Wednesday, September 19, 2012

A fine is not fine

Regular readers know of the patient quality and safety troubles faced by Parkland Memorial Hospital, as made broadly public last summer.  A new chapter has now unfolded. As reported by Patient Safety and Quality Healthcare:

Parkland Health & Hospital System has reached a settlement agreement with the Department of State Health Services (DSHS) that resolves and discharges all potential litigation and enforcement actions for compliance issues prior to May 31, 2012.  Under the agreement with DSHS, Parkland will be assessed $1 million for violations that occurred prior to June 1, 2012. $750,000 will be payable within 30 days of the execution of the agreement. $250,000 will be held in abeyance subject to Parkland’s compliance with the terms of the agreement.

I understand the need for a closely supervised quality and safety improvement program, but I cannot understand the purpose of a fine, especially when the institution being fined is a non-profit hospital.Why would you take resources away from a hospital when what is needed is for it to invest in an extensive and intensive quality and safety program?

I could even see requiring Parkland to spend this amount on quality and safety programs, but I don't see the point of hurting them financially.

Your thoughts?
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6 comments:

  1. AnonymousSeptember 20, 2012 7:13 AM

    Parkland is actually a tax-supported governmental entity, the Dallas County Hospital District.

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  2. Paul LevySeptember 20, 2012 7:30 AM

    PHH, see the next comment after yours. So, the taxpayers will end up paying the fine.

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  3. AnonymousSeptember 20, 2012 8:12 AM

    It could be seen as reimbursement to State Health Services for their costs.

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  4. ShellySeptember 20, 2012 11:30 AM

    I agree that a fine for purposes of fining is not fine. Where does this money go? Who benefits? I would however be fine with a fine if that amount of money was put back into the hospital to help improve quality and safety. It might be a way to jump start investing in this area.

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  5. HeatherSeptember 20, 2012 11:30 AM

    Non profit does not necessarily = no money. I work for a non-profit hospital and there are seemingly unlimited funds available for technology, new construction and expansion~despite repeated denials for Certificates of Need. (It seems they build it and permission eventually comes). No, hospitals are corporations, first and foremost, and it seems the Dollar
    is the only language they speak.

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  6. KerrySeptember 20, 2012 10:29 PM

    The fine might be quite effective if it comes out of the C-Suite's compensation packages. If it is rolled into overhead it is virtually meaningless.

    ReplyDelete