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Five-star hospitals? Government unveils new ratings

Written By limadu on Jumat, 17 April 2015 | 12.08

mayo clinic rating Patients gave the esteemed Mayo Clinic four out of five stars in the new Medicare hospital rating system.

Many of the nation's leading hospitals received middling ratings, while comparatively obscure local hospitals and others that specialized in lucrative surgeries frequently received the most stars.

Evaluating hospitals is becoming increasingly important as more insurance plans offer patients limited choices. Medicare already uses stars to rate nursing homes, dialysis centers and private Medicare Advantage insurance plans.

While Medicare publishes more than 100 quality measures about hospitals on its Hospital Compare website, many are hard to decipher. There is little evidence consumers use the site very much.

Many in the hospital industry fear Medicare's five-star scale won't accurately reflect quality and may place too much weight on patient reviews, which are just one measurement of hospital quality. Medicare also reports the results of hospital care, such as how many people died or got infections during their stay, but those are not yet assigned stars.

"We want to expand this to other areas like clinical outcomes and safety over time, but we thought patient experience would be very understandable to consumers so we started there," Dr. Patrick Conway, chief medical officer for the Centers for Medicare & Medicaid Services, or CMS, said.

Related: Hospitals ask patients to pay upfront

Medicare's new summary star rating, posted Thursday on its Hospital Compare website, is based on 11 facets of patient experience, including how well doctors and nurses communicated, how well patients believed their pain was addressed, and whether they would recommend the hospital to others. Hospitals collect the reviews by randomly surveying adult patients -- not just those on Medicare — after they leave the facility.

In assigning stars, Medicare compared hospital against each other, essentially grading on a curve. It noted on its Hospital Compare website that "a 1-star rating does not mean that you will receive poor care from a hospital" and that "we suggest that you use the star rating along with other quality information when making decisions about choosing a hospital."

The American Hospital Association also issued a caution to patients, saying "There's a risk of oversimplifying the complexity of quality care or misinterpreting what is important to a particular patient, especially since patients seek care for many different reasons."

Nationally, Medicare awarded the top rating of five stars to 251 hospitals, about 7% of all the hospitals Medicare judged, a Kaiser Health News analysis found. Many are small specialty hospitals that focus on lucrative elective operations such as spine, heart or knee surgeries. They have traditionally received more positive patient reviews than have general hospitals, where a diversity of sicknesses and chaotic emergency rooms make it more likely patients will have a bad experience.

Related: Hospitals face major government crackdown for injuring patients

A few five-star hospitals are part of well-respected systems, such as the Mayo Clinic's hospitals in Phoenix, Jacksonville, Fla. and New Prague, Minn. Mayo's flagship hospital in Rochester, Minn., received four stars.

Medicare awarded three stars to some of the nation's most esteemed hospitals, including Cedars-Sinai Medical Center in Los Angeles, NewYork-Presbyterian Hospital in Manhattan and Northwestern Memorial Hospital in Chicago. The government gave its lowest rating of one star to 101 hospitals, or 3%.

On average, hospitals scored highest in Maine, Nebraska, South Dakota, Wisconsin and Minnesota, KHN found. Thirty four states had zero one-star hospitals.

Hospitals in Maryland, Nevada, New York, New Jersey, Florida, California and the District of Columbia scored lowest on average. Thirteen states and the District of Columbia did not have a single five-star hospital.

In total, Medicare assigned star ratings to 3,553 hospitals based on the experiences of patients who were admitted between July 2013 and June 2014.

Related: Even insured consumers get hit with surprisingly large medical bills

While the stars are new, the results of the patient satisfaction surveys are not. They are presented on Hospital Compare as percentages, such as the share of patients who said their room was always quiet at night. Often, hospitals can differ by just a percentage point or two, and until now Medicare did not indicate what differences it considered significant. Medicare also uses patient reviews in doling out bonuses or penalties to hospitals based on their quality each year.

Some groups that do their own efforts to evaluate hospital quality questioned whether the new star ratings would help consumers. Evan Marks, an executive at Healthgrades, which publishes lists of top hospitals, said it was unlikely consumers would flock to the government's rating without an aggressive effort to make them aware of it.

Jean Chenoweth, an executive at Truven Health Analytics, which also publishes its own list of top hospitals, said she feared hospital marketing departments would oversell the meaning of the stars.

