The MHA will participate in Thursday's American Hospital Association (AHA) Advocacy Day, when members of Congress will be urged to extend the enhanced Federal Medical Assistance Percentage (FMAP) and oppose a rule that would inappropriately reduce the Medicare inpatient rate update. The FMAP, which is the share of federal funds that states receive in support of the Medicaid program, was increased several percentage points under the American Recovery and Reinvestment Act, with the enhanced rate set to expire Dec. 31, 2010. Expecting that rate to be extended through June 30, 2011, Michigan and many other states built this funding into their fiscal year (FY) 2011 budgets. The loss of the extended rate enhancement would reduce the Michigan state budget by more than $500 million, with Medicaid rates among the most prominent targets for significant cuts.

The MHA will also join other advocates in working to eliminate the 2.9 percent coding and documentation adjustment proposed by the Centers for Medicare & Medicaid Services (CMS) in the FY 2011 Medicare inpatient prospective payment system proposed rule. The AHA and state hospital associations strongly disagree with the CMS's allegation that hospital payments were too high due to documentation and coding changes that did not reflect actual changes in case mix. This adjustment is projected to reduce payments to Michigan acute-care hospitals by $130 million in FY 2011 and payments to long-term-care hospitals by $5 million. Advocates from the MHA and member hospitals will meet with members of the Michigan congressional delegation Thursday to urge that these problems be addressed before the August recess.

The state Legislature adjourned July 1 with most FY 2011 budgets incomplete. Work on the community health budget is unlikely to resume before Labor Day, shortly before the new fiscal year begins Oct. 1. For more information, contact Laura Appel at the MHA.

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The Centers for Medicare & Medicaid Services (CMS) recently released two rules to update the Medicare outpatient prospective payment system (OPPS). These rules include an update notice for 2010 to implement provisions enacted by the Affordable Care Act (ACA) of 2010 and the proposed rule for 2011. In addition, the 2011 proposed rule implements changes mandated by the ACA regarding how the Medicare program will reimburse for Medicare graduate medical education under the inpatient prospective payment system.

The 2011 proposed rule is scheduled for publication in the Aug. 3, 2010, Federal Register, and the CMS will accept comments until Aug. 31. A final 2011 OPPS rule is expected by Nov. 1 for the Jan. 1, 2011, effective date. Consistent with the past several years, to assist hospitals in analyzing the impact of the 2011 proposed rule on their operations, the MHA will distribute a hospital-specific impact analysis within the next few weeks. Members with questions should contact Vickie Seal at the MHA.

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President Barack Obama signed legislation June 25 to delay the 21 percent Medicare physician rate cut that took effect June 1. Delayed for six months, the rate cut is now scheduled to take effect Dec. 1. In addition, the legislation provided a 2.2 percent increase for Medicare physician services provided between June 1 and Dec. 1, 2010.

Although the Centers for Medicare & Medicaid Services (CMS) had initially directed its contractors to hold Medicare claims for June 2010 services while the Congress debated the physician cut, the agency decided in mid-June to begin processing these claims at the reduced payment rate. Medicare claims for services provided in June that were paid at the lower rate will be reprocessed at the new, higher rate as soon as possible. Medicare contractors were to begin processing claims to reflect the new higher physician rates by July 1. 

In addition, the U.S. Department of Health and Human Services' Office of the Inspector General (OIG) recently issued guidance regarding beneficiary liability amounts for services provided between June 1 and 25. Medicare beneficiaries are liable for the difference in cost-sharing amounts owed between the lower and new payment rates for physician services. However, providers may opt to waive that liability and will not be subject to OIG sanctions under the federal anti-kickback statute and the civil monetary penalty laws. Members with questions should contact Jason Jorkasky at the MHA.

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For hospitals providing retiree health benefits, the U.S. Department of Health and Human Services has now released the application form employers are required to use when applying for reimbursement of claims from enrollees in early retiree healthcare plans.

Under the Early Retiree Reinsurance Program (ERRP), the federal government will reimburse employers for a portion of healthcare claims incurred after June 1, 2010, by retirees who are at least age 55 but not eligible for Medicare, as well as claims by retirees' covered dependents.

ERRP was created as part of the healthcare reform law and was designed to encourage employers to continue their early retiree healthcare plans until mandated coverage becomes effective in 2014. The Employee Benefits Research Institute, however, estimates that the $5 billion appropriated by Congress for the program will run out sometime in 2011. For more information, contact Nancy McKeague at the MHA.

