Florida hospital closes pediatric surgery unit after CNN report

St. Mary's Medical Center, West Palm Beach, Fla., has closed its pediatric cardiothoracic surgery program after media reports drew attention to its seemingly high mortality rates.

CNN reported this year on the deaths of at least nine children who underwent surgery in the program since 2011. That put the program's mortality rate at 12.5%, far exceeding national estimates and leading the CMS to open an investigation into the claims.

The hospital said the program's risk-adjusted mortality—which considers case severity and other inherent risk factors—was only 5.3% for the four-year period ended June 30, 2014.

“The inaccurate media reports on our program have made it significantly more challenging to build sustainable volume in our program,” according to a St. Mary's statement. “At this time we feel it is best to focus on other services needed by our community.”

The hospital's elective pediatric congenital heart surgeries were suspended in June pending a comprehensive review of the program. Some health quality experts questioned whether CNN's reported mortality rates were a fair evaluation of the program's performance without risk adjustment.

St. Mary's emphasized that the closure was the hospital's decision and not based on a decision by or recommendation of the state of Florida or any other regulatory agency. —Adam Rubenfire

The national association representing pharmacy benefit managers is suing the state of Arkansas over a first-of-its-kind law governing payments to pharmacies for generic drugs.

The law requires benefit managers to pay pharmacies the amounts those pharmacies spent to buy generic drugs from wholesalers, according to invoices. Before the law's passage, pharmacies had complained that benefit managers often paid them less for generics than what it cost the pharmacies to buy them from wholesalers, leaving them at a loss. The law was passed earlier this year and went into effect last month.

The Pharmaceutical Care Management Association argues the law will remove pharmacies' incentive to shop around for low drug prices, consequently raising prescription drug prices and hurting consumers, benefit plans, employers and insurers.

Pharmacy groups, however, say the practice of paying pharmacies less than cost for generic drugs pads the pockets of benefits managers at the expense of pharmacies and patients.

The lawsuit seeks to stop the state from enforcing the law, saying the act is unconstitutional at the state and federal levels. The suit also alleges the law is pre-empted by federal law and Medicare Part D. —Lisa Schencker