News in brief - Jan. 16, 2006

ACP issues guidelines for pay-for-performance programs - HealthSouth responds to Scrushy - Doctor-owned hospital under way

ACP issues guidelines for pay-for-performance programs

Pay-for-performance programs should be consistent across all health plans, including using a valid data-collection process and evidence-based criteria, the American College of Physicians recommended in a recent paper.

The paper, entitled "Linking Physician Payments to Quality Care," was the latest installment of recommendations regarding both private and public pay-for-performance programs made by the internists' organization. It's a culmination of nearly three years of research and internal policy-setting sessions, said C. Anderson Hedberg, MD, president of the American College of Physicians.

Many of the ACP's recommendations mirror the stance the AMA has taken on pay-for-performance. Both organizations say the programs should promote quality care and a better physician-patient relationship, the data reporting system should be fair and reliable, and health plans should use positive rewards significant enough to support the notion of continuous improvement.

The ACP also calls for the Centers for Medicare & Medicaid Services to change its physician payment structure to foster an easier transition into a pay-for-performance environment.

HealthSouth responds to Scrushy

HealthSouth, in a response to a lawsuit against the company by founder Richard Scrushy, says the former CEO and chair doesn't deserve any compensation in relation to his 2003 firing. It claims in a countersuit that Scrushy is trying to "pillage" the company.

Scrushy last month filed a lawsuit against Birmingham, Ala.-based HealthSouth to recover what he says is $100 million compensation due to him upon his firing, as stated in his employment contract. HealthSouth fired Scrushy after a $2.7 billion accounting scandal came to light.

While some former company executives have been convicted on charges relating to inflating company earnings, a federal court in Birmingham acquitted Scrushy on all charges. However, the Securities and Exchange Commission has a civil lawsuit against Scrushy set to go to trial on April 2. Scrushy has denied any wrongdoing in the accounting scandal, saying he was duped by other managers.

Doctor-owned hospital under way

Ground recently was broken for University General Hospital, which backers say is the first physician-owned, general acute-care hospital in the Houston area. The 72-bed facility is 80%-owned by doctors.

The $15 million hospital is scheduled to open in September.