SSPPRRIINNGG 22000088 wwwwww..aarrkkhhoossppiittaallss..oorrgg Arkansas Hospitals Respond in Tornado’s Aftermath Providing Cancer Patients With “Hope Away From Home” Action Ideas for Increasing Staff Participation at Meetings AA MMAAGGAAZZIINNEE FFOORR AARRKKAANNSSAASS HHEEAALLTTHHCCAARREE PPRROOFFEESSSSIIOONNAALLSS PAGE 9 PAGE 16 PAGE 12 PAGE 24 8 Hospitals Respond in Tornado’s Aftermath Arkansas Hospitals 12 Providing Cancer Patients with “Hope Away From Home” is published by 28 Action Ideas for Increasing Staff Participation at Meetings Arkansas Hospital Association 419 Natural Resources Drive • Little Rock, AR 72205 501-224-7878 / FAX 501-224-0519 www.arkhospitals.org Features 33 Governor Collects $2.2 Billion 34 Benchmarking to High Performers 10 Thoughts on the President’s Budget Proposal Beth H. Ingram, Editor 36 Financial Challenges are Top CEO Concern 24 Working with Disruptive Board Members 36 State Revises Death Certifi cate Form BOArD OF DIrECTOrs 26 Legal Note: Physician On-Call Coverage Ray Montgomery, Searcy / Chairman Advocacy James Magee, Piggott / Chairman-elect NewsStAt Luther Lewis, El Dorado / Treasurer 37 Arkansas Receives NDC Billing Extension 11 ACH on 100 Best Workplace Listing Robert Atkinson, Pine Bluff / Past-Chairman 37 Community Match Physician Recruitment Program Kirk Reamey, Ozark / At-Large 11 Wal-Mart, LR System Partner Up Jamie Carter, West Memphis 15 Preventing Accidents and Injuries in the MRI 38 A Look Back at 2007 Healthcare Legislation David Cicero, Camden 15 AHA Services Launches New Web Site 39 FDA Recalls Contaminated Syringes Les Frensley, Batesville 16 Hospital Executive/Trustee Leadership Conference 39 Arkansas Hospital Infection Committee Meets Pat Heinz, Little Rock 16 Call for 2008 Diamond Award Entries 39 Report Recommends Broadband Network Tim Hill, Harrison Ed Lacy, Heber Springs 17 Harding University Pharmacy Program Quality Larry Morse, Clarksville 17 New OIG Advisory Opinions Doug Weeks, Little Rock 18 Arkansas Hospital Utilization Moves Downward 40 Trustees’ Responsibilities for Quality Russ Sword, Crossett 19 AHA Will Intervene on PPA Matter 41 Governor Appoints Healthcare Roundtable 20 2008 Mid-Management Series Begins April 15 41 Financial Incentive Program Guide EXECUTIVE TEAM 20 United Healthcare Revises Notifi cation Policy Phil E. Matthews / President and CEO 22 IRS Approves Revised 990, Schedule H Medicare/Medicaid Robert “Bo” Ryall / Executive Vice President 22 Look for Hospital Spending to Double by 2017 42 CMS Memo on Interpretive Guidelines W. Paul Cunningham / Senior Vice President 25 2008 HHS Federal Poverty Guidelines Elisa M. White / Vice President and General Counsel 42 Proposed Rule for LTCHs 25 Blue Cross Promotes Executives Beth H. Ingram / Vice President 42 “Freestanding” Emergency Dept. Requirements 25 2006 Health Spending Eases Don Adams / Vice President 43 CMS Amends RAC Program Schedule 27 Will Older Physicians Opt Out of Patient Care? 43 Arkansas Medicaid Outpatient Rate Update 30 Arkansas PAC Contributions Recognized DIsTrIBUTIOn 32 Hospitals to Provide ACASA Materials 43 Medicare Spending Tops $400 Billion Arkansas Hospitals is distributed quarterly 44 CMS Revamping Regional Offi ces 33 Many Labor-Related Resources Available to hospital executives, managers, and trustees 44 CAHs Allowed OPPS Reporting Participation throughout the United States; to physicians, state legislators, the congressional delegation, 44 Guide for Medicare Code Editor and other friends of the hospitals of Arkansas. 45 9th Statement of Work Changes QIOs’ Focus 46 Arkansas Medicaid Fixing EOB Problem To advertise contact 46 Value Based Purchasing Report Issued Katrice Summerlin Cover Photo Publishing Concepts, Inc. Hot Springs departments 501/221-9986 National Park [email protected] 4 From the President www.pcipublishing.com Photo courtesy of 6 Education Calendar www.thinkaboutitnursing.com Arkansas Dept. 7 Arkansas Newsmakers and Newcomers of Parks and Edition 62 Tourism Spring 2008 I Arkansas Hospitals 3 F R O M T H E P R E S I D E N T Healthcare: Is it Time for a March on Washington? I have been wondering recently if it is time for These visits are a win-win for hospital CEOs. those of us involved in America’s healthcare – How better to get your elected offi cials’ direct including citizens affected by both intensifi ed policy attention than to sit down with them, face-to-face, restrictions