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Sen. Basham expressed his thanks for the award presented by Nancy Schlichting, president & CEO, Henry Ford Health System, Detroit.

The MHA announced three winners of its 2010 Special Recognition Award during the recent MHA Annual Membership Meeting. This award is presented annually to individuals who have made significant contributions to improving healthcare in the state.

U.S. Sen. Debbie Stabenow is a nationally recognized leader on healthcare and understands the urgency of the nation's healthcare crisis and its impact on Michigan's families and businesses. In her capacity as a member of the powerful Senate Finance Committee, she played a leadership role in the passage of federal healthcare reform legislation.

The second award recipient, State Sen. Ray Basham, was recognized for his noteworthy contributions to the passage of Michigan Public Act 188, the legislation that made Michigan the 38th state to enact a comprehensive smoke-free workplace law. For more than a decade, Basham has been on the front line of smoke-free advocacy efforts and introduced and sponsored comprehensive smoke-free legislation during every legislative session.

When Terri Lynn Land was elected Michigan's Secretary of State in 2002, only 482,000 people were identified on the Michigan Organ Donor Registry. Through her leadership and commitment, Michigan's donor registry has grown to include more than 1.8 million names, with a quarter million new names in 2009 and more than 115,000 donors added to the list in the first five months of 2010.

For more information about the Special Recognition Award, contact David Seaman at the MHA.

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New MHA Board Chair Spencer Maidlow congratulates representatives of the winning programs from (clockwise from bottom left) Borgess Health, Mercy Health Partners, Sparrow Hospital and Spectrum Health.

The MHA announced the winners of its 2010 Ludwig Community Benefit Award during the recent MHA Annual Membership Meeting. Named in memory of Patric E. Ludwig, a former MHA president who championed investing in the community's overall health, the award is presented to member organizations that have been integral parts of collaborative programs to improve the health and well-being of area residents. Four winners will each receive a $2,500 cash gift from the MHA Health Foundation to assist in their ongoing efforts.

The first of this year's winners is the Commit to Be Fit wellness program, a collaborative effort of Spectrum Health in Grand Rapids and The SOURCE, a nonprofit workforce collaborative organization in that area. The program reaches many working poor in the manufacturing sector by providing on-site health interventions.

The second 2010 winner is the Borgess Health Diabetes Care Center, created in 1989 to address the sixth leading cause of death in Kalamazoo County, where the income of one of every eight residents is at or below the federal poverty level. The Care Center provides patients and their families with a clearer understanding of the signs and symptoms of uncontrolled diabetes, helping them employ appropriate interventions to manage the disease.

Also winning the award this year is the Sparrow Fitness Initiative Targeting Kids, or FIT Kids. With a recent national report indicating Michigan children are some of the least active and most overweight in the nation, Sparrow Hospital assumed the lead in organizing community resources to address these lifestyle-related health threats in the greater Lansing area.

Mercy Health Partners is the final winner, with its Pharmaceutical Access Program. The steadily increasing percentage of uninsured residents in the Muskegon area has formed a barrier for many in accessing healthcare services, including necessary medications. The Pharmaceutical Access Program uses drug manufacturers' existing programs to provide patients the medications they need at no or very low cost.

For more information about the Ludwig Community Benefit Award winners, contact Clark Ballard at the MHA.

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The 2009-2010 class of the MHA Excellence in Governance Fellowship completed its work and participated in a June 23 graduation ceremony during the MHA Annual Membership Meeting at the Grand Hotel on Mackinac Island. Sixteen fellows graduated from the nine-month program that focuses on enhancing board member knowledge, skills and value. With the graduation of this class, there are nearly 90 alumni fellows in Michigan hospitals working to move their boards from simply effective to exceptional. The 2009-2010 graduates include (back row, from left to right) Carl Schwind, MidMichigan Health, Clare; Theodore Batzer, MD, West Shore Medical Center, Manistee; Eric Skye, MD, Chelsea Community Hospital; Erik Stalhandske, Chelsea Community Hospital; (middle row, left to right) Charlotte Edwards, Hurley Medical Center, Flint; Mary Anne Shannon, RN, PhD, Marquette General Health System; Bobbie Arnold, MidMichigan Health, Midland; Richard Kitch, JD, St. John Macomb/Oakland Hospital, Warren; Michael Neuman, MD, PhD, Portage Health, Hancock; (front row, left to right) Kenneth Massey, PhD, Botsford Hospital, Farmington Hills; Christina MacInnes, Munson Healthcare, Traverse City; Dennis Dunlap, PhD, Gratiot Medical Center, Alma; Gail Ringelberg, North Ottawa Community Health System, Grand Haven; and Shirlanna Correia, Munson Medical Center, Traverse City. (Not pictured are George Bearup, Munson Medical Center, and Donald Pavlik, Gratiot Medical Center.) Congratulations graduates! For more information on the fellowship, contact Marlene Hulteen at the MHA.

