Hospital not paying doctors and staff, blames #Obamacare contractor

Posted by: Phineas on January 2, 2014 at 1:28 pm

**Posted by Phineas

"Obamacare at last!"

“Obamacare reveals its true face”

Oh, this is just grand. On top of all the other problems we’ve suffered through so far with Obamacare, now a hospital treating Medicare patients hasn’t been reimbursed by the government and thus hasn’t been able to pay its staff for weeks. Over Christmas. The blame? Apparently it lies with the same contractor hired by the Obama administration to build the back-end payments system for healthcare.gov:

Dozens of employees at a hospital in northeast Houston have had to make it through the holidays without getting paid for weeks. The CEO of Saint Anthony’s Hospital on Little York is blaming a new Medicare payment contractor for his payroll problems.

Nearly 150 employees, ranging from doctors to nurses and administrators, haven’t been paid in nearly a month, and the CEO says it’s not his fault.

(…)

The hospital is strapped for cash not because its not making money, but because Leday says a new Medicare payment facilitator named Novitas Solutions is taking too way long to pay out Medicare claims to the hospital.

Leday says he’s owed nearly $3 million in payments from Medicare and can’t make payroll.

According to the ABC-13 article, the Texas AMA says that other community hospitals in the state are facing similar payment problems with Novitas. So, what happens to Medicare patients when unpaid doctors stop providing services because they haven’t been paid, or the pharmacists stop filling prescriptions? Aren’t these the very people this anti-constitutional monstrosity of a law was supposed to help? Or should we just make physicians serfs of the state, as one Democrat proposed?

Via Jeryl Bier, who adds this about Novitas’ link to healthcare.gov:

Novitas’s direct connection to Healthcare.gov stems from an emergency, no-bid contract for “financial management services” awarded in August and first reported by THE WEEKLY STANDARD in September.  The services required included accounting, tracking of accounts receivable and accounts payable, documenting funds collected by CMS, and data validation, among other things.  CMS justified the no-bid award because the “prospect of a delay in implementing the Marketplace by the operational date of January 1, 2014, even for a few days, would result in severe consequences, financial and other” and that the services required were “beyond what was initially anticipated and beyond CMS’ currently available resources.”

In light of Novitas’ performance in Houston, I can’t wait to see what this government contractor no-bid crony can do for the whole nation.

PS: There’s a video report at the ABC link.

(Crossposted at Public Secrets)

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3 Responses to “Hospital not paying doctors and staff, blames #Obamacare contractor”

Comments

  1. ST says:

    Wow! Can’t make this stuff up. Sigh … :(

  2. Tango says:

    ….this is only the beginning!

  3. Carlos says:

    In light of Novitas’ performance in Houston, I can’t wait to see what this government contractor no-bid crony can do for to the whole nation.

    There, Phineas, it’s a little more accurate…