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Tag: 2021 News

Survey Shows 61% Physician Pandemic Related Burnout

The Physicians Foundation released the 2021 Survey of America’s Physicians, COVID-19 Impact Edition: A Year Later, that examines how COVID-19 has affected the nation’s physicians more than a year since the start of the pandemic, from increased burnout rates to the continued epidemic of physician suicide.

Over the past year, COVID-19 has greatly impacted physician wellbeing and mental health, with over 6 in 10 physicians (61%) reporting they experienced feelings of burnout.

This is a significant increase from the 40% of reported physicians in 2018. Yet only 14% of physicians reported they sought medical attention for their mental health symptoms.

Additionally, 8% of physicians indicated they have increased their use of medications, alcohol or illicit drugs weekly as a result of COVID-19’s effects on their practice or employment situation.

A total of 46% of physicians said they have isolated or withdrawn from other people in the last year, more than one in three said they felt hopeless or without a purpose, and 57% reported experiencing “inappropriate episodes of anger, tearfulness, or anxiety.”

The report stated that “difficult working conditions such as a lack of personal protective equipment (PPE) and caring for patients who may be seriously ill for weeks — along with burdensome administrative tasks, long hours, and grief over losing patients — have become the norm, but little has been done to alleviate the heavy mental health toll on physicians.”

Additional findings from the 2021 Survey include:

– – A significantly larger proportion of younger (64%) and female (69%) physicians reported frequently feeling burnout as compared to older (59%) and male (57%) physicians.
– – Physicians who were employed by hospitals or health systems experienced more frequent feelings of burnout (64%) as compared to independent physicians (56%).
– – Nearly 8 in 10 physicians indicated they experienced changes to their practice or employment as a result of COVID-19.
– – Almost half of physicians (49%) reported a reduction in income while 32% reported a reduction in staff as a result of the pandemic.
– – Nearly 70% of physicians indicated they anticipate continuing the use of telehealth in their ongoing practice.
– – Despite the high rates of burnout, nearly half (46%) of physicians said they would still recommend medicine as a career option to young people.

A total of 23% of physicians, across a range of demographics, said they want to retire in the next year, a drop from the 38% who reported wanting to retire in 2020.

Bay Area Startup Raised $85M to Combat EDD Fraud

At least $63 billion in improper payments, much of it fraud, have been distributed by the Federal government since the pandemic struck in March 2020. In California alone, state officials admitted that as much as 27% of unemployment benefits payments may have been fraudulent.

“Unemployment insurance fraud is probably the biggest fraud issue hitting banks today,” says Naftali Harris, co-founder and CEO at San Francisco’s SentiLink, which just closed a $70 million round of venture capital to expand its business of helping financial institutions detect fake and stolen identities for new account applications.

According to the report in Forbes, Craft Ventures, a San Francisco-based venture firm, led the Series B round which brings SentiLink’s total capital raised to date to $85 million. Felicis, Andreessen Horowitz and NYCA also joined SentiLink’s latest capital infusion.

SentiLink plans to use the capital raised to continue to help institutions with this recent increase in fraud instances spurred by the CARES Act. They also plan to expand their fraud toolkit to prevent other types of scams, such as “J1 fraud” and “same name” fraud, and investigate new ones.

Harris’ team has seen a huge uptick in fraud rates affecting their clients, as high as 90% among new applications, associated with the CARES Act COVID relief. Fraudsters have been using the same name, social security number or date of birth in several applications, filing in high volumes in several states.

According to Harris, his team is currently verifying around a million account openings per day, and is working with more than 100 financial institutions – due to a non-disclosure agreement Harris could not comment on which financial institutions his company serves.

The company says that beyond simply using artificial intelligence to detect fraud, they have a risk operations team that catches in real time cases of synthetic fraud – a form of identity theft in which the defrauder combines a stolen Social Security Number (SSN) and fake information to create a false identity – that would normally go unnoticed by their clients.

Harris discovered this type of fraud when he was working as a data scientist at Affirm in 2017. At the time, synthetic fraud was relatively unknown, so when he saw that crooks were creating brand new identities instead of stealing existing ones to apply for credit, he founded SentiLink to focus on tackling this new scam. “We realized this was a really big issue and that nobody in the financial services industry was talking about it,” says Harris.

Now, criminals are creating new identities or stealing existing ones to tap into unemployment benefits. Harris says the problem is not only them stealing from the government, but uncovering the tactics they use to deposit the stolen funds.

