Hospital Roundup: Closures, New Leaders, Class-Action Lawsuits, Unions And More
Media outlets report on hospital news out of California, Maryland, Louisiana, Washington, Texas and Tennessee.
Embattled Verity Health is asking a judge to let it close its Los Angeles hospital after a deal to buy the company out of bankruptcy fell through. El Segundo, Calif.-based Verity said in a court filing this week that it needs to close St. Vincent Medical Center and its dialysis clinic on an emergency basis within 30 days to avoid continued economic losses, which it says amounted to $65 million in fiscal 2019鈥攎ore than $175,000 per day. (Bannow, 1/8)
LifeBridge Health announced Wednesday that Dr. Jonathan Ringo, the president of Sinai Hospital of Baltimore, will step down in the summer after a little more than three years leading the Northwest Baltimore hospital to start up a new telemedicine company. The Baltimore-based hospital group said Daniel Blum will join LifeBridge in April to succeed Ringo as both president of Sinai and Grace Medical Center, the former Bon Secours Hospital in West Baltimore acquired last year by LifeBridge. Like Ringo, Blum comes from Northwell Health, where he is president of Phelps Hospital in Sleepy Hollow, New York. (Dinsmore, 1/8)
Dr. Bob Lynch, the interim CEO at Tulane Medical Center who previously ran the hospital system for six years, has been tapped to permanently take the helm yet again, Tulane Health System officials announced Wednesday. Lynch will oversee the system jointly owned by Tulane University and Hospital Corporation of America, a for-profit operator of almost 200 hospitals and 119 surgery centers around the country. (Woodruff, 1/8)
On Wednesday, attorneys pursuing a class-action lawsuit against Children鈥檚 on behalf of the families of patients who have been sickened from the mold sought to聽add Beth Hutt to the case. The lawsuit, filed in December in King County Superior Court on behalf of four children or their estates, seeks class-action status for patients who were sickened by Aspergillus at Children鈥檚 between 2005 and 2017. A fifth patient聽was added to the complaint before Beth Hutt. (Blethen, 1/8)
Houston Methodist, its contract ended with the United Healthcare, has launched an advertising campaign telling patients covered by the insurer that they can still use the hospital system鈥檚 facilities and doctors with 鈥渙ut of network鈥 benefits. But consumer advocates say the advice, while accurate, leaves out a key point: UnitedHealthcare patients can expect to pay more because they are no longer getting medical services within the United Healthcare network. (Wu, 1/9)
Kaiser Permanente and a union representing 57,000 of its employees jointly announced on Wednesday a new organization focused on growing the number of certified healthcare workers in California. The not-for-profit group, called Futuro Health, has received $130 million from Kaiser to increase those qualified for skilled healthcare jobs such as medical coders, medical assistants and care coordinators, which face shortages. (Castellucci, 1/8)
Community Health Systems agreed to pay $53 million to settle allegations that shareholders lost $891 million because executives overstated the investor-owned hospital chain's financial health. Shareholders initially sued CHS, CEO Wayne Smith and former Chief Financial Officer Larry Cash in 2011, claiming that CHS billed Medicare for unnecessary inpatient stays, which sunk share prices. Smith and Cash sold their CHS shares before the value dropped, netting each more than $7 million, according to the securities fraud lawsuit. (Kacik, 1/8)