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Morning Briefing

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Monday, Apr 23 2018

Full Issue

Hospitals That Have Always Been Hesitant To Go Global Start Looking Beyond Their Home Turf

The investment required to globalize has been daunting to the hospital industry. But facing anemic growth and other troubles, some hospitals are looking abroad. Meanwhile, Anthem is being taken to court over its new policies that restrict outpatient imaging and emergency department reimbursement.

ProMedica , a nonprofit operating more than a dozen hospitals across Rust Belt communities in Ohio and Michigan, is looking to a new market to bolster its anemic growth: China. Executives and staff from the Toledo-based nonprofit have been touring hospitals in Shanghai, Shenzhen and Chengdu, exploring possible deals in the world鈥檚 second-largest economy that they hope will help offset weak revenue growth at home. 鈥淲e have to look outside our traditional world if we鈥檙e going to survive,鈥 said Randy Oostra, president and chief executive of the hospital group. 鈥淭he economic model is tough鈥 in ProMedica鈥檚 domestic markets, where populations are stagnant or declining and where cost pressures and competition are shifting medical care outside of hospitals, he said. (Evans, 4/22)

County courtrooms are no strangers to contract disputes between local hospitals and insurers. Lately, though, they've had some big cases dropped in their laps as hospitals owned by HCA Healthcare, Sentara Healthcare and Piedmont Healthcare take health insurance giant Anthem to court over its new policies that restrict outpatient imaging and emergency department reimbursement. Typically, state courts hear arguments pertaining to relatively minor contract disputes, such as coverage of one particular drug, for example, said David Honig, an attorney with the healthcare law firm Hall Render. These cases, by contrast, are much larger in scope. (Bannow, 4/21)

And in other hospital news聽鈥

A few months ago, I wrote a check for $12,000 but couldn't figure out exactly why. The payment was to secure a place for my mother at Sligo Creek Center, in Takoma Park, Md. It's a nursing home and rehab center owned by Genesis Healthcare. My mother was about to be discharged from Holy Cross Hospital, in nearby Silver Spring, after a fall. Medicare wouldn't pay for her rehabilitation care. So before the Sligo Creek Center would let her through the door, I had to prepay for a month 鈥 $12,000 鈥 or nearly $400 a night. (Kodjak, 4/20)

Citing an aging population and sicker patients, Regions is pushing this spring for an exception to a state law so it can add 100 hospital beds by 2040. While the focus is long-term, Regions [Hospital] hopes to address current problems with ambulance diversions and patients backing up in the emergency room, as well. Two of the hospital鈥檚 competitors in St. Paul have raised concerns about the proposal, and sisters with the religious order that founded nearby St. Joseph鈥檚 Hospital have voiced outright opposition. (Snowbeck, 4/21)

Some days bring good news and bad news. While Connecticut learned Friday that surging state income tax receipts now are running $1.03 billion more than anticipated 鈥 $116 million better than Thursday鈥檚 forecast 鈥 Gov. Dannel P. Malloy disclosed the state has a pretty hefty accounting problem equal to about $150 million. Technically, the current state deficit has nearly doubled, growing from $198 million to $363.5 million. (Phaneuf, 4/20)

Concord Hospital plans to build a new medical office building in the middle of its Pleasant Street campus, replacing a parking lot between two existing office buildings. The project was approved by the city planning board a month ago, but details are still being worked out, including who will occupy the building, said Jennifer Dearborn, spokeswoman for the hospital. (Brooks, 4/21)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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