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HHS Secretary Leavitt Says "Substantial Resources" Available For Health System

HHS Secretary Mike Leavitt on Tuesday said he is "prepared to bring substantial resources" from his department to rebuild the Louisiana health care system, disrupted by Hurricane Katrina, into "a national model," the New Orleans Times-Picayune reports. Speaking before a joint House-Senate health care committee, Leavitt said, "It would be wrong to rebuild the old system back." Leavitt said a new Louisiana system should focus less on emergency services and more on preventive and primary care. In addition, Leavitt "gave broad hints that he wants the state to move away from" the Charity Hospital system, which before the hurricane received most of the state's federal indigent-care funding, according to the Times-Picayune. Leavitt said the state and the Louisiana Recovery Authority should present a waiver application to him detailing how a reformed health care system would operate (Moller, New Orleans Times-Picayune, 4/26). PriceWaterhouseCoopers this week is releasing a report prepared for LRA which recommends that Louisiana State University, the operator of the Charity system, build a new hospital in downtown New Orleans to replace Charity and University hospitals, which were badly damaged by the hurricane. The report states that the city does not need additional acute-care hospital beds but could use additional hospital space for teaching, advanced specialty care and medical research. If the city repopulates more quickly than expected, those specialty beds could be converted for general use, according to the report. If LRA's health care committee adopts the report, it likely will move to the full board for approval and become the basis for LRA's recommendations to Gov. Kathleen Blanco (D). LSU officials and the Department of Veterans Affairs are negotiating a possible joint venture to build connected hospitals in New Orleans, according to the Times-Picayune (Moller, New Orleans Times-Picayune, 4/25). Reaction
The Times-Picayune reports that "[a]ny plan to redistribute the federal health care dollars will be controversial, as the Charity Hospital system and other groups with a stake in the current system inevitably will see their roles change as money is distributed." LSU health care spokesperson Marvin McGraw said hospital officials had no comment on Leavitt's testimony or the PriceWaterhouseCoopers report. Blanco said she would not give opinions on plans to redistribute federal money away from the Charity system until a detailed proposal is written. Louisiana Department of Health and Hospitals Secretary Fred Cerise said he plans to convene a committee made up of LRA health care committee members and others to develop a waiver application. Cerise said the application could be ready in three months. State Sen. Tom Schedler (R), who has advocated reforms, said, "There's going to be a lot of resistance, and I think it's going to take someone on the outside with a pen and a dollar bill to change it" (Moller, New Orleans Times-Picayune, 4/26). City Given Special Designation
In related news, the federal Health Resources and Services Administration on Tuesday declared that New Orleans is a medical shortage area and qualifies for incentives intended to attract more medical personnel. According to data compiled by the state DHH, the city since the hurricane has lost 77% of its primary care doctors, 89% of its psychiatrists and 70% of its dentists. With the federal designation, Medicare reimbursements to New Orleans physicians will increase by 10%, and the city will become an eligible destination for programs that place young doctors in areas with medical shortages in return for payment assistance on their medical school loans. Roberto Quintal, president of the Orleans Parish Medical Society, said that the loss of medical personnel is proportionally greater than the city's overall population loss. "We need to retain our medical work force, and we need to try to attract those who have left as well as new doctors," Quintal said, adding, "This is a way to help them stay here while they rebuild their practices" (Pope, New Orleans Times-Picayune, 4/26). Private Hospitals Struggle
USA Today on Wednesday examined how Katrina "blew the medically uninsured into the arms of the states' private hospitals, clinics and doctors," but "state and federal funds to pay for their care did not immediately follow." Ochsner Medical Center did not close after Katrina and became a "magnet for post-storm medical emergencies," USA Today reports. In 2005, the hospital registered $70 million in operating losses, 85% of which accrued after the hurricane. Ochsner and the Louisiana Hospital Association say the federal government has provided funding that covers a fraction of their costs and is designated for claims only up to Jan. 31 of this year. Ochsner is operating on a $290 million cash reserve it built from selling its HMO in 2004. Ochsner CEO Pat Quinlan said he has asked for funding from the state, Congress and HHS. "We're being consumed by their slow response, indecision or calculated decision for us to be used up in the process. The kind of losses the major institutions are incurring [are] simply not sustainable." CMS Administrator Mark McClellan said the federal government through June is distributing about $500 million in special Medicaid funding, primarily to Louisiana (Smith, USA Today, 4/26). Children's Study
In related news, the Times-Picayune on Friday examined a recent Columbia University Mailman School of Public Health report that found more than one-third of children living in temporary housing in the New Orleans area have at least one chronic medical condition, a rate one-third higher than the national average (Pope, New Orleans Times-Picayune, 4/21). The MSPH report is available online. You must have Adobe Reader to view the report.

"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.





HHS Secretarul Leavitt spune "resursele substanþiale" disponibil pentru sistemul sanitar - HHS Secretary Leavitt Says "Substantial Resources" Available For Health System - articole medicale engleza - startsanatate