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$2.6B in Major Hospital Construction Under Way in Sacramento Area

The Sacramento Bee reports that the four largest hospital groups in the Sacramento area are all beginning new construction projects to rebuild old facilities, meet state earthquake safety requirements and add new hospital beds to accommodate a projected population increase.

UC-Davis Health System, Sutter Health, Catholic Healthcare West (Now Dignity Health) and Kaiser Permanente are undergoing construction projects that will add a combined 3.5 million square feet to their facilities and cost about $2.6 billion. The projects are expected to add as many as 2,000 health care jobs by 2013 and already have created a boom in construction employment..

UC Davis Health is planning a new medical outpost in Folsom Ranch, a new tower at UC Davis Medical Center in Sacramento, and just south of that, is part of the Aggie Square research/education project coming out of the ground.

UC Davis Health has purchased a 34.5-acre parcel, at the intersection of East Bidwell Street and Highway 50, in Folsom Ranch. This property expands UC Davis Health’s care in Folsom and offers a prime location for the region to deliver wellness, community, convenience and excellent care for patients. Initial plans call for an outpatient medical office building and, in the future, a micro-hospital, an ambulatory surgery center and a hotel.

The California Tower will be added to the eastern side of the existing UC Davis Medical Center. It will feature a 14-story hospital tower and five-story pavilion, adding to a hospital complex that has been expanding eastward and serving the neighborhoods at this location for over 150 years.

The project is envisioned to comprise a minimum of 332 inpatient beds including ICU and medical/surgical, Acuity Adaptable (ICU capable rooms), complex procedure rooms, and imaging and support services. The building option under consideration is approximately 909,000 gross square feet of new space.

Located on the UC Davis Sacramento campus, Aggie Square will house business partners and community-based programs together with UC Davis innovation and research.The first phase of Aggie Square features state-of-the-art research facilities, modern office and mixed-use space and world-class amenities. The result will be a unique live/learn/work/play environment that values inclusion, advances human health, enriches lifelong learning, develops emerging technologies, and sets the stage for creative collaborations.

An 85,000-square-foot building to house the new residency program at Sutter Roseville Medical Center is expected to open in 2024. It features a new three-story building located right outside the current emergency department.

Dignity Health announced its plans to build a new Medical Office Building south of Highway 50 in the new development known as Folsom Ranch. The new MOB will house a host of specialty services as well as an outpatient surgery center. The new facility is at Mercy and McCarthy Way, in the heart of the new Folsom Ranch neighborhood.

The Folsom announcement comes on the heels of Dignity Health’s unveiling of plans to build a new full service hospital in neighboring Elk Grove. City entitlements and environmental approvals are already complete for the future medical campus, and work continues in advance of the groundbreaking and construction at Wymark Road and Elk Grove Boulevard.

Kaiser Permanente’s Railyards project is part of the health care construction boom. It will include an 18-acre Kaiser Permanente Hospital and Medical campus; a Historic Central Shops District; a Major League Soccer Stadium; 5-million square feet of modern innovative office space, half a million square feet of retail space; thousands of urban high-density residential units; cultural and entertainment amenities like a museum and hotels; 30-acres of green open space and parks; and a multi-modal transportation hub.

Scott Seamons, regional vice president for the Northern California Hospital Council, said none of the projects is excessive, needlessly duplicative or unsustainable over the long term.

However, Maribeth Shannon of the California HealthCare Foundation added that large cuts in reimbursement rates from federal and state health insurance programs could make it hard for the hospitals to justify these new investments.

Carrier and Defense Firm to Face Applicant Fraud/Slander Lawsuit

Heath Fulkerson, At Home Electric, and Heath V. Fulkerson LLC sued Albert & Mackenzie LLP, a law firm, Jeremiah Brasher, an attorney, and Hartford Accident & Indemnity Company, a workers’ compensation insurer, for intentional infliction of emotional distress, slander, and fraud.

The workers’ compensation case involved an alleged injury that occurred on August 22, 2020. Albert & Mackenzie LLP was the attorney of record for Hartford in that case. Brasher investigated Fulkerson’s claim, communicated with Fulkerson regarding possible settlement, developed Hartford’s defenses, conducted discovery, and filed documents in the case.

