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I was a reporter for close to 17 years at the Hawaii Tribune-Herald until October 2005, when I joined the growing ranks of union leaders now formerly employed by the newspaper. (For more about what's happening at the Tribune-Herald, check out the Hawaii Newspaper Guild web site.) Since then I've been the Hilo unit representative for the Guild, a freelance writer, photographer, and blogger.  Puna has been my family's home since 1993.

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Friday
03Aug

Cancer doc profited from chemo, drugs

Revealing yet still murky story in today's Hawaii Tribune-Herald about Hilo Medical Center being fined $774,542 for violating the complex federal Stark law governing medical contracts between doctors and medical service providers.

One eyebrow-raising part ties in to the discussion of cancer treatment and prevention that has gone on here lately:

On July 1, 2001, the hospital entered into a contract with Dr. Anthony Lim. The hospital agreed to pay Lim $94,000 annually for serving as the "medical director" for the hospital's oncology unit. The hospital also agreed to pay him 20 percent of what the hospital collected for chemotherapy services, including the ordering and prescribing drugs."

Isn't that a clear financial incentive for Dr. Lim to order and prescribe drugs and chemotherapy for cancer patients? Why would he explore any other treatment options when he gets a piece of the drug and chemotherapy action? How can that be a sensible medical practice? Or is it just another profit-motivated scheme by the hospital?

"There is nothing in our poorly written, poorly followed contract that affected patient care," said hospital CEO Ronald Schurra, but it sounds like a conflict of interest and certainly smacks of the problems with the cancer business that Josephine Keliipio has written about lately. Can anyone explain why otherwise a doctor would be given a financial incentive to prescribe a certain treatment?

Also in the story, I couldn't figure out the discrepancy between signing a contract for Dr. Lim to be the "medical director" and this statement later in the story:

"We never implemented a formal process for him to be the medical director."

Geez, you'd think signing a contract would be part of the formal process of implementation. I guess it all shows how little I know about medicine.


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Reader Comments (7)

Isn't this just a marvel of modern medical ethics? The hospital administrator goes on and on about how sorry they are that the contract was not properly executed or followed with not a single comment on the morality of giving the doc kickbacks! Then he tells us that the hospital itself reported this immoral deal, so I guess we are supposed to respect them for that. Hellloooooo. Is it just me, or does something seem seriously crooked about this? I promise you that the cost of those treatments was inflated to cover the good doctor's cut. What's really scary is the possibility that the government regulators are more concerned about the logistics of the contract than the philosophy of the deal. All these people need some serious independent investigators on their tails.
August 3, 2007 | Unregistered CommenterWankine
As is my custom on opennness, let me say at the outset Dr. Lim has been and is my doctor for a pesky skin cancer he helped me work through. I have found him earnest and engaging.

His contract with Hilo hospital sounds hazy, poorly thought out and full of legal holes. Where was the great state AG Bennett and his staff in all this?

Hunter is right that the story is murky. Was there an geniuine attempt to get Dr. Lim's side of all this? Is there any continuing effort?

The "fine" is almost what it cost the community to raise its own funds to enlarge the undersized ER room. What a waste of community (that's Hilo AND Puna for those is Opihikao) resources. Hopefully, active duty reporters will dig a lot deeper.

Except for Helen Alton at the Star-Bulletin, medical reporting throughout the state usually goes wanting.

Further, when did Schurra, the CEO, take charge? Is he responsible for a poor contract? or did he inherit it?
August 3, 2007 | Unregistered CommenterHugh Clark
Hunter, thanks for questioning the motives of the hospital which is really where the problem lies. Both the administrator and the newspaper reporter are trying their best to distract the readers so that no one questions why the hospital is making incentive payments to the doctor to recommend chemo treatment in the first place. My guess is that the drug companies are working behind the scenes, paying the hospital to promote chemotherapy over other alternate therapies. I sure would love to know if the audit discloses what kinds of incentive payments the hospital receives from drug companies to promote a specific drug or medical procedure. IMO, the problem still remains even if the hospital paid the fine.
August 4, 2007 | Unregistered CommenterKELIIPIO
"Murky" is right. What is the reader supposed to take away from this story?

Mr. Schurra seems apologetic with statements like, "There is absolutely no ramification here on patient care. There is nothing in our poorly written, poorly followed contract that affected patient care."

But what kind of administration agrees to a "poorly written" contract, then makes up its own rules on payment, resulting in a huge fine?

Answer - an administration that mistakenly believes Hilo Med provides quality care.

The public needs some serious journalism to look at the quality of care Hilo Med is providing. I have collected a lengthy list of mis-diagnoses by Hilo Med doctors, many of which resulted in death. I believe the problems come from the top...but anecdotes are not enough.
August 6, 2007 | Unregistered Commenterhfd808
I am no expert, but I believe that there are a number of hospital accountability measures making their way through Congress. (Part of this list may have already been enacted.) Those most prominently included are requirements for facilities to openly and accurately report incidences of hospital-acquired infections, fatalities related to such infections, and the prevalence of anti-biotic resistant organisms among those infections. Hospitals are a great place to get sick, as if you didn't have enough problems just being there in the first place. Tens of thousands of Americans die each year from hospital acquired infections.

Also in the mix are reporting requirements for "unexpected fatalities," medical errors on the part of doctors and nurses, malpractice findings, and outcome studies of patient recovery for a range of treatments. Many reputable hospitals are already voluntarily publishing these statistics on their websites. Others provide them upon request. A friend in the medical administration business told me that everyone should run as fast as they can from a hospital that refuses to disclose or claims not to track such information.

Like I said, I am not an expert, so anyone with more accurate information on this should add their two cents worth, please.

The HTH report left a lot of unanswered questions, and if their previous record of failing to follow-through when they break a story holds true, we may never know the answers. Ah for the days of really good investigative reporting around here. Nobody seems to have the nerve to take a story through to conclusion any more.
August 6, 2007 | Unregistered CommenterWankine
It was ironic that my husband and I spent $80 each to support the Hilo Medical Center Foundation at a luncheon on NCL's "Pride of Hawaii" when two days later the news came out about Mr. Schurra's legally actionable failings in contract preparation and administration. Make no mistake about it, this very expensive lapse is 100% attributable to him. The money to pay Dr. Lim comes from the general fund which means that WE, the taxpayers, are really paying for Mr. Schurra's incompetence. The bottom line here is that we have a dysfunctional hospital system with unqualified people running it and we have no choice. And Mr. Schurra will continue to be defended by Tom Driskill at HHSC no doubt. The CON process all but guarantees that Hilo Medical Center will not have any competition in my lifetime unless the citizens of this fair state wake up and start demanding that their legislators release the stranglehold they have on our lives. I truly do not understand why we put up with this state of affairs.
August 9, 2007 | Unregistered CommenterDianne Morgado
Dysfunctional hospitals like dysfunctional physicians are ripe candidates for drug company control and manipulation. Welcome to the real American Medical System.
August 10, 2007 | Unregistered CommenterKELIIPIO

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