HHS Grants $727 Million To Community Health Centers

The Patient Protection and Affordable Care Act (PPACA) continues to make headlines.  Recently the Department of Health and Human Services (HHS) awarded $727 million for construction and renovation projects at 143 community health centers across the country.  HHS Secretary Kathleen Sebelius noted that

[t]here is no question that the economic downturn has made it harder for some Americans to get health care and important preventive services.  Community Health Centers provide quality healthcare services to Americans across the country but are a life line for those who have lost coverage or are between jobs.  These funds from the Affordable Care Act will help get more people care in some communities where there have not been many options in the past.  The newly constructed or expanded community health centers will provide care to an additional 745,000 patients and much needed employment opportunities in both rural and urban underserved communities.

According to the National Association of Community Health Centers, there are approximately 1,200 centers across the country.  They provide care for 20 million patients.  Seventy-one per cent of these patients have family incomes at or below the poverty line while 38% are uninsured and 36% are on Medicaid.

Over the next five years, PPACA will provide $11 billion in grants to fund the construction, operation, and expansion of community health centers.  These grants come at the right time as Mary K. Wakefield, Administrator of HHS’ Health Resources and Services Administration, observes how

[m]any of these community health centers need more modern space to meet the increasing patient demand for services. These funds will help community health centers build new facilities and modernize their current sites in their continuing effort to provide the best care possible to more and more people in need.

The PPACA funding is in addition to the $2 billion allotted for health centers under the American Recovery and Reinvestment Act of 2009 (ARRA).  ARRA provided health centers with $500 million to expand services to new patients and $1.5 billion to support facility construction and renovation as well as equipment acquisition.  (Click here to see a list of grantees receiving ARRA funding.)

Crackdown on Fraud and Abuse in Detroit, Miami Signals Health Care Reform as a Priority of the Obama Administration

Federal agents arrested dozens of people in Miami and Detroit yesterday morning for allegedly submitting Medicare claims totaling $50 million for treatments that were unneeded and sometimes never provided, according to The Washington Post.

Later in the day, the Justice Department unsealed criminal indictments against 53 people in connection with the arrests. In Detroit, the indictments focus on costly HIV/AIDS infusion drugs as well as physical and occupational therapy treatments.

According to The Post,

Authorities filed criminal charges against patients, doctors, medical assistants and company owners who allegedly played complicit roles in the fraud schemes. Prosecutors are seeking forfeiture of the criminal proceeds and restitution to the Medicare program.

The action was announced at a news conference held by Attorney General Eric H. Holder Jr., Health and Human Services Director Kathleen Sebelius, and FBI Director Robert S. Mueller III.

We will strike back against those whose fraudulent schemes not only undermine a program upon which 45 million aged and disabled Americans depend, but which also contribute directly to rising health-care costs,

said Attorney General Holder.

Sebelius is Sworn in as Swine Flu Scare Spreads

It’s official:  Kathleen Sebelius was sworn in as Secretary of the Department of Health and Human Services at a White House ceremony Tuesday night, according to The Kansas City Star.  Sebelius’ appointment comes as fear of a deadly strain of swine flu has spread worldwide. 

The Philadelphia Inquirer reports that federal health officials this morning announced the first confirmed death in the United States due to the swine flu.  According to The Inquirer,

The Centers for Disease Control said the victim was a 23-month old Mexican child who died in Houston. The child had traveled with family from Mexico to Texas and became ill in Brownsville, Houston health officials said. The child died Monday night.   

Four students at the University of Delaware, none of whom had recently traveled to Mexico, are awaiting tests to confirm that they have the swine flu, but preliminary tests indicate a strong likelihood that they do. The Los Angeles Times reports that two recent deaths in Los Angeles County may have been caused by the swine flu, but the exact causes of death have yet to be confirmed.   

With many in Congress rallying to introduce legislation for major health care reform this summer, clearly Secretary Sebelius has a lot on her plate.

Mergers In State Health Reform: Increased Efficacy or More Bureaucracy?

State Delegate Don Perdue told the The Herald-Dispatch, “Health reform has been tried a number of times.  It fails because one agency is not talking to another, because the vision somewhere gets lost in the process.”  One might imagine Delegate Perdue to be referring to health reform in just about any state– and even the federal government.  Are West Virginia legislators so far ahead of our representatives in Washington?  Hopefully not.  As our blog reported last week (Obama Officially Establishes White House Office of Health Reform), President Obama recently signed an executive order with an arguably similar purpose: work with several federal executive branch agencies, states and local officials, and Congress to enact health reform and develop and implement strategic initiatives to strengthen the performance of the health care system.