Fulkerson filed another application for adjudication of claim with the Workers’ Compensation Appeals Board in relation to an alleged injury that occurred on February 6, 2020.

The complaint alleged that as a result of defendants’ actions, Heath Fulkerson was forced to represent himself in Workers’ Compensation Appeals Board case No. ADJ13747725 and incur costs. The complaint did not specify the conduct or statements by defendants upon which plaintiffs’ claims for relief were based.

Defendants filed special motions to strike the complaint pursuant to Code of Civil Procedure section 425.16, asserting that plaintiffs’ claims arose from counsel’s conduct in representing Hartford before the Workers’ Compensation Appeals Board and that plaintiffs could not establish a prima facie case supporting their claims.

The trial court denied the motions, concluding the complaint was too vague to support a finding that it arose from protected activity.

Hartford and Albert & Mackenzie LLP contend on appeal that the trial court should have considered the declarations defendants submitted with their motions, which they claim allowed them to meet their threshold burden of showing that plaintiffs’ claims arose from protected conduct under section 425.16, subdivision (e).

Finding no error, the court of appeal affirmed the trial court’s order in the unpublished case of Fulkerson v Albert & Mackenzie LLP – C095168 (February 2023).

Section 425.16 sets out a procedure for striking what are commonly called strategic lawsuits against public participation or SLAPPs, which are lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for the redress of grievances.

Section 425.16, subdivision (b)(1) provides, “A cause of action against a person arising from any act of that person in furtherance of the person’s right of petition or free speech under the United States Constitution or the California Constitution in connection with a public issue shall be subject to a special motion to strike, unless the court determines that the plaintiff has established that there is a probability that the plaintiff will prevail on the claim.”

A motion brought under section 425.16 is called an anti-SLAPP motion. Consideration of such a motion involves a two-step process. Only a cause of action that satisfies both steps is subject to being stricken under the statute.

At the first step of the anti-SLAPP analysis, the moving defendant must make a prima facie showing that the plaintiff’s cause of action arises from an act by the defendant taken in furtherance of the defendant’s right of petition or free speech under the United States or the California Constitution in connection with a public issue. A defendant meets his or her threshold burden by demonstrating that the conduct by the defendant underlying the plaintiff’s claim fits one of the categories described in section 425.16, subdivision (e). Those categories include statements or writings in connection with matters before the Workers’ Compensation Appeals Board.

Here the complaint did not identify liability-producing conduct or statements by defendants. Defendants do not cite authority for the proposition that they can satisfy their threshold burden with declarations articulating possible bases for the plaintiffs’ claims when the challenged pleading does not contain such allegations.

The court of appeal cannot assume that Hartford’s attorneys must have engaged in protected activity. The trial court properly denied the anti-SLAPP motions. The court need not address the second step, whether plaintiffs could demonstrate a probability of prevailing on the merits.

NLRB Limits Confidentiality & Non-Disparagement Severance Agreements

McLaren Macomb operates a hospital in Mt. Clemens, Michigan, where it employs approximately 2300 employees. After an election on August 28, 2019, the Board certified Local 40 RN Staff Council, Office of Professional Employees International Union (OPEIU), AFL-CIO (Union) as the exclusive collective-bargaining representative of a unit of approximately 350 of its service employees.

Following the onset of the Coronavirus Disease 2019 (Covid-19) pandemic in March 2020,the government issued regulations prohibiting McLaren Macomb from performing elective and out-patient procedures and from allowing nonessential employees to work inside the hospital.

McLaren Macomb then terminated its outpatient services, admitted only trauma, emergency, and Covid-19 patients, and temporarily furloughed 11 bargaining unit employees because they were deemed nonessential employees.

In June, McLaren Macomb permanently furloughed those 11 employees and contemporaneously presented each of them with a “Severance Agreement, Waiver and Release” that offered to pay differing severance amounts to each furloughed employee if they signed the agreement. All 11 employees signed the agreement.

The agreement required the subject employee to release McLaren Macomb from any claims arising out of their employment or termination of employment. The agreement further contained provisions broadly prohibiting disparagement of McLaren Macomb and requiring confidentiality about the terms of the agreement.

