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Owners of San Ramon Companies Face 14 Felonies

The Mercury News reports that three members of a respected San Ramon business family have been accused of engaging in money laundering, bribing employees, and insurance fraud, all while their companies were contracting with the U.S. Armed forces.

Wife and husband Selina Singh, 55, and Manjinder Paul “MP” Singh, 57, along with their son, Kabir Singh, 28, were charged in November with conspiracy, $1.5 million in money laundering and several counts of workers compensation fraud and insurance fraud, according to court records. The charges are tied to two San Ramon businesses owned by the family, Bara Infoware and Federal Solutions Group.

Selina and Kabir Singh have both posted bail, and are out of custody. MP Singh has not yet been arrested, prosecutors said. On Monday, a judge will review a prosecution motion to increase the bail amount to $500,000.

The charging documents allege that the defendants instructed employees not to report injuries, sometimes giving them bribes as an incentive, in order to avoid paying insurance premium. They’re also accused of providing false information to insurance companies.

Both companies are construction businesses that contract with the Department of Defense, according to the companies’ websites. Federal Solutions Group’s website says its clients include the U.S. Armed Services, the Federal Bureau of Prisons, the National Guard, and the U.S. Army Corps of Engineers.

A 2016 article by a business news site called American City Business Journals says Singh is Federal Solution’s Group’s CEO. She is quoted in the article saying she immigrated to the United States from Northern India and had no business experience in the U.S. when she started. She talked about the need for obsessive attention to detail in her field.

A former manager at Federal Solutions Group is quoted in the story saying Singh “takes care of her employees.”

The Contra Costa District Attorney’s office filed 14 felony charges, including enhancements alleging aggravated white-collar crime.

Physician Online Patient Portals Mostly Unused

Most people in the U.S. with health insurance don’t use the patient portals that are increasingly provided by doctors for online communication, a new study suggests. In a nationally representative survey, researchers found that nearly two-thirds of insured participants had not used an online medical portal in the past year.

Disparities among those who said they’d been offered portal use, and among those who chose to use it, suggest this technology can become a source of unequal access to healthcare, the study team writes in Health Affairs.

“Previous research has shown there are real benefits to portal use. Patients become more engaged in their own health and really stick to their treatments,” said senior author Denise Anthony of the University of Michigan in Ann Arbor.”However, new treatments in health care, and new technologies in general, can end up increasing inequality,” she told Reuters Health by email.

Anthony and her colleagues analyzed data on 2,325 insured patients who participated in the 2017 Health Information National Trends Survey and who had a medical visit during the year before the survey. The researchers wanted to understand the characteristics of portal users and nonusers and the reasons, such as technology issues or security concerns, why many patients don’t use online sites to access their medical records.

Overall, 63 percent of survey participants reported not using a patient portal during the past year, and 60 percent reported not having been offered access to a portal.

Nonusers were more likely to be men, aged 65 or older, to be unemployed, live in a rural location, have public insurance through Medicaid, have a high school diploma or less education and to lack a regular doctor. Similar characteristics, as well as being non-white, were seen among people who said they weren’t offered access to a patient portal.

Among the reasons participants gave for not using online portals, 25 percent mentioned issues with internet access, 32 percent said they had no online medical record, 70 percent said they preferred to speak directly to the doctor, and 22 percent were concerned about privacy issues.

“We also know from our previous research that privacy concerns can affect patients’ relationships with physicians, including how they communicate and trust their doctors, so these concerns are important beyond portals,” Anthony said.

“The underlying assumption is generally a ‘Build it and they will come’ mentality about technology, but this study gives great perspective about both who is offered/using the portal as well as why certain groups experience barriers,” said Courtney Lyles of the University of California, San Francisco, who wasn’t involved in the study.

“Everyone is generally interested in online tools to make life more convenient, but we can’t separate that from the skills and relationships that surround technology use,” she told Reuters Health by email.

Future studies should consider the role of digital inclusion and digital literacy, Lyles added. Doctors will need to do more to help patients use portals during visits, as well as connecting them to resources for digital support such as local libraries and community groups.

