DOTHAN, Ala.—Construction has begun on the Alabama College of Osteopathic Medicine, Dothan, following a Jan. 19 groundbreaking ceremony that drew hundreds. The project is expected to cost $40 million and the building is set to be ready to occupy by May 2013, a few months before the first class of 150 students is scheduled to arrive, according to an announcement from 420-bed Southeast Alabama Medical Center.

The college will operate as an academic division of SAMC. SAMC officials said the college, whose planning was first announced in May 2010, would help to alleviate the statewide shortage of primary-care physicians. “Currently, the state needs more than 400 additional primary-care physicians, with only 250 spots available in Alabama medical schools each year,” the hospital said in the announcement. “ACOM will add another 150 spots for aspiring physicians annually.” The project was developed by the Houston County Healthcare Authority, also based in Dothan, and it will be operated by a not-for-profit board. On Dec. 13, the Commission on Osteopathic College Accreditation gave pre-accreditation status to the college. “This action now allows ACOM to move forward with the continuation of the hiring plan for faculty and staff,” according to an SAMC news release.

AUSTIN, Texas—Under a new state law, Texas physicians named in a complaint may now see their cases resolved with a “remedial plan,” which can result in a fine and a requirement to complete several hours of continuing medical education but not a mandated admission of wrongdoing or publication in Texas Medical Board press releases or newsletters. An article in the board's newsletter, the TMB Bulletin, gives the example of a doctor not signing a death certificate in a timely manner. According to the article, this physician may agree to pay a $500 fine and complete four hours of CME but would not admit to or deny the findings and would “avoid the uncertainty of litigation.” Also, the remedial plan would not be considered a disciplinary action, so the physician's name would not be reported to the National Practitioner Data Bank. Remedial plans would typically be developed for “administrative violations,” according to the article, and they give the medical board a third option in responding to a complaint where previously it could only dismiss the complaint or seek public disciplinary action.

GALAX, Va.—Duke LifePoint Healthcare reached a definitive agreement to acquire a majority stake in Twin County Regional Healthcare, Galax. The deal would be the fourth for Duke LifePoint, a joint venture between Duke University Health System, Durham, N.C., and LifePoint Hospitals, Brentwood, Tenn., a spokeswoman said. Duke LifePoint agreed to invest $20 million for capital improvements over 10 years and another $10 million for a charitable foundation, a Twin County Regional spokeswoman said. Duke LifePoint would own 80% of the 86-bed Twin County Regional Hospital and its related assets under the deal. The two partners will have equal representation on the governing board, the hospital said in a news release announcing the deal. Twin County Regional Healthcare will pay off its debt with retained assets and proceeds from the deal, according to the release. Not all terms of the deal were released. The deal must undergo review by the Virginia attorney general and meet other customary closing conditions, the release stated. It is expected to close within 90 days. “When we began researching affiliation options for the hospital more than a year ago, it was our top priority to find a partner that would not only provide the financial and clinical resources we needed, but also would be a cultural fit with our organization,” said Doug Vaught, chairman of the Twin County Regional Healthcare board of directors. “As a result of the due diligence process, our board is even more confident that the joint venture with Duke LifePoint is right for us and our community.”

TALLAHASSEE, Fla.—State health officials say they have recovered more than $142 million in erroneous and fraudulent Medicaid claims in the past year. Attorney General Pam Bondi and Agency for Health Care Administration Secretary Elizabeth Dudek announced the figures last week in Tallahassee. The agencies are working together to fight Medicaid fraud. Florida's Medicaid program is the fourth largest in the nation and serves about 3 million people. The agencies also saved $22.1 million in unnecessary spending by reviewing the claims before paying them and terminating certain providers, officials said. The “pay and chase” system has been a problem in the fight against fraud for years. Bondi and state health officials said they are also working on projects such as increased site visits and denying reimbursement for ineligible claims to crack down on Medicaid fraud.