Newark, N.J.-based Cathedral Healthcare System said late last week it's cooperating with an investigation highlighted by an FBI raid on the two-hospital system on June 11. Working under a search warrant, FBI agents carted off records and computers from the system's corporate office and its St. Michael's Medical Center division in Newark, said Carl Golden, a system spokesman. He said system executives don't know the nature of the FBI probe and no charges have been filed against the system.
Tobacco companies would pay billions of dollars into public healthcare programs under a historic agreement reached late Friday with state attorneys general. The tobacco industry would immediately pay $7 billion to state Medicaid programs and $3 billion to HHS. In addition, the tobacco companies would pay $25 billion over 25 years for children's healthcare and $25 billion over the same period into a healthcare trust fund that would be paid out based on the recommendations of a presidential commission.
Nashville-based Columbia/HCA Healthcare Corp. confirmed late last week that it's close to acquiring 189-bed Methodist Hospital of Chicago. Columbia's Chicago division confirmed the negotiations, saying it has signed "a letter of exclusive dealing." Not-for-profit Methodist would become Columbia's ninth hospital in the Chicago area.
Columbia/HCA Healthcare Corp. late late week hired Robert B. Stearns as senior vice president and chief financial officer. Stearns, 45, fills the position previously held by David Colby, who left more than a year ago. Stearns will join Columbia July 21 from Dial Corp., where he has been senior vice president and CFO since July 1996.
James Ehlen, M.D., president of Allina Health System, late last week was appointed chairman-elect of the Healthcare Forum board of directors. Ehlen, 53, will serve as chairman of the San Francisco-based group from May 1998 to May 1999. Ehlen runs Allina, a Minnesota-based not-for-profit healthcare system, with Gordon Sprenger, 60, executive officer or co-president.