FHI's Week in Review

Volume IV, Issue 23

June 5, 2017

Solving the Healthcare Conundrum: Neither the capitalists nor the government offer much hope

Entitled Dirty, Dingy Hospitals: Doctors Blame Debt-Fueled Takeovers (posted 6.1.17), Bloomberg authors John Lauerman and David Welch examine the situation at Community Health System (CHS), one of the nation's leading operators of general acute care hospitals. CHS is facing increasing criticism for prioritizing dept repayment over investments in facilities and quality initiatives.

Meanwhile, the Veterans Affairs Secretary has issued a blunt assessment of care for veterans. In a 5.31.17 press briefing at the White House, VA Secretary David Shulkin ran through his agency's priorities for fixing its myriad challenges.

WIM

The article in Bloomberg clearly illustrates the dangers created by for-profit health systems while the VA Secretary's briefing plainly details the problems associated with government run health systems.

Whistleblower lawsuit against eClinicalWorks settles for $155 million in ground-breaking case against an electronic health records vendor

A May 31, 2017 Yahoo Finance PRNewswire post reports that a whistleblower represented by Phillips & Cohen LLP provided key information to the government that led to eClinicalWorks (eCW) settlement of civil fraud and kickback charges today for $155 million...The government's settlement agreement holds eCW and eCW's founders and executives Girish Navani, Dr. Rajesh Dharampuriya, and Mahesh Navani liable for payment. The government also announced on May 31 that it has reached separate settlements with three eClinicalWorks employees.

WIM

"This is a ground-breaking case," said Colette G. Matzzie, a whistleblower attorney and partner at Phillips & Cohen. "It is the first time that the government has held an electronic health records vendor accountable for failing to meet federal standards designed to ensure patient safety and quality patient care."

Cancer care company's Chapter 11 filing involves dozens of Florida locations

Brian Bandell, reporting for the SFBJ on 5.30.17:

.... creating an uncertain future for more than 100 cancer treatment clinics in Florida...<Fort Myers based> 21st Century Oncology filed Chapter 11 in the Southern District of New York after years of declining revenue and several ongoing lawsuits over its billing practices.

WIM

According to Mr. Bandell, interim CEO Paul Rundell plans to use the bankruptcy to restructure the firm's debt, and doesn't expect clinic operations to be impacted.