From: rpautrey2 on

More states shred bills for awful medical errors

Patients in 23 states will no longer pay for certain mistakes,
hospitals say
By JoNel Aleccia
Health writer
updated 7:44 a.m. CT, Tues., Aug. 12, 2008


Hospitals in nearly half the states in the nation now say they won’t
bill patients for the worst kind of medical mistakes, including
operating on the wrong body part or the wrong person, or giving
someone the wrong blood.

The list has more than doubled since February, when an msnbc.com
analysis showed that hospital associations in 11 states urged their
members to waive payment for specific errors dubbed “never events”
because they should never happen at all.

“It really does go to the heart of our patients’ confidence,” said
Craig Becker, president of the Tennessee Hospital Association, which
adopted a plan in June. “When you look at these adverse events, these
are pretty gross errors.”

Tennessee is among 23 states that have approved non-payment policies
for specific mistakes, with at least three more expected to do so by
fall, a new review shows. Hospitals in another eight states have
agreed to general guidelines that advise eliminating bills on a case-
by-case basis for errors proven to be both serious and preventable.

The remaining states have not adopted even those voluntary standards,
a concept that still stuns Patty Canakaris, 63, of St. Augustine, Fla.
Her 67-year-old brother, Blake Oliver, died in December after a
Florida hospital mistakenly gave him type A positive blood instead of
type O positive blood during a transfusion for a simple operation.

“With something this horrific, whether they’ve operated on the wrong
person or removed the wrong finger, they shouldn’t expect
reimbursement,” she said.

Medicare shift driving changes
It's not clear how many private patients or their insurers are still
billed for medical mistakes, but a July study by the federal Agency
for Healthcare Research and Quality estimated that preventable errors
that occur during or after surgery may cost employers nearly $1.5
billion a year.

The idea of cutting payments for avoidable errors has gained
considerable momentum in the year since federal officials sparked the
shift by announcing that, starting Oct. 1, Medicare will no longer
reimburse hospitals for the extra costs of treating certain injuries,
infections and complications that occur after admission.

Medicare officials this month expanded the hotly contested list of
eight errors for which it won’t pay to augment one condition and add
two more: surgical site infections after elective orthopedic and
bariatric operations; severe complications from poorly controlled
blood sugar; and deep vein thrombosis or pulmonary embolism following
total knee and hip replacement surgeries.

In addition, the agency urged state Medicaid directors nationwide to
implement the non-payment policies, already in effect in
Massachusetts, New York and Pennsylvania. It's not clear how many
others plan to follow.

At the same time, many of the nation's largest insurance providers —
Cigna, Aetna, Blue Cross Blue Shield — have announced they no longer
will pay for serious, preventable mistakes.

The growing financial pressure has forced many individual states and
hospitals to decide how to address the rare but shocking errors when
they occur.

Last September, Minnesota became the first state to announce that its
hospitals would no longer charge patients or insurers for avoidable
errors. Within weeks, others states began following suit.

At least five states now have agreed to waive fees for 28 so-called
“never events” identified by the National Quality Forum, a patient
safety and advocacy agency. Other states have chosen not to charge for
eight, nine or 10 mistakes or they’ve created their own lists that
include errors ranging from the sudden amputation of a limb to
directing radiotherapy to the wrong body region.

Utah lists 31 potential errors, including the unanticipated death of a
full-term newborn and death or serious disability caused by a health
care-acquired infection.


"We wanted to make sure we covered the whole gamut," said Debra
Wynkoop, director of health policy for the Utah Hospital Association,
which considered national and state standards in coming up with its
list. "We just said, 'Listen, we're going to cover all of them.'"

Not every error is preventable, hospitals say
But even as the list grows, some health officials say cutting payments
for medical errors isn’t as simple as it seems.

“Just because something defacto occurred on that list, that doesn’t
mean that it’s defacto the fault of the provider,” said Karen Nelson,
senior vice president for clinical affairs at the Massachusetts
Hospital Association.