"It would be very unfortunate and misleading if a hospital marketing department could claim to be a CMS five-star hospital and fail to mention it only reflected a patients' perception of care," she said.

How to find a hospital's star rating:

Go to Hospital Compare's web site

Type in your zip code and/or hospital name

Select up to three hospitals by clicking the "Add to compare" button

Under Compare Hospitals title, click "Survey of patients' experiences" tab

Scroll down to the star rating

Kaiser Health News (KHN) is a national health policy news service. It is an editorially independent program of the Henry J. Kaiser Family Foundation.

CNNMoney (New York) April 16, 2015: 8:25 PM ET


12.08 | 0 komentar | Read More

Oil job cuts keep coming: Schlumberger lays off 11,000

Another 11,000 people lost their jobs at Schlumberger, a company that provides tools and services for oil and gas companies.

It's the second big layoff at Schlumberger this year. It cut 9,000 workers in January. Schlumberger's workforce is now 15% smaller than it was in mid-2014.

Oil prices have plummeted from $107 a barrel last June to about half that now.

"The abruptness of the fall in activity, particularly in North America, required us to take additional actions during the quarter," the company said Thursday.

Schlumberger (SLB) operates in more than 85 countries.

Related: Cheap gas is saving Americans $750. So far, they aren't spending

It's not the only oil company feeling the pain. In January, oilfield services giant Baker Hughe (BHI)said it would layoff 7,000 employees, about 11% of its workforce. Civeo, (CVEO)a provider of housing for oil workers, laid off 1,000 employees in December.

It appears oil prices might be on the upswing. Prices peaked above $56 for the first time this year on Wednesday. But consumers are still enjoying low prices at the pump. The average gallon of gas costs $2,39, more than a dollar less than the average a year ago, according to AAA.

Related: U.S. could be energy dependent within four years

CNNMoney (New York) April 16, 2015: 7:43 PM ET


12.08 | 0 komentar | Read More

IBM warns Louisiana over 'religious freedom' bill

"A bill that legally protects discrimination based on same-sex marriage status will create a hostile environment for our current and prospective employees, and is antithetical to our company's values," IBM vice president James Driesse wrote in a letter to Gov. Bobby Jindal.

"IBM will find it much harder to attract talent to Louisiana if this bill is passed and enacted into law," Driesse said.

The letter asks Jindal to work with the state legislature to "ensure this legislation is not discriminatory." IBM has made significant investments in Louisiana, including a technology services delivery center in Baton Rouge.

The letter is the latest warning from corporate America to states that are considering controversial religious freedom laws. In Indiana and Arkansas, an intense backlash has already forced lawmakers to make revisions.

Critics say the laws give businesses the ability to discrimination against gay, lesbian and transgender people on religious grounds. Louisiana's "Marriage and Conscience Act" would prohibit the state from taking "adverse action" against a person who opposes same-sex marriage because of their religion.

Jindal, a potential Republican presidential candidate, said it's a matter of liberty.

"I think we can have religious liberty without having discrimination," he said earlier this month on NBC's Meet the Press. "I think it's possible to have both."

Related: Warren Buffett says discrimination for sexual orientation is 'wrong'

Related: Brands that love LGBT the most

CNNMoney (Hong Kong) April 17, 2015: 12:37 AM ET


12.08 | 0 komentar | Read More

GM shielded from ignition lawsuits by bankruptcy rule

Written By limadu on Kamis, 16 April 2015 | 12.08

The decision by Federal Bankruptcy Court Judge Robert Gerber upholds GM's so-called bankruptcy shield. GM acquired the shield as part of its bankruptcy reorganization when a new company was created in 2009, referred to in court as "New GM."

"Judge Gerber properly concluded that claims based on Old GM's conduct are barred," the automaker said in a statement.

The shield had been challenged both by some personal injury attorneys as well as lawyers suing on behalf of owners of the recalled cars to recover damages for the diminished value of the recalled cars.

The decision could prevent lawsuits that would have cost "New GM" billions of dollars.

"This ruling padlocks the courthouse doors," said Robert Hilliard, one of the attorneys suing GM. "Hundreds of victims and their families will go to bed tonight forever deprived of justice. GM, bathing in billions may now turn its back on the dead and injured, worry free."