“What a lot of people don’t realize is that as a fraudster you have to be able to use the money stolen, and put it into the financial system,” Harris says.

Annual Healthcare Fraud Report Shows $3.1B in Recoveries

The U.S. Department of Justice just published its 124 page Annual Report of the Departments of Health and Human Services and Justice – Health Care Fraud and Abuse Control Program FY 2020.

The Annual Report of the Attorney General and the Secretary detailing expenditures and revenues under the Health Care Fraud and Abuse Control Program for fiscal year 2020 is provided as required by the Social Security Act.

During Fiscal Year 2020, the Federal Government won or negotiated more than $1.8 billion in health care fraud judgments and settlements, in addition to other health care administrative impositions.

Because of these efforts, as well as those of preceding years, almost $3.1 billion was returned to the Federal Government or paid to private persons in 2020. Of this $3.1 billion, the Medicare Trust Funds received transfers of approximately $2.1 billion during this period, in addition to the $128.2 million in Federal Medicaid money that was similarly transferred separately to the Treasury due to these efforts.

In 2020, the Department of Justice opened 1,148 new criminal health care fraud investigations. Federal prosecutors filed criminal charges in 412 cases involving 679 defendants. A total of 440 defendants were convicted of health care fraud related crimes during the year.

Also, in 2020, DOJ opened 1,079 new civil health care fraud investigations and had 1,498 civil health care fraud matters pending at the end of the fiscal year.

Federal Bureau of Investigation (FBI) investigative efforts resulted in over 407 operational disruptions of criminal fraud organizations and the dismantlement of the criminal hierarchy of more than 101 health care fraud criminal enterprises.

In 2020, investigations conducted by HHS’s Office of Inspector General resulted in 578 criminal actions against individuals or entities that engaged in crimes related to Medicare and Medicaid, and 781 civil actions, which include false claims and unjust-enrichment lawsuits filed in federal district court, civil monetary penalties settlements, and administrative recoveries related to provider self-disclosure matters.

The Report highlights many of the major prosecutions starting on page 15 of the report. Many of them involved California companies.

The first ever kickback action against an EHR developer for receipt of remuneration from a pharmaceutical company involved Practice Fusion Inc., a health information technology developer based in San Francisco.

In 2020, it agreed to pay $145.0 million to resolve criminal and civil liability based on its solicitation and receipt of kickbacks from a major opioid company in exchange for implementing clinical decision support alerts in its EHR software that were designed to increase prescriptions for the drug company’s products, and agreed to pay over $26.0 million in criminal fines and forfeiture.

Landscaper Earns $450K While Claiming TD Benefits

45 year old Frank Simplicio, who lives in Porter Ranch, was arraigned on multiple felony counts of insurance fraud and perjury.

A Department of Insurance investigation revealed Simplicio allegedly claimed to be too injured to work in order to collect over $50,000 in disability payments from one employer’s insurance company while illegally working for other employers.

On May 2, 2017, Simplicio, while working as a greensman, filed a claim with his employer’s insurance company stating cumulative trauma to his neck and back. He also claimed the job led to his diabetes, internal injuries and sleep disturbance. He reported the dates of his cumulative trauma injuries as July 19, 1996 through May 29, 2015. The claim however was filed two years after his alleged injuries.

The investigation found that Simplicio was paid Temporary Total Disability payments from February 20, 2018 through September 19, 2018, totaling $32,051. He also received Permanent Disability payments from September 20, 2018 through December 13, 2019, totaling $18,610.

In a deposition, Simplicio stated he was a landscaper, but he had not worked since the date of his injury. However, surveillance footage in October 2018 and February 2019 revealed Simplicio was actively working as a landscaper.

A search warrant was later issued for Simplicio’s bank account records, which found he collected checks from clients from June 2015 through December 2019, totaling over $450,000. This does not include possible income from direct deposits through his account.

When told what the investigation found, the Qualified Medical Examiner who handled Simplicio’s claim stated Simplicio lied and if they had known about his abilities and concurrent employment they would have never put him on Temporary Total Disability. Simplicio’s alleged actions resulted in him receiving $50,661 in undeserved disability payments. The total loss for the insurance company in this case was over $100,000, which includes unnecessary medical, investigative, and legal costs.

Simplicio self-surrendered to the Los Angeles Superior Courthouse and was arraigned on July 29, 2021. The Los Angeles County District Attorney’s Office is prosecuting this case.

