ONLINE FEBRUARY 23, 2006

CALL FOR NOMINATIONS:

8th Annual Innovations in HealthcareSM Awards & Event
If you know of an organization that should be recognized for their solution to a significant medical or healthcare administrative problem with a proven approach that's achieved quantifiable results, we want their nomination! This year, ABBYs will be presented in three categories: Innovative Technology; Innovative Approaches to the Delivery of Healthcare; and Innovations in Consumer Empowerment. Please take a minute now to submit your nominations. Then mark you calendar to join us on Wednesday, June 7th in Long Beach for the Finalists' presentations and Awards.
MEMBER NEWS
 
CalOPTIMA:  Gets Extra $50 Million from State
CalOPTIMA, where Richard Chambers is CEO,
will receive an extra $50 million from the state of California to close a deficit that threatened healthcare access for young families, the elderly and the disabled. This fiscal year, the state was to pay about $800 million to CalOPTIMA, but after auditors said the agency needed more funding, the state agreed to pay $850 million -- an increase of 7%. The higher rate will last indefinitely. CalOPTIMA's most recent increase was 2% last year, which came after three years of flat rates. >> 
 
OneLegacy:  Sets National Record
In 2005, OneLegacy, where Tom Mone is CEO, recorded all-time highs of 373 organ donors and 1,223 recovered organs transplanted -- the latter a national record for any single organ procurement organization -- representing a 10% increase over the previous year and a jump of 34% since 2000. So far in 2006, OneLegacy has recorded a monthly high of 42 organ donors and 62 tissue donors. >>
 
SilveradoSucceeds With ALFs for Alzheimer's Patients
Silverado Senior Living, where Loren Shook is CEO,
is glowingly featured in two recent national publications -- Forbes magazine and AARP Bulletin -- for its success in providing highly interactive assisted living facilities for patients with dementia. Forbes also details Loren's career path, including growing up in the business, and becoming a CPC hospital administrator at age 22. Of particular note regarding Silverado's 14 facilities: *They have a 95% occupancy rate at properties open at least a year. *The largest cost is labor -- 47% of sales. Silverado employs one staff member for every seven residents; the national median is one to 14. *Loren plans to expand slowly, opening two or three care centers a year. (Forbes, 2/13/06 >> and AARP Bulletin, February 2006 >>)
Aperio:  Introduces Powerful, Scalable Web-Based Solution
Aperio Technologies, where Dirk Soenksen is CEO, recently unveiled Spectrum, a state-of-the-art, web-based digital pathology information management system that delivers the decision support information a pathologist needs. It displays information in context, with macro images, micro digital slide images, reports, case histories, and other associated documents and images cross-linked and concurrently viewable. >>

  AT&T:  Endorsed by American Hospital Association & Fortune
The American Hospital Association has endorsed the voice and data networking products from AT&T, where Judi Manis, Karren Verdolivo and Jon Wellinger are senior executives, as the preferred communications solutions for AHA's membership of nearly 5,000 hospitals and healthcare organizations and 37,000 healthcare professionals.  Also, Fortune magazine named AT&T Inc. as America's Most Admired Telecommunications Company. >>

DataLabs:  New Software Manages Clinical Trial Processes
DataLabs, where Jim Langford is President, has introduced Site Manager as an integrated addition to its eCDM platform -- an advanced clinical trial software that enables collaborative processes to quickly identify, select and initiate investigator sites. It also allows easy monitoring, administration and communication with sites during the clinical trial. >>
 
John Muir:  Receives Its Largest-Ever Donation
The Thomas J. Long Foundation has pledged $9.5 million toward the expansion and remodeling of John Muir Medical Center, part of John Muir Health, where Ken Anderson is CEO -- the largest donation ever received by the John Muir Health Foundation. >>

Keenan:  Enrolls First Community College into Futuris
Long Beach Community College District has become the first community college to select the Futuris solution from Keenan, where Steve Richter is a senior executive, as a proactive approach to both control and meet the fiduciary responsibility for future retiree benefit costs. >>

Legacy Health:  Hospital Among "Top 100"
Legacy Good Samaritan, part of Legacy Health System, where Lee Domanico is CEO, has been named one of the top 100 hospitals in the U.S. for cardiovascular care by Solucient. The facility has been in the top 100 list three times in six years and was the only hospital named in the Portland, Oregon area. >>

LivHOME:  Pairing Seniors
LivHOME, Inc., where Mike Nicholson is CEO, has introduced its Comfrere Program to help seniors maintain meaningful social contact while living in their own homes. Mature adults are teamed with LivHOME clients who share common interests and life experiences. >> 

Sacred Heart:  Receives ACOS Commendation
Providence Cancer Center at Sacred Heart Medical Center, where Skip Davis is CEO, has been granted a three-year approval of accreditation with commendation from the Commission on Cancer of the American College of Surgeons. Of 446 cancer centers nationwide with this certification, only 56% have received commendation for their superior quality of care. >>

Tender Loving Care:  McNeil Adds San Diego
Congratulations to Roseanne McNeil, Administrator and GM of Tender Loving Care,
on the recent expansion of her coverage area to include San Diego, along with Orange and Southern Los Angeles counties. TLC is the nation's largest provider of home healthcare services to Medicare beneficiaries.