Professional Athletes Continue Claims Pursuit

In 2018 the NFL, NHL concussion fights continued to play out in courts across the nation. It is likely that 2019 will be more of the same. An unofficial part of the playbook for some professional sports teams is that players have been seeking workers compensation damages to cover their long-term injuries from rough and tumble sports.

The National Hockey League in November announced a tentative $18.9 million settlement with 318 retired players who sued the league, accusing it of failing to protect them from head injuries or warning them of the risks involved with playing.

The settlement includes up to $75,000 for medical treatment and a potential cash payment of about $23,000 a player. It also includes the promise of a “Common Good Fund” to help other players with head injuries.

Meanwhile, a federal judge in August dismissed a retired NHL player’s lawsuit against Chubb Ltd. and two NHL teams over a technicality: lack of jurisdiction.

Last year, Mike Peluso, a former “enforcer” for the New Jersey Devils and St. Louis Blues in the 1990s, sued the teams and Chubb, which wrote the workers compensation policy that covered Mr. Peluso. He alleged that the defendants had failed to disclose medical information related to workers comp claims for head trauma and brain disease. He also claimed that he had been inadequately warned of his risk of further brain injury and of his fitness to continue playing hockey after suffering a concussion and later suffering a grand mal seizure.

All this followed the dismissal of a wrongful death lawsuit in May brought against the NHL for the death of player Derek Boogaard.

Boogaard was a professional hockey player in the NHL. The suit claimed team doctors repeatedly prescribed him pain pills relating to various injuries and procedures and he became addicted to those pills by 2009. He was placed into the league’s substance abuse and behavioral health program and checked into a California rehabilitation facility for in-patient treatment of his opioid and sleeping-pill addictions. He accidentally overdosed and died at age 28, according to court documents.

As for the National Football League, a California appellate judge ruled a former Indianapolis Colts player and California resident Larry Triplett,cannot file a workers compensation claim in the state because there’s no proof he signed his contract while in California and that he only played two games there over a six-year career.

As can be seen, the professional athletes have had mixed litigation results in 2018. Yet stakeholders say that there yet could still be a tidal wave of individual lawsuits from players seeking care for head injuries they claim arose from the league’s long-time promotion of violence.

Study Finds 20% Annual Health Crimes Increase

Limited information exists on the characteristics of US physicians who have been excluded from Medicare and state public insurance programs for convictions of health care fraud, crimes related to health care delivery, or substance abuse.

Common fraud schemes include billing for services not rendered, filing duplicate claims (including the unbundling of bundled services), and misrepresenting dates and locations where services were provided. Health crimes involve the provision of medically unnecessary procedures, illegal patient admittance and retention practices, the making of false statements (including physician medical identify theft), and the gross violation of professionally recognized standards of care.

Researchers decided to to examine the characteristics of physicians excluded from Medicare and state public insurance programs for fraud, health crimes, or unlawful prescribing of controlled substances. Alice Chen, PhD, MBA, from the University of Southern California in Los Angeles, and colleagues conducted a cross-sectional study to examine the characteristics of physicians excluded from Medicare and state public insurance programs for fraud, health crimes, or unlawful prescribing of controlled substances between 2007 and 2017.

We found that the number of physicians excluded from participating in public health insurance has grown substantially over time and that excluded physicians were concentrated in specific regions of the United States,” the authors write.

The researchers found that 2222 physicians were temporarily or permanently excluded from Medicare and state public insurance programs during 2007 to 2017. On average, there was a 20% increase per year in fraud, health crimes, and substance abuse exclusions (from 236 convictions in 2007 to 670 in 2017). Researchers found the highest exclusion rates in the West and Southeast. The state with the highest exclusion rate was West Virginia, with 5.77 exclusions per 1000 physicians, while there were no exclusions in Montana. Exclusions were more likely for male physicians, physicians with osteopathic training, older physicians, and physicians in specific specialties.

Physicians in the West and Southeast were most likely to be excluded for fraud, substance abuse, or health crimes. Although California, New York, Florida, and Texas had the highest absolute counts of excluded physicians from 2007 to 2017, they also had the largest physician populations.

