St. Peter’s Health Partners: A Pioneer in Robotic Surgery; Exceeds 22,000 Robotic Procedures

By Tami S. Scott

For Dr. Lin Wang, who practices general, laparoscopic, and robotic surgery, having a da Vinci® computer-enhanced surgical system at her disposal was critical in her decision-making to join the team at St. Peters Health Partners in Albany.

“If I could, I would spend most of my time in the operating room on the da Vinci,” said Wang, who is with St. Peter’s Hepatobiliary, Pancreatic, and General Surgery, a practice of St. Peter’s Health Partners Medical Associates. “I would not work at a place that did not have a robot.”

Those sentiments reflect the position of many surgeons who are now completing their residency programs fully trained in performing minimally invasive surgeries, including robotic procedures.

The benefits are vast for both doctors and patients – less complications, less scarring, and quicker recoveries.

The Capital Region is fortunate to be the home of two hospitals within St. Peter’s Health Partners to have secured five da Vinci surgical systems: four located at St. Peter’s Hospital in Albany and one at Samaritan Hospital in Troy.

St. Peter’s Hospital has been in the forefront of robotic surgery, being the first hospital in the Capital Region to acquire the technology in 2004.

Since then, St. Peter’s and Samaritan hospitals combined have performed the greatest number of robotic procedures in the Capital Region with more than 22,000 to date. Pioneers in this latest and most advanced type of minimally invasive surgery, they are also national leaders: St. Peter’s Hospital ranks in the top 1% of total robotic surgery volume across more than 2,400 hospitals in the United States.

So, what exactly is robotic surgery and how does it relate and differ from other minimally invasive surgeries such as laparoscopy and advanced endoscopy? First, minimally invasive surgeries are performed by making small incisions and with surgeons using a camera with console and long instruments to do the actual surgery. They have become more and more routine over the last 20 years.

“Probably the first progression from open surgery to minimally invasive surgery would have been laparoscopy,” said Dr. Nicholas Montalto, chief medical officer for acute care, St. Peter’s Health Partners. “The da Vinci robot, the computer-assisted surgery, is a progression from laparoscopy.”

The surgical system integrates robotics and extremely sophisticated computer technology with the skills of the surgeon. It allows the surgeon to perform delicate operations with great precision and maneuverability but requiring only tiny surgical openings.

“Because the robot allows us better dexterity, the camera can potentially allow us better visualization compared to minimally invasive,” Dr. Wang said. “Instead of seeing in two-dimensional image [like with laparoscopy, for instance], we have binocular vision when we work through the robot.”

Also, straight instruments with basic capabilities are replaced with the robot’s “extra wrist” that can “turn in a way that we wouldn’t normally be able to do with laparoscopic instruments,” she added. “I think for a lot of surgeons, it helps us to do certain dissections in a much more ergonomic way.”

Worthy to note is that the term “robotic” often misleads people to believe that the robot is performing the surgery.

“The machine doesn’t do anything that the surgeon isn’t doing,” Dr. Montalto said. “It’s computer-assisted surgery. The visualization is superior, and the movement of the instruments is superior.”

Robotic procedures encompass several different surgical specialty areas, such as general surgery, colorectal, gynecological oncology, gynecology, hepatobiliary and pancreatic, urology, and thoracic.

“It’s a wonderful tool that has improved laparoscopy tenfold with wristed instruments, with visualization, with postoperative recovery – I think it’s a wonderful tool for all of our patients,” said Dr. Barbara Brazis, chief of robotic surgery at St. Peter’s Health Partners.

She hopes administration throughout the country will make it a priority to find ways to make these surgeries accessible to all.

“The length of [hospital] stay is far decreased after robotic than open surgery and sometimes even laparoscopic. There are some specialties where you can take the length of stay from 10 days down to two days – that’s a huge savings for the hospital. Right there the robot would pay for itself,” Dr. Brazis said.

When asked if insurance companies can be a barrier for robotic procedures, Dr. Montalto said not anymore.

“About 10 years ago, especially in the gynecology field, there were a couple of insurance companies that would not pay for the surgery to be done robotically versus laparoscopically or open, because the literature didn’t show a definite advantage in terms of mortality or serious complications by using the robot,” Montalto said. “They didn’t consider that there was any advantage – that’s not the case anymore. I haven’t encountered that in years as robotics has become so popular … There’s a tremendous number of advantages from robotics that I think the insurance companies weren’t necessarily appreciating.”

In the field of gynecological oncology, robotic surgery has had a wide impact.

“Robotic surgery has dramatically improved gynecologic oncology care,” said Dr. Joyce Barlin, a surgeon with Women’s Cancer Care Associates in Albany. “Robotic surgery offers superior visualization along with articulation of instruments to assist in the challenging dissection often required for oncologic surgery.”

