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News in brief - Jan. 26, 2004

Tenet whistle-blowers get $8.1 million - MGMA: Orthopedists' costs on rise

Tenet whistle-blowers get $8.1 million

The federal government has awarded $8.1 million to two men who filed whistle-blower lawsuits alleging that unnecessary cardiac procedures were performed at a Tenet Healthcare hospital in northern California.

The award will be paid out of the record $54 million the government recovered as part of a settlement last year with Tenet over allegations that doctors at Redding Medical Center performed hundreds of unnecessary heart procedures to boost profits. Tenet did not admit any wrongdoing.

The Rev. John Corapi, 56, and Joseph Zerga, 61, reported the alleged unnecessary procedures to the FBI in July 2002 and four months later filed sealed complaints under the False Claims Act, federal prosecutors said.

Corapi, a Catholic priest, received a cardiac catheterization at Redding Medical Center and was told by the physician that he should undergo immediate heart bypass surgery, prosecutors said. When Corapi sought second opinions from physicians outside of Redding he was advised that the surgery was unnecessary.

After complaining unsuccessfully to the Redding Medical Center, Corapi and Zerga contacted the FBI.

No criminal charges have been filed; the investigation continues.

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MGMA: Orthopedists' costs on rise

Increases in liability insurance and staffing costs contributed to a 12.3% jump in median operating costs for orthopedists in 2002, according to the Medical Group Management Assn.

The MGMA's "Cost Survey for Orthopedic Practices: 2003 Report Based on 2002 Data" details the rising expenses for the specialty, as well as the difficulty practices had keeping pace with their revenues.

Not only did staffing costs increase 8.1%, but support staff per physician increased slightly as well, according to the report. Liability insurance premiums also increased an average of 26.1% per physician, according to the report.

Total median medical revenue rose 6.6% between 2001 and 2002, according to the report.

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