Becker's Hospital Review

22 CFO / FINANCE Providence owes physician $1 in damages over lost hospital privileges By Alia Paavola P rovidence owes a plastic surgeon just $1 in damages for unlawfully terminat- ing his hospital privileges, the Alaska Supreme Court ruled May 19. Michael Brandner, MD, had hospital priv- ileges at Renton, Wash.-based Providence from 1995 to 2009 and at two other local hospitals. In 2009, Dr. Brandner had emer- gency open-heart surgery and took a leave of absence from his practice, returning to work in 2010. However, Dr. Brandner was not ap- proved to resume hand surgeries at Provi- dence, and his surgical caseload decreased aer his return — but his caseload at the two local hospitals increased. In 2011, Providence ended Dr. Brandner's hospital privileges without a hearing. He eventually received a hearing several months later, where his termination was upheld, ac- cording to the lawsuit. As a result, Dr. Brandner sued Providence for medical malpractice to recoup income he al- legedly lost as a result of injuries he attribut- ed to his heart surgery. During the hearing, Dr. Brandner stated that "all [his] lost earn- ings," were caused by medical problems following the surgery. e malpractice suit was unsuccessful. However, Dr. Brandner then revamped the suit against Providence, alleging denial of due process, defamation and contract vio- lations for termination of his hospital privi- leges. e Superior Court ruled against Dr. Brandner on all points; thus, in 2015, he ap- pealed to the Alaska Supreme Court. e Alaska Supreme Court in 2015 ruled that Providence violated Dr. Brandner's procedural due process rights by terminating him before the hearing, remanding the case to the lower court to allow Dr. Brandner to pursue dam- ages for any loss of income between the initial date his privileges were terminated and the hearing that confirmed the termination. At the lower court damages hearing, Provi- dence presented expert testimony and hos- pital records stating that Dr. Brandner's economic loss was minimal. Dr. Brandner alleged that he faced an income loss of about $230,000. e court ultimately awarded Dr. Brandner nominal damages. Dr. Brandner then appealed the nominal damages award to the state Supreme Court, which ruled May 19 that he presented insuf- ficient proof of lost income, upholding the nominal damages award. "ere was an adequate basis for the trial court's finding that no actual damages result- ed from the improper termination. ere- fore, the award of nominal damages was not clearly erroneous," the Alaska Supreme Court ruled. n Scripps Health records operating loss in Q2 By Alia Paavola A lthough San Diego-based Scripps Health saw its net in- come jump in the second quarter of fiscal year 2021, it also recorded an operating loss, according to financial documents published June 11. For the quarter ended March 31, Scripps' operating revenue hit $874.6 million, a decrease of 2.8 percent from the same quarter one year prior. Scripps said the revenue decrease was primarily driven by a $72 million dip in provider tax revenue and an $11.5 million decrease in capitation premium revenue. Operating expenses increased 3.1 percent to $879.6 million in the three-month period ended March 31, which Scripps attribut- ed to an increase in paid full-time employees, supply costs and physician services expenses. The health system posted a $4.8 million operating loss in the sec- ond quarter of fiscal year 2021. In the same quarter one year pri- or, the health system had an operating income of $47.1 million. After factoring in investment gains and other nonoperating items, Scripps ended the second quarter of fiscal 2021 with a net income of $99.6 million. In the same quarter last year, Scripps recorded a net loss of $296 million. n Northern Light to overhaul half of its 10 hospitals By Morgan Haefner F acility overhauls are in the works or planned for half of the 10 hospitals that make up Brew- er, Maine-based Northern Light Health sys- tem, according to the Bangor Daily News. Northern Light said June 11 it is upgrading and expanding adult and pediatric inpatient services at its Bangor, Maine-based Northern Light Aca- dia Hospital. The project will create more private rooms and help the hospital address a significant increase in demand for psychiatric care. Other updates at Northern Light Blue Hill (Maine) Hospital, Maine Coast Hospital in Ellsworth, Maine,, Dean Hospital in Greenville, Maine, and Mercy Hospital in Portland, Maine, are in varying stages of planning and completion. Many of the projects include expanding capacity for patient privacy and digital health capabilities, according to the report. Save for the Mercy location, all updates are pend- ing approval from Northern Light's board of direc- tors, with a vote expected in March 2022. Philan- thropy will be an important source of funding for the projects, according to the Bangor Daily News. n

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