In fact, more patients are becoming knowledgeable about robotic procedures and how it can help them in the recovery process.

“Patients are often aware of robotic surgery prior to their initial consultation and are grateful that robotic surgery is available through our Women’s Cancer Care Associates practice at St. Peter’s Hospital,” Barlin said. “Most of our patients undergoing major surgery using the robotic platform are able to safely go home on the same day of surgery.”

Is robotic surgery the future for all surgeries?

Dr. Rebecca Keim, a general surgeon with St. Peter’s Hepatobiliary, Pancreatic, and General Surgery, specializes in hepatobiliary and pancreatic cases. She was already in practice when she chose to train in robotic surgery and now performs about 100 surgeries per year with the da Vinci. This estimate is in addition to about 150 laparoscopic cases she performs per year.

“As we have more time for robotics, people are switching more and more from laparoscopic to robotic if there’s availability to do so,” she said.

However, Dr. Keim still performs traditional open techniques, which tend to be “large cancer cases that aren’t amenable to robotics or are just too complex.” She explained the dual efforts of docking and undocking the robot when necessity calls. For example, if Dr. Keim is working with the da Vinci on a cancer case for hours due to a tumor factor and the surgical team is not progressing, they can simply undock the robot, she scrubs in, and they do the case bedside.

“There’s times, too, when you go back and forth,” Keim added. “There’s times when we come bedside, we take out a specimen like a tumor, and then we redock the robot again and finish the operation.”

“I don’t think that minimally invasive or robotic surgery could ever replace everything that we do open,” Dr. Wang said. “There’s always a role for open surgery. Again, depending on the situation, it tends to be for more emergent type situations, where there’s not time to dock a robot or get those instruments in. Open surgery will always be there as an option.”

Dr. Brazis also agreed that open surgery will always have a place in the operating room.

“First of all, there are some people who aren’t trained in robotics and some surgeries are deemed to require open surgery in some specialties … so open surgeries are still done very often,” she said.

Again, St. Peter’s and Samaritan hospitals have five da Vinci surgical robotic systems to date. Donors have helped play a crucial role in the program by providing philanthropic support for the purchase and use of the surgical systems at St. Peter’s Health Partners.

“More and more surgeons coming out of residency programs and fellowship programs are trained on the da Vinci robot versus 10 years ago when they weren’t,” Montalto said.

And if they’re not skilled in it but would like to be, there is a comprehensive training pathway that includes several components, including system orientation with Intuitive, the company that makes the da Vinci robot, as well as hands-on training, and a proctoring program.

Dr. Keim said she believes the future of surgery will involve training people who can perform open, laparoscopic, and robotic surgery, which will in turn extend the training periods.

“It’s a big paradigm shift and you really have to be facile at all techniques when taking care of patients,” Keim said.

She said she thinks hospital leaders understand the need to support surgeons who want to use robotics. Though there’s a significant expense, they will find a way financially that makes sense.

“I think in 10 years, the costs are going to drop because [robotics] is going to become so common. I think other companies are going to get in the mix and allow it to become more affordable, she said.

A drop in cost aligns more with Dr. Montalto’s way of thinking, which is that robotics is the future of all surgery.

“There are programs that have only robotic surgery – every single case is done robotically, and they run the robot 24 hours a day, seven days a week, 365 days a year,” he said. “A goal for our program will be to do that also because one of the limitations of robotics is only being able to do it during business hours.” Staff on evenings and weekends may not be as proficient with robotics, so training all staff is vital for treating patients with the same opportunities for care.

“I think it doesn’t give the patient the optimal care if you can’t offer robotic surgery around the clock,” Dr. Montalto said. “The time of day shouldn’t matter.”

Paramedicine: Creating a first line of access and follow-up in our communities

By: Kathryn Ruscitto, Advisor

Definition: “Community paramedicine is a relatively new and evolving healthcare model. It allows paramedics and emergency medical technicians (EMTs) to operate in expanded roles by assisting with public health and primary healthcare and preventive services to underserved populations in the community.” Rural Health Information Hub

Recently I wrote about new models developing in primary care. From telemedicine to urgent care, access for certain conditions can be met as an adjunct to the traditional primary care physician .

Paramedicine has been developing in many states since 2009. Every community has different needs, and Paramedicine programs look different from community to community.

What these programs have in common is identifying what will help the existing health care system in that area by addressing unmet needs.

A scan of existing programs suggests common focus areas include:

  1. 911 triage to prevent dispatching an ambulance crew.
  2. Chronic Care management in the home, in collaboration with home care, hospice, health departments or primary care practices.
  3. Preventing readmissions or ER visits by offering some chronic care education services in the home and facilitating communications with providers.
  4. Helping patients get to the right setting and identifying resources to support them.
  5.  Immunizations
  6. Supporting the frail elderly in remaining at home with extra support.