In Massachusetts, Governor Deval Patrick isn’t having as much luck.  The Boston Globe reports of a letter the Governor wrote to the chair of the state’s Health and education Facilities Authority (HEFA) instructing the agency to merge with the state’s Development Finance Agency by July 1, 2009.  The Governor’s office maintains that the merge will enhance HEFA’s ability to provide tax-exempt financing for hospitals and health facilities (as well as state educational institutions).  Critics see the attempt as a “power grab” and an attack on the safeguards that keep HEFA, and other quasi-public authorities like it, safe from political pressure and “gubernatorial interference.” Read more

Sebelius to Head HHS, Not Everyone is Thrilled

President Barack Obama formally nominated Kansas Governor Kathleen Sebelius as Secretary of Health & Human Services today, according to USA Today.  We have been following the likelihood of Sebelius’ nomination since Tom Dachle withdrew his nomination last month.

Sebelius made a reputation for herself as Kansas’ insurance commissioner for eight years before being elected governor.  While insurance commissioner, she established herself as a consumer advocate capable of reining in health care spending.

Sebelius has been the favorite to head HHS, but her nomination has raised concerns among anti-abortion advocates such as the conservative Catholic League, according to U.S. News.  Troy Newman, president of Wichita-based Operation Rescue, says that the group will aggressively oppose Sebelius’ confirmation in the Senate.

According to KSALLink.com, Sebelius said in a statement responding to the issue that as a public official she has worked hard to ensure that abortions are “rare, safe and within the bounds of the law.”

President Obama will host a summit later this week with representatives from various health care sectors to address his plans to revamp the U.S. health care system.  No word on whether Howard Dean, a physician and former governor of Vermont, will be in attendance.  FOXNews.com reports that Dean has expressed his disappointment with being passed up for the nomination again, stating:

“I was pretty clear that I would have liked to have been Secretary of HHS but it is the president’s choice and he decided to go in a different direction.”

Obama to Unveil Plan for Health Care Reform

With the economic stimulus package signed, President Obama will turn his focus to “revamping the U.S. health care system,” according to Bloomberg.com. Obama is expected to outline his plan for providing affordable medical coverage to all Americans when he submits his budget to Congress on February 26.

During his campaign, Obama proposed creating a public plan to compete with private health insurers and taking steps to reduce administrative costs, such as putting health records in digital form.

Bloomberg.com reports that an administration official said the president may look to reduce payments to private Medicare Advantage plans to help pay for the changes.

Democrats estimate that $15 billion of the annual $94 billion in subsidies granted to Medicare Advantage plans are the result of “overpayments.” The private insurance companies that administer those plans counter that the money is used to pay for services not covered under Original Medicare, such as prescription drugs and vision, dental, and chiropractic care.

It follows that the president will likely make public his nomination for secretary of health and human services soon after he unveils his plans for health care reform. Kansas Governor Kathleen Sebelius has been touted as the front-runner for the nomination.

However, according to the AP/Kansas City Star, Governor Sebelius has not yet spoken with President Obama regarding the position. The Obama administration is reportedly using “extreme caution” in choosing the next nominee in order to avoid another embarrassing mistake.

New Candidates to Head HHS Emerge, Suspense Mounts

Two additional candidates have emerged as possible nominees to be secretary of health and human services, reports The Washington Post. According to Democratic sources in and around the White House, those candidates are Lloyd Dean and Jack Lew.

Dean is chief executive of San Francisco-based Catholic Healthcare West and was recently named one of the top 25 minority health care executives by Modern Healthcare Magazine. Lew was involved in health care reform during the Clinton Administration and worked in the White House Office of Management and Budget, according to The Post. One small snag, reports The Post, is that Lew was recently confirmed as deputy secretary of state.

Yesterday we reported that Kansas Governor Kathleen Sebelius was at the top of Obama’s list to replace former Senator Tom Daschle as the nominee for U.S. Secretary of Health & Human Services. Sebelius removed herself from consideration for a cabinet position last December, citing the need to reform Kansas’ budget. However, The Wall Street Journal reports that Gov. Sebelius told Ron Pollack, president of Families USA, that she would accept the nomination for secretary of health and human services.

Sebelius, Podesta on Obama’s Short List to Replace Daschle

A top official in the Obama administration says that Kansas Governor Kathleen Sebelius is at the top of the list to replace former Senator Tom Daschle as President Obama’s nominee for Secretary of Health & Human Services, according to the AP/Kansas City Star. This comes after Daschle withdrew his nomination last week, leaving many wondering about the future of U.S. health care reform.

Sebelius has been praised by advocacy groups for the “watchdog role” that she played for eight years as insurance commissioner before she became governor. The Kansas Governor was an early supporter of Obama’s campaign for the presidency. After Obama won the election in November, she was in consideration for several cabinet posts. In early December though, she announced that she had removed herself from consideration for a Washington job, citing Kansas’ budget problems that needed her attention.

Also on Obama’s short list is former White House chief of staff under President Clinton, John Podesta, and Tennessee Governor Phil Bredeson. Some advocacy groups are reportedly lining up to oppose the nomination of Democratic governor from Tennessee. Bredeson remains under consideration but was not as likely as Sebelius to make the final cut, the senior official said.

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