Healthcare Roundup: Tenet Loses $3M, AAFP-Coke Deal Draws Protests, Device Makers Restricted, and More

Tenet Sees Silk Purse in Sow’s Ear - Tenet Healthcare lost $3 million in the third quarter, compared to a $103 million gain in the prior-year period. The for-profit hospital chain also saw its bad debt jump to $190 million for the quarter, 17 percent more than in the third quarter of 2008. Admissions are down, and fewer patients are paying their copays. But, excluding discontinued operations, writedowns, and other items, the company still posted earnings of 3 cents a share, and Tenet CEO Trevor Fetter noted that employee turnover has declined as a result of the recession. Well, it’s good to hear somebody is benefiting from the economic crash. [Sources: Dallas Morning News, Wall Street Journal]

Revolt Against AAFP’s Coke Deal - Some family physicians are upset about the AAFP’s agreement with Coca-Cola, under which the medical society will promote Coke’s soft drinks as part of a healthy lifestyle in return for sponsorship of the AAFP’s health and wellness site, familydoctor.org. A group of physicians affiliated with Contra Costa Health Services in Martinez, CA, have quit the AAFP in protest. “I am appalled and ashamed of the partnership between Coca-Cola and the American Academy of Family Physicians,” said FP William Walker, director of Contra Costa Health Services. He noted that soft drinks have been implicated in the epidemic of pediatric obesity. [Sources: Fierce Healthcare, BNET Healthcare]

Device Makers Face R&D Restraints -Moody’s reports that new government regulations are impeding the rapid deployment of new medical devices, and the government’s funding of comparative effectiveness research could exacerbate the trend. The Food and Drug Administration has imposed more stringent post-marketing requirements on devices to find out whether they are truly safe. And the FDA is also reviewing its 501 (k) clearance process, which could make it harder and costlier to bring new products to market. [Source: Fierce Healthcare]

United Fined For Late Payments - United Healthcare, like other payers, maintains that it pays most claims promptly. But Georgia has fined the carrier $750,000 after an audit showed that, in the third quarter of 2008, 17 percent of physician claims to United were paid later than 15 days after being filed. Georgia fined United $2.8 million for slow payments in 2005. The company paid North Carolina nearly $800,000 last year to settle similar charges. See a pattern here? [Sources: Fierce Healthcare, Atlanta Journal-Constitution]

Hospitals Resist Variations Study - Hospitals from urban areas are complaining about a provision in the House reform bill that would order the Institute of Medicine to conduct a study of regional variations in Medicare costs. While Dartmouth University researchers have established that much of the variations are not related to better patient outcomes, executives of the urban hospitals, including academic medical centers, point out that a higher cost of living and dealing with urban patients may result in higher Medicare outlays. They fear that their reimbursement may be lowered if it is decided that their costs are unjustified. [Source: New York Times]