The decision left the possibility for some suits to proceed if the plaintiffs can prove misdeeds by the company after the 2009 bankruptcy, "so long as those plaintiffs' claims do not in any way rely on any acts or conduct by old GM."

gm ignition switch The old and new version of the tiny part that is at the center of the GM recall.

GM (GM) shares were up about 1% in after-hours trading following the decision.

Problems with millions of cars with faulty ignition switches, most of them built before the bankruptcy, have been tied to at least 84 deaths. It is not immediately clear how many of the accidents occurred after the bankruptcy. Accidents that occurred in the years following 2009 were not protected by the shield.

GM has admitted that its employees were wrong not to order a recall of the cars about a decade before the 2014 recall.

The decision will not stop GM from paying an estimated $400 million to victims and their family members. But GM set up a compensation fund voluntarily without waiving the legal protections it acquired as part of the bankruptcy process on pre-2009 accidents.

Related: Recall victim - GM shouldn't get a tax break from settlement

Related: Barra's recall apology not enough, families say

Related: GM settles second suit with recall whistle-blower

CNNMoney (New York) April 15, 2015: 7:03 PM ET


12.08 | 0 komentar | Read More

Bubble trouble: China's stock market looks too hot

china rocket

Chinese equities are officially on fire. The Shanghai Composite has skyrocketed 78% since just before Halloween. It recently crested the 4,000 level for the first time since the financial crisis.

Yet stocks in China have achieved red-hot status just as the country's economy is going through a cooling off period. Growth slowed to the weakest pace since 2009.

In other words, exuberance for Chinese stocks isn't being backed up by fundamentals. Instead, the market is being carried higher by various forms of government stimulus and investor frenzy.

All of this raises the question: Is China in the midst of a bubble? And if it is, what should American investors do?

"Certainly a bubble exists," said Ankur Patel, chief investment officer at R-Squared Macro Management.

Rather than enjoy the ride up or try to profit from its eventual popping, Patel said the prudent move for U.S. retail investors is to stay away from the Chinese market altogether.

"The problem with any bubble is if you try to bet against it, bubbles can become even more irrational. The herd mentality can essentially run investors over," he said.

Related: China stocks are on an incredible mystery run

Equity euphoria hits China: There are growing signs of speculative fervor in China.

In recent years, people in China -- who tend to save significantly more than their Western counterparts -- sunk their excess savings into the real estate market.

Now that the bubble in housing is deflating, they are latching onto the skyrocketing stock market. Investors opened 4.8 million new stock trading accounts in March and then another million more in early April, according to the Financial Times.

"There's no question there's a lot of domestic euphoria about equities within China," said Albert Brenner, director of asset allocation strategy at People's United Wealth Management.

Several Chinese retail investors polled by CNNMoney said they trade stocks frequently -- up to several times a day -- in part to have fun. One Shanghai woman, who didn't give her full name, said she's not worried about trading expenses hurting performance because "fees tend to drop during bullish markets anyway."

Non-Chinese investors are also taking notice. Exchange-traded funds that track China -- the best way for U.S. investors to play China -- have soared. The iShares MSCI China ETF (MCHI) and SPDR S&P China ETF (GXC) are both up over 20% so far this year.

Related: China's stock market finally opens up to foreigners. Now what?

Liquidity-fueled bubble? Hoping to avoid a so-called "hard landing," China's central bank is pumping liquidity into the market by cutting rates. That's good for risky assets like stocks, but liquidity-driven moves are susceptible to bubbles.

Liquidity is also being pumped by the Hong-Kong Shanghai Stock Connect Program, which allows investors to buy Shanghai stocks through Hong Kong -- and vice versa. Not only is fresh foreign capital flowing onto Mainland China for the first time, but excess liquidity inside China is flooding into Hong Kong.

Related: Chinese investors trade way more than Americans

Goldman Sachs isn't worried: Of course, not everyone believes it's time to call China's rapid rise a bubble.

Timothy Moe, co-head of macro research in Asia at Goldman Sachs, told CNBC the market "certainly is getting frothy" amid "very frenetic retail activity."

"Is that a bubble that will crash the system? The answer is not yet," Moe said.

In other words, just because Chinese stocks look very speculative doesn't mean the party has to end today.

One possibility, Patel said, is for the bubble to end "benignly" if China's growth regains momentum, justifying current valuations. He said that looks unlikely and there's a better chance the opposite will occur.