Cal. Medical Board Takes Heat for Lax Physician Discipline

The Los Angeles Times recently ran a feature story about how the California Medical Board protects negligent doctors. The Times cited at least ten California physicians as examples.

One of the ten examples described in the article was Lokesh Tantuwaya, a San Diego spinal surgeon whose license has been revoked three times by the board, which placed him on probation each time. His license remains valid as he sits in jail awaiting trial on charges that he took more than $3 million in illegal kickbacks for surgeries in one of the biggest insurance scams in state history.

Tantuwaya, is a spinal surgeon who performed so many surgeries at a now-shuttered hospital in Long Beach that he was offered a private jet to commute to the facility, has become the subject of multiple malpractice lawsuits and a federal prosecution for his fraudulent healthcare schemes.

The kickback scheme came to light in 2018 and centered on Pacific Hospital of Long Beach which specialized in spinal and orthopedic procedures. The owner of Pacific Hospital, Michael D. Drobot, “conspired with doctors, chiropractors, and marketers to pay kickbacks in return for the referral of thousands of patients for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system,” according to the Department of Justice. During the last five years of its operation, there were more than $500 million in fraudulent medical bills associated with the hospital, and Drobot eventually went to federal prison.

One of Tantuwaya’s patients sued him for malpractice after she went in for a routine back surgery and it went so badly her leg had to be amputated. He was also charged with accepting millions in bribes to perform these surgeries. Yet, despite all of this on his record, the doctor remains licensed.

Tantuwaya was charged with accepting $3.2 million in bribes and was ordered to hand over his passport, a million dollars and the jet. However, he has not yet gone to trial, and has pleaded not guilty. In June of this year, a judge finally ruled he was a flight risk and confined him to Santa Ana jail only after federal agents learned he’d purchased his own private plane and had discussed “fitting it with an extended fuel tank, just in case he needed to go far away,” according to a motion to revoke bond.

“If he were in any other profession, his license would be yanked,” said Marian Hollingsworth, co-founder of the Patient Safety League, “Any reasonable person would ask, ‘Why does he still have his license?’”

His organization claims that as the battle between would-be reformers and the physicians’ professional association rages regularly in Sacramento. It gained fresh momentum this week in the wake of the Times investigation. “As injured patients and consumer rights groups fight for tougher penalties on grossly negligent doctors, California’s powerful physicians lobby is working hard behind the scenes to water down any proposed reforms. So far, the lobbyists seem to be winning.”

For years, reformers have been demanding significant medical license fee increases to beef up enforcement and to alter the balance of the oversight board – from a physician majority to a public member majority – in the hope of getting more patient-friendly decisions in disciplinary cases.

Robert Fellmeth, executive director of the Center for Public Interest Law at the University of San Diego, called the California Medical Assn. a “pernicious cartel” that consistently fights to starve the state medical board of the funds needed to investigate doctors.

The political ties of the medical association have been well documented, particularly since Newsom’s well-publicized blunder sitting next to CMA’s chief executive and top lobbyist at an upscale Napa Valley restaurant last year, seeming to flout COVID-19 safety guidelines the governor had set.

State Senator Richard Roth (D-Riverside) said his bill, SB 806, has strong reforms, such as allowing the board to seek reimbursement from disciplined doctors for investigation and legal costs. The measure is crucial because, with no fee increases in 15 years, the board is “insolvent,” Roth noted.

But in a message to members last June, the doctors’ lobbyists – the California Medical Association – claimed they got the ear of the senator sponsoring those reforms.

Gavin Newsom, whose office is responsible for appointing most of the board members, refused to be interviewed about The Times’ findings or to offer comment.

DIR Awarded $10M Apprenticeship Program Grant

The U.S. Department of Labor has awarded a $10 million State Apprenticeship Expansion, Equity and Innovation grant to the Department of Industrial Relations (DIR) to support the development and expansion of new and existing registered apprenticeship programs. DIR is one of five applicants that received the maximum $10 million in funds.

“DAS continues to be a leader in using new strategies to engage with employers and attract a diverse workforce,” said Division of Apprenticeship Standards Chief, Eric Rood. “This award recognizes our dedication to apprenticeship and funds our ability to provide more career opportunities to all Californians.”

