HCA has been in trouble before—when Rick Scott, now the governor of Florida, was in charge of the company, then known as Columbia/HCA. The father of former Sen. Majority Leader Bill Frist founded the company back in 1968. In the late 1990s, The Wall Street Journal reported the chain had begun looking at profitable diseases as “product lines,” and requiring hospital chief executives to meet ambitious goals—and sometimes beating their numbers by 15 to 20 percent each year. Eventually such pressures got the chain in trouble with the Feds; the FBI uncovered a Medicare billing fraud scheme. The chain settled with the government, paid a fine, and dismissed Scott, who was never accused of wrongdoing. Last year The Palm Beach Post discovered that Scott had used high pressure tactics at his chain of Soltanic Urgent Care clinics, which had just been sold to a private equity firm. The Post reported that the clinics with Scott in charge had used a bottom line, bonus-focused management that encouraged a culture of cheating. One doctor told state investigators “they care about how fast you see people.” He was later fired.
It’s hard to say if HCA patients know anything about the history of HCA, or about the kind of problems the Times reported on. How much can they really learn about a facility before undergoing risky heart procedures? HCA told the Times that more than 80 percent of its hospitals are in the top 10 percent of government rankings for quality. That, of course, raises another question: Whether quality rankings—no matter who puts them out—can reveal the kinds of practices the Times uncovered. How do unnecessary procedures that turn out well get factored in?
The history of HCA shows that big money and patient care don’t always mix. What happens when there are fewer and fewer systems owning the nation’s hospitals, giants with similar hunger for profit, perhaps jeopardizing patient care? More than ever we’ll need good investigative reporting to tell us.
And not just The New York Times. In a coming post, we’ll take a look at how the Tampa Bay Times demonstrates what a local news outlet with HCA hospitals in their communities can do. The Tampa Bay folks took The New York Times findings and pushed the story further, to good effect.

This is directly related to the Atul Gawande article years back when he analyzed the differences between high inflation healthcare and low inflation healthcare:
http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande
and the end results were not that different (in fact the low inflation healthcare got better results).
Why? Because the profit model overwhelms the care model making the system inefficient at care and very efficient at billing.
The truth is we need better systems:
http://www.ted.com/talks/atul_gawande_how_do_we_heal_medicine.html
and less Bain Capitals extracting rents from those systems. This is the same problem we have in the for-profit education industry - the goal of producing an educated contributor to society gets subverted to the goals of maximizing revenues and minimizing costs.
We need to ask ourselves, what are the primary goals of these systems and how are we failing to achieve these goals?
You'll find that much of the time the failures are related to pressures for compensation and high returns.
#1 Posted by Thimbles, CJR on Fri 17 Aug 2012 at 01:15 PM
The US Justice Department is now investigating the HCA hospitals. How absolutely delicous that Mitt Romney is involved .His retirement agreement with Bain Capital puts him in receipt of millions of dollars of earnings from the stocks owned by Bain..40 % of HCA hospitals revenues come from Medicare and Medicaid.HCA also has hospitals in England which have a monetary arrangement with The National Health Service of England.Romney is sucking up millions of dollars from "socialized" medicine.He is such a phony liar.
#2 Posted by Betty Jo, CJR on Sat 18 Aug 2012 at 06:12 PM
LOL!
In Lieberman Liberal La La Land... There is always evil afoot at any for-profit provider.
It's not like anyone is running up the bill in, say, the "nonprofit" hospital that slid Michelle Obama a $200,000.00 salary increase just after her husband won the Senate seat.
She made more (WAY more) as the "vice president for community and external affairs" of the "non-profit" University of Chicago Medical Center than the Vice President of the United States earns.
But that's nothing CJR readers need to worry about, right?
And there's no unnecessary billing going on there or any other nonprofit or charitable hospitals to pay these kinds of salaries...
NAH... Can't be...
Or I'm sure that Ole' "Professional Journalist" Trudy Lieberman would be on the story like white on rice!
#3 Posted by padikiller, CJR on Sat 18 Aug 2012 at 06:51 PM