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More than 100 people played in the Links Fore Health annual charity golf outing that took place during the MHA Annual Membership Meeting last month. The funds raised from the outing support the programs and services of the MHA Health Foundation, including helping Michigan's hospitals promote health in their communities. The Links Fore Health first-place team on the Woods course was comprised of (shown left to right) Kevin Kalchek, Marquette General Health System; David Jahn, War Memorial Hospital, Sault Ste. Marie; Tim Ryan, Detroit Medical Center; and John Ryan, Kitch, Drutchas, Wagner, Valitutti & Sherbrook, Detroit. The Links Fore Health first place team on the Grand Nine course included Garry Pollack and Chris Moore, HHA Services, St. Clair Shores.

The MHA Health Foundation would like to thank Kitch, Drutchas, Wagner, Valitutti & Sherbrook for being the event partner. Questions about the golf outing should be directed to Erin Steward at the MHA.

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The MHA Patient Safety Organization (PSO) has recently updated its data reporting system to provide additional features and improve its functionality. Because of the nature of these updates, it is recommended that all MHA PSO member hospitals attend a brief training webinar being offered tomorrow by partner ECRI Institute from 1 to 1:45 p.m. Attendance by representatives of member facilities will ensure each organization is able to seamlessly transition to use of the new reporting system and allow for continued progress in patient safety and quality statewide. This webinar is free of charge for MHA PSO members and will provide:

• Introduction to the User Interface (how to access and use the reporting menu, tabs, printing options and customizable reporting features).
• Review of the five new reports.
• Review of the new Top 3 Events report format.
• Review of the new questions that feed the National Quality Forum report.

Dial-in instructions for this free webinar, which does not require pre-registration, are available online. Questions regarding the reporting system or this event should be directed to Steve Levy at the MHA.

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Hospitals across the nation are experiencing varying degrees of difficulty in providing voluntary emergency department (ED) on-call specialty services for patients who need to be admitted to the hospital. In addition, many medical staffs are now demanding that hospitals pay stipends for ED coverage. The MHA Health Foundation webinar Building Long-term Financial Relationships with On-call Physicians will provide solutions that are impartial and financially sustainable for the ED on-call issues that are stressing relationships between administrators and members of the medical staff. The webinar is scheduled from 11 a.m. to 12:30 p.m. July 28 and has a connection fee of $195 per participating MHA-member organization. For more information or to register, contact Leigh Anne Jewison at the MHA.  

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Taylor	Eadie

The Detroit Medical Center (DMC) has promoted two executives. Iris Taylor, PhD, RN, has been named chief business officer of DMC, and Reginald J. Eadie, MD, has been named the next president of DMC Detroit Receiving Hospital.

Taylor began her career at the DMC in 1975 and has served as chief nursing officer, senior vice president of patient care, and president of DMC Harper University Hospital, Detroit; DMC Hutzel Women's Hospital, Detroit; and most recently, DMC Detroit Receiving Hospital. She earned her nursing degree from Wayne State University, Detroit, and is an adjunct professor for the university's nursing programs. Taylor replaces Mary Zuckerman, who was promoted to chief operating officer in March.

Eadie, a board certified emergency medicine physician, will assume his new role July 26, succeeding Taylor. Eadie joined the DMC in April 2008 as vice president of medical affairs at DMC Harper University Hospital and DMC Hutzel Women's Hospital. He previously practiced in the emergency department (ED) at DMC Sinai-Grace Hospital and DMC Detroit Receiving Hospital, and served as ED chief and associate chief of staff of integrated clinical services at the John D. Dingell Veterans Affairs Medical Center, Detroit. Eadie is a graduate of Wayne State University School of Medicine.