And Administrative Law Judge found that McLaren Macomb violated Section 8(a)(5) and (1) of the National Labor Relations Act (NLRA) by permanently furloughing the 11 employees without first notifying the Union and giving it an opportunity to bargain about the furlough decision and its effects, and by directly dealing with the 11 employees while entirely bypassing and excluding the Union.

However, he found no violation of the Act as a result of the nondisparagement and confidentiality provisions of the severance agreement relying on Baylor University Medical Center 369 NLRB No. 43 (2020). and IGT d/b/a International Game Technology 370 NLRB No. 50 (2020) which reversed a long-settled precedent that provisions in a severance agreement proffered to employees have a reasonable tendency to interfere with, restrain, or coerce the exercise of employee rights under Section 7 of the Act and are thus unlawful..

The National Labor Relations Board issued a decision in McLaren Macomb, 372 NLRB No. 58, returning to longstanding precedent by holding that employers may not offer employees severance agreements that require employees to broadly waive their rights under the National Labor Relations Act.

The decision reverses the previous Board’s decisions in Baylor University Medical Center and IGT d/b/a International Game Technology, issued in 2020, which abandoned prior precedent in finding that offering similar severance agreements to employees was not unlawful, by itself.

The new February 2023 decision, in contrast, explains that simply offering employees a severance agreement that requires them to broadly give up their rights under Section 7 of the Act violates Section 8(a)(1) of the Act. The Board observed that the employer’s offer is itself an attempt to deter employees from exercising their statutory rights, at a time when employees may feel they must give up their rights in order to get the benefits provided in the agreement.

Thus, such clauses must be carefully drafted and narrowly tailored to mitigate the issues addressed by the Board in this case.

“It’s long been understood by the Board and the courts that employers cannot ask individual employees to choose between receiving benefits and exercising their rights under the National Labor Relations Act. Today’s decision upholds this important principle and restores longstanding precedent,” said Chairman Lauren McFerran.

Members Wilcox and Prouty joined Chairman McFerran in issuing the decision. Member Kaplan dissented stating “extent law is sufficient to resolve this matter, my colleagues take this opportunity, not raised by the General Counsel until her Brief in Support of Exceptions to the Board, to address circumstances not present in this case and overrule the sound law of Baylor and IGT. On this aspect of their decision, I dissent.”

Anti-Inflammatory/Anticonvulsant Drugs are Significant Comp Cost Drivers

Part I of a new California Workers’ Compensation Institute (CWCI) research series on low-volume/high-cost drugs used to treat injured workers in California spotlights a handful of Anti-Inflammatory and Anticonvulsant medications that account for a relatively small share of the prescriptions within their therapeutic drug groups, but that have become significant cost drivers by consuming a disproportionately large share of the payments.

CWCI’s analysis of Anti-Inflammatory and Anticonvulsant drugs used in California workers’ compensation is the first of a three-part series that uses data from the Institute’s Prescription Drug Application to track changes in the distribution of California workers’ compensation prescriptions and prescription payments over the past decade, and to identify medications with high average reimbursements that have an outsized impact on the total payments within their drug group.

The authors of the study note the changes in the average amounts paid per prescription for each of the highlighted drugs over the 10-year study period (service years 2012 through 2021), as well as changes in the percent of the prescriptions dispensed as a brand rather than a generic drug, and review factors that contribute to the high cost of the medications.

Among the key findings for the Anti-Inflammatory and Anticonvulsant drugs:

