Hospital Association of RI Opposes Proposed Johnston Rehab Hospital After GoLocal Exposé
GoLocalProv News Team
Hospital Association of RI Opposes Proposed Johnston Rehab Hospital After GoLocal Exposé
“It is bad enough when the state’s own consultant finds that there is no need for this expensive new facility. It is even worse that in its application Encompass failed to properly disclose paying $48 million dollars to settle of claims of its alleged history of fraudulent billing activity to the Department of Health. For these reasons, we believe that the Encompass application should be denied,” said HARI President Teresa Paiva-Weed.
The Health Services Council will meet on Tuesday at 1 p.m. at the RI Health Department, to hear additional arguments and possibly vote on the proposal.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTLast week, GoLocalProv wrote:
Mark Ryan, the lobbyist for Twin River, National Grid, and the Providence Journal, has a new client — Encompass Health, an Alabama healthcare company.
The company is proposing to build a rehab facility in Johnston — a facility that Rhode Island’s healthcare industry and a consultant hired by the state’s Department of Health says is unnecessary and will adversely impact Rhode Island's already financially fragile healthcare industry.
Both Lifespan and Care New England have reported significant financial losses.
According to the Rhode Island lobbying reports, Ryan is paid $10,000 a month to promote the Encompass proposal to build a new facility.
Encompass Health describes itself as a leading provider of inpatient rehabilitation and home-based care committed to delivering high-quality, cost-effective, integrated care across the post-acute continuum.
In 2019, Encompass agreed to pay $48 million to resolve allegations that some of its IRFs provided inaccurate information to Medicare to maintain their status as an IRF and to earn a higher rate of reimbursement, and that some admissions to its IRFs were not medically necessary.
“This settlement demonstrates our commitment to ensuring that those who participate in federal healthcare programs follow the rules,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Medicare and Medicaid providers who seek to profit inappropriately at the expense of taxpayers will be held accountable.”
Read the rest of the story HERE
Opposing Encompass Health’s Proposal
According to HARI, Encompass did not reveal this settlement as part of its required disclosure to the Department of Health at the time it applied for approval under the state’s Certificate-of-need process or for the 8 months since they filed their application.
The Rhode Island Health Department consultant found that the state has ample, high quality, nationally recognized inpatient rehabilitation resources in place that have more than enough capacity to meet current and future needs.
“Kent Hospital's inpatient rehabilitation unit has been delivering high-quality accessible health care for Rhode Islanders for years as have the other rehabilitation units in RI. Current capacity requirements are fully met with the existing number of beds. The addition of more beds will not improve access but clearly will increase the cost of care for all of Rhode Island,” said James Finale, President & CEO of Care New England.
According to HARI, the State’s own consultant has validated these conclusions. Encompass also acknowledges that it must drive more patients into their inpatient rehabilitation facility, driving up the costs of healthcare in Rhode Island.