The grant will help support DIR and its Division of Apprenticeship Standards’ (DAS) efforts to expand equity in apprenticeships to non-traditional industries by creating new ways to engage with employers, academic institutions and workforce development organizations.

This grant supports the following goals:

– – Expand the development, modernization and diversification of registered apprenticeship programs.
– – Increase the number of active enrolled apprentices.
– – Develop innovative programs and recruitment strategies.

The funds awarded will be used to foster regional collaborations in specific industries, such as the Inland Empire Cybersecurity Apprenticeship Consortium pilot program that launched this past May. The initiative addresses the 56% vacancy rate for cybersecurity jobs in the Inland Empire to fill the 70,000 cybersecurity vacancies throughout the state.

The consortium was the result of months of DAS engagement with stakeholders in the region, including employers, academic institutions, apprenticeship intermediaries and community-based organizations. Robert Half, one of the world’s largest staffing firms, was one of the businesses that participated.

“As a workforce development partner in the Inland Empire Cybersecurity Apprenticeship Consortium, Robert Half is excited to work alongside the State of California to accelerate the adoption of apprenticeships across many professional occupations,” said Lynne Smith, senior vice president of human relations at Robert Half. “Apprenticeships mean more career opportunities and offer companies the chance to develop, diversify and retain talent in critical functions.”

The Department of Industrial Relations’ Division of Apprenticeship Standards consults with employers to develop a skilled workforce, by establishing innovative apprenticeship programs that offer training to create viable career pathways for Californians.

Feds Pursue Kaiser Permanente For Fraudulent Claims

The United States has intervened in six complaints pending in Northern California federal court, alleging that members of the Kaiser Permanente consortium violated the False Claims Act by submitting inaccurate diagnosis codes for its Medicare Advantage Plan enrollees in order to receive higher reimbursements.

The Kaiser Permanente consortium members (collectively Kaiser) are Kaiser Foundation Health Plan Inc., Kaiser Foundation Health Plan of Colorado, The Permanente Medical Group Inc., Southern California Permanente Medical Group Inc. and Colorado Permanente Medical Group P.C. Kaiser is headquartered in Oakland, California.

Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). MA Plans are paid a per-person amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans.

The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the diagnoses of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with more severe diagnoses will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.

Medicare requires that, for outpatient medical encounters, MA Plans submit diagnoses to CMS only for conditions that required or affected patient care, treatment or management during an in-person encounter in the service year.

In order to increase its Medicare reimbursements, Kaiser allegedly pressured its physicians to create addenda to medical records after the patient encounter, often months or over a year later, to add risk-adjusting diagnoses that patients did not actually have and/or were not actually considered or addressed during the encounter, in violation of Medicare requirements.

The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.

The False Claims Act also permits the government to intervene in such lawsuits, as it has done, in part, in these cases. The cases are consolidated in the Northern District of California and captioned United States ex rel. Osinek v. Kaiser Permanente, 3:13-cv-03891 (N.D. Cal.); United States ex rel. Taylor v. Kaiser Permanente, et al., 3:21-cv-03894 (N.D. Cal.); United States ex rel. Arefi, et al. v. Kaiser Foundation Health Plan, Inc., et al., 3:16-cv-01558 (N.D. Cal.); United States ex rel. Stein, et al. v. Kaiser Foundation Health Plan, Inc., et al., 3:16-cv-05337 (N.D. Cal.); United States ex rel. Bryant v. Kaiser Permanente, et al., 3:18-cv-01347 (N.D. Cal.); and United States ex rel. Bicocca v. Permanente Med. Group, Inc., et al., No. 3:21-cv-03124 (N.D. Cal.).

This matter was investigated by the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Offices for the Northern District of California and the District of Colorado, with assistance from HHS-OIG.

The claims in which the United States has intervened are allegations only, and there has been no determination of liability.

WCIRB Updates Advisory Plan Tables

The Workers’ Compensation Insurance Rating Bureau of California has published the September 1, 2021 update to the loss elimination ratios that were used in computation of classification relativities in the recently approved September 1, 2021 Regulatory Filing.

This annual update reflects the most current claim severity and benefit on-leveling factors. Additionally, the WCIRB has updated other tables included in the advisory California Retrospective Rating Plan, California Large Risk Deductible Plan and California Small Deductible Plan.

View the updated tables for the most current version of the advisory plans at the following links:

– – California Retrospective Rating Plan.
– – California Large Risk Deductible Plan.
– – California Small Deductible Plan.

In a Retrospective Rating Plan the insurance company typically issues a policy with both a minimum and maximum premium for the policy along with a rating formula. The actual, or final, premium is determined at the end of the policy period by the using the formula based on the rating factors and the actual losses. In essence, the plan is loss sensitive and the employer is participating in the cost of actual losses as well as the potential savings for lower than expected losses.

A Deductible Plan sets the amount of each loss that the employer must pay for each claim. Typically, the insurer pays the full amount of the loss and then bills the employer for the deductible amount.

Advisory plans are developed by the WCIRB for the convenience of its members. These plans were submitted to the Insurance Commissioner for informational purposes, but do not bear the official approval of the California Department of Insurance and are not a regulation. An insurer must make an independent assessment regarding its use of these plans based upon its particular facts and circumstances.

COVID Cases Surge in Vaccinated SF Hospital Staff

Hundreds of staffers at two major hospitals in San Francisco have tested positive for coronavirus in July, with most of them being breakthrough cases of the highly infectious Delta variant, The New York Times reported Saturday evening.

By the CDC’s definition, a breakthrough infection is a COVID case that occurs in someone who is fully vaccinated, meaning 14 or more days after completing the recommended doses of an authorized vaccine. Some say the word “breakthrough” is a euphemism for a vaccine failure.

The University of California, San Francisco Medical Center told media outlets that 183 of its 35,000 staffers tested positive. Of those infected, 84% were fully vaccinated, and just two vaccinated staff members required hospitalization for their symptoms.

At Zuckerberg San Francisco General Hospital, at least 50 members out of the total 7,500 hospital staff were infected, with 75-80% of them vaccinated. None of those staffers required hospitalization.

UCSF’s chief medical officer, Dr. Lukejohn Day, told The Times the numbers from his hospital showed just how important and effective vaccinations are.

“What we’re seeing is very much what the data from the vaccines showed us: You can still get COVID, potentially. But if you do get it, it’s not severe at all,” Day said.

Day also told ABC7 News that at least 99% of the cases at UCSF were traced back to community spread, but that hospital officials are still investigating and conducting contact tracing.

He added that most of the cases presented mild to moderate symptoms, and some were completely asymptomatic. He said the cases were spread among doctors, nurses, and ancillary staff.

“We sort of are seeing that across the board,” he said. “We have so far not detected any patient-to-staff or staff-to-patient transmission right now.”

The highly infectious Delta variant has been deemed more transmissible than the viruses that cause the common cold, Ebola, and smallpox, and is equally as contagious as chickenpox, the US Centers for Disease Control and Prevention said in internal documents.

The Delta variant has also been known to spread among vaccinated people in breakthrough cases, prompting the recommendation, if not requirement,that even fully vaccinated people wear masks indoors in areas with high transmission rates.

California Employer and 32 Others Receive NSC Safety Award

The National Safety Council is America’s leading nonprofit safety advocate – and has been for over 100 years.

As a mission-based organization, it works to eliminate the leading causes of preventable death and injury, focusing its efforts on the workplace.

It hopes to create a culture of safety to not only keep people safer at work, but also beyond the workplace so they can live their fullest lives.

The National Safety Council just announced 33 organizations will receive Industry Leader Awards in 2021 for excellent safety performance within their industries.

The Industry Leader Awards are one component of the NSC Occupational Awards Program, which recognizes outstanding safety achievements of NSC members and represents the top 5% of member companies that qualified for the NSC 2021 Occupational Excellence Achievement Award (based on 2020 calendar year data).

Winners are selected based on the North American Industry Classification System (NAICS) code, lowest total incidence rate and employee work hours.

One of the 33 award recipients is a California employer, California Resources Corporation. CRC is an oil and natural gas exploration and production company committed to environmentally sustainable and responsible development.

CRC explores for, produces, gathers, processes and markets crude oil, natural gas and natural gas liquids. it has a large portfolio of lower-risk conventional opportunities in each of California’s four major oil and gas basins: San Joaquin, Los Angeles, Ventura and Sacramento., LA Basin Operations, Long Beach, California.

The director of membership at the National Safety Council said that “It is truly an honor to recognize these 33 organizations for their commitment to advancing safety.

She added that “In an unprecedented year, these winners went above and beyond to exemplify what it means to protect employees from death and injury at work.

A sincere thank you and congratulations to each of these organizations, and CRC in our state, on prioritizing safety and saving lives.