Nelson’s state was the second to approve non-payment policies for
hospitals and the first in which government agencies, including
Medicaid, have said they will no longer cover certain errors.

Some of the conditions on the lists kept by NQF and Medicare may not
be preventable or under the hospital's control, added Dr. Dan Stultz,
president of the Texas Hospital Association, which announced a new
policy last month that recommends not billing for nine preventable
errors.

“ABO blood compatibility? I don’t have a problem with that,” Stultz
said. But if a titanium medical device fails because of a
manufacturing defect, the hospital shouldn’t be held responsible, he
added.

In addition, Stultz and other hospital officials said it’s still not
clear how billing practices will be implemented. If a patient is
hospitalized for three weeks for a certain condition and an error
occurs during the second week, should the hospital be dunned for the
first week’s care?

And Stultz said he worries that cutting payment for treatment will
lead some providers to avoid certain patients, such as those
susceptible to pressure sores.

"[Care providers] are going to be so spooked about taking people with
a red spot on their skin," he said. "Does the rule make the care
better? We can make rules that make care worse. You can make a rule
that will make people die."

Those dilemmas, however, hold little sway for patients and other
health care consumers confronted with egregious medical mistakes, said
John R. Clarke, medical director of the ECRI Institute, a patient
safety and research agency in Pennsylvania.

To them, what's obvious is that no one should have to endure “never
events” that can include patients given the wrong gas in an oxygen
line or ignited by sparks from faulty devices.

To many, the idea those patients would be asked to pay for the
mistakes is unthinkable, Clarke said.

“You shouldn’t expect to be set on fire, for instance,” he said. “This
should never happen.”

Clarke applauds the non-payment movement as a step toward transparency
and accountability.

“In theory, this is a good idea,” he said. “In practice, one real
result is hospitals admitting these things occur and trying to keep
them from happening.”

Victims say costs already too high
The movement also makes sense to those affected by medical errors,
like Canakaris, who said Medicare shouldn’t be billed for what she
said were $72,000 in costs for her late brother's care.

Her feeling was intensified by a July disciplinary hearing that fined
Bert Fish Medical Center in New Smyrna Beach $1,000 in connection with
Blake Oliver’s death — even though the Florida Agency for Health Care
Administration found that the hospital violated its own protocols for
tracking blood types. An agency spokeswoman said that was the maximum
penalty allowed.

“It makes my blood boil,” Canakaris said. “They were at fault and they
won’t convince me otherwise.”

Resolving questions over even acknowledged mistakes can be a long,
frustrating process for many patients. Three years after an Iowa
surgeon performed hernia surgery on the wrong side, Kevin Baccam, 34,
of Urbandale, is still trying to resolve the ordeal.

Baccam said he decided to sue Dr. Frederick S. Nuss of the Iowa Clinic
after being billed for two operations, a charge Nuss denied through
his lawyer, Craig Kelinson. A copy of a bill, however, appears to
show that that Baccam's insurance provider was charged twice, but that
one charge was later rescinded. Trial is set for September.

Some hospitals always waived fees
Hospital officials in several states, including those that have no
guidelines, said they waived fees for errors long before “never
events” became a public focus. Others said they started paying more
attention after their states adopted the non-payment plans.

That’s the case at Virginia Mason Medical Center in Seattle, which
agreed last year to abide by recommendations of state hospital, doctor
and ambulatory surgery associations not to charge for the 28 NQF
events.

Newly released records show that Virginia Mason is one of nine
Washington hospitals where doctors have operated on the wrong body
part just this year.


But the unidentified patient affected by the June 4 medical mistake
will not suffer economic insult on top of injury, said Steve Schaefer,
the hospital’s vice president of finance.

“As the social awareness of the country grew, we adopted a new
practice,” Schaefer said. “Now, we stop it before the bill ever goes
out.”

© 2008 MSNBC Interactive
© 2008 MSNBC.com
http://www.msnbc.msn.com/id/26081421/