05.30.2016

State leaders reach consensus to scuttle ballot question, and more...

State leaders reach consensus to scuttle ballot question

The Massachusetts legislature has sent to Governor Charlie Baker’s desk a measure that addresses price variation among hospitals and avoids a question that the SEIU union was working to place on the November statewide ballot. The consensus agreement struck by Governor Baker, House Speaker Robert DeLeo, and Senate President Stan Rosenberg was announced on Wednesday and fast-tracked through the legislature on Thursday.

MHA President & CEO Lynn Nicholas, FACHE, praised the three for their leadership in forging a consensus that avoided the potential of “imposing oversimplified laws on a very complex issue through the ballot process.” She noted the rapidly approved proposal was “certainly a superior approach to determining complex and critical public policy through a charged political campaign. This is especially true when just about all healthcare experts viewed SEIU’s proposals as both unwise and unworkable.” 

The MHA Board of Trustees had earlier this year voted unanimously to oppose the ballot question, terming it a poorly thought-out attempt to redistribute money between Massachusetts hospitals.

The agreement, creates a “Special Commission to Review Variation in Prices Among Providers” to be co-chaired by the Chairs of the Joint Committee on Health Care Financing – Rep. Jeffrey Sanchez (D-Jamaica Plain) and Sen. James Welch (D-West Springfield). It will conduct an analysis of acceptable and unacceptable factors contributing to price variation in physician, hospital, diagnostic testing and ancillary services and file a report, and any proposals for needed legislation, by March 15, 2017.

The agreement adds $7.5 million a year on top of the new $250 million increased tax assessment on hospitals included in the FY2017 state budget. That funding combined with federal Medicaid matching revenue will be used for an additional $15 million in Medicaid payments to hospitals, as a class, in addition to the planned $250 million in annual MassHealth payments. Under the tax assessment methodology, approximately half of the state’s hospitals will be “net gainers” while half will be “net payers”. The increased hospital tax assessment will sunset on October 1, 2022.

In addition, the state will divert $5 million from the Center for Health Information and Analysis’ (CHIA) administrative budget in FY2017, and $10 million in the following four years ($45 million total), to a new “Community Hospital Reinvestment Trust Fund” which will distribute the funding to hospitals with relative prices below 120% of the statewide median price, based on a weighted formula. The CHIA budget is paid for by hospitals and health insurers.

MHA has had a price variation workgroup meeting over the past few months to reach a hospital community consensus on the issue.

Said MHA’s Nicholas, “The announced resolution offers an opportunity to conduct an evidence-based analysis of the price variation issue prior to deciding upon a course of action. Given the complexity of healthcare delivery, which is a fragile ecosystem, it is essential that any future actions are thoughtful and do not have unintended consequences.”  

Senate protects health safety net eligibility

The Massachusetts State Senate approved a $39.6 billion state budget proposal Thursday night, and it contains budget priorities for which MHA and the hospital/healthcare community advocated.

Through a budget amendment led by Sen. Jason Lewis (D-Winchester) and co-sponsored by 15 other senators, the Senate preserved current eligibility requirements for the Health Safety Net, which supports care provided to low-income uninsured and underinsured individuals. Earlier this year, the Executive Office of Health and Human Services finalized regulations scheduled to go into effect June 1 that would cut eligibility for the program by imposing substantial deductibles on lower-income individuals, reducing overall program eligibility based on federal poverty level guidelines, and shortening the time period for which the Health Safety Net will pay for services incurred.

The approved Senate provision would prohibit the changes until April 1, 2017, at the earliest. During floor debate on the amendment, Lewis noted that the driving force behind the Senate-endorsed delay is that “we remain concerned that we still don't fully understand how many people would be affected and what the impact would be in terms of bad debt for our healthcare providers as well as healthcare services for our patients that might be forgone.”

Hospitals have been fighting through the budget process to forestall those eligibility cuts and restore funding for the Health Safety Net. While Governor Baker’s proposal eliminated the state’s customary $30 million contribution to the Health Safety Net, both the House and Senate included $15 million in their respective budgets to partially restore the state’s contribution. An amendment effort to weaken the Senate restoration and allow the administration to spend less than the $15 million was defeated.

