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DHMH Daily News Clippings
Saturday, February 28, 2009

 

Maryland / Regional
Legislation seeks to limit hospital interest rates (Baltimore Sun)
Officials approve private juvenile facility in Carroll (Baltimore Sun)
2 charged in suicide network won't fight extradition (Baltimore Sun)
St. Joseph executives on leave during investigation (Baltimore Sun)
City due $31 million in federal funds for homeless services (Baltimore Sun)
National / International
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Maryland / Regional
 
Legislation seeks to limit hospital interest rates
Proposal seeks to regulate interest rates attached to unpaid bills
 
By James Drew
Baltimore Sun
Saturday, February 28, 2009
 
State regulators say they want to bar Maryland hospitals from adding interest on unpaid bills at twice the rate allowed for other types of debts under the state constitution.
 
Stephen Ports, principal deputy director of the Health Services Cost Review Commission, told the Senate Finance Committee that the agency's power to regulate hospitals could extend to how much the debt-collections firms they hire can charge in interest before a court judgment is entered against a patient who doesn't pay a bill.
 
But Sen. Delores G. Kelley, a Baltimore County Democrat, questioned whether the regulations would extend beyond hospitals to a "third party" such as a collection agency or a law firm. Sen. George W. Della said legislation would be needed, and Kelley and Sen. Catherine E. Pugh, who like Della is a Baltimore Democrat, suggested they prefer that approach.
 
The issue arose late Thursday as the Finance Committee reviewed Della's bill to require hospitals to charge interest rates that comply with regulations set by the Health Services Cost Review Commission, which regulates hospital rates. The provision is part of a larger bill that would set a minimum statewide standard for hospitals on providing free care to patients and prohibit hospitals from filing liens on patients' primary residences.
 
A similar bill sponsored by Del. Peter A. Hammen, chairman of the House Health and Government Operations Committee, would ban prejudgment interest altogether.
 
Sen. Thomas M. "Mac" Middleton, chairman of the Finance Committee, said he wants to see the bills amended so they are identical.
 
The legislation was prompted by a Baltimore Sun investigative series published in December. The newspaper documented, among other things, that in debt- collection cases filed by the law firm of Wolpoff and Abramson, hospitals routinely seek to add 12 percent interest on judgments dating back to 60 days after the patient was discharged.
 
Although that is legal under regulations adopted by the rate-setting agency, the practice is criticized as unnecessarily aggressive even by some other debt- collection lawyers. The Maryland Constitution sets interest rates at 6 percent for most debts, but hospital debts are exempt. The higher rate can add thousands of dollars to judgments imposed on people of limited means.
 
In response to the newspaper's report, state regulators in January proposed to replace the 12 percent interest rate with an adjustable rate of prime plus 3 percentage points. In December, that would have totaled 6.25 percent, but as recently as June 2006, it would have been 11.25 percent.
 
Regulators scrapped that plan in a Feb. 13 report to Gov. Martin O'Malley, who in December ordered an "immediate and thorough review" of hospital debt- collection practices.
 
The cost review commission's report called on the legislature to prohibit hospitals and debt-collection agencies from charging prejudgment interest. It also recommended that state regulators develop standards for collection policies and practices.
 
Robert B. Murray, executive director of the rate-setting commission, wrote that only a few hospitals have policies governing the practices of debt-collection agencies and law firms that they hire to pursue patients.
 
"In general, once the debt is handed to a third party, the policies are silent regarding the behavior of these parties," Murray wrote.
 
Copyright 2009 Baltimore Sun.

 
Officials approve private juvenile facility in Carroll
Rite of Passage gets license for 48-bed program, which some oppose
 
By Julie Bykowicz
Baltimore Sun
Saturday, February 28, 2009
 
State officials agreed yesterday to allow a private company to open a juvenile facility in Carroll County, a move that troubled advocates and some lawmakers who say the Department of Juvenile Services took a dangerous step backward.
 
Nevada-based Rite of Passage received a license from the department to open a 48-bed program for boys deemed offenders in juvenile court. The facility, called Silver Oak Academy, will be at the site of the former Bowling Brook Preparatory School, which was shuttered two years ago when a boy in custody died. The company has said it would like to expand with time, and the buildings on the sprawling Keymar campus can house as many as 173 youths.
 
"I think it's a mistake," said Sen. Bobby A. Zirkin, a Baltimore County Democrat and juvenile justice reform advocate. "I think that we have now invited a for-profit corporation into a region where we don't need them, and they have designs on a big facility, which is a grave mistake."
 
James Bednark, the incoming program director for Silver Oaks, said his company plans to "operate a 48-bed facility and demonstrate that we can do that well." He added that Rite of Passage "has a history of operating larger facilities" but that it was too early to talk about expansion.
 
A year ago, Juvenile Services Secretary Donald W. DeVore testified in favor of legislation to limit the state to 48-bed juvenile facilities. Zirkin has a proposal this year that would limit private companies in the same way.
 
"I believe generally the principle of small is better," DeVore said. "However, there are certain exceptions."
 
For at least eight months, Rite of Passage has been laying the groundwork to reopen the former Bowling Brook facility. Some angry youth advocates argued that the license approval appeared inevitable and that the process was unfair.
 
In June, DeVore asked the three-member Board of Public Works to allow Rite of Passage to take over a state-funded buildings improvement project awarded to Bowling Brook's previous operators.
 
DeVore said the project transfer did not mean that Rite of Passage would be granted a license and promised that he would involve lawmakers in the process. Zirkin said he heard little else from DeVore until it became clear the license would be approved.
 
DeVore said that granting the license reflected his priority to keep Maryland's young offenders close to their homes.
 