In NYS there are pilots underway to look at Paramedicine as part of the health landscape. In others states these programs have long been a successful part of health care. Florida in particular has a compete manual for ambulances to approach certification and to train ALS paramedics.

The current demonstrations in NYS were funded by the Mother Cabrini Health Foundation, awarding grants to the Iroquois Association and the NYS Home Care Association. These pilots are about to expand from three to six. They have worked best in areas where a champion within the department takes lead in the community collaboration. Gary Fitzgerald the CEO of Iroquois notes, “EMS providers can be used more effectively in our communities.”

I spoke with the pilot in Jefferson County that is working in collaboration with their Health Department and home care agency. Paul Barter, the Jefferson County EMS Director was enthusiastic about the impact of their pilot program in Jefferson County. He stressed how excited his providers are in helping patients better understand their disease, medications, and have a better quality of life. A review of their data tells them they are reducing calls to 911 and transports to emergency rooms.

These pilots are particularly important in areas where primary care has contracted, or the local ER has closed. Workforce shortages have also hit Ambulance Corps and foundations and the Health Department should look at investments and incentives to help EMS providers expand through Incentives, including scholarships and tax credits.

There are so many positives to community based care in improving health outcomes. Paramedicine is one part of a growing system of options for communities to consider. The NYS Health Deportment should make these programs a permanent option in the NYS Healthcare landscape.

References:

https://www.ruralhealthinfo.org/topics/community-paramedicine

https://www.flexmonitoring.org/sites/flexmonitoring.umn.edu/files/media/bp34.pdf

https://paramedicnetwork.org/mce/

https://emsa.ca.gov/community_paramedicine/

https://www.iroquois.org/

Kathryn Ruscitto, Advisor, can be reached at linkedin.com/in/kathrynruscitto or at krusct@gmail.com

Healthcare Organizations Very Vulnerable to Cyberattacks

By: William Ecenbarger

Like most other organizations, healthcare facilities have moved toward total digitization. The major benefit of this change is that it has provided an efficient way of sharing patient records among healthcare professionals. Compared to paper-based records, electronic health records require less workforce, time, and physical storage.

However, this shift has created a new and growing risk: cyber-attacks that are compromising patient information, delaying patient procedures and tests, and rerouting ambulances to alternative emergency rooms.

“The health care sector is experiencing a significant rise in cyberattacks, putting patient safety at risk,” warns Andrea Palm, deputy secretary of the U.S. Departent of Health and Human Services. “These attacks expose vulnerabilities in our health care system, degrade patient trust, and ultimately endanger patient safety.”

The HHS Office for Civil Rights said the medical information of some 88 million Americans was exposed in the first 10 months of 2023. HHS also reported a 93 percent increase in large, healthcare-related cyber breaches between 2018 and 2022.

Much of the official concern is focused on breaches of patient privacy.

Healthcare institutions are a gold mine for cyber attackers. They hold huge amounts of information on patients–not just medical records, but also financial information, Social Security numbers, names and addresses. Moreover, unlike most businesses, they are open all the time–meaning, as the Seattle Times pointed out in a recent article, “they might be more likely to prioritize avoiding disruptions and, therefore, more likely to pay a hacker’s ransom.”

Geetha Thamilarasu, an associate professor of computing and software systems at the University of Washington and a specialist in health care security, said patients’ health information is valuable to cyber-attackers, who can use stolen medical records to buy bogus prescriptions, sell identity information online and file fraudulent insurance claims.

“There is a huge underground market on the dark web,” Thamilarasu told the Seattle Times. “Research shows that if a compromised credit card sells for about $1 to $5 each, a compromised medical record can sell anywhere from $400 to $500 — sometimes even $1,000.”

Moreover, anyone concerned about stolen Social Security numbers can enroll in a credit-monitoring agency, but patients have little recourse if their personal health information is stolen.

There are often hundreds of Internet-connected devices in a hospital, each of which may require a different type of security. “While an X-ray machine itself might not carry any patient data, it can act as an entry point for attackers trying to break into an organization’s broader network,” Thamilarasu said.

The American Hospital Association recently warned: “Health care organizations are particularly vulnerable and targeted by cyberattacks because they possess so much information of high monetary and intelligence value to cyber thieves. The targeted data includes patients’ protected health information (PHI), financial information like credit card and bank account numbers, personally identifying information (PII) such as Social Security numbers, and intellectual property related to medical research and innovation.”

