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Morning Briefing

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Thursday, May 11 2017

Full Issue

State Highlights: Soda Industry Targets Calif. Legislature's Latino Caucus; Ohio's MetroHealth System Prices Hospital Bonds At $946 Million To Pay Construction Costs

Media outlets report on news from California, Texas, Massachusetts, Louisiana, Ohio, Wisconsin and Missouri.

As California聽lawmakers continue to聽kill soda tax proposals, a new analysis found聽that the聽industry has disproportionately directed campaign contributions to members of the聽Latino Caucus in Sacramento. Maplight.org, a nonprofit that tracks campaign spending,聽found that the soda industry gave, on average, twice as much campaign cash to members of the Latino Caucus as to the average member of the state Legislature in recent years. (Lagos, 5/11)

The MetroHealth System on Tuesday priced $945.7 million in hospital revenue bonds for its聽massive construction project.聽The bonds will fund the hospital system's campus transformation, which involves building a new 12-story, 270 bed hospital, a new central utility plant and a new parking garage, among other things. (Christ, 5/10)

Memorial Hermann Health System has agreed to pay a $2.4 million fine and adopt a corrective action plan after being accused by the federal government of improperly disclosing a patient's name to news media in 2015. The settlement announced Wednesday by the U.S. Department of Health and Human Services stems from a September 2015 incident that drew national press attention and sparked an uproar among immigrant rights activists. (Hixenbaugh, 5/10)

When a group of doctors in Southeastern Massachusetts joined Steward Health Care System鈥檚 physician network five years ago, the partnership was supposed to help both organizations. But now Steward and the doctors group, Compass Medical PC, are engaged in an ugly business dispute over millions of dollars in payments. (Dayal McCluskey, 5/10)

Kaiser Permanente raised $4.4 billion through a series of three bond offerings this month. That's a record for the Oakland, Calif.-based health plan and hospital giant, which plans to use the proceeds to fuel expansion, said Chief Financial Officer Kathy Lancaster. The aggregate interest rate on the A+-rated bonds was a stellar 3.8%. (Barkholz, 5/10)

The Los Angeles city attorney filed suit Wednesday against a home healthcare business operator, accusing her companies of bilking hundreds of mostly immigrant workers out of their pay while violating minimum wage and overtime laws. "Stealing wages from hardworking men and women is reprehensible,鈥 Mike Feuer said. 鈥淣o worker should be forced into poverty because an employer denies them their basic rights to a minimum wage and overtime. My office will aggressively combat wage theft and fight to ensure all workers are paid what the law demands.鈥 (Winton, 5/10)

A jury convicted four New Orleans doctors and two others on Tuesday (May 9) in federal court for participating in a Medicare fraud scheme prosecutors say聽netted more than $13.6 million in fraudulent Medicare reimbursements. The six defendants, all from the New Orleans area, worked for or with Abide Home Care Services, which federal prosecutors said routinely falsified diagnoses so Medicare reimbursements were inflated. Abide also falsified medical records that supported medically unnecessary home health services, prosecutors said. The company was owned by New Orleans businesswoman Lisa Crinel, who pleaded guilty to her role in the scheme in 2015. Eighteen other individuals or companies also previously pleaded guilty related to the scheme. (Lane, 5/10)

State workplace regulators have begun聽an investigation into the power outage at Valero鈥檚 Benicia refinery that has been聽sending flames, smoke and toxic gas into the sky for close to a week. The outage聽is renewing concern among environmentalists and could soon be felt by consumers around the region: a leading oil expert says the refinery鈥檚 shutdown will increase the cost of gas throughout the Bay Area. (Goldberg, 5/10)

One in three Orleans Parish inmates take drugs used to treat addiction and mental illnesses, a federal jail monitors'聽report says. But only 160 of the more than 500 jail inmates prescribed with psychotropic drugs are included in a system that ensures people locked up in the troubled jail receive specialized monitoring and treatment for their illnesses, the report found. The prevalence of psychotropic drug prescriptions among the New Orleans inmate population is roughly double that of the average American adult population, research shows. (Lane, 5/10)

Four years ago, Massachusetts health officials went looking for insurance companies to try an experimental new public program. The goal: to manage care for some of the poorest and sickest people in the state, help them get better鈥夆斺塧nd reduce costs. While a few insurers showed some interest, Commonwealth Care Alliance鈥 went all in. (Dayal McCluskey, 5/10)

As a two-year-old investigation into child abuse continues at the state鈥檚 juvenile prison complex, the Assembly approved legislation Wednesday that would require guards to report suspected child abuse and neglect to law enforcement. Senate Bill 35, which passed on a voice vote without opposition, marks the first step lawmakers have taken in response to a criminal investigation that began in January 2015 of Lincoln Hills School for Boys and Copper Lake School for Girls. (Marley, 5/10)

Optometrists who also sell eyeglasses out of their practices have long faced competition from other brick-and-mortar stores: large chains like LensCrafters, retail giants like Wal-Mart and even the corner drug store selling readers. But now they鈥檙e facing a new challenge: glasses bought online, and how frequently they need adjustments. (Marso, 5/10)

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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