and Congress’s inability to effect posi- in meetings designed to detail Arkansas hospitals’ tive change regarding health insurance for all – to needs, concerns and challenges? hold a Healthcare March on Washington. Changing healthcare policy, the continuing cuts to Medicaid Taking part in the annual membership meeting also and Medicare reimbursements, gives administrators and trustees both a voice in and growing numbers of uninsured vital information regarding healthcare policy-setting and the number of businesses in America today. Participants will be bringing home dropping health insurance for knowledge from executive briefi ngs on topics such as their employees all have people The Joint Commission, health information technology, extremely concerned. More the future of Medicare and Medicaid, and potential than that, their very lives and effects of the 2008 election. livelihoods are at risk. It seems as though more people each Scheduled educational opportunities for hospital year forego early retirement trustees cover issues such as succession management, and work until they are 65 just quality and patient safety, and “the gremlins of gover- to qualify for Medicare cover- nance.” age. Beth Ingram is serving as our point person on coor- According to every national poll taken within the dinating CEO attendance for the Washington meeting. past six months, the need for policy improvement To reach Beth, contact her at 501-224-7878 or e-mail and affordable insurance availability rank among her at [email protected]. America’s highest concerns. And in this all-impor- tant election year, candidates making their bid for In this vital election year, those of us in the hospital the presidency continue to mention healthcare, but fi eld are going to Washington, together, to join health- are (so far) presenting improvement plans that are care administrators and trustees from across the nation all too sketchy and vague. in our own virtual “march on Washington” April 6-9. It’s time for both talk AND action. Therefore, America’s healthcare policy depends upon it – and your Arkansas Hospital Association board of direc- upon your continued interest and participation as the tors urged all of the state’s hospital administrators year progresses! and trustees to attend the annual American Hospital Association membership meeting in Washington, DC April 6-9. At press time, more than 30 were signed up for the trip. It’s not quite a march on Washington, but it could make a signifi cant impact on future healthcare policy in this vital election year. We feel the most important events are the times set aside to meet with the state’s Washington delegation and their key aides on health matters. The AHA will host a reception for congressional aides Monday eve- ning, April 7; and on Wednesday, April 9, attendees will meet with Senators Blanche Lincoln and Mark Pryor for Phil E. Matthews breakfast, followed by visits with their respective con- President and CEO gressman in his Capitol Hill offi ce. 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May 13, Little Rock Credentialing Clinic The full time healthcare division of Ramsey, Krug, Farrell & Lensing is the largest and most experienced group of May 14-16, Hot Springs medical professional liability and property specialists in Society for Arkansas Healthcare Arkansas and one of the largest in the Southeast. Purchasing and Materials Management Annual Meeting Our coverages include: • Medical Professional Liability for hospitals, PHOs, IPAs, Surgery Centers, Clinics and Nursing Homes May 21, Little Rock • Medical Professional Liability for Physicians and Surgeons-- all specialties protected The Legal Aspects of • Specialized programs for group practices within networks and allied healthcare professionals Management, Mid-Management • Health Care Entity Employment Practices and Managed Care Liability • Health Care Organization Directors and Officers and all related corporate and personal needs Certifi cate Series • LOCAL Claims Handling — 24/7 and LOCAL expert legal services May 28, Little Rock Our Risk Management and claim specialists are experts in medical professional, Hot Topics in Risk Management general liability and property loss control. If you are self-insured, our Risk Workshop Management staff can provide services as part of a third party administrator. Call Tom Hesselbein for more information. 501-664-7705. June 18-20, Branson, Missouri Executive/Trustee Leadership Conference RKFL is a sponsored service provider of the Arkansas Hospital Association and administrator for the AHA Worker’s Program information available Compensation self Insurance Trust. at www.arkhospitals.org. Audio rkfl.com conference information available at P.O. Box 251510 • Little Rock, Arkansas 72225 • (501) 664-7705 www.arkhospitals.org/calendarau- dio.htm. 6 Spring 2008 I Arkansas Hospitals ArkAnsAs Newsmakers Newcomers and James R. “Jamie” Carter, CEO of Crittenden Phillip Gilmore, FACHE, president/CEO of HSC Regional Hospital in West Memphis, has been Medical Center in Malvern and president of the elected to the AHA Board of Directors by the Arkansas Health Executives Forum, announced Northeast District. He will serve the unexpired that AHEF has received the American College of term of Leah Osbahr, which ends October 2011. Healthcare Executives (ACHE) Award of Chapter Carter, who has been at the West Memphis facil- Distinction. ACHE president Thomas Dolan con- ity since November 2005, also serves on the gratulated the organization saying, “Achieving this Governor’s Advisory Council on Trauma. award is a great accomplishment and solid evidence of the significant hard work of your leadership Shane Frazier has been named Service Line throughout the past year.” Administrator for Post-Acute and Behavioral Health Services at St. Vincent Health System and Governor Mike Beebe has named Edward L. Facility Administrator for St. Vincent Doctors Lacy, FACHE, vice president/administrator of Hospital in Little Rock. He succeeds Angie Baptist Health Medical Center – Heber Springs, Cabantac who recently retired. Frazier began his to the Oversight Committee on Breast Cancer work in the St. Vincent Health System in 2001 Research. Lacy’s term expires January 1, 2011. as Director of Nursing for Behavioral Health Services. He has a BSN from the University Brett A. Kinman has been named CEO at Forrest of Central Arkansas and an MBA from the City Medical Center, succeeding Stephen Doherty University of Arkansas at Little Rock. who served in an interim capacity during the search period. Kinman was previously assistant CEO at Leland Farnell has been named interim CEO Scenic Mountain Medical Center in Big Spring, for Mena Regional Health System, succeeding Texas, and COO at Harris Hospital in Newport. He Vince DiFranco. Farnell will serve until April has ten years of healthcare management experience. 30 when the hospital’s management contract with QHR expires. He has more than 23 years Franklin G. Schupp has been named president of experience as a hospital CEO in community of SMC Regional Medical Center in Osceola. He hospitals in North Carolina, Georgia and South succeeds Keith Broach. Schupp was previously Carolina. president of health development and associates for Ameris, the company that operates SMC. He also W. Lee Gentry, FACHE, has been named has experience as a CEO and development director administrator of Baptist Health Extended Care with Cumberland Health Systems, Metropolitan Hospital, which is located inside Baptist Health Hospital in Chattanooga (TN), and Medshares, Inc. Medical Center in Little Rock. Gentry is a former president/CEO of Lawrence Memorial Hospital M. Kent Strum is serving as interim administra- in Walnut Ridge, vice president of operations at tor for Delta Memorial Hospital in Dumas, suc- St. Joseph’s Mercy Health Center in Hot Springs, ceeding James Fairchild. Strum is from Jackson, and COO of Northwest Regional Medical Center Mississippi, with healthcare experience as a CEO in Clarkesdale, Mississippi. and consultant. • Spring 2008 I Arkansas Hospitals 7 Hospitals respond in Tornado’s aftermath Aerial photo of the destruction at Stone County Medical Center in Mountain View following a February 5 tornado that tore through Arkansas. The F4 tornado that tracked on the hospital just as the Leadership Center, to other facilities for care, the ground for 123 miles across Team was concluding its regularly- or discharged to their homes. North Central Arkansas in the late scheduled meeting. Fortunately, Just 24 days after the tornado, afternoon of February 5 left a wide the entire team was on hand. SCMC began admitting patients footprint of destruction from the The emergency department at for care, opening 12 of the hospi- Arkansas River Valley northeast SCMC sustained severe damage, tal’s 25 beds after approval by the to the Missouri border. Among enough to temporarily close the Arkansas Department of Health. the most severely damaged areas facility to inpatients until repairs “These rooms, along with our in the storm’s path were commu- were completed. But during and surgery department were spared nities where two of the state’s 28 after the storm, the surgery depart- from the storm,” said Karen Craft, Critical Access Hospitals are locat- ment remained open as an emer- SCMC Administrator. ed: Mountain View and Clinton. gency assessment, treatment and Structural engineers continue to In the midst of and immedi- transfer center after the tornado assess the damage to the facil- ately after the storm, Stone tore through the community. ity and are developing a plan to County Medical Center (SCMC) in No patients or employees of the rebuild and renovate the hospital. Mountain View (part of the White hospital were injured as a result A modular medical building previ- River Health System in Batesville) of the storm. The 17 patients who ously used as a temporary facil- continued to care for injured were in the hospital at the time the ity in Corpus Christi, Texas, was patients despite receiving signifi- storm hit were evacuated to Stone assembled on the hospital campus cant damage. The tornado hit County Nursing and Rehabilitation to provide space needed to contin- 8 Spring 2008 I Arkansas Hospitals ue operations during the rebuilding tornado’s touchdown, the hospital those families who suffered injuries process. The ER, laboratory, X-ray, saw 51 patients, assessing and treat- or loss,” stated Mike McCoy, Saint respiratory therapy, pharmacy and ing many onsite and working with Mary’s CEO. “The compassionate other ancillary services are moving area ambulance services to trans- staff of Saint Mary’s is regularly into that space. Additionally, three port other more severely injured trained and well prepared for emer- physicians whose offices were dam- people to hospitals in Conway and gency situations. I am very proud aged in the storm were scheduled to Little Rock. and grateful for how our staff and reopen their clinics in the building Reamey said that the hospital physicians responded during this in mid-March. staff and volunteers continued their time to care for the injured and Craft said, “Our hospital family medical treatment of storm victims keep concerned family members and community have come together until midnight, but pressed on into informed. We have a great team to rebuild the hospital after the the morning hours and the follow- of staff, clinicians and physicians horrific February tornado. I am ing days, providing assistance to who consistently help us to fulfill so proud to be associated with this area residents in the form of food, our mission of delivering quality group of physicians and employees. shelter and other non-medical care. healthcare with courtesy and com- They demonstrated compassion, He also commented on the local passion.” courage and commitment on that disaster response plan and said that And, just as they’ve been trained night and every day following. I am it worked well in his community, to do, many other hospitals, physi- confident about our future.” with all parties handling their roles cians, nurses and staff across the SCMC employees erected a flagpole and sign to show the community of Mountain View that a tornado will not destroy the hospital. Undamaged in a community and responsibilities admirably. state provided supplies, transporta- fraught with destruction, Ozark The Atkins area was hard hit as tion, treatment and care for tor- Health Medical Center (OHMC) in well by the tornado. Saint Mary’s nado victims and families follow- Clinton became the focal point for Regional Medical Center in nearby ing the tornado. The February 5 local residents as they sought out Russellville was well prepared for disaster was a true test of the plans care and assistance in the storm’s the event – quickly putting into that hospital representatives, emer- aftermath. action many aspects of its well- gency medical personnel, the Office Ozark Health CEO, Kirk rehearsed disaster plan. of Emergency Services, community Reamey, who serves as a member of “The tornado event of February leaders and others have worked on the Arkansas Hospital Association 5 reminded us that natural disas- together to care for and make