John Riggi, the AHA’s Senior Advisor for Cybersecurity and Risk, said hospitals and other healthcare organizations constantly face attacks that can put patient safety at risk. “That’s why I advise hospital senior leaders not to view cybersecurity as a purely technical issue falling solely under the domain of their IT departments. Rather, it’s critical to view cybersecurity as a patient safety, enterprise risk and strategic priority and instill it into the hospital’s existing enterprise, risk-management, governance and business-continuity framework.”

Riggi, a former FBI cybersecurity specialist, urges hospitals to adopt “a culture of cybersecurity” that would result in staff members seeing themselves as “proactive defenders of patients and their data.”

“The cyber bad guys spend every waking moment thinking about how to compromise your cybersecurity procedures and controls. The best defense begins with elevating the issue of cyber risk as an enterprise and strategic risk-management issue. If possible, you should also dedicate at least one person full time to lead the information security program, and prioritize that role so that he or she has sufficient authority, status and independence to be effective. Furthermore, you and your team should receive regular updates on your organization’s strategic cyber risk profile and whether adequate measures are dynamically being taken to mitigate the constantly evolving cyber risk.”  

According to the healthcare news publication HealthcareDive, cyber-attacks exposed 385 million patient records from 2010 to 2022. though individual patient records could be counted multiple times. The HIPAA Journal says the number of healthcare data breaches has been increasing over the past 14 years. In 2023, 5,887 data breaches of 500 or more records were reported to the federal officials. In 2023, more than 540 organizations reported healthcare data breaches to HHS, affecting more than 112 million people.

Riggi said hospitals have been working to put in place better safeguards and more backup systems to prevent such attacks and respond to them when they occur. But he said it is almost impossible to make them completely safe, especially because the systems need to rely on Internet and network-connected technologies to share patient information among clinicians involved in a patient’s care. “Overall, that’s a good thing,” he said. “But it also expands our digital attack surface.”

The HHS recently released a cybersecurity strategy for the healthcare sector that includes these actions:

 –Publish voluntary healthcare sector cybersecurity performance goals to “help healthcare institutions plan and prioritize implementation of high-impact cybersecurity practices.”

 –Provide resources to “incentivize and implement cybersecurity practices.” HHS said it would work with Congress to obtain new authority and funding to administer financial support and incentives for domestic hospitals to implement high-impact cybersecurity practices.

–Implement an HHS-wide strategy to support greater enforcement and accountability. HHS will propose new enforceable cybersecurity standards.

–Expand and mature the one-stop shop within HHS for healthcare sector cybersecurity. This will “deepen HHS and the Federal government’s partnership with industry, improve access and uptake of government support and services, and increase HHS’s incident response capabilities.”

The AHA’s Riggi offered his expertise. “I am available to assist your organization in uncovering strategic cyber risk and vulnerabilities by conducting an in-depth cyber-risk profile, and by providing other cybersecurity advisory services such as risk mitigation strategies; incident response planning; vendor risk management review; and customized education, training and cyber incident exercises for executives and boards. Please contact me for more information at 202-626-2272 or jriggi@aha.org.

When to Report a Potential Medical Malpractice Claim: Protecting Yourself and Your Practice

by Jenn Negley

Peace of mind is paramount for healthcare providers. However, some physicians hesitate to report potential medical malpractice claims to their insurance carriers for fear of jeopardizing their coverage. This article aims to clarify the importance of timely reporting and dispel common misconceptions.

Understanding “Claims-Made” and “Occurrence” Policies and Incident Triggers

With a claim-made policy the carrier defends incidents reported during the policy period, even if the incident itself occurred earlier (within the retroactive date). Crucially, both the incident report and the claim itself must happen while the policy is active.

An Occurrence policy protects you from any incident that “occurs” during the policy period, regardless of when a claim is filed. Meaning, the carrier you are insured with when the incident occurred covers you for the claim and is who you need to report to.

Why Early Reporting Matters

Delaying an incident report can have serious consequences. If a potential claim later materializes, the insurer may deny coverage due to non-disclosure. Even when switching insurers, a past unreported incident could negatively impact future coverage options.

What is an Incident? What is a Claim?

An incident is any event that could potentially lead to a future claim. This includes situations causing injury, potential injury, or even dissatisfaction with a service. Claims come in two forms: formal and informal.

  • Formal claims: Receiving a legal document, a demand letter from an attorney, or even a seemingly innocuous request for medical records by a patient’s lawyer (unless unrelated to your care).
  • Informal claims: Verbal threats of litigation, requests to waive fees, or patient harassment.

Examples of Incidents to Report:

  • Patient deaths
  • Birth injuries
  • Serious injuries
  • Disfigurement
  • Loss of limbs
  • Sensory impairment
  • Verbal threats
  • Patient family harassment

Additional Reporting Recommendations

Report any instance involving:

  • Demands for money
  • Legal threats
  • Lawsuits naming you
  • Notices of intent to sue
  • Requests for arbitration or depositions

Protecting Yourself After Reporting

Once you report an incident, communication is key:

  • Only discuss the case with your claims manager, a lawyer representing you, protected peer-review attendees, or your spouse.
  • Never alter medical records, even for seemingly minor corrections.
  • Do not include claim correspondence in patient records.
  • Maintain copies of all claim-related documents in a secure location.