When considering the rate of physician exclusions per 1000 physicians, only Florida remained in the highest category of exclusion rates. West Virginia had the highest exclusion rate, with 5.77 exclusions per 1000 physicians (32 exclusions among 5720 physicians), while Montana had 0 exclusions during this period.

There were several explanations for the observed increase in exclusions, and rates of identified health care fraud, waste, and abuse. First, this finding could be evidence that regulators, who have been aided by recent public policies targeting the reduction of fraud and waste, may be getting better at identifying perpetrators of fraudulent activity.

Physician exclusions were more common in certain states in the West and Southeast. Many of these regions had Medicare Fraud Strike Force Teams, which were established in “hot spots” of unexplained high Medicare billing levels (Florida, California, Michigan, Texas, New York, Louisiana, Florida, and Illinois as of 2017).

In addition, the growth in physician exclusions could also be due, at least in part, to growth in the total number of US physicians participating in public insurance.

New OMFS Changes Effective January 1

The Division of Workers’ Compensation has posted an order adjusting the Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) section of the Official Medical Fee Schedule to conform to the 2019 changes in the Medicare payment system as required by Labor Code section 5307.1.

The update includes changes identified in Center for Medicare and Medicaid Services Change Request (CR) number 11064.

The order, which is effective for services on or after January 1, 2019, adopts the Medicare DMEPOS fee schedule first release for calendar year 2019.

It has also posted an order adjusting the pathology and clinical laboratory section of the Official Medical Fee Schedule.

The pathology and clinical laboratory fee schedule update order adopts the following Medicare change: – CY 2019 Q1 Release: Revised for January 2019 (19CLABQ1)

The orders adopting these changes can be found on the DWC website.

Comp Rates Decrease in 2019 – Except at the Race Track!

The California Thoroughbred Business League (CTBL), responsible for overseeing funds utilized for providing workers’ compensation insurance relief to horsemen, has seen steadily increasing workers’ compensation rates in the state of California.

The cost of the 2019 program is expected to increase by 3% over 2018, or by more than $13.7 million for Thoroughbreds.

Per-start fees will be increased from $100 to $106 to cover the owners’ portion of funding. As before, the per-start fee will be automatically deducted from the owner’s paymaster account every time that owner starts a horse, effective Jan. 1.

The Thoroughbred Owners of California (TOC) board voted unanimously to increase Guaranteed Participation Purses by $6 per start to offset the costs.

In addition, starting Jan. 1, owners of horses who finish fifth or beyond – whenever their share of purse money is less than the Guaranteed Participation Purse – will be paid $300 per start at Golden Gate Fields and $351 per start at Southern California tracks to include increased costs for third party Lasix administration and jockey fees.

Three sources of revenue are utilized to cover workers’ compensation costs in California, according to Brad McKinzie of the Finish Line Self Insurance Group, which has managed workers’ compensation accounts for Thoroughbred horsemen in California since 2011.

Owners pay a fee per starter to cover jockeys, trainers pay a daily fee to cover exercise riders and stable staff, and one-half of 1 percent of the takeout on handle from exotic wagers on California races is dedicated to a fund to pay workers’ compensation costs.

Legislation passed in 2004 allowed for the increase in takeout to offset worker’s compensation costs.

The deduction from takeout amounts to approximately $6.5 million annually, McKinzie said. Owners and trainers pay the remaining costs. The fee paid by a trainer amounts to approximately $100 per month per horse in their stables.

The TOC is part of the California Thoroughbred Business League, a consortium of racetracks, horsemen’s groups, and fair organizations that oversees a program to provide workers’ compensation subsidies to owners. The Finish Line Group has handled workers’ compensation for Thoroughbred horsemen in California since 2011. McKinzie founded the Finish Line Group. He is also the general manager of the Los Alamitos Thoroughbred meetings.

Early Physical Therapy Reduces Opiate Use

Patients who underwent physical therapy soon after being diagnosed with pain in the shoulder, neck, low back or knee were approximately 7 to 16 percent less likely to use opioids in the subsequent months, according to a new study by researchers at the Stanford University School of Medicine and the Duke University School of Medicine.

