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NON-PROFIT HOSPITAL CEO SALARIES
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Payers & Providers NEWS Page 2
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Payers & Providers NEWS Page 3
Troubled Southwest Healthcare System has whether Southwest has improved its patient
reached an agreement with the CMS to care enough to continue participation in the
L.A. County DHS resolve the problems at its hospitals in Medicare and Medicaid programs in the long-
Forecasts Large Deficit Murrieta and Wildomar in exchange for term.
keeping its funding for another year. CMS had announced it would suspend
The Los Angeles County Department As part of the agreement, Southwest has Southwest’s participation in federal
of Health Services projects a looming
$204 million budget decit by the end agreed to retain experts in emergency reimbursement programs on June 1 due to
of the current scal year. The shortfall services; infection control; pharmacy/ ongoing quality-of-care problems dating to
is projected to reach nearly $600 medication administration; equipment 2007. Medicare and Medicaid reimbursements
million in 2010-11. maintenance; leadership and accountability; account for about 40% of Southwest’s
DHS hopes to close that gap with a
and quality assessment/performance revenue, according to data from the Ofce of
proposed hospital provider fee and
some federal supplementary funding. improvement. Statewide Health Planning and Development.
“Clearly this year almost everything Each expert will report to a lead The California Department of Public
is focused on the hospital fee,'” said consultant, who will report the preliminary Health, which has levied six administrative
interim DHS director John Schunhoff. ndings directly to the Centers for Medicare penalties against Southwest, has also moved to
“We are concerned about that.''
Los Angeles County Supervisor Zev and Medicaid Services over the next two revoke its operating license. Southwest is
Yaroslavsky proposed the DHS staff months. continuing negotiations with CDPH, but has
returns in 30 days with a report on CMS will also conduct an extensive been unable to reach an agreement, ofcials
specic steps they will take to close survey in the spring of 2011 to determine said.
the budget decit if the revenue
streams do not materialize.
"We are dependent on the state to
negotiate ... key initiatives. We are not
at the table and not privy to critical
information ... that would make or
break the county's health care
system,” Yaroslavsky said. Expert Healthcare Communications
In past years of large budget
decits, DHS has cut outpatient
services and outsourced other services !White Papers !Media Campaigns !Newsletters
to private-sector providers.
(818) 848-8510 www.rfsconsult.com
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