A Word on “Background” Interviews

Be wary of requests from plaintiff attorneys to discuss a case you’re not directly involved in. These seemingly casual interviews can be traps leading to future lawsuits against you. Always contact your insurer and request legal representation for such inquiries.

By understanding reporting requirements and taking proactive steps, healthcare providers can protect themselves and ensure their medical malpractice insurance provides the valuable protection they deserve.

For more information, please contact Jenn Negley, Vice President, Risk Strategies Company at 267 251-2233 or JNegley@ Risk-Strategies.com.

Sidebar:

Risk Strategies, National Health Care malpractice team by the numbers:

  • Supports over 6,000 clients representing over $200,000,000 in physician premiums.
  • Representing every major medical malpractice insurance carrier in the market. In New York, we represent MLMIC, EmPro(PRI), The Doctors Company (TDC), HIC, MedPro RRG, Coverys RRG, ProAssurance RRG, TDC RRG, AMS RRG.
  • Specialists with over 25 years’ experience in medical malpractice insurance
  • Programs designed for independent physicians and self-insured programs as well as large practices and hospitals.

Risk Strategies: Discover the Difference

By Tami Scott

When New York healthcare decision-makers seek explicit answers to critical questions, their go-to source is Risk Strategies, founded in 1997 and now the ninth-largest privately held insurance broker in the United States.

Its specialist approach is what makes the company stand out from competitors. Each client is provided with specialty insight, practical advice and custom insurance options that can only come from industry experts who have spent years identifying trends and predicting outcomes.

It boasts more than 30 specialty practices and has a vast network of specialists in Property & Casualty, Employee Benefits, Private Client, Consulting Services and Financial and Wealth Management solutions.

“We strive to be a destination workplace, one where we attract and retain top talent and ensure that working life at Risk Strategies is fulfilling and rewarding and employees can realize their potential,” said marketing specialist Steve Whalen.

A financially sound company that exceeds $1 billion in revenue, Risk Strategies has more than 150 locations and more than 5,000 employees. For the past five years – 2018 through 2022 – Risk Strategies has been named by Business Insurance as one of the Best Places to Work and has been recognized nationally by Inc. 5000, Insurance Journal, Business Journals and again in Business Insurance for its talent, expertise and business growth in several areas.

Risk Strategies holds the motto that it’s a “different kind of insurance brokerage, bringing a strategic, holistic, specialist approach to our clients, so you can face the future with confidence.” In the following sections, three top specialists were interviewed to provide their perspectives related to Property & Casualty, Managed Care and Medical Malpractice in relation to healthcare.

Sharon Scheuermann, Senior Vice President. Focus: Property & Casualty

Sharon Scheuermann’s career as an insurance broker began more than 30 years ago. Her decades of experience have endured both hard and soft markets — an advantage for clients seeking insight at any given time. While her scope is national, she’s been consistently in the New York space her entire tenure, having sound knowledge of the state and New York City marketplaces.

When asked if there is a current common concern in healthcare that is related to property and casualty, Scheuermann cited three areas as having the most issues: property insurance for healthcare organizations, cyber liability and medical professional liability.

“Insurance companies are placing an emphasis on appropriate property valuations,” Scheuermann said of property insurance. “Some healthcare organizations have buildings that have been around for many years; however, the values for these buildings have not been updated adequately to account for the increased cost of construction and materials to replace them today. The market pressure to increase values has significantly impacted premiums. Additionally, catastrophic events have influenced the availability and affordability of property insurance for healthcare organizations.”

“Cyber risk has been particularly challenging for the healthcare industry,” she said. “Healthcare is one of the top-targeted industries because malicious actors have access to personally identifiable information, including Social Security numbers, credit card information and health information all in one place. The best defense against breaches of personal data is employee education and training, but it’s difficult to stay on top of training with turnover and staffing shortages.”

“In many jurisdictions, including New York, severity continues to rise,” Scheuermann said of medical professional liability. “Nuclear verdicts have become more common, resulting in decreased market capacity and higher self-insured retentions. Since insurance companies don’t want to put up high limits, an insurance program must be layered with multiple insurance companies, which could become more costly.”

Be proactive

Scheuermann’s main message to healthcare executives is to evaluate your current limit and retention structure — is it appropriate? Explore alternative funding mechanisms to find a balance between retained risk and risk transfer. Keep in mind the jury pool has changed — younger individuals are being targeted to participate and have different attitudes toward corporate America.