For patients with shoulder, back or knee pain who did use opioids, early physical therapy was associated with a 5 to 10 percent reduction in how much of the drug they used, the study found.

The study, from an analysis of private health insurance claims for care and prescriptions between 2007 and 2015, was published in JAMA Network Open. Eric Sun, MD, PhD, assistant professor of anesthesiology, perioperative and pain medicine at Stanford is the lead author. Steven George, PhD, professor of orthopaedic surgery at Duke, is the senior author.

The findings, Sun said, could be helpful to clinicians in search of pain-management options that carry fewer health risks than opioids. Studies have shown exercise therapy, a component of physical therapy, reduces pain and improves function for some musculoskeletal conditions. Other studies have shown that patients with past prescriptions for opioid pain medication are at increased risk for overdose and misuse.

“This isn’t a world where there are magic bullets,” Sun said. “But many guidelines suggest that physical therapy is an important component of pain management, and there is little downside to trying it.”

The study also measured whether early physical therapy was associated with a decreased need for opioids in the long term among patient who filled prescriptions. The researchers measured the quantity of opioids by converting prescribed amounts to oral morphine milligram equivalents.

They found, after adjusting for confounding factors, that patients who had undergone early physical therapy used 10.3 percent less opioid medication for knee pain; 9.7 percent less for shoulder pain; and 5.1 percent less for back pain in the period three months to a year after their diagnosis. There was no significant reduction for neck pain.

Physical therapy within three months of diagnosis also was associated with a decreased likelihood that patients with two of the conditions would chronically use opioids in the long term, according to the study. After early physical therapy, patients with knee pain were 66 percent less likely in the period three months to a year after their diagnosis to either fill 10 or more prescriptions or acquire a supply of opioid medication for 120 days or more. Patients with low back pain were 34 percent less likely to be chronic users if they had early physical therapy. There was no association between physical therapy and chronic opioid use among patients with shoulder or neck pain.

“The general consensus is that for musculoskeletal pain, opioids generally aren’t a long-term solution,” Sun said. “Aside from all the other side effects, even if the medication is doing well for you, it will have less and less effect over time as your body builds up a tolerance.”

Hospital Prices Go Public January 1

Prices hospitals charge for their services will all go online Jan. 1 under a new federal requirement, but patient advocates say the realities of medical-industry pricing will make it difficult for consumers to get much out of the new data.

A new federal rule requires all hospitals to post online a master list of prices for the services they provide so consumers can review them starting Jan. 1.

The health care industry nationally has a reputation for having little price transparency, which can make it difficult for consumers to price compare. But the hospital’s master list prices, sometimes called a chargemaster, is also not a complete look, consumer advocates say.

That’s because the final bill a patient receives is almost never the same as the sticker price for the services they received. Insurance companies negotiate discounts on the sticker prices. Co-pays, co-insurance, deductibles also add other layers of complexity that bring discounts or increased costs before a final charge is determined.

“The list prices are so high that the vast majority of hospitals don’t even try to collect list prices from uninsured patients,” said Benedic Ippolito, with the American Enterprise Institute, who has researched hospital list prices.

The federal rule is being brought out as a measure to improve competition and help educate consumers.

We are just beginning on price transparency,” Seema Verma, head of U.S. Centers for Medicare & Medicaid told the Associated Press. “We know that hospitals have this information and we’re asking them to post what they have online.”

But real transparency comes when consumers can easily see what they will pay to a provider based on their insurance benefits, said Thomas Campanella, Baldwin Wallace University health care MBA program director. He said some insurance companies are providing that information through price comparison tools. “I almost see it being more of a political ‘look at what we did,’” Campanella said of the requirement to post list prices.

A benefit of having health insurance is that the insurance companies negotiate with hospitals on a discount from what is listed on the chargemaster. If a hospital is “in network” it means the insurer and hospital have an agreement on discounted rates and the insurance company typically covers a higher portion of those prices. If a patient goes to a medical provider that is out-of-network, they could be billed the difference between what the chargemaster lists as the price and what their insurance writes a check for. The practice is called balance billing or sometimes called “surprise billing.”