– – Ibuprofen and naproxen represented 2/3 of the Anti-Inflammatories dispensed in 2021, but with average payments of $12 and $49 respectively, they were relatively cheap, so it was low-volume, high-cost fenoprofen calcium (with an average payment of $1,479), and ketoprofen (with an average payment of $1,073) that kept Anti-Inflammatories at the top of the list in terms of total drug spend.
– – Fenoprofen calcium represented 1.4% of the 2021 Anti-Inflammatory prescriptions but 33.2% of the payments, while ketoprofen represented 0.6% of the prescriptions but 9.8% of the payments.
– – Fenoprofen calcium represented just 0.5% of all workers’ compensation prescriptions in 2021, but 8.1% of the total drug spend within the system, by far the largest percentage of any single drug.
– – The biologic etanercept (Enbrel) accounted for less than 0.1% of the Anti-Inflammatory prescriptions in 2021 but was only available as a brand drug with an average payment of $7,716, so it consumed 4.3% of the Anti-Inflammatory payments. On the other hand, none of the fenoprofen calcium or ketoprofen dispensed in 2021 was brand, which shows that generics are not always inexpensive.
– – Fenoprofen calcium, ketoprofen, and etanercept are not in the national Medicaid database, so they have no Federal Upper Limit (FUL) – the maximum fee allowed under Medicaid, which also serves as a price control in the Medi-Cal and California workers’ compensation pharmacy fee schedules. Instead, these drugs are paid at 83% of their average wholesale price, which is based on manufacturer pricing.
– – Four Anticonvulsant drugs (lacosamide, levetiracetam, lamotrigine, and pregabalin) accounted for 24.2% of the 2021 Anticonvulsant prescriptions, but 72.5% of the Anticonvulsant drug spend.
– – Pregabalin, which is subject to prospective utilization review (UR) under the California Workers’ Compensation Formulary, was the second most common Anticonvulsant prescribed in 2021, but its 20.7% share of the Anticonvulsant prescriptions was far below its 55.5% share of the payments.
– – Pregabalin’s share of the Anticonvulsant prescriptions increased after the Formulary and the Pain Management and Opioid Treatment Guidelines took effect in 2018, but the average payment peaked at $557 that year, and in 2019 so too did pregabalin’s share of the Anticonvulsant drug spend (77.5%) as the FDA approved nine generic versions of the drug, which quickly hit the market at a fraction of the cost of the brand version.
– – By 2021, the payment differential between brand and generic pregabalin had widened, as the average payment for generics fell to $152 per prescription while the average payment for brand versions rose to $714. By that point, however, generics accounted for 92% of the pregabalin prescriptions, so the overall average payment for pregabalin declined to $197 in 2021.
– – The 3 other Anticonvulsants highlighted in the study accounted for much smaller shares of the prescriptions within their drug group in 2021 (0.7%, 1.7%, and 1.0% respectively), but their high average payments made them significant cost drivers.
– – Lacosamide, which is Not Listed in the formulary but can be used if the prescriber presents an evidenced-based rationale for its use was only available as a brand drug at an average payment of $832. It accounted for just 0.7% of the Anticonvulsant prescriptions, but 8.3% of the payments.
– – Levetiracetam, which is subject to prospective UR, accounted for 1.7% of the 2021 Anticonvulsant prescriptions. Available as a brand and generic drug, in recent years levetiracetam has been increasingly dispensed as a brand drug (with an average reimbursement of $1,880 in 2021), which drove the overall average payment per prescription up to $274, so it consumed 6.3% of the Anticonvulsant dollars.
– – Lamotrigine, which is also subject to prospective UR, accounted for 1.1% of the Anticonvulsant prescriptions in 2021. While 95% of the 2021 prescriptions were generics, with an average payment of $62, the average amounts paid for various brand versions, including an extended-release version, were much higher, which pushed the overall average payment for Lamotrigine up to $174 per prescription, so it accounted for 2.4% of the Anticonvulsant drug spend.

CWCI has published the first part of its study in a Spotlight Report, Cost-Driver Medications in the Top California Workers’ Comp Drug Groups: Part 1, Anti-Inflammatories & Anticonvulsants. Institute members and subscribers can log on to the Institute’s website at www.cwci.org to access the report under in the Research section, others can purchase a copy from the Institute’s online store.

CWCI research on low-volume/high-cost medications will continue with Part II in the series, which will focus on medications found in the Dermatological, Opioid, and Antidepressant drug categories, while Part III will highlight low-volume/high-cost Musculoskeletal and Ulcer Drugs.

WCIRB Publishes New Industry Profile Series on Healthcare

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has released the next report in its Industry Profile series. This series examines an industry sector in California’s workers’ compensation system and provides insights into key characteristics and cost drivers in the industry. The latest report gives a comprehensive overview of the healthcare industry in California.

