HHS' inspector general's office releases its first report on hospitals' PPS profit margins, finding hospitals posted a 14% profit on inpatient Medicare business in fiscal 1984 and a 15% profit in fiscal 1985.
The Centers for Disease Control and Prevention releases new federal guidelines for protecting healthcare workers from exposure to AIDS.
Hospital Corporation of America, Nashville, Tenn., spins off 104 of its 185 hospitals into a new employee-owned company named HealthTrust, the Hospital Co.
Congress passes legislation making illegal kickbacks for Medicare business a civil violation, punishable by expulsion from Medicare, as well as a criminal violation.
Physician financier LeRoy Pesch, M.D., makes two unsuccessful takeover bids for American Medical International.
Johns Hopkins University professor Susan Horn introduces the first severity-of-illness adjustment systems to analyze hospital patient data.
CAN YOU BELIEVE IT?
Sidney Wolfe, M.D., head of Public Citizen's health research group, says 5% to 15% of the nation's 500,000 physicians are incompetent and most will never be disciplined.
The American Medical Association releases a report that says more than half of a group of surveyed physicians have been pressured by hospital executives to discharge patients sooner than medically prudent.
Baxter Travenol Laboratories of Deerfield, Ill., acquires chief home infusion competitor Caremark, based in Newport Beach, Calif., for $528 million.
Kaye Lani Rae Rafko, the new Miss America and a registered nurse, vows to use her new title to promote the nursing profession and help solve the nursing shortage.
COVER STORY March 27, 1987
Hospitals nationwide are looking for a few good registered nurses. Well, thousands of them, to be exact.
Dallas-area hospitals are 1,300 nurses short. Hospitals in Washington and Baltimore need about 1,000 nurses. Scott and White Medical Center, a 600-bed hospital in Temple, Texas, has solved its nursing shortage. It closed a 42-bed unit because it didn't have enough nurses to staff it. Some experts say it's the industry's most severe shortage.
"There's going to be a time lag between when you make an investment and when you start generating the profits."
-Thomas Reed, president and chief executive officer of VHA Enterprises, which lost $24 million in 1986