News in brief - Jan. 16, 2012

Geisinger stops hiring tobacco users

Another large, integrated health system has joined the ranks of medical facilities that no longer offer jobs to those who smoke cigarettes or cigars or use smokeless tobacco products.

As of Feb. 1, Geisinger Health System, based in Danville, Pa., will hire only those who test negative for nicotine during the routine drug testing that is part of the pre-employment physical. The testing is carried out after an offer has been made but before the person starts the job.

"Geisinger is joining dozens of hospitals and medical organizations across the country that are encouraging healthier living, decreasing absenteeism and reducing health care costs by adopting strict policies that make smoking a reason to turn away job applicants," said Richard Merkle, the organization's chief human resources officer.

This policy change affects new hires for part-time and full-time positions, but not current employees. Such testing detects tobacco users, but not those who are exposed only to secondhand smoke. Those who test positive will be given a list of smoking cessation resources and allowed to reapply after six months.

State laws governing discrimination against those who use nicotine vary widely. Refusing to hire users of tobacco products is legal in Pennsylvania.

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U.S. firm may write down investment made in UK's health IT program

The Falls Church, Va.-based technology and consulting firm CSC said in December 2011 that it may have to write down as much as $1.5 billion it invested in the development of the United Kingdom's national electronic medical record system after the UK announced plans to scrap it.

CSC was contracted to develop the national health information system, which began in 2002. After years of delays and setbacks, the UK said in September 2011 that it was scrapping the program in favor of a localized approach to health information exchange, but that certain components of the national program would remain.

CSC has been negotiating with Britain's National Health Service over contract amendments since November. The company said at the end of 2011 that the government would not be approving a new or amended contract.

The two sides are expected to resume negotiations. But CSC said if an agreement is not reached, it would have to write down what has been invested so far, which is about $1.5 billion.

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Delaware approves new Blues affiliation

Pittsburgh-based Blues plan Highmark will become parent to Blue Cross Blue Shield of Delaware, following the Delaware insurance commissioner's approval of an affiliation agreement between the two companies.

Commissioner Karen Weldin Stewart announced Dec. 30, 2011, that she had approved the deal with 49 conditions, including a requirement that the Blues give $3 million to subsidize Delaware's Children's Health Insurance Program. She also placed restrictions on any movement of more than $500,000 from the Delaware plan and limitations on any work force reductions at the Delaware Blues' offices.

The Delaware Blues plan had been struggling to afford needed investments in information technology. The plan said it needed access to Highmark's capital to better serve its approximately 400,000 members. Highmark has 4.8 million members in Pennsylvania, where it operates a Blue Shield-licensed plan, and in West Virginia, where it controls the state's Blues plan.

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