The healthcare industry is a significant and growing part of California’s economy and one of the largest sectors in the workers’ compensation system. Its workers’ compensation exposure covers a wide variety of occupations, ranging from physicians to nurses to home health aides with disparate average wages and levels of workers’ compensation risks.

In California’s Standard Classification System, there are a number of classifications that encompass healthcare operations. In this report, the healthcare industry is categorized into five segments that provide medical care: Physician Practices, Dental Offices, Hospitals, Nursing Facilities and Home Health Care. These segments are defined based on the locations of the services provided.

The Physician Practices and Dental Offices segments provide outpatient medical services and comprise the majority of workers’ compensation policies for the industry. The Hospitals segment includes both inpatient and outpatient services. The Nursing Facilities and Home Health Care segments may provide less medical care but more physical assistance in short-term and long-term patient care than other segments.

Key findings in the WCIRB Industry Profile: Healthcare report include:

– – The healthcare industry is one of the largest in California, with over 48,000 workers’ compensation policies, and has operations in five distinct healthcare segments that provide medical care (Physician Practices, Dental Offices, Hospitals, Nursing Facilities and Home Health Care). These segments generate 6% of all California workers’ compensation insurance premiums.
– – The advisory pure premium rates approved by the Insurance Commissioner for the healthcare industry are on average about 20% below the statewide average, driven by Physician Practices and Hospitals.
– – Within the healthcare industry, the pure premium rates for Physician Practices and Dental Offices are relatively low, while those for Home Health Care and Nursing Facilities are higher. The differences in pure premium rates by segments are mainly driven by differences in average wage levels (Chart 8) and claim frequency – potentially related to higher risk exposure from hands-on physical assistance provided to patients.
– – Hospitals experienced the largest reduction in payroll and the highest increase in indemnity claim frequency of all healthcare segments during the pandemic.
– – Dental Offices have a much higher share of Cumulative Trauma claims than other healthcare segments, potentially driven by repetitive movements and long duration of dental procedures.
– – Dental Offices have the highest share of claims involving cut, puncture and scrape injuries,likely resulting from the use of dental instruments.
– – Nursing Facilities and Home Health Care have higher shares of claims involving strain, struck and fall injuries than Physician Practices, likely due to the higher level of physical assistance provided in those segments.
– – Home Health Care has the largest share of claims involving motor vehicle injuries as care providers often drive patients to doctor appointments and perform other driving duties for their patients.
– – Overall, the healthcare industry has a lower-than-average claim severity, driven by the higher share of medical-only claims and the lower share of permanent disability claims.

The full report is available in the Research section of the WCIRB website.  

February 20, 2023 – News Podcast


Rene Thomas Folse, JD, Ph.D. is the host for this edition which reports on the following news stories: Commercial Traveler Rule Applies to Workers Assisting Firefighters. Employment Law Arbitration Cases Queue up in Cal Supreme Court. Ninth Circuit Strikes Down California Ban on “Forced Arbitration”. “Yellowstone” actress Q’orianka Kilcher’s Comp Fraud Case Dismissed. Estimated EDD Fraud Losses Increased to Nearly $40 Billion. Pharmacist Sentenced to 2 Years in Prison For Faked Prescriptions. Supermajority of Physicians Now Employed by Corporate Entities. Half of California Hospitals Are in the Red, – Some Are Closing. WCRI Says Work Comp Medical Outcomes Worse than Other Payors. 350 MDs Lobby Congress for AMA Recovery Plan for America’s Physicians.

Employer Fined $27K For Water Not Close Enough to Workers

The Department of Industrial Relations’ Occupational Safety and Health Appeals Board (OSHAB) has issued a precedential decision regarding the provision of water at outdoor worksites, affirming that it must be as close as practicable to the areas where employees are working to encourage frequent consumption.

“This decision provides clarity and should serve as a reminder that employers must take adequate steps to ensure that potable drinking water is as close as practicable to workers,” said Cal/OSHA Chief Jeff Killip. “Staying adequately hydrated is essential to preventing heat illness, particularly during the hot summer months.”

The case clarified the definition of what “as close as practicable” means with water placement at the workplace.

