Thursday, December 11, 2008

So Much for Health Care Transparency

The state’s efforts to create a more open and transparent health care system hit a snag this week, as Department of Public Health Commissioner John Auerbach told the State House News Service that DPH will be “struggling” to find the staffing to implement new regulations requiring the public disclosure of gift-giving practices between doctors and pharmaceutical companies.

The regulations – which are mandated by the health care cost containment law signed in August – are scheduled to go into effect on July 1, 2009. With the exception of payments for research and clinical trials, the new regulations will require medical device and pharmaceutical companies to disclose any payment of $50 or more to health care providers. This information will be posted on a searchable website available to the public.

We understand that DPH’s budget has taken a $28 million hit under Governor Patrick’s recent 9C cuts, but according to the Governor’s own website, most of those cuts ($16.6 million) have come from stricken earmarks or reductions to public assistance programs, not personnel. Another $7.5 million was stripped from operating expenses, primarily for the universal immunization program ($5.97 million).

The commissioner should not worry too much about struggling to meet the personnel needs of this new mandate, because only $3.8 million of the $28 million of the 9C cuts was stricken from DPH wages and salaries. Prior to the 9C cuts, wages and salaries in Auerbach’s office had nearly doubled from $7.3 million to $14 million in one year. Even after a $700,000 9C reduction, his office still realized an increase of almost $6 million for salaries in the main DPH operating account over last year. He should be able to easily absorb the $3.8 million cut and have enough left over to find the necessary staffing to implement this new mandate.

Taxpayers should look on the bright side: at least Auerbach’s office budget hasn’t increased by 1391 percent, like salaries and wages at the Department of Labor and Workforce Development (see “Massive Cuts Don’t Extend to Governor’s Top Labor Officials” from December 1).