NYT, pg1, lead: Wide U.S. Inquiry into Purchasing for Health Care

[DeepModem Mom]

Wide U.S. Inquiry Into Purchasing for Health Care
By MARY WILLIAMS WALSH

Published: August 21, 2004


The Justice Department has opened a broad criminal investigation of the medical-supply industry, apparently to determine whether hospitals and other medical care providers are fraudulently overcharging Medicare and other federal and state health programs for a wide array of goods - from rubber gloves to drugs to X-ray machines.

More than a dozen medical-supply companies recently received federal subpoenas in what appears to be a wide-ranging investigation into the way suppliers market products to clinics, hospitals and nursing homes that serve Medicare and Medicaid patients, and whether those institutions properly account for the purchases.

Industry executives expect many hospitals to receive similar requests in coming weeks.

The central issue, according to current and former industry executives, is whether the industry's use of rebates, discounts, barter arrangements and refunds to hospitals and other medical centers means that Medicare and Medicaid are being charged higher prices for products than the hospitals are actually spending.

The investigation appears to be centered on the medical-supply industry's dealings with Novation, a company in Irving, Tex., that is an industry leader in negotiating the contracts that thousands of hospitals, clinics, nursing homes and other facilities use to buy drugs and other supplies.

About $20 billion a year in medical products and services are sold under contracts arranged by Novation, which is owned by about 2,200 of the hospitals and care centers that use its services. They include well-known medical centers like New York-Presbyterian Hospital, Yale-New Haven Health Services and Baylor Health Care System in Dallas....


http://www.nytimes.com/2004/08/21/business/21buyer.html

[dixielib]

1. Another volley fired in the war between M'care and hospitals

I've been an RN for 30 years, have seen alot of changes in M'care and other insurance coverage. When M'care spending got out of control and the government started trying to get control back, hospitals started learning new ways around M'care regulations. Ever since, M'care plugs holes and hospitals open new ones. The healthcare consumer is caught in the middle.

[FlaGranny]

2. Yes, that's the way it's been ever since

corporations took over health care. Sad, sad story. There are some things, health care one of them, that are better off without privatization by corporations. I remember what it used to be like.

[merh]

4. There are a lot of things that are better off without privatization...

That the majority of taxpayers aren't up in arms every time the "government" annouces it will privatize a goverment program or department is beyond me.

If a corporation is willing to take over the program/department then you can bet they are not doing it out of patriotism but for profit. If there is profit to be made, that profit should be returned to the government agency/program and the tax coffers. Instead, privatizing ends up costing the taxpayers more money on the private end.

Divide & Privatize the motto of the GOP!

[leesa]

5. And of course the manufacturers/suppliers laugh all the way to the bank.

[RUMMYisFROSTED]

3. Irving, TX...

:freak:

[reprobate]

6. Just another example of capitalism helping people.

Nothing involved in health care should be for profit. Haven't we learned by now? Of course the people have learned, but the people have nothing to do with setting the regulations or determining the way the system works.

Government of the people, by the people and for the people. Right.

[Green Lantern]

7. My local hospital

won me over a few years ago, by charging me $8.00 apiece for two aspirin and $7.00 for a bar of soap motels give you for free.