Cal/OSHA opened a complaint-initiated safety inspection at the Rios Farming Co. vineyard in St. Helena on August 6, 2018. Inspectors found some workers had to climb through multiple grape trellises to access drinking water. On January 7,

California Code of Regulations, title 8, § 3395(c) (2019) provides that employees shall have access to potable drinking water, including but not limited to the requirements that it be fresh, pure, suitably cool, and provided to employees free of charge. The water shall be located as close as practicable to the areas where employees are working.

In 2019, Cal/OSHA cited Rios Farming Co. for a repeat-serious violation for not having water as close as practicable for their employees.

Rios Farming Co. appealed the citation and an administrative law judge affirmed the citation on October 12, 2022, with a modified penalty of $27,000.

OSHAB issued its decision (RIOS FARMING COMPANY, LLC. Vol: 50 | No: 6 | Published on: February 17, 2023 ) which clarifies that the term “as close as practicable” in terms of providing water to prevent heat illness means that the water must be as close as reasonably can be accomplished in order to encourage frequent water consumption.

In this case, the ALJ found, and the OSHAB affirmed, that the trellises were an obstacle that discouraged employees from frequently drinking water. The ALJ and Board further found that other reasonable options were available to the employer, such as providing a jug of water in each row where the employees were working or providing individual water bottles that employees could carry with them and refill from the jugs.

The California Division of Occupational Safety and Health, or Cal/OSHA is a division with the Department of Industrial Relations that helps protect workers from health and safety hazards on the job in almost every workplace in California. Employers who have questions or want assistance with workplace health and safety programs can call Cal/OSHA’s Consultation Services Branch at 800-963-9424.

Workers who have questions about their rights or have questions about workplace protections can call Cal/OSHA’s Bilingual Call Center at 833-579-0927 to speak with a Cal/OSHA representative. Complaints about workplace safety and health hazards can be filed confidentially with Cal/OSHA district offices. Information on heat illness prevention and other resources can be found on Cal/OSHA’s website.

The Occupational Safety and Health Appeals Board is a three-member, judicial body appointed by the Governor and confirmed by the Senate to handle appeals from private and public-sector employers regarding citations issued by the Division of Occupational Safety and Health for alleged violation of workplace safety and health laws and regulations. The mission of the Appeals Board is to fairly, timely and efficiently resolve appeals and to provide clear, consistent guidance to the public, thereby promoting workplace safety and health.

California COVID-19 State of Emergency Ends Today

February 28 marks the end of California’s COVID State of Emergency, almost three years since California Gov. Gavin Newsom declared COVID-19 a public health emergency, giving his administration broad power to issue mandates and use state funds to fight the virus.

It also enabled the governor to enter into nearly $12 billion dollars worth of no-bid emergency response contracts with testing facilities, personal protective equipment suppliers and temporary workforce agencies. Some of those contracts were with untested vendors who failed to deliver services.

Newsom has extended the state of emergency five times over the course of the pandemic, most recently last June.

The duration of the state of emergency has been controversial among state Republican leaders who attempted to overturn the governor’s power during a Senate emergency meeting last March. The resolution to terminate the state of emergency was voted down 8-4, with senators voting along party lines.

The SMARTER plan’s rollout has been a key component in eliminating the need for emergency provisions, officials said.

Last year the administration unveiled the SMARTER plan, its $3.2 billion long-term strategy for combating COVID-19. The strategy outlined preparedness measures such as stockpiling 75 million masks, increasing testing capacity to half a million tests per day and investing in the health care workforce and local community health organizations.

But some disagree it’s the right time to end the state’s emergency powers. Carmela Coyle, head of the California Hospital Association, told The New York Times earlier this month that February was “a terrible time to end the public health emergency,” because of ongoing strain on California’s hospitals.

In January, the White House announced that the federal state of emergency for COVID will end on May 11over two months after California ends its own. And to complicate matters a little more, there are actually two federal emergencies ending May 11: the national emergency, and the public health emergency.

California has recently enacted several laws that force insurers to keep covering COVID care even after the state and federal states of emergency wind down.

Senate Bill 510 requires insurers in California to keep covering COVID costs like testing and vaccination after the national emergency ends. On the national level, the White House’s COVID-19 Response Coordinator Dr. Ashish K. Jha has promised that COVID vaccines will remain free in the U.S. for insured people as a preventive service covered under the Affordable Care Act of 2010.