Miranda Creviston Motter, president and CEO of Ohio Association of Health Plans, which represents insurance companies, said as health care costs continue to rise, provider cost information is important and the association supports federal policies requiring providers to provide easy to understand cost information directly to health care consumers.

“This information supplements the cost information health plans currently offer their members. ,” she said in a statement.

Price comparison tools are becoming increasingly available through insurance companies, but they have limits in usefulness. Not all health care costs can be shopped for ahead of time, such as emergency visits, and consumers can prioritize other things besides cost, such as a doctor they trust or a hospital close to home. Only a small number of employees at two large companies with a price transparency tool used the tool and it was not associated with lower health care spending, according to 2016 study in the Journal of the American Medical Association.

Scott McGohan, CEO of McGohan Brabender, a benefits broker, said while many of the major insurance carriers have price shopping tools, it’s not always easy to know enough about medicine to know how to price shop.

Sheriff’s Lieutenant Arrested for Comp Fraud

A Santa Clara County sheriff’s lieutenant was arrested on Wednesday in Las Vegas for allegedly faking the extent of an injury and receiving workers’ compensation.

Lt. Mandy Henderson was arrested by Las Vegas police after sheriff’s investigators saw her engaging in “strenuous workouts” despite her claim of injury, according to the sheriff’s office.

Henderson was arrested on a felony warrant and is awaiting transportation from Las Vegas to Santa Clara County.

The sheriff’s office is conducting an internal affairs investigation in addition to its criminal investigation of Henderson.

The public pay database Transparent California says Henderson last year received $33,736 in pay and $27,550 in benefits. In 2016, she received $155,206 in pay and $78,873 in benefits.

Patients Need Better Post Surgical Advice

Patients undergoing surgery don’t often receive practical advice about what to do and what to expect during the recovery process, says a surgeon who has been on the giving and receiving end of post-op instructions.

These directions need a more commonsense approach to rest, diet and pain, Dr. J. David Richardson of the University of Louisville School of Medicine in Kentucky writes in the Journal of the American College of Surgeons.

“We give patients these catchphrases about how they’ll feel better, but that’s not always true,” Richardson told Reuters Health.

“For a long time, surgeons have been happy with surgical outcomes as long as a big issue didn’t come up, such as an infection,” he said in a phone interview. “Patients are concerned about the small aspects of recovery, and we should be attuned to that.”

One of the most important tenets of recovery, he writes in his commentary, is that it’s not a progressive linear process. The advice that ‘You will feel better every day’ is not true, for example, and it often makes patients uneasy when they don’t recover as they believe they should.

Instead, patients tend to have a ‘stuttering progression to wellness,‘ Richardson writes, which means three steps forward and two steps back. When patients are aware of this, they’re less apprehensive and less discouraged when they have a “bad day.” Rather than measuring progress daily, he advises tracking progress from one Friday to the next.

‘Some days just don’t go that well, which is the way the body functions,’ he told Reuters Health. ‘Patients need to know that what they’re going through is normal.’

Richardson also disagrees with the advice to recovering patients about activities, “You can do what you feel like doing.” Although it sounds practical, this often backfires or discourages patients as they go through the healing process. Some feel great after waking up but then have fatigue or adverse reactions later in the day. Those who try to drive, shop or return to work too quickly may “hit a wall,” he notes.

The body needs a physical recovery as much as a mental recovery, he notes, so he often tells patients to be cautious about performing mental tasks after a significant operation. Avoid “trying to work in a fog” or making important decisions in early post-operative stages, Richardson said.

Diet is another aspect that is often misrepresented, and the advice to “Eat what you feel like eating” can be too vague. Instead, a slower progression to a full normal diet could prevent nausea, vomiting, bloating, constipation and other gastrointestinal issues that occur during the early recovery phase. This is particularly true when patients are taking new pain medications, Richardson added.

On a related note, pain management can also be misleading, he said. The opioid crisis speaks to the dangers of over-prescribing pain drugs, and points to the fact that pain is an individual response. Some patients require fewer doses, and others need heavy doses, but prescriptions are often given “by the book” where one size fits all. A more nuanced, individualized approach would help, taking into account previous pain medication use, psychotropic medication use and previous operation recovery experience.