Mary Vidaurri, BSN, PhD, has been appointed chief operating officer (COO) of Henry Ford West Bloomfield Hospital after serving as the interim COO for the last few months. Vidaurri has held various leadership positions within the health system, including regional administrator of its Northeast and Northwest regions. She has served as vice president of Patient Care Services and vice president of Quality Planning and Operations at Henry Ford Hospital, Detroit, and founded the Henry Ford/University of Detroit Graduate Program of Nurse Anesthesiology. Before joining Henry Ford, Vidaurri served as founder and president of MSV & Associates, LLC, and senior vice president/COO of Ingalls Memorial Hospital/Ingalls Health System, Harvey, IL.

In June, Tim Jodway joined Garden City Hospital's executive management team as vice president/chief financial officer (CFO). Jodway is a financial leader with 21 years of experience from multiple Michigan hospitals and the private sector. He previously worked as an auditor at Deloitte & Touche LLP, Detroit, and held various management positions in Michigan healthcare organizations, including Lapeer Regional Hospital; McLaren Health Care Corporation, Flint; and North Oakland Medical Centers, Pontiac. Most recently, Jodway led the financial team at Northern Michigan Regional Health System, Petoskey, as vice president and CFO. He received a Bachelor of Arts degree in accounting from Michigan State University.

A program of Munson Healthcare, Traverse City, is one of five winners of the American Hospital Association's 2010 NOVA Award, which recognizes hospitals and health systems nationwide for their collaborative efforts toward improving community health. The northwest lower Michigan program Healthy Futures is a partnership of more than 100 area healthcare providers, four district and county health departments, and three hospitals. Its goal is to ensure that every expectant mother and child under age two in the seven-county service area has everything they need for a healthy beginning.

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Electronic discovery has presented many challenges for corporate legal departments, including how to stay abreast of and manage exploding amounts of data, emerging case law, pressure from outside counsel and amendments to the Federal Rules of Civil Procedure. The MHA Health Foundation webinar series Electronic Discovery and Evidence will help hospitals use technology to leverage the expertise locked in lawyers' heads, while eliminating the need to look at an excessive number of documents. The webinar on Aug. 3, Electronic Discovery - If It Hasn't Touched You, It Will, reviews the nuts and bolts of electronic discovery. The Aug. 17 webinar, Collecting and Handling Electronic Evidence, will examine electronic discovery, the chain of custody, and best practices for collecting and handling electronic evidence; and the webinar on Aug. 30, The Good, The Bad and The Ugly of Electronic Discovery, includes case studies with valuable lessons about the costs and potential ramifications of not correctly responding to the rules for electronic discovery.

Each of these webinars will be held from 11 a.m. to 12:30 p.m. The connection fee for all three webinars is $550 per participating MHA-member organization; the fee for a single webinar is $195. For more information or to register, contact Leigh Anne Jewison at the MHA.  

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Last week, President Barack Obama appointed pediatrician Donald Berwick, MD, to be the administrator of the Centers for Medicare & Medicaid Services, Department of Health and Human Services. To accept the appointment, Berwick will leave his current position as president and chief executive officer of the Institute for Healthcare Improvement (IHI), a not-for-profit organization that leads quality improvement efforts both nationally and internationally. The IHI has launched such efforts as the STate Action on Avoidable Rehospitalizations (STAAR) initiative which is being led in Michigan by the MHA Keystone Center for Patient Safety & Quality and MPRO, the Medicare quality improvement organization for Michigan. Members with questions should contact Sam R. Watson at the MHA.  

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• A member forum on Medicare Recovery Audit Contractor and Blue Cross Blue Shield of Michigan Medicare Advantage activities will be held from 9 a.m. to 1:30 p.m. Wednesday at the Kellogg Hotel & Conference Center on the Michigan State University campus in East Lansing. Those interested may also join via conference call. Registration is available electronically or by submitting a registration form via fax. For more information, contact Marilyn Litka-Klein at the MHA.

• The Blue Cross Blue Shield of Michigan Participating Hospital Agreement Benefit Administration Committee will meet from 8 to 9 a.m. Wednesday via conference call. For more information, contact Marilyn Litka-Klein at the MHA.

• The MHA Health Foundation Governance Leadership Forum will be held Oct. 24 and 25 at The Inn at St. John's, Plymouth. A brochure and registration materials will be mailed to members in mid-August. For more information, contact Erin Steward at the MHA.