You could file this story under “Trust but verify” or “The value of partner due diligence.”

In February, the Florida Agency for Health Care Administration ordered HCA to halt all dialysis treatment at its Northside Hospital in St. Petersburg after serious problems in care were revealed.

Included in the complaints were stories of patients sometimes waiting as much as eight hours for dialysis after treatments had been ordered ASAP. Implicated in the shortcomings was Vista, a dialysis provider contracted to work at Northside.

HCA moved quickly to limit the fallout, dropping Vista in favor of industry heavyweight Fresenius Medical Care, which two years ago bought local heavyweight Renal Care Group. We’re betting the new contract has a lot of very specific performance-related language.

As we reported last month, Community Health Systems is still in the process of tying up all of the loose ends of its multi-billion dollar purchase of Triad Hospitals. Along with offloading facilities — as it did by selling its stake in a Dublin hospital, its only international facility — the company has also inherited construction plans.
CHS is looking like the odds-on favorite to partner with a group of Northern Alabama doctors to build a 60-bed facility there. CHS’ recently acquired Crestwood Medical Center in Huntsville has been jostling with other area hospitals for more than five years to build the new facility.

Disease management leader Healthways was able to relay some positive news in March after a horrific start to 2008. In addition to tacking three years onto its current agreement with insurance giant Cigna — which accounts for a fifth of its revenues — the company also announced its second international contract last month, a 10-year agreement with Brazilian insurer Fleury.
Unfortunately, the company’s stock has yet to rebound meaningfully and remains in the lower $30s, down from around $70 in mid-January.

Walker Duncan is a reporter at NashvillePost.com, a sister publication of Nashville Medical News. You can reach him at
walker.duncan@nashvillepost.com.

For more corporate healthcare news, go online to www.nashvillemedicalnews.com or our sister publication  www.nashvillepost.com



April 2008

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