News in brief - Aug. 14, 2000

Texas AG backs Aetna settlement - Hospitals merging more, HMOs less - Drug sales continue growth - Doctors fleeing California - Payment disparity suit appealed - Mass hiring for California parity law - Texas hospital system dumps United - Panel eyes changing TennCare - Massachusetts Blues profits surge - Pharmacists oppose pill-splitting - Public cool on full-scale reform - Brand-name protections lengthen

Texas AG backs Aetna settlement

Despite doctors' criticisms of Texas' settlement of a lawsuit against Aetna U.S. Healthcare, Attorney General John Cornyn said he was standing by it.

The settlement imposed no fines, and Aetna denied wrongdoing and agreed to a series of steps to eliminate financial incentives.

Hospitals merging more, HMOs less

Hospitals and doctor groups showed increases of 41% and 11%, respectively, in mergers and acquisitions in the second quarter of 2000, compared with the previous quarter, according to Irving Levin Associates.

But the report said managed care company mergers were down 50%.

Drug sales continue growth

U.S. retail drug sales grew 15% to $90.3 billion for the 12 months ending in May, according to IMS Health.

That growth leads all 12 other countries tracked by IMS. Even the top five European countries had almost half the U.S. growth.

Doctors fleeing California

The U.S. Census Bureau reports that over the past decade, California has fallen from eighth to 12th place in the nation in per capita ratio of doctors to population.

The California Medical Assn. blames the physician exodus on low reimbursements.

California has the greatest managed care penetration in the nation, and its doctors are more likely than those in other states to have capitated contracts.

Payment disparity suit appealed

The Minnesota Senior Federation said it would appeal a federal judge's dismissal of a lawsuit challenging geographic disparities in reimbursement of Medicare managed care plans.

The state of Minnesota, a co-plaintiff, decided not to appeal.

Mass hiring for California parity law

California health plans are adding hundreds of mental health specialists to comply with the state's new mental health parity law that goes into effect this month.

Expecting a 10% to 15% increase in outpatient mental health visits, PacifiCare Health Systems said it was adding 100 extra specialists. Kaiser Permanente is hiring 250.

Texas hospital system dumps United

Memorial Hermann Health Care System in Houston says it will cancel its contract with UnitedHealthcare at the end of September.

Although the two sides failed to come to terms on payment rates, United said it is still hoping to reach an agreement.

Panel eyes changing TennCare

Tennessee could loosen federal requirements over its troubled TennCare program by renegotiating with the Health Care Financing Administration as a normal Medicaid plan, a health care expert from Vanderbilt University, Nashville, told the Commission on the Future of TennCare in July.

The commission must finalize its report by Sept. 1.

Massachusetts Blues profits surge

Blue Cross Blue Shield of Massachusetts expects 2000 will be its best year since 1994. An exodus from beleaguered Harvard Pilgrim Health Care accounts partly for the growth in membership.

Blue Cross reports it will have 400,000 new members by year end and expects a $35 million operating profit for the year.

Pharmacists oppose pill-splitting

The American Society of Consultant Pharmacists says only pharmacists and physicians -- not insurers -- should recommend splitting medications.

To save money, a growing number of health plans are requiring that members be given double-strength formulations of certain medications which they then must split in half.

Public cool on full-scale reform

Dissatisfaction with the health care system has fallen since 1993, and the public has less appetite for far-reaching reforms, according to a new poll by the Washington Post, the Henry J. Kaiser Family Foundation and Harvard University.

But the poll found broad agreement that something must be done to address the nation's health-related problems. Voters view the Democrats as best able to deal with health issues.

Brand-name protections lengthen

The average length of a prescription drug patent has increased to about 14 years from eight years in the 1980s, according to a report issued by the National Institute for Health Care Management.

The increase was due to several new federal laws, the study found. Meanwhile, 150 drugs that have $150 billion in yearly sales will lose patent protection in the next five years.