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Morning Briefing

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Thursday, Apr 23 2015

Full Issue

Worries Over Deteriorating Finances Of Teaching Hospitals

The Wall Street Journal looks at how relationships between teaching hospitals and universities are fraying because of financial concerns. Medicare Advantage plans face scrutiny over allegations of overcharging and a healthcare report says consumers and providers feel the squeeze of rising health costs.

Teaching hospitals have long been points of pride for major universities, and in recent years revenue from medical services has served as a lifeline for some schools that have struggled with falling state aid and pressure to slow tuition increases. Now the marriages between universities and their cash-cow clinical operations are starting to fray as changes stemming from the 2010 health-care law threaten to make university hospitals less profitable. (Korn, 4/22)

Privately run Medicare plans, fresh off a lobbying victory that reversed proposed budget cuts, face new scrutiny from government investigators and whistleblowers who allege that plans have overcharged the government for years. Federal court records show at least a half dozen whistleblower lawsuits alleging billing abuses in these Medicare Advantage plans have been filed under the False Claims Act since 2010, including two that just recently surfaced. The suits have named insurers from Columbia, S.C., to Salt Lake City to Seattle, and plans which have together enrolled millions of seniors. Lawyers predict more whistleblower cases will surface. The Justice Department also is investigating Medicare risk scores. (Schulte, 4/23)

Both health-care consumers and providers felt the squeeze of rising health-care costs in 2014 – with out-of-pocket costs for patients rising 11% -- according to a TransUnion Healthcare report released Wednesday. (Helies, 4/22)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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