The Senate also approved an amendment led by Sen. John Keenan (D-Quincy) to create of a task force to examine the patient safety issues related  to insurer-forced “white bagging/brown bagging” of cancer and chronic disease medications.  Health insurers are increasingly changing benefit structures to require cancer and chronic disease patients to obtain certain injected or infused medications through a specialty pharmacy. The practice raises troubling questions about the safety of the medications, and the effect on patient out-of-pocket costs when insurers unilaterally switch the medications from a medical benefit to a pharmacy benefit.  

Other amendments of note adopted in the Senate budget include:

•        Requiring MassHealth to reimburse nursing homes for up to 20 medical leave of absence days (including observation stays in excess of 24 hours) and 10 non-medical leave of absence days.

•        Requiring $1 million to be allocated for new rate increases for providers in the MassHealth PCC mental health substance abuse plan.

•        Authorizing a new type of mid-level dental professional – the dental hygiene practitioner (DHP) – in Massachusetts. DHPs would increase dental access for vulnerable populations and make care more affordable. 

Improving access and care for LGBT patients

On Friday, May 27, MHA, the Massachusetts Office of the Attorney General, and the National LGBT Health Education Center at the Fenway Institute co-sponsored an important training session on best practices for hospital personnel to improve access to medical care for lesbian, gay, bisexual, and transgender patients across the commonwealth, with a special focus on transgender individuals.

The goal of the training was to ensure that hospital staff and other healthcare providers have the knowledge necessary to develop internal intake and admission procedures, data collection policies, and clinical care principles that support culturally competent care for this population. A similar training will be conducted in Western Massachusetts in July. Details will be announced shortly

MHA and its member hospitals have been strong and steadfast supporters of transgender rights, and MHA was one of the initial supporters of the transgender rights bill now working its way through the state legislature. 

Nicholas chairs tobacco free Mass event honoring Walsh

TOBACCO FREE MASS is holding its Fourth Annual Awards Ceremony and Fundraiser on Thursday, June 23, from 8 to 10 a.m. at the Massachusetts Medical Society, 860 Winter Street, Waltham.

Boston Mayor Martin “Marty” Walsh will be recognized for his leadership in reducing tobacco use among young people and for bringing tobacco-free baseball to Fenway Park.

MHA President and CEO Lynn Nicholas, FACHE, who has been a longtime proponent of tobacco-reduction efforts, including MHA’s own “Healing Inside and Out: Mass. Tobacco-Free Hospitals”, is the honorary chair of the event.

Information about sponsorship opportunities, which include tickets to the event, is available by e-mailing Katrin Wynns at kdwynns@gmail.com. Individual $100 tickets are still available.

Transition

Peter Healy, the current president and CEO of Beth Israel Deaconess Hospital – Milton, has been appointed to the newly created position of president of Beth Israel Deaconess Medical Center (BIDMC) in Boston, effective January 1, 2017.  Kevin Tabb, M.D., will continue to serve as CEO of BIDMC and the BID system, which includes BIDMC, three community hospitals, and clinical affiliations with six additional community hospitals.  Tabb also announced the creation of a CFO position for BIDMC. A search for that CFO as well as Healy’s replacement in Milton will begin shortly.  Healy is a graduate of Dayton University and holds a master’s degree in Health Care Administration from Xavier University. 

Speak At Your Best! 
Influencing Audiences In The Healthcare Environment

THURSDAY, JULY 14; 9 A.M. - 4 P.M.
MHA CONFERENCE CENTER, BURLINGTON, MASS.

To be a successful leader today in healthcare, you must be able to persuade and influence at all levels. This day-long program, taught by nationally recognized speech expert Gary Genard, is designed to help healthcare managers and executives become more successful communicators. Whether speaking at meetings, in public forums, or motivating co-workers, you will benefit from actor and author Dr. Genard’s unique system of dynamic oral communication training.

John LoDico, Editor