Meanwhile, another California law – Senate Bill 1473 – requires insurers to not only keep covering the costs of COVID therapeutic treatments like Paxlovid, but also to keep reimbursing their members for the costs of up to eight over-the-counter COVID tests a month. But this law only keeps the current situation in place until six months after the end of the federal emergency on Nov. 11.

San Francisco had its own Public Health Emergency Declaration for COVID in effect, and several programs for San Francisco residents. San Francisco officials announced that the city’s public health emergency would be coming to an end at the same time as the state’s, on Feb. 28.

And on Feb. 3 the California Department of Health finally announced that the state’s schoolkids would not now have to get a COVID vaccine, and that the department was “not currently exploring emergency rulemaking to add COVID-19 to the list of required school vaccinations,” adding, “but we continue to strongly recommend COVID-19 immunization for students and staff to keep everyone safer in the classroom.”

DEA Proposed Rules for Permanent Telemedicine Prescribing

The Drug Enforcement Administration announced proposed permanent rules for the prescribing of controlled medications via telemedicine, expanding patient access to critical therapies beyond the scheduled end of the COVID-19 public health emergency. The public will be able to comment for 30 days on the proposed rules.

The proposal would reverse a policy enacted during the coronavirus pandemic that allowed doctors to prescribe these medications through telehealth appointments. The move will make it more difficult for Americans to access some drugs used for treating pain and mental health disorders.

The rules aim to maintain expanded access to telehealth, which has been crucial for millions of patients, particularly those living in rural areas, while also balancing safety.

The proposed rules – developed with the U.S. Department of Health and Human Services and in close coordination with the U.S. Department of Veterans Affairs – propose to extend many of the flexibilities adopted during the public health emergency with appropriate safeguards.

The proposed rules do not affect:

– – Telemedicine consultations that do not involve the prescribing of controlled medications.
– – Telemedicine consultations by a medical practitioner that has previously conducted an in-person medical examination of a patient.

The proposed rules also would not affect:

– – Telemedicine consultations and prescriptions by a medical practitioner to whom a patient has been referred, as long as the referring medical practitioner has previously conducted an in-person medical examination of the patient.

The proposed rules would provide safeguards for a narrow subset of telemedicine consultations – those telemedicine consultations by a medical practitioner that has: never conducted an in-person evaluation of a patient; AND that result in the prescribing of a controlled medication. For these types of consultations, the proposed telemedicine rules would allow medical practitioners to prescribe:

– – a 30-day supply of Schedule III-V non-narcotic controlled medications;
– – a 30-day supply of buprenorphine for the treatment of opioid use disorder

without an in-person evaluation or referral from a medical practitioner that has conducted an in-person evaluation, as long as the prescription is otherwise consistent with any applicable Federal and State laws. The proposed rules are explained in further detail for patients and medical practitioners on DEA.gov.

“DEA is committed to ensuring that all Americans can access needed medications,” said DEA Administrator Anne Milgram. “The permanent expansion of telemedicine flexibilities would continue greater access to care for patients across the country, while ensuring the safety of patients. DEA is committed to the expansion of telemedicine with guardrails that prevent the online overprescribing of controlled medications that can cause harm.”

“Improved access to mental health and substance use disorder services through expanded telemedicine flexibilities will save lives,” said HHS Secretary Xavier Becerra. “We still have millions of Americans, particularly those living in rural communities, who face difficulties accessing a doctor or health care provider in-person. At HHS, we are committed to working with our federal partners and stakeholders to advance proven technologies and lifesaving care for the benefit of all Americans.”

The proposed telemedicine rules also further DEA’s goal of expanding access to medication for opioid use disorder to anyone in the country who needs it. “Medication for opioid use disorder helps those who are fighting to overcome substance use disorder by helping people achieve and sustain recovery, and also prevent drug poisonings,” said DEA Administrator Milgram. “The telemedicine regulations would continue to expand access to buprenorphine for patients with opioid use disorder.”

The full text of the proposals may be found here and here. The public has 30 days to review and comment on the proposals, which DEA will then consider before drafting final regulations. DEA is appreciative of the public’s feedback.

