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Federal Judge Rejects Georgia’s Psychiatric Hospital Plan

On September 30, U.S. District Court Judge Charles A. Pannell rejected the state’s January agreement with the U.S. Department of Justice (DOJ) to improve conditions at its psychiatric hospitals over 5 years (Financing News Pulse, January 23 and April 31 editions). The judge said that he could not approve the agreement because DOJ officials no longer support the motion. The judge is likely to conduct a hearing to facilitate a new agreement; however, he also is entitled to order significant changes, including stripping the state of the authority to control its psychiatric hospitals.

New Mexico Institutes Waiting List for Health Insurance Program

The New Mexico Department of Human Services will institute a waiting list for the State Coverage Insurance (SCI) Program beginning November 2. SCI currently insures about 45,000 New Mexicans and offers health insurance to residents earning up to 200 percent of the Federal poverty level for roughly $105 a month. The waiting list will only apply to individuals seeking to enroll in the program and not to those who enroll through employer groups.

Public Hearings Scheduled for “Global Payment” Phase of Massachusetts’ Health Reform; Hospital Executives Protest Change

Public hearings began the week of October 5 to discuss a state commission’s recommendation that Massachusetts move from a fee-for-service model to a “global payment” model for health care payments (Financing News Pulse, July 20 edition). Under the new system, slated to begin within 5 years, health care providers would receive flat monthly fees for each client rather than payments for individual services rendered. Among other hospital executives criticizing the change, Ellen Zane, CEO of Tufts Medical Center and chairwoman of the board of the Massachusetts Hospital Association, said that the state does not understand the ramifications of such a sudden and significant shift.

Report Finds Prescription Drug Use Rising in Kentucky

A report by the Kentucky Justice and Policy Safety Cabinet found that both legal and illegal prescription drug activity increased between 2005 and 2007. Between 2005 and 2007, the rate of prescriptions for controlled substances increased in 118 of the state’s 120 counties while, between 2006 and 2007, prescription drug-related offenses and arrests rose 23.6 percent and 6.3 percent, respectively.

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