17 Apr 2012

Uncertainty Over Tax Code Plagues Small Business

By Kevan Chapman

WASHINGTON, D.C., April 17, 2012 – Today is tax day, and our nation's biggest job creators - small businesses - continue to be hampered by uncertainty in the tax code and the threat of an increased tax burden next year. Among the biggest issues causing uncertainty are the ever-changing expiration and renewal of so-called tax extenders and the threat of increased tax rates next January.

To highlight the problems facing small businesses around the country, the National Federation of Independent Business is providing a fact sheet citing key statistics from the NFIB Research Foundation and other sources. Click here to view the two-page fact sheet or to receive it as an email attachment, please email Kevan Chapman at Kevan.Chapman@nfib.org.

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13 Apr 2012

Don't be a Stooge When It Comes to Marketing

By Rick Martin

The guys I know have all been looking forward to "The Three Stooges" remake opening this month. They think Moe, Larry and Curly's harebrained schemes, silly missteps, and thwacks, smacks and blindside attacks are hysterically funny.

Heck, I don't need to go to the movies for slapstick - I've got men in my life!  (Kidding, of course.)

Everyone - yes, women, too - can be a stooge now and then. Lifelong "Stooges" fan Alex Hinojosa, our senior campaign manager at EMSI, says if you watch enough of their films, you start seeing their personalities in the people you meet. And just like on the big screen, the Moes, Larrys and Curlys of the world get themselves into loads of trouble. It happens all the time with PR.

The Moe: He's the client who knows everything (so why on earth did he hire PR professionals?) Moe will bark and bang and bully to get things done his way even though he's never coordinated a media campaign, never worked in radio, TV or newspapers, and doesn't know a tweet from a twit.

He's the client who insists on rewriting his media pitches because he thinks they should be longer and more detailed. (Succinct communications are what catch the attention of busy journalists and show hosