Wow! What a Month!

Okay, I know you probably despise the Staples commercial with the guy shouting Wow, that’s a low price! I know I do. But I still wrote a headline based on that craziness.

Anyway, I am back from a hiatus during the month of June. Most who know me have learned that I need a little time in the summer to engage in the seventh habit. (Sharper the Saw for you non-Stephen Covey types.) My saw will cut diamonds!

What a month! And, away we go…

Tim Shaughnessy

First, back on June 18 the Courier-Journal reported that Tim Shaughnessy, a 21 year veteran of the Kentucky State Senate and a 28 year veteran of Jewish Hospital & St. Mary’s HealthCare was losing his job as a Vice President. Tim was also the Executive Director of the Cardiovascular Innovation Institute, a translational research joint venture between UofL and Jewish.

Jewish insiders have jokingly refered to Tim as “their State Senator”, but in my experience Tim was (and is) nobody’s boy. As an example, during his Senate career, he voted against tort reform, something his employer strongly supported. My guess is that Tim lands upright and firmly on his feet.

Humana and UofL’s Physicians

On June 21, Pat Howingtown reported in the Courier-Journal on the continuing impasse between Humana and UofL. That was followed up by dueling opeds penned by Gerry Rabalais, M.D. of UofL and Jeff Bringardner of Humana. I’ll have more to say on that subject later this month. Suffice to say that UofL and Humana have replaced Norton and Anthem as health care boogeymen in the blogosphere.

Big System Finances

Then, on June 25 and 26, Pat Howington returned to the hospital beat with a vengeance authoring back to back articles outlining the divergent financial fortunes of Jewish Hospital & St. Mary’s HealthCare and Norton Healthcare. It seems the are moving in the opposite direction. Jewish reported an operating loss of $17.8 million for the 15 month period ended March 31, 2010. In contrast, Norton reported a $16.8 million operating profit despite $11.5 million in costs associated with the flood and an expensive standoff with Anthem. In a later article, Norton CFO Mike Gough acknowledged that Norton had a difficult first quarter, but maintained profitable operations.

Meanwhile the Baptist Healthcare System motors along in an enviable financial state as reported by Business First on July 2nd.

Merger or Acquisition?

Next, the worst kept secret in the downtown medical center arrived on the CJ front page, above the fold, Jewish and University Hospital are in merger discussions. That appeared to many to be a bombshell, but the big story was to come later in the week with the news, reported first by Business First, that Jewish had rejected a $1 billion buyout offer from Wayne Smith’s Community Health Systems, Inc.

Home Health Anyone?

Almost Family joined the fray when the CJ reported that the Company was being investigated by the SEC. What really caught my eye in the article was the factoid near its conclusion. It seems that Almost Family, reported income of $24 million on nearly $300 million in revenue, easily eclipsing Norton in terms of profitability. (Note: the Home Health industry took a haircut in the health care reform legislation, so you may want to do some due diligence before you run out and buy stock.)

Passport Survives

Next, CJ reported that Passport, the area’s Medicaid Managed Care Plan, and the Commonwealth reached an agreement on a contract at 11:58 on June 30, 2010. The agreement resolved at least one public argument related to medical education payments and it seems Passport will survive for at least another year.

Electronic Health Records

And then, in an article buried on page 8 of the July 2 edition of Business First, PriceWaterhouseCoopers reported that eight in ten (80%) of hospitals may not be able to show “meaningful use” of electronic health records by 2015. 80%. Wow!

What a month.

I’ll have more to say on  these subjects in the coming days and weeks. However, my overall take is that the slow economic recovery, the continuing rising costs in the health care sector, and the implementation of the Affordable Care Act will result in more and more changes (read turmoil) in the Louisville health care sector. It will certainly be interesting.

Advertisement