Additional resources for practitioners can be found here:

– – Proposed Rules Summary Telemedicine Rules Summary.pdf (dea.gov)
– – Proposed Rules Highlights for Medical Practitioners Telehealth Highlights Medical Practitioners.pdf (dea.gov)

Amazon closes $3.9B Buyout of Health Company One Medical

Amazon has closed its multibillion-dollar deal to buy One Medical to further its ambitions to offer medical services and expand its growing healthcare business to employers.

The tech giant officially announced the closing of the deal last Wednesday morning. The news comes as The Wall Street Journal reported that the Federal Trade Commission (FTC) won’t sue in time to block the $3.9 billion deal, including debt.

The deal expands Amazon’s reach into primary care as it now officially operates 188 clinics in 29 markets. The deal also gives Amazon rapid access to the lucrative employer market as One Medical works with 8,000 companies and has a trove of member health data.

One Medical, which is not yet profitable, launched in 2007 and markets itself as membership-based, tech-integrated, consumer-focused primary care platform.

At the end of 2022, One Medical had 836,000 members with the bulk of those, 796,000 among consumer and enterprise members and 40,000 at-risk members. The company reported 2022 revenue of $1.046 billion, up 68% from 2021 and fourth-quarter revenue came in at $274.2 million, up 19%, according to its 2022 earnings report.

Amazon predicts that ‘If you fast forward 10 years from now, people are not going to believe how primary care was administered. For decades, you called your doctor, made an appointment three or four weeks out, drove 15-20 minutes to the doctor, parked your car, signed in and waited several minutes in reception, eventually were placed in an exam room, where you waited another 10-15 minutes before the doctor came in, saw you for five to ten minutes and prescribed medicine, and then you drove 20 minutes to the pharmacy to pick it up – and that’s if you didn’t have to then go see a specialist for additional evaluation, where the process repeated and could take even longer for an appointment,” said Amazon CEO Andy Jassy. “Customers want and deserve better, and that’s what One Medical has been working and innovating on for more than a decade. Together, we believe we can make the health care experience easier, faster, more personal, and more convenient for everyone.”

Amazon says One Medical sets a high bar for human-centered primary care experiences: Access to primary care where, when, and how people prefer, with:

– – Around-the-clock access through the One Medical app, giving people more control of how they seek care and the ability to do so from home or on-the-go
– – On-demand virtual care services, like 24/7 video chats and easy in-app messaging, which are included in membership at no extra cost; for other services, such as in-office appointments, One Medical accepts most major insurance health plans
– – Same and next-day in-office or remote visits, so people can quickly get the care they need
– – Thoughtfully designed and welcoming One Medical offices, offering care close to where people work, live, and shop
– – Walk-in availability for on-site laboratory services, making it easy to get lab work done where and when it’s most convenient

A comprehensive approach to make health care easier to navigate by offering:

– – A health care home base with primary care providers that help manage a person’s full health picture; from preventive and acute care needs, to chronic disease and mental health concerns
– – Pediatricians and family care providers available in a growing number of locations, serving children and families
– – Providers trained to address both physical and mental health needs, which may include lifestyle recommendations, medications, or referrals to appropriate specialists
– – Clinical and digital integrations with leading hospital networks across the U.S. for more seamless access and coordinated care across primary and specialty care services
– – Easy access to vaccine and medical records, prescription renewals, specialty referrals, and lab results in the One Medical app
– – Outstanding care for seniors in a growing number of locations, with teams specialized in serving people on Medicare

A more human health care experience enabled by:

– – Highly engaged clinicians focused on meeting the whole needs of people, thinking about health care comprehensively, and taking time to treat people as people and not solely as diagnoses
– – More time in appointments to engage with providers for more personalized and comprehensive health care
– – Proactive app reminders for follow-up care and referral needs, facilitating better prevention and coordination of care so the dots are better connected for people to get and stay healthier
– – A human-centered and technology-powered approach, offering an easy-to-use app and innovative clinician tools to simplify the experience for both the patient and the provider

FTC spokesman Douglas Farrar told the WSJ that the commission “will continue to look at possible harms to competition created by this merger as well as possible harms to consumers that may result from Amazon’s control and use of sensitive consumer health information held by One Medical.”