For instance, the Office of the National Coordinator for Health Information Technology (ONC) recently named the first technology review bodies that are authorized to certify EHR systems. 
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Physicians Health Plan will be the insurer to offer subsidized health coverage for chronically-ill Michigan residents.  The insurer, based in Lansing, will offer health coverage through the health insurance pool that was created to provide an avenue for the uninsured chronically ill to buy coverage until state exchanges are active in 2014 as set forth in the health care reform legislation.  To qualify for the pool individuals must provide proof of U.S. citizenship and Michigan residency, certification by a physician that the individual is chronically ill and evidence that an insurer has refused, for health reasons, to cover the individual within the previous six months.  Physicians Health Plan will start enrolling members August 31 for coverage that becomes effective October 15. 

For more information on Michigan health care news or health care reform, please visit www.wachler.com or contact a Wachler & Associates attorney 248-544-0888. 

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The Detroit Free Press reported that a Michigan doctor was sentenced to 14 years in prison for Medicare fraud.  In addition to the prison sentence, the doctor will owe $9.4 million in restitution payments and is eligible for a three-year supervised release after his prison sentence.  According to the Department of Justice (DOJ), the doctor and a co-conspirator wrote prescriptions for controlled drugs in exchange for the patients’ Medicare numbers.  The co-conspirator would then bill for fictitious rehabilitation and home health services using the Medicare numbers.  Medicare reimbursed the conspirators $9.4 million for fake services.

For more information on Michigan healthcare legal news, or for assistance with a Medicare audit or investigation contact a Wachler & Associates attorney at 248-544-0888. 

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As part of the Patient Protection and Affordable Care Act (PPACA), i.e., health care reform, states received more than $46 million in grants from the U.S. Department of Health and Human Services (HHS).  Crain’s Detroit Business reported that Michigan has received $1 million of grants from HHS to go towards improving oversight and review of proposed health insurance premium increases.  Although the Michigan Office of Financial and Insurance Regulation (OFIR) will ultimately use the grant for this purpose, OFIR first must obtain additional legislative authority to enforce consumer protections in the federal bill.  This will require the Michigan Legislature to amend the Michigan Insurance Code to incorporate the specific consumer protections.  At this time, the OFIR only has the authority to review, investigate, examine and encourage compliance from health insurance companies. 

Crain’s Detroit Business also reported that Michigan plans to use the $1 million grant to:

(1) Contract with consulting actuaries for targeted, in-depth analysis and review of health insurance premium filings made by HMOs and commercial carriers.

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Michigan’s Attorney General Mike Cox announced a community forum to be held next week regarding the proposed sale of the Detroit Medical Center to Vanguard Health Systems, Inc.  Earlier this year, DMC signed a purchase agreement that would require Vanguard to make $850 million in capital improvements over the next five years.  The forum will take place from 5:00-7:00pm on August 18 at the Cadillac Place in Detroit.  It will provide the public with an overview of the proposed sale, explain the Attorney General’s review process for the transaction and provide the public an opportunity to comment and question representatives of DMC and Vanguard.

For more Michigan healthcare legal news, please visit www.wachler.com or contact a Wachler & Associates attorney at 248-544-0888. 

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The Detroit Free Press reported that an effort to give Michiganians a constitutional right to opt-out of participation in the Federal healthcare program failed to obtain enough signatures to place the proposal on the November ballot. The group, Michigan Citizens for Healthcare Freedom, estimated that it turned in between 145,000-170,000 signatures. A total of 381,000 signatures were necessary for the proposal to be included on the November ballot. The state director of the National Federation of Independent Business, Charles Owens, reported that the effort collected more signatures in less time than any other all-volunteer drive. He indicated that this fact demonstrates the widespread disagreement with the healthcare reform law.

For more information on Michigan healthcare legal news, please visit www.wachler.com or contact a Wachler & Associates attorney at 248-544-0888.

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Last week, Michigan’s Governor Jennifer Granholm announced that Michigan could have a $560 million budget gap if Congress does not provide the funding promised in last year’s stimulus package. The Detroit News reported that Governor Granholm was concerned that without the mandated Medicaid funding programs and services would have to be cut. This would seriously impact Michiganians that rely upon Medicaid.

Governor Granholm’s announcement follows her visit to Washington D.C. with the Governors of New York and Pennsylvania. The Bloomberg News reported that the three governors traveled to the nation’s capital to appeal to the Senate to approve the extra financing for Medicaid. Last week, the Senate failed to approve $16 billion in extra financing for Medicaid and extended jobless benefits. The Senate Republicans opposed the measure because it added to the national deficit.

For more information on Michigan health care or to contact a Michigan Health Law attorney, please visit www.wachler.com or contact a Wachler & Associates attorney at 248-544-0888.

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Michigan’s budget may be threatened by U.S. Congressional action. Crain’s Detroit Business reported that Congress’ concern over the nation’s deficit may affect its willingness to pay for an estimated $24 billion in Medicaid assistance to states and other financial assistance, leading to the removal of the enhanced Federal Medical Assistance Percentage (FMAP) provision from legislation pased by the U.S. House in May.

Due to these cuts, Michigan lawmakers are concerned that Michigan may not receive $514 million in Medicaid “matching” funds from the federal government. The amount was already factored into the fiscal year 2011 budget for the Michigan Department of Community Health. If Michigan does not receive this funding it may result in deep cuts in various programs, such as Medicaid prescription drug coverage, payments to Medicaid providers, mental health services, revenue sharing and university funding.

For more information on Michigan health care, please visit www.wachler.com or contact a Wachler & Associates attorney at 248-544-0888.

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The Michigan Office of Financial and Insurance Regulation released details about a new high-risk pool that will offer insurance to the uninsured. To qualify the individuals must have been uninsured for at least six months, have been rejected by an insurer, and first spend $1,000 in out-of-pocket costs.

The purpose of the pool is to provide an avenue for the uninsured chronically ill to buy coverage until state exchanges are created by the federal health reforms in 2014. Policies in the pool will include low co-pays for drugs and services. However, services not covered in the pool include: dental, vision, nursing home, chiropractic care, hearing aids, and bariatric and cosmetic surgery. Enrollment begins in September and coverage starts in October.

The concern regarding the high-risk pool is the requirement that individuals pay $1,000 up front before receiving coverage. This provision may render the coverage unattainable for many chronically ill individuals.

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Accountable Care Organizations (ACOs) are beginning to populate Michigan’s healthcare sector. ACOs are integrated groups of hospitals, physicians, long-term care facilities and home health agencies. A provision in the Patient Protection and Affordable Care Act (PPACA) authorized provider organizations to create ACOs so long as they agree to manage care for a minimum of 5,000 Medicare patients. The purpose of the ACOs is to provide providers with a financial incentive to coordinate care and improve the quality of care.

Crain’s Detroit Business reported several ACOs forming in Michigan. The article notes that Oakwood Healthcare Inc., University of Michigan Health System, Detroit Medical Center, and Trinity Health are all in various stages of forming ACOs.

Despite their popularity, some critics fear that ACOs will prevent doctors from participating in other healthcare contracts or take away doctors’ ability to effectively negotiate.

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