Vocera:  Partners to Deliver Increased Productivity
Vocera Communications, where Julie Shimer is CEO,
has partnered with Nuance Communications, SDC Solutions and Emergin to offer its wireless communications customers powerful options to access data and critical information, including enabling caregivers to verbally request information from medical records and other databases without direct access to a computer terminal. >>
 

HEALTHCARE TRENDS

Healthcare Spending to Reach $4 Trillion by 2015
U.S. healthcare spending will increase by an average of 7.2% annually until 2015, when spending will reach $4 trillion and account for 20% of the GDP, according to a report from the National Health Statistics Group at CMS. Public and private healthcare spending will reach about $12,320 per capita in 2015, compared with $6,683 in 2005. Medicare spending will reach $792 billion in 2015, compared with $309 billion in 2004. Medicaid spending will reach $670 billion in 2015, compared with $293 billion in 2004. Nursing home spending will increase from $121.7 billion in 2005 to $216.8 billion in 2015. Home health spending will reach $103.7 billion in 2015, compared to $49 billion in 2005. (L.A. Times, Miami Herald & Long Island Newsday, 2/22/06)
 
AMA to Develop Measures of Quality Care
The AMA has signed a pact with Congress promising to develop approximately 140 performance measures covering 34 clinical areas by the end of this year, which doctors will report to the federal government in an effort to improve the quality of care. According to the pact, in 2007, doctors will voluntarily report to the federal government "on at least three to five quality measures per physician." The agreement says doctors should receive some additional payment to offset the costs of collecting and reporting the data. "By the end of 2007," the pact says, "physician groups will have developed performance measures to cover a majority of Medicare spending for physician services." Medicare spent more than $57 billion under its physician fee schedule last year. The Medicare payment for each physician service was frozen this year. Under current law, doctors face cuts of more than 4.5% in each of the next eight years. >> (NY Times, 2/20/06)
 
OC VC Funding Up in 2005
Orange County companies raised nearly $500 million in venture capital in 2005, including $64 million in the fourth quarter -- the most money raised in the county since 2002, according to a report by Ernst & Young. The medical device industry continued to attract the most VC dollars, with nearly $210 million invested in OC last year. (OCTANe, 2/13/06)

First Recorded Decline in Cancer Deaths 
The number of cancer deaths in the U.S. dropped by 39 from 2002 to 2003 (from 557,271 to 556,092), according to a new report from the American Cancer Society. It was the first decline in total cancer deaths since nationwide data collection began in 1930. However, the decline was evident only in men. Cancer deaths among men dropped by 778 between 2002 and 2003, but deaths among women rose by 409. The report also predicted that there would be fewer cancer deaths in 2006 than in 2005. However, the ACS said that about half of all new cancers in 2006 will be related to lifestyle factors such as tobacco use, unhealthy diet, physical inactivity and being overweight or obese. (American Cancer Society release, 2/9/06)
 
Canadian Drug Sales Decline
Sales of prescription drugs from Canadian pharmacies to U.S. residents have declined as much as 30% since the Medicare prescription drug benefit took effect on Jan. 1, according to the Canadian International Pharmacy Association. There also has been a decline in purchases on state Web sites that assist residents in ordering prescription drugs from abroad. The decline is attributed to the start of the drug benefit and increased U.S. government seizures of prescription drugs ordered from Canada by U.S. residents. (AP/Detroit News, 2/22/06)
 

HEALTHCARE & GOVERNMENT

Feds Release $400 Million to California Public Hospitals
The federal government and California have reached an agreement to release $400 million in federal funding to public hospitals this year. Since July 2005, the 22 public hospitals in California have not received $650 million in federal funding that they say they are due under the agreement. Hospitals have been borrowing funds from counties, as the state and federal governments negotiate a new financing system for public hospitals. Federal payments were being delayed until a new system was established. Negotiations are continuing for the release of an additional $1 billion in federal funds, which might not become available until at least July. The state also agreed to provide emergency cash advances to hospitals. Eight hospitals in the state have requested a total of $210 million from the state to maintain operations while negotiations continue. (Oakland Tribune, 2/19/06)
 
Governor Restores Medi-Cal Provider Payments
Gov. Arnold Schwarzenegger has signed emergency legislation (SB 912) to immediately eliminate a 5% cut in payments to Medi-Cal fee-for-service providers. Eliminating the cut is expected to cost the state a total of about $50.8 million, but federal contributions will help cover the expense. Schwarzenegger said that "unanticipated savings" from a recalculation of the Medicare drug benefit payment formula have allowed the state to end the payment reduction. (L.A. Times, 2/18; Riverside Press-Enterprise, 2/18; Office of the Governor release, 2/17/06)
 
California Faces $70 Billion Healthcare Liability
California's unfunded liability for providing healthcare benefits to retired public workers could be as much as $70 billion over the next 30 years, according to a Legislative Analyst's Office report, which estimates that it will cost about $5 billion more annually than the state pays now to fund current and future retiree healthcare costs over the next 30 years. The state currently pays about $1 billion per year for retiree health insurance premiums. The report recommends that the state contribute at least $1 billion annually to a reserve fund for future retiree health costs and consider benefit reductions for future retirees. (Sacramento Bee, 2/18/06)
 

MEMBER RESOURCES

Orqis Medical Seeks Product Manager: Must have 3-5 years of experience in a medical device marketing capacity and undergraduate degree in Marketing or Business; MBA highly desired. For complete job description: >>
 

HealthTech, Inc. Seeks COO: ABL of Northern California Member Molly Coye's company seeks key operations executive to take over day-to-day operations. For complete job description: >>
 

UPCOMING ROUND TABLES & EVENTS
3/1 - Orange County Round Table
3/9 - San Francisco Round Table
3/10 - Deadline for Nominations for Innovations Award
3/15 - Life Sciences Round Table
3/17 - Los Angeles Round Table
3/29 - Innovations in Healthcare Finalists Selection
6/7 - Innovations in Healthcare Awards & Event Ceremony