“It’s important to be proactive and start your renewal process earlier,” she said. “Meet with your broker to discuss current market conditions and to develop a strategy for the renewal and, given the opportunity, meet with the insurance companies, too. There’s no one better to tell your story than you. Develop rapport. Insurance is still very much a relationship business.”

For more information, contact Scheuermann at sscheuermann@risk-strategies.com or 908.939.8044.

Recognitions and Awards 

Inc. 5000

  • Named one of America’s Fastest-Growing Private Companies

Insurance Business Magazine

  • CEO John Mina named to Insurance Business Global 100 Report

Business Insurance

  • Ninth-largest privately owned broker
  • 15th on the Top 100 Broker List
  • Best Places to Work in Insurance for five years (2018-2022)
  • Diversity & Inclusive Initiative of the Year (Gehring Group, a division of Risk Strategies)

Insurance Journal

  • 12th-largest Independent Property & Casualty Agency

Business Journals

  • Top 10 broker in several markets
  • Number 1 broker in South Florida
  • Fast 50 Growth Company (Boston)
  • Middle Market Leader Award (Boston)
  • Dealmaker of the Year Award (Boston)

Jennifer Negley, Vice President, National Healthcare Practice. Focus: Medical Malpractice

Like Scheuermann, Jennifer Negley brings to Risk Strategies three decades of experience in the insurance industry. As a long-time medical malpractice consultant, her clients benefit from her ability to come up with solutions that might not be readily considered by another individual with less experience. “Knowing the ins and outs of all the insurance carriers available to us, doing the amount of business that we do, specifically in malpractice insurance, and specializing in that gives us an edge over competitors.”

Also worth noting is Negley’s outlook on impartiality.

“Every situation is unique, and having the multitude of carrier relationships we have, we’re able to find that one that suits [our clients’] needs,” she said. “I’m never stuck in a situation where I have to push a group to a solution that isn’t ideal. I have seen those with limited markets do this and, as someone who strongly believes in clients first, I feel lucky to be with a company that aligns with those values.”

Negley said a hot-button issue right now among all carriers is the still-pending legislation, The Grieving Families Act (Senate Bill S6636/Assembly Bill A6698).

In essence, the details include the broadening of who can initiate wrongful death lawsuits on behalf of their deceased loved ones, as well as expanding the recoverable damages. The revisions aim to create a balance between the interests of families and the concerns of insurance companies.

“They’re utilizing a grief component,” Negley said. “You can imagine how, when you’re talking about the passing of a loved one, how can you measure, monetarily, grief? It’s going to be astronomical.”

Grief is a component utilized in other states but has a cap. In New York to date, it’s been based more on economics, meaning the earning potential of an individual throughout the remainder of their life would be factored into the compensation for which the family member(s) are asking.

“Incorporating a grief component without any guardrails [and] no cap, the dollar amounts are going to skyrocket,” Negley said. “There is a limit on the funds available for those payouts. It’s not something the carriers can sustain.”

The excess expenses will be passed on to hospitals and individual physician practices.

The concern is that if made into law, there will be a surge of lawsuits, insurance costs for both individuals and businesses will increase, and ultimately, it will be a disservice to the general public.

“The margin that these practices, even hospitals, operate under is sometimes very slim,” she said. “The result is you’re going to see smaller community hospitals continue to disappear at a rapid pace. That’s the biggest concern we’re seeing right now — the kind of impact it will have and how the carriers will react.”

Let us be your second set of eyes

Risk Strategies is ready to provide decision-makers with access to knowledge in a very transparent and open way to help them navigate their situations, Negley said. 

“We know that administrators in medical practices are swamped with changes in regulations and a million other things they have to keep their eyes on,” she said. “There’s no way anyone is going to be an expert in everything. That’s where we come in. As a specialist in medical malpractice insurance, I am able to see trends and issues that often are not on a practice leader’s radar and develop solutions with our carrier partners before there is an impact on our clients.”

Reaching out to Risk Strategies, she said, curtails a healthcare leader’s risk of operating in a vacuum. It allows decision-makers to learn a broader view of the marketplace, see the trends and keep ahead of the curve in what’s going on in healthcare.

For more information, contact Negley at jnegley@risk-strategies.com or 610.293.1200.

Cathy Sussman, Senior Vice President. Focus: Managed Care

With three generations behind her, Cathy Sussman’s experience surpasses most. Nearing 40 years in the industry, she said, “I feel like I grew up with it.” 

Clients can depend on Sussman to listen and think through solutions – not only in her realm of work, but also in other areas. She recently had a client who needed an actuary for a product they were about to launch; Sussman, who is well-networked, found one to help them.

