Healthcare Law Briefs
January 14, 2005
1. Malpractice Reform
Malpractice reform initiatives continue on both the
federal and state level. Despite a Kaiser Permante/Kaiser Family
Foundation Survey reporting that malpractice reform is low on the list
of consumers’ healthcare concerns (http://www.kff.org/kaiserpolls),
President Bush is actively supporting malpractice reform.
On the state level, the Maryland legislature has
overridden Governor Ehrlich’s veto of a malpractice reform initiative.
The legislature enacted a statute which ended state income tax exemption
for health maintenance organizations and managed care organizations and
directed the proceeds to subsidize malpractice insurance premiums.
Furthermore, the statute established damage caps and more stringent
standards for expert witnesses.
<Top
2. OIG Anti-Kickback Advisory
Opinions
04-19: Malpractice Premiums
Two neurosurgeons were abruptly faced with the prospect of having no
malpractice coverage and being required to buy tail coverage unless they
retired. The Hospital agreed to subsidize continuing coverage and not
restrict the physicians’ ability to practice at or refer to other
hospitals. The OIG concluded that, despite the possibility of
remuneration in exchange for referrals, this proposed arrangement would
not be prosecuted.
04-17: Laboratory, Joint Venture
A laboratory company proposed to provide separate turnkey laboratories
to physicians at one central multi-lab facility, coupled with
Management, Equipment Lease, Staff Lease and Pathology Service
Agreements. The OIG classified this arrangement as a problematic joint
venture and expressed concern that physician groups could benefit from
referring covered services to a business venture in which they had
almost no financial or business risk of any kind. The OIG refused to
provide any safe-harbor guidance for this proposed venture.
<Top
3. Highmark Announces Policy
Restricting Concierge Medical Practices
In the December 2004 PRN, Highmark stated that concierge medical
practices are “not compatible” with its network requirements. Highmark
stated that Blue Cross Blue Shield will initiate termination of impacted
provider contracts or a without cause basis upon learning of conversion
to concierge practice models.
<Top
>For more information about the
topics presented in this newsletter please contact one of the
Healthcare
Attorneys:
Read
the December issue of our HEALTHCARE NEWSLETTER.
 Tucker Arensberg,
P.C.
1500 One PPG
Place Pittsburgh, PA 15222 412/566-1212
<Back |
