Hospital CEO Blames Obamacare Contractor for Medicare Payment Delays

NE Houston hospital unable to pay employees, blames new Medicare payment facilitator 

 

HOUSTON (KTRK) -- Dozens of employees at a hospital in northeast Houston have had to make it through the holidays without getting paid for weeks. The CEO of Saint Anthony's Hospital on Little York is blaming a new Medicare payment contractor for his payroll problems

Nearly 150 employees, ranging from doctors to nurses and administrators, haven't been paid in nearly a month, and the CEO says it's not his fault. 

For the neighbors around St. Anthony'S Hospital, the care has been convenient. 

"Since it was close and I was bleeding, I had to come over here," former patient Delores Cano said. But that could soon change. According to the CEO Jason Leday, more than 150 employees haven't been paid in nearly a month. 

"I understand that they have children and a house payment, bills. Not getting paid is wow," nearby resident Theresa Gutierrez said. 

The hospital is strapped for cash not because its not making money, but because Leday says a new Medicare payment facilitator named Novitas Solutions is taking too way long to pay out Medicare claims to the hospital. 

Leday says he's owed nearly $3 million in payments from Medicare and can't make payroll.

Read More: ABC 13 Houston News

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Hospital CEO Blames Obamacare Contractor for Medicare Payment Delays

Employees at a Houston area hospital haven't been paid for nearly a month, and the facility's top official blames a contractor building the financial management system for the Obamacare insurance exchange website for delaying Medicare reimbursements.

Saint Anthony's Hospital CEO Jason Leday told ABC-KTRK in Houston that Medicare owes the facility nearly $3 million and he can't meet payroll for more than 150 employees until the reimbursement bill is paid.

Leday says Novitas Solutions, the federal government's new Medicare payment contractor for the south-central U.S. region is to blame. The company was hired by the Centers for Medicare and Medicaid Services (CMS), reports The Weekly Standard.

The Texas Medical Association reports it has been getting other complaints about Novitas, which also operates the south-central region's Medicare website, which was launched two days before the HealthCare.gov site launched on Oct. 1. The regional Medicare website site also has problems similar to the troubles that initially plagued the Healthcare.gov site, and officials say it will not be fully operational until well into 2014.

Novitas was awarded a contract on Aug. 9 to build the backend system of the Obamacare website that handles accounting and premium payments to insurers. The company got the contract without having to bid for it under an emergency designation by CMS because of the fast-approaching Jan.1, 2014 launch of Obamacare.

The contract, valued at nearly $12 million, is just one of many contracts the company has with CMS, including some that cover doctor and hospital claim administration under the Medicare program.

Leday told KTRK that he's "very remorseful and disappointed" that he can't pay his employees. He said his own salary hasn't been paid in a year and that he has provided gas and grocery money for some employees from his own personal bank account during the past month.

"Its been hard for everybody," he told the television station. "This is a national issue that affects us locally. We are adapting to the new ways of doing business that have been created. We think we can be successful in 2013 and can take care of all of our employees through the transition."

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Who is Novitas Solutions?

Novitas Solutions, Inc., (Novitas) proudly serves as an administrative services processing company for government-sponsored health care programs on behalf of the federal government. We employ more than 1,000 staff in the Mechanicsburg and Harrisburg, Pa. areas. Nearly 1,000 other associates are located in field offices in Hunt Valley, Md.; Pittsburgh and Williamsport, Pa.; Dallas, Texas; Milwaukee, Wis.; and Jacksonville, Fla. Novitas currently administers:

• The Medicare Administrative Contract (MAC) Jurisdiction L (JL), which spans four states and Washington D.C.;

• The Medicare Administrative Contract (MAC) Jurisdiction H (JH), which spans seven states, Indian Health Service (IHS) and Veterans Affairs (VA); and

• The payment processing for the Federal Reimbursement of Emergency Health Services Furnished to Undocumented Aliens contract, as authorized under Section 1011 of the 2003 Medicare Modernization Act.