“I’m really strong at finding what’s out there,” she said. “The risk piece – I can do that in my sleep,” she said, laughing. “I love just helping people determine what their risk tolerance is and what they want to buy. It’s kind of in my DNA and in my blood.”

Sussman’s specialty involves Excess of Loss and Quota Share Reinsurance focused on Managed Care. Her clients include health plans, hospitals, managed care organizations and accountable care organizations – essentially any group that is taking a risk and wants to make sure their balance sheet is protected.

Sussman said she thinks about risk in simple terms and often gives examples that explain how the thought process should work when deciding what to buy for protection. “People have different risk tolerances,” she said. “A $500,000 deductible for one organization may be way too scary. Another organization may say, ‘Hey, I can do $1,000,000.’ When you choose your risk level, it should be enough that it makes you a little uncomfortable, but it’s not going to dramatically affect your balance sheet. A claim shouldn’t disrupt your organization or alter your strategic objectives. We ask a lot of questions to get [our clients] to that level.”

A common concern in healthcare related to Managed Care is tied to gene and cell therapy, she said, because, though life-saving and life-changing, these treatments are costly, some running into the millions of dollars, and will result in higher rates. The same applies to specialty drugs.

Sussman emphasized that though she believes the U.S. operates under the best healthcare system available worldwide, it still has its challenges, particularly in healthcare reform. She described the 2014 Healthcare Reform Act as more of a financing reform: “It brought in insurance for most Americans, but it didn’t do anything to the underlying cost of healthcare.”

So how will authentic healthcare reform happen? How can price tags be more equitable?

“We need to think about that,” she said.

There are quite a few innovations happening at the local and national levels. One such innovation is social determinants, she said. “The more we can do in that area, I think the payback is going to be really great,” she said, giving the example of a houseless person whose healthcare cost roughly $3 million a year. This claim dropped by $2 million after supporting agencies found and paid for housing, a social worker and more, so this patient could become independent. 

Sussman is excited to see healthcare executives developing strategies that investigate why healthcare costs escalate and find economic solutions demonstrated in her example.

“The question always becomes who pays for it but, at the end of the day, the ROI is pretty high,” she said. “When it comes from within the industry, it is so much more powerful than coming from the government.”

For more information, email Cathy Sussman at csussman@risk-strategies.com or call 612.396.7241.

Private Equity in Health Care and the Impact on Non Profit Care

By: Kathryn Ruscitto, Advisor

I have worked my entire career in government or nonprofits. It has led me to see the value of models that protect access to care for those who are underserved. The non profit model uses profits to re-invest in the provision of care in the community. Income is derived from profitable areas of care . Where the cost of care is not covered by insurance or there is no insurance, donors, grants and government subsidies often fill the gap.

For many years in New York State, regulations prevented private equity firms and for profit models to provide health care in some areas.

That’s changing.

Private equity seeks to make a profit. When a private equity firm buys a non profit provider or starts a new health care business, it’s expected to produce income for investors. It’s a common business model in this country.

At the same time we need to provide care to our communities that may not be profitable.

In Plunder, by Brendan Ballou, he provides a good analysis of the growing concerns about the impact of private equity in our society. The book looks at examples of private equity acquisitions in long-term care that drain income to other related corporations, leaving the non profit organization without resources to provide adequate care.

Another important study from the Columbia School of Public Health published this past July, was the first thorough review of global private equity ownership in medical settings. It stated, “Private equity investment was most closely associated with increases in costs for payers and patients in some cases as high as 32%. Private equity ownership was also associated with mixed to harmful effects on healthcare quality, while the impact on health outcomes and operations was inconclusive.”

So is one model preferable over the other, can they co exist or collaborate? Can the efficiencies from a private equity operation help not for profits find ways to reduce overhead for sustainability? Venture Philanthropy seeks to apply the principles of venture capital to achieve charitable objectives. There are several experiments going on where private capital invests in philanthropic goals such as Bain Capital’s , New Profit. Jeffrey Walker in the Stanford Innovation Review, March 2019 says private equity is showing that in order for nonprofits to succeed in this new financial environment they need to demonstrate better measurement of results, and management expertise. Investors are hands on advisors to a business and he suggests that donor expertise is often prevented from transferring their knowledge to the non profit setting.

This is a complicated arena , and one that could change the face of years of community care. Covid has placed great financial pressure on many large providers, and private equity acquisitions are adding to that financial pressure.

We need to continue to watch the impact in our communities of mergers, acquisitions and closures in health care and advocate on behalf of access and delivery of care.


