February 1, 2009 Legislation

Hospitals

Healthcare

Privacy

Hospitals

The IRS has begun the crackdown on not for profit hospitals.  The new form 990 which the hospitals have to fill out for 2008 wants information on business dealings of current and some former executives.  Do these execs fly coach or business class?  Do board members own over a 10% stake in the same business.  Next year the form will begin asking for the hospitals to describe their community benefit.  The hospitals state they don't like it because it will be labor intensive.  Maybe they don't like the light shone on them.  Under the Code, hospitals are not entitled to tax free status but have to earn the status by community benefit and not unconscionable salaries to execs.        Top

Healthcare

San Francisco likes to follow the People's Republic of Massachusetts.  The left coast city put in healthcare for all a year ago and put much of the costs on the backs of the restaurants.  The city is now in financial problems as are most governmental entities.  The San Francisco Board of Supes is considering either asking for more money from the voters or decreasing health care.  Of course this will not come close, even if both are done, to close the budget gap caused by many programs enacted by the City's left wing.  

The House has passed the stimulus bill with nary a Republican vote.  So much for bipartisanship.  It is called the healthcare plan since it has so much healthcare money involved.  There will be $40 Billion for COBRA, $87 Billion for state Medicaid, $20 Billion for HIT, $4 Billion for preventative care, $1.5 Billion for Community Health Centers, $420 million for avian flu, and $335 million for AIDS, STD and TB. 

The Senate also passed it with some Republicans voting for the bill.  However, the Senate portion was without any restrictions on physician owned hospitals.  The Republicans were not happy with the Dems for the way the pushed them around.  This means trouble for later bills.   

HHS head Daschle is suggesting to Congress that physicians should be paid per episode of care.  This would take away the billing for each thing one does for the patient.  It would be like the hospital DRG system.  Some want the hospital and physician to be paid with one payment and to fight among themselves as to which gets what.          Top

Privacy

The VA in 2006 had a huge privacy breech when a laptop was stolen.  The data of over 26 million vets were compromised.  There has been no access of any of the information in the last few years and five people were fired over the incident.  That makes no difference to attorneys who want to make money.  They sued the VA and the VA has agreed to pay $20 million for credit protection for the vets.  Any vet who can prove they were harmed can get up to $1500.  The story doesn't mention how much of the settlement goes to the attorneys.        Top

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DISCLAIMER: Although this article is updated periodically, it reflects the author's point of view at the time of publication. Nothing in this article constitutes legal advice. Readers should consult with their own legal counsel before acting on any of the information presented.