Overview of Novitas Solutions, Inc. in Camp Hill, PA

Novitas Solutions, Inc. filed as a Foreign for Profit Corporation in the State of Florida on Monday, May 14, 2012 and is approximately two years old, as recorded in documents filed with Florida Department of State. The filing is currently active as of the last data refresh which occurred on Sunday, September 01, 2013. A corporate filing is called a foreign filing when an existing corporate entity files in a state other than the state they originally filed in. This does not necessarily mean that they are from outside the United States.

Key People

Stephen Booma serves as the Director and has interests in other corporate entities including Navigy, Inc., First Coast Service Options, Inc. and five more corporations.

Guy Marvin is the Director of Novitas Solutions, Inc.. Guy's additional corporate interests include First Coast Service Options, Inc., Pirates Bay Homeowners Association, Inc. and two more corporations. Guy's past corporate affiliations include Capital Insurance Facilities, Inc.
 
The President of Novitas Solutions, Inc. is Sandra Coston. . Sandra has other corporate interests including First Coast Service Options, Inc., Diversified Service Options, Inc. and two more corporations.

The registered agent for the company is Thomas C. Anderson. Also known as a statutory or resident agent, the registered agent is responsible for receiving legal notifications regarding court summons, lawsuits, and other legal actions involving the corporate entity.

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Overview of Novitas Solutions Inc in Jacksonville, FL

This profile for Novitas Solutions Inc is located in Jacksonville, FL. Novitas Solutions Inc industry is listed as Nonclassifiable Establishments.

Key People

Guy Marvin serves as the Principal

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PARENT COMPANY:  Diversified Service Options

Overview of Diversified Service Options, Inc. in Jacksonville, FL

Diversified Service Options, Inc. filed as a Domestic for Profit Corporation in the State of Florida on Tuesday, May 19, 1998 and is approximately sixteen years old, as recorded in documents filed with Florida Department of State. The filing is currently active as of the last data refresh which occured on Sunday, September 01, 2013.

Key People

Deanna McDonald serves as the Chairman and has interests in other corporate entities including Blue Cross and Blue Shield of Florida Foundation, Inc., H.H. Holdings, Inc. , and First Coast Service Options, Inc.
 
Sandra Coston is the CEO of Diversified Service Options, Inc.. Sandra's additional corporate interests include First Coast Service Options, Inc., C2C Solutions, Inc.
 
The Treasurer of Diversified Service Options, Inc. is Jonathan Hogan. . Jonathan has other corporate interests including C2C Solutions, Inc. located in Jacksonville, FL

The registered agent for the company is Thomas C. Anderson. Also known as a statutory or resident agent, the registered agent is responsible for receiving legal notifications regarding court summons, lawsuits, and other legal actions involving the corporate entity.

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 SISTER COMPANY: First Coast Service Options

Overview of First Coast Service Options, Inc. in Jacksonville, FL

First Coast Service Options, Inc. filed as a Domestic for Profit Corporation in the State of Florida on Friday, May 22, 1998 and is approximately sixteen years old, according to public records filed with Florida Department of State. The filing is currently active as of the last data refresh which occurred on Sunday, September 01, 2013.

Key People

Sandra Coston serves as the President and has interests in other corporate entities including Diversified Service Options, Inc., C2C Solutions, Inc.
 
Guy Marvin is the Chairman of First Coast Service Options, Inc.. Guy's additional corporate interests include Novitas Solutions, Inc., The Florida Sunnyland Chapter of The Antique and Classic Boat Society, Inc. and two more corporations. Guy's past corporate affiliations include Capital Insurance Facilities, Inc.
 
The Director of First Coast Service Options, Inc. is Kathy Ledvina.  Kathy has other corporate interests including Novitas Solutions, Inc. located in Camp Hill, PA

The registered agent for the company is Thomas C. Anderson. Also known as a statutory or resident agent, the registered agent is responsible for receiving legal notifications regarding court summons, lawsuits, and other legal actions involving the corporate entity.