our board of directors, reported to the ters can cause much damage and communities safer no matter what board that within two hours of the pain. Our prayers remain with type of disaster occurs. • Spring 2008 I Arkansas Hospitals 9 by Paul Cunningham, Senior Vice President, Arkansas Hospital Association Thoughts on the President’s Budget Proposal, and How it Affects Hospitals When President Bush released according to the data, is about to Would that cut Medicare spend- his proposed federal budget for get much bigger. ing? Well, yes, but at what cost? Fiscal Year 2009, he didn’t neces- To make matters worse, while When maladies begin to strike sarily set the full advocacy agenda 60 may be the new 50 on a sort baby boomers in the form of heart for America’s hospitals for the year, of ethereal, transcendental plane, attack, cancer, stroke and other but he certainly gave it an immedi- many of the old physical problems conditions, they’ll need Medicare, ate focus. The proposal would cut will still hang around to nag even just as older patients do today. $182 billion from future Medicare the healthiest of boomers. Dealing But, even more, ailing boomers spending over the next five years. with some of those less coveted will need the peace of mind of About $135 billion would come perks of aging will become a new knowing that healthcare services, from hospital payments. way of life and, for many, will be including hospital care, are avail- Frankly, we can’t afford for that the ultimate boomer bummer. able to treat them in their own to happen. In another five or 10 years, an communities. Even in the best of times, cuts assortment of maladies will begin If the budget proposal goes of that size would devastate many to catch up with literally millions through, local healthcare may not hospitals and create havoc over more Medicare patients. They’ll be available, especially in rural the entire healthcare delivery sys- find themselves with conditions states like Arkansas where hospi- tem. But, these particular cuts are ranging from chronic obesity, tals that already struggle to survive being pushed at a time when the arthritis, diabetes and knee/joint/ every day on paper-thin margins economy is tanking. That means back pain to acute bouts with heart won’t make it. That won’t only other hospital payment sources will attack, cancer and stroke. hurt Medicare beneficiaries, but it likely dry up, multiplying the disas- There’s no denying that the lon- will affect everyone else who lives trous effects. ger we live, the more likely it is that in those communities, too. More than that, the demand for a physical ailment of some type will In submitting the hospital services verges on rising to eventually latch onto us and refuse Administration’s bill, Department historic levels as roughly 20 mil- to let go. of Health and Human Services lion baby boomers – and that may In mid-February, the President Secretary Michael Leavitt said that be a conservative estimate – will sent Congress a bill that would take the President hopes the steps will reach the milestone age of 60, and a three-step approach to strengthen- assist Medicare beneficiaries in beyond, by 2013. As early as 2011, ing Medicare. It includes improved making healthcare choices, which the oldest boomers will become health information technology and will lead to Medicare savings. eligible for Medicare, and by 2015, electronic medical records; trans- In a convoluted way of thinking, at least 10 million of them will join parency in price and quality infor- it might work. Do away with $135 the circle of beneficiaries, despite mation; and incentives for provid- billion in hospital reimbursements their later eligibility ages. ers to deliver and Medicare ben- (about $940 million in Arkansas) Everyone understands that eficiaries to choose high-quality, and future decisions about where Medicare’s long-term financial out- low-cost healthcare. to obtain high quality, low cost look is shaky, due in part to the pro- All could be sound moves; how- healthcare services will be much jected growth in per-capita costs, ever, he wants to jumpstart the sal- easier, since those choices, due to but mostly because of increases in vage job with his proposed budget hospital closings, will be severely the beneficiary population, which, cuts. limited. • 10 Spring 2008 I Arkansas Hospitals
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