Right now, more than 100 kids are in programs outside the state.
 
"If the choice is between sending them to Minnesota or Carroll County," DeVore said, "I'm going to pick Carroll County."
 
Copyright 2009 Baltimore Sun.

 
2 charged in suicide network won't fight extradition
 
By Justin Fenton
Baltimore Sun
Saturday, February 28, 2009
 
Two Baltimore men indicted in a Georgia assisted-suicide investigation waived their right to an extradition hearing yesterday morning, hoping to accelerate their release from custody as they await trial.
 
Attorneys for Dr. Lawrence D. Egbert, 81, and Nicholas Alec Sheridan, 60, who were arrested Wednesday in an eight-state probe of the Marietta, Ga.-based Final Exit Network, asked that the men be allowed to transport themselves to Georgia, where authorities say they plan to allow the men to be released on $60,000 bond.
 
District Court Judge Jeannie J. Hong said said she would consult with Georgia officials in an attempt to expedite the process.
 
"They have no reluctance to go to Georgia, where they've never been and never fled from, to face these charges," attorney Michael Kaminkow told reporters afterward.
 
Egbert, an anesthesiologist, is an unpaid visiting assistant professor at the Johns Hopkins University School of Medicine but does not treat patients at the hospital. Sheridan, former owner of a catering company, is a part-time aide in the General Assembly to Del. Maggie McIntosh.
 
Authorities with the Georgia Bureau of Investigation say the pair played an integral role in connecting 58-year-old John Celmer of Cumming, Ga., to the network, which aided in his death in July.
 
At the hearing, Kaminkow said Egbert has high blood pressure and has not had access to proper medication. His blood pressure approached stroke levels last night, Kaminkow said. Sheridan, meanwhile, pleaded with Hong to release him so he could make arrangements for his 17-year-old daughter.
 
"Just one day - I could arrange things so she can carry on with her life," he said.
 
A group of about a dozen supporters attended the hearing to show their support. Max Obuszewski, a peace activist who held a sign that read, "I support Larry & Nick - Human Rights Activists," said the two men have been active in anti-war and human rights efforts, though he said he was unaware of their involvement in the Final Exit Network that is alleged to have helped facilitate suicides.
 
"It is, to me, a trumped-up case," Obuszewski said.
 
Asked about his role with Final Exit, Egbert's wife, Ellen Barfield, repeatedly bristled at the term "assisted suicide," saying her husband helped educate terminally sick people on how to "self-deliver." She would not answer several questions about whether Egbert had ever been present during someone's death.
 
Kaminkow said Egbert's support of right-to-die efforts is no secret and that he is a member of a 3,000-member nationwide advocacy group. The attorney said he didn't see the difference between the group's efforts and hospices.
 
"A hospice is a slow assisted suicide, where they are deprived of assistance and given drugs instead of medication," Kaminkow said. "It isn't much different."
 
Copyright 2009 Baltimore Sun.

 
St. Joseph executives on leave during investigation
Federal authorities examining financial connections with an affiliated doctors' group
 
By Stephanie Desmon and Kelly Brewington
Baltimore Sun
Saturday, February 28, 2009
 
Three executives at St. Joseph Medical Center are on administrative leave to avoid a conflict of interest as federal authorities look into financial dealings between the Towson hospital and an affiliated doctors' group, the hospital said yesterday.
 
The hospital provided little information last night about what led the three executives to step down. According to a statement released by the hospital, the federal Department of Health and Human Services contacted the hospital in June 2008 to request information "pertaining to a physician group and its financial relationship with the hospital." Hospital officials said they were cooperating with authorities in what they characterized as a "civil investigation" and said none of the issues relates to patient care.
 
Hospital officials held meetings yesterday to inform employees of the situation.
 
The names of the executives were not released by the hospital.
 
St. Joseph Medical Center, a 364-bed hospital, is part of Catholic Health Initiatives of Denver, a national holding company of 72 Catholic hospitals and more than 42 long-term facilities.
 
Copyright 2009 Baltimore Sun.

 
City due $31 million in federal funds for homeless services
 
By Scott Calvert
Baltimore Sun
Saturday, February 28, 2009
 
Using the site of a proposed homeless shelter as a backdrop, Mayor Sheila Dixon announced yesterday that Baltimore will get $31 million in federal funds for homeless services, including $9.5 million in emergency funds under the economic stimulus package.
 
Separately, the Harry and Jeannette Weinberg Foundation said it has pledged $1.8 million of the estimated $8.2 million cost of the proposed shelter, which would be called the Harry and Jeannette Weinberg Housing and Resource Center.
 
The facility, to be on the site of a city building at 620 Fallsway, would be a "modern, clean and welcoming addition to this community," Dixon said during an afternoon news conference. The center would have 275 beds and would offer health care, access to job services, housing referrals and a 25-bed convalescent care floor.
 
Dixon urged the City Council to approve the shelter.
 
While it has the backing of the Mount Vernon-Belvedere Association, Councilman Bernard C. "Jack" Young, who represents part of the Mount Vernon and East Baltimore communities, has opposed it. Yesterday's event was attended by Councilman William H. Cole IV, a supporter who called the center "an unbelievable opportunity."
 
Of the federal money, $21.5 million will be distributed to 83 local programs that make up Baltimore's "continuum of care" for homeless services. The $9.5 million from the stimulus package will pay for services aimed at preventing homelessness and moving homeless people into stable housing. A recent census counted 3,428 homeless people, 12 percent more than in 2007.
 
The center would be built at Centre Street and the Fallsway.
 
Copyright 2009 Baltimore Sun.

 
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