Another possible outcome is the stock market keeps roaring ahead before imploding, like it did the last time.

"To be clear, what's underway in China is an out-and-out bubble, but there's plenty of money to be made riding bubbles up a bit," Bespoke Investment Group wrote in a note to clients. The firm said it "may be worthwhile to consider a small position" in Chinese ETFs like the SPDR S&P China ETF (GXC).

Just remember: Bubbles are notoriously difficult to time, even for sophisticated investors.

Related: This man bet $100K there's a startup bubble

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Related: How to invest $1,00

CNNMoney (New York) April 15, 2015: 10:10 PM ET


12.08 | 0 komentar | Read More

Japan now holds more U.S. debt than China

Data from the Treasury Department released Wednesday show that Japan owned $1.2244 trillion worth of U.S. government securities at the end of February, compared to $1.2237 trillion for China.

Both countries unloaded U.S. debt during the month of January, but China sold more, making Japan the top U.S. creditor for the first time since the financial crisis.

The Treasury data should be taken with a grain of salt: Transactions carried out by other nations on behalf of China and Japan aren't included, making the final tally more of an educated guess.

Related: Bubble trouble? China's stock market looks too hot

But the Japan-China switch is backed by larger trends, and changes in the way Beijing manages its foreign reserves. Treasury data show that over the past year, China's U.S. debt holdings dropped by $49.2 billion, while Japan's increased by $13.6 billion.

China had been buying Treasuries as a way to keep its currency, the yuan, pegged to the U.S. dollar. That helped lower the value of the yuan and made China's exports more competitive in foreign markets.

But in recent years, partly due to U.S. pressure and partly as an effort to curb its own inflation, China has allowed the yuan to rise in value.

Closer to home, there's another major buyer of U.S. debt: the Federal Reserve. At last count the central bank owned around $2.5 trillion worth of Treasuries, up from around $800 billion at the end of 2007.

Related: U.S. runs out of investor visas again as Chinese flood program

CNNMoney (Hong Kong) April 15, 2015: 11:32 PM ET


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China's economic growth drops to slowest pace since 2009

Written By limadu on Rabu, 15 April 2015 | 12.08

Gross domestic product expanded by 7% in the first three months of 2015, compared to the same period last year, according to China's National Bureau of Statistics.

While that matches the expectations of economists surveyed by CNNMoney, it is quite a decline from the final quarter of 2014, when growth came in at 7.3%.

Moderate economic expansion isn't all bad news, said Andrew Colquhoun of Fitch Ratings. "It means the economy is adjusting to a more sustainable path -- we'd expect the economy to slow as it re-balances."

The strength of China's economy is often difficult to judge at the beginning of the year because of the Lunar New Year holiday. But recent data on manufacturing activity and exports have disappointed, and analysts expect slower growth going forward.

The downturn is putting additional pressure on the central government as it works to transition China to a consumption-led economy. Policymakers are also trying to avoid a sudden slowdown in economic growth, which could cause unemployment to surge and consumption to lag.

Experts say a downturn in China's real estate sector is the single biggest risk to the economy, which relies on the industry to boost growth and for new jobs. Other challenges include ballooning government and corporate debt.

Related: Economists are really worried about China's massive property sector

China's foreign exchange reserves have also fallen, a sign that speculative capital is leaving the country as growth concerns intensify.

Colquhoun said the People's Bank of China will need to respond to weakening growth with further monetary easing. The central bank already cut interest rates twice since late last year in an attempt to boost investment and shore up the economy.

GDP growth in China remains the most comprehensive gauge of the country's economic health. China averaged economic expansion of around 10% a year over the past three decades, making it the world's second-largest economy.

Economists forecast 6.8% GDP growth for this year, and even slower expansion at 6.5% in 2016, according to the CNNMoney survey. China recorded GDP growth of 7.4% in 2014, the worst in 24 years.

Despite economic stability concerns, Chinese stock markets have continued to surge to astonishing highs. While stocks swung between gains and losses on Wednesday, the benchmark Shanghai Composite is still up 28% this year. The Shenzhen Composite has spiked over 50% year to date, making it the world's top-performing stock market.

Related: China's factories slump amid growth concerns

CNNMoney (Hong Kong) April 14, 2015: 11:18 PM ET


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