New Federal Law Affects Local Healthcare Operations: The Carle Foundation and Carle Clinic Association Prepare for Change
September 17, 2008
Urbana, Ill. – In response to a recent change in Federal law, the Board of Trustees of The Carle Foundation and the Board of Governors of Carle Clinic Association have independently agreed to initiate discussions concerning the current relationship between the two organizations. Leaders from both organizations assure that regardless of these discussions and possible outcomes, The Carle Foundation and Carle Clinic Association remain committed to providing excellent patient care.
The Centers for Medicare and Medicaid Services (CMS) recently finalized significant changes to the Stark Law last month that will dramatically impact many physician-hospital relationships in existence throughout the country – including arrangements that The Carle Foundation and Carle Clinic Association have with regard to the provision of radiology and laboratory services for patients of The Carle Foundation. These regulations become effective October 1, 2009, and do not permit this arrangement to continue after that time.
Currently, laboratory and radiology inpatient services are provided to Carle Foundation Hospital patients by Carle Clinic Association. The rule change will affect the operations and finances of both organizations and adds some urgency to the examination of the relationship.
“The major challenge for The Carle Foundation is to find a new arrangement for providing laboratory and radiology services to hospitalized patients after October 1, 2009,” says James C. Leonard, MD, president and CEO of The Carle Foundation. “The leadership of both organizations is committed to developing a solution that preserves the high quality of care we offer and meets the mandates of the new Federal regulations.”
“It’s to the benefit of all our patients that we continue to work in the collaborative manner that has served our communities well through the years,” says R. Bruce Wellman, MD, president and CEO of Carle Clinic Association. “Physician leadership at Carle Clinic Association is resolved to pursuing a course of action that is in the best interest of our patients.”
The Hospital and Clinic are working together to review the full impact of the Stark IV rules. Each organization would be required to replicate laboratory, radiology and some cardiovascular diagnostic services. This duplication of services would come at significant cost for the community, confusion for the patient, and would present standardization and quality challenges. Drs. Wellman and Leonard both emphasize the organizations will move quickly to analyze and identify all possible options, including various integration scenarios. “We understand that the uncertainty of this situation will generate questions and concerns and we appreciate the community’s trust and support as we move through this process.”
Note to editors and news directors: Carle officials will not be granting interviews or providing further details at this time since the decision at present is to further analyze the current relationship between the two organizations and identify all possible options, including various integration scenarios. We do hope this news release will meet your news needs.
About Carle Clinic Association
One of the largest private physician groups in the U.S., Carle Clinic Association is comprised of more than 330 physicians practicing in more than 50 specialties and subspecialties. In 2007, 19 of our physicians were honored for their outstanding contributions by America’s Best Doctors®. Our experienced staff continues pioneering breakthroughs in medicine with Alzheimer’s, arthritis and AIDS clinical trials, and through our research affiliation with the world-renowned Mayo Clinic.
Bringing the latest treatment options to the community, Carle Clinic operates three centers of excellence with Carle Foundation Hospital, including Carle Spine Institute and Carle Heart Center. Carle Cancer Center and Mills Breast Cancer Institute. Through our extensive network of regional clinics, outpatient services and residency programs, Carle Clinic strives to provide superior health care for patients throughout east central Illinois.
About The Carle Foundation
Based in Urbana, IL, The Carle Foundation is the not-for-profit parent company of a variety of health care services. At its core is Carle Foundation Hospital, a 305-bed regional care hospital which offers a higher level of clinical service and technology than any area hospital, and serves as the area's only Level I Trauma Center and Co-Perinatal Center. The Hospital has an open medical staff and offers a full range of inpatient and outpatient diagnostic, therapeutic, and ancillary services and has earned multiple accreditations and quality recognitions.
Carle Foundation Hospital places a significant emphasis on education and medical research. Committed to the highest academic standards of undergraduate, graduate, and continuing medical education, it is the primary teaching hospital for the University of Illinois College of Medicine at Urbana-Champaign. With its emphasis on translational research, the Hospital is currently working with Carle Clinic physicians and University of Illinois scientists on multiple studies related to aging, cardiology, gastroenterology, imaging, genomic research, and especially breast cancer in conjunction with the Mills Breast Cancer Institute.