Issue link: https://beckershealthcare.uberflip.com/i/610563
44 FINANCE Whistle-Blower Physician: 'We Have Got to Get Hospitals Out of the Business of Hiring Doctors' By Ayla Ellison F ort Lauderdale, Fla.-based Broward Health, formerly North Broward Hospital District, agreed to pay $69.5 million last month to settle allega- tions brought by Michael Reilly, MD, and the Department of Justice in a federal lawsuit. Dr. Reilly claimed the system violated the False Claims Act by engaging in improper financial relationships with physicians. Although Dr. Reilly's action was against Broward Health, he claims health systems across the country have the same problems. Dr. Reilly told Kaiser Health News the issue begins with the growing trend of hos- pitals employing physicians. "We have to get hospitals out of the busi- ness of hiring doctors," Dr. Reilly told Kaiser Health News. "It's potentially detrimental to the patient, and it's terrible for healthcare." Dr. Reilly was offered an employment deal with Broward Health, but he rejected the offer aer his lawyer told him it was ille- gal. In his lawsuit, which was originally filed in 2010 and unsealed last month, Dr. Reilly claims the system carefully tracked the value of physician referrals and pressured physi- cians to increase referral volume when they lagged. In addition to fostering an environment to motivate physician referrals, the employ- ment trend "blunts physician innovation, discovery and ingenuity," Dr. Reilly said. e Broward Health settlement is just one of more than a dozen Stark Law cases the DOJ has settled in the last two years. Just a week aer Broward Health settled with the DOJ, Altamonte Springs, Fla.-based Ad- ventist Health System agreed to pay $118.7 million to the federal government and to the states of Florida, North Carolina, Tennessee and Texas to settle allegations it violated the False Claims Act and Stark Law by main- taining improper compensation arrange- ments with referring physicians. n 13% of Rural Hospitals Vulnerable to Closure: 5 Things to Know By Ayla Ellison N early 60 rural hospitals across the nation have closed in the last 10 years, and many others are facing financial troubles that might send them down the same path. Here are five things to know about the financial pressures rural hospitals face, ac- cording to a report from iVantage Health Analytics, a firm that compiles a hospital strength index that is based on data about financial stability, patients and quality indicators. 1. For the study, iVantage produced a strength index for 2,224 rural hospitals across the country and determined 283, or nearly 13 percent, were vulnerable to clo- sure. The vulnerable hospitals are located across 39 states. 2. Although nearly all rural hospitals are feeling the squeeze, facilities in states that have not expanded Medicaid are under more financial pressure. 3. In expansion states, 8.5 percent of rural hospitals are vulnerable to closure, and that number is nearly doubled in nonexpansion states, where 16.5 percent of rural hospitals are vulnerable to closure. 4. Mississippi had the highest percentage of its hospitals at risk of closure, with 33.8 percent of its hospitals vulnerable to shut- ting down. 5. Several states evaluated for the iVantage study had zero hospitals at risk of closure, including Alaska, Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New Mexico, Oregon, Rhode Island, Utah and Wyoming. n 11 Recent Hospital Bankruptcies and Closures By Ayla Ellison H ere are 11 hospitals and health systems that filed for bankruptcy protection or closed since August. 1. In October, Pomona, N.Y.-based Summit Park Hospital and Nursing Care Center announced plans to shut down by Dec. 31. 2. In October, Forest Park Medical Center's San Antonio hospital closed after the hospital's property owner filed for bankruptcy protection. 3. Winston-Salem, N.C.-based Novant Health closed Franklin Medical Center in Louisburg, N.C., in October. 4. Forest Park Medical Center at Frisco (Texas) filed for chapter 11 bankruptcy protection in September. 5. In September, Chesterfield, Mo.- based Mercy health system an- nounced plans to close Mercy Hospi- tal Independence (Kan.). 6. In September, Springfield, Ill.- based Hospital Sisters Health System announced its plan to discontin- ue healthcare services at St. Mary's Hospital in Streator, Ill., and transfer ownership of the hospital and its re- lated facilities to Peoria, Ill.-based OSF Healthcare System. 7. In August, Saint Michael's Medical Center in Newark, N.J., filed for chap- ter 11 bankruptcy protection. 8. Southern Regional Medical Center in Riverdale, Ga., filed for chapter 11 bankruptcy protection in August. 9. In August, Cheverly, Md.-based Dimensions Healthcare System de- cided to close 106-bed Laurel (Md.) Regional Hospital and replace it with an ambulatory care center. 10. Douglas, Ariz.-based Cochise Re- gional Hospital closed in August. 11. Nye Regional Medical Center in Tonopah, Nev., shut down in late Au- gust. n FINANCE