Resources:

Plunder, Brendan Ballou, 2023, Public Affairs

Columbia School of Public Health Publichealth.columbia.edu

The Emerging Capital Markets for Non Profits, Kaplan and Grossmn, hbr.org

Stanford Social Innovation Review, ssir.org


Kathryn Ruscitto, Advisor, can be reached at linkedin.com/in/kathrynruscitto or at krusct@gmail.com

Physical Medicine and Rehabilitation Specialist; Dr. Urban Joins Albany Medical Center Staff

Meghan Urban, MD, has joined the Division of Physical
Medicine and Rehabilitation within the Department of Neurology at Albany Medical Center, a member of the Albany Med Health System, and has been appointed assistant professor of neurology at Albany Medical College.

Dr. Urban has fellowship training in sports and musculoskeletal medicine. She treats musculoskeletal injuries and pain including acute injuries, overuse injuries, and conditions of the joint, muscle, tendon, ligament, and spine. She performs ultrasound-guided  joint, peri-tendinous, bursa, and soft tissue injections, as well as fluoroscopic guided lumbar spine and sacroiliac joint injections. She has a particular interest in keeping her patients as active and functional as possible. 

Board-certified in Physical Medicine and Rehabilitation and board-eligible for certification in Sports Medicine, Dr. Urban completed a sports medicine fellowship and residency training at the Shirley Ryan AbilityLab at McGaw Medical Center at Northwestern University, Chicago. She completed an internship in internal medicine at Lankenau Medical Center and received her medical degree from Drexel University College of Medicine, both in Philadelphia. Her athletic experience includes treating Division I athletes during her fellowship at Northwestern University and serving as captain of her Division I women’s soccer team at Seton Hall University as an undergraduate.

Dr. Urban has authored or coauthored articles in several professional publications and in 2022 piloted a study that developed a strength training program for charity marathon runners for the Chicago Marathon. Dr. Urban will see patients aged 14 and up at Albany Medical Center’s Department of Neurology in A1 of its Physicians Pavilion, 43 New Scotland Ave., Albany. For more information or to schedule an appointment, call 518-262-5633.

Grieving Families Act: Necessary Adjustment to an Antiquated Statute or Disastrous for New York Health Care?

Round two of the Grieving Families Act has slight changes but is substantially the same one vetoed by Gov. Kathy Hochul earlier this year, citing the need to evaluate the “impact of these massive changes to the economy, small businesses, individuals, the state’s complex healthcare system.”

The sponsors wrote in their justification on NYSenate.gov, “New York’s wrongful death statute is over 175 years old, and it is unfortunately out of step with nearly every other state because New York’s laws prohibit grief-stricken families from recovering damages for their emotional suffering from the death of their loved one.”

The current law, which awards compensation for pecuniary loss only, impacts most harshly on children, seniors, women and people of color – people who often have no income, significantly less income or who have been traditionally undervalued in our society.

How does the act change the current wrongful death statute? The act changes who can file suit from relatives in line for direct inheritance to include those with a close relationship to the decedent. Clearly, it greatly expands those given the right to sue with little clarification on the definition of “close relationship.” Also, lawsuits previously included a single request for compensation tied to economic damages; now grief, loss of consortium and sympathy may be included.

While proponents note that the emotional component is part of most other states’ wrongful death statutes, it neglects the fact that, unlike the Grieving Families Act, most states have a cap on this type of compensation. With no cap, quantifying grief will lead to astronomical payouts. Adding to the speed at which these payouts will come to fruition, the changes will be applied to any cause of action that accrues after July 1, 2018.

Although one can see the merits of the justification noted above, it ignores the realities of its impact on the state. The state leading in claims and payout amounts will be a windfall for plaintiffs’ attorneys. Malpractice carriers are already struggling with upticks in claim frequency and the dramatic rise in award amounts. The act will add to the pressures already in play. To maintain solvency, carriers and the Insurance Department will keep a close eye on
these trends, which might indicate the
need for increased rates.

As we all know, the healthcare sector in some ways is still recovering economically. The margins that most hospitals and small practices operate under are often slim. Any increase will have a significant impact on the ability of dedicated healthcare workers to provide quality care. The sad truth is that underserved or undervalued individuals – the ones the act intends to help – will be the ones to suffer disproportionately from the misguided attempts to correct the current statute.

Most involved feel the act will be approved by Gov. Hochul in some form; it is such a high-profile legislation that garners a great deal of sympathy, and it is incumbent upon everyone to reach out to ensure any change is done in a manner that will not harm those it is meant to help. I leave you with this final thought from New York State Medical Society President Paul A. Pipia, M.D.

“We urge Gov. Hochul to veto this legislation again and call for the creation of a workgroup that can develop balanced legislation that will expand the rights of grieving families without devastating our healthcare system in the process.”

I encourage you to reach out to Gov. Hochul (@govkathyhochul) on Facebook, Twitter and Instagram.

For more information, please contact Jenn Negley, Vice President, Risk Strategies Company at 267 251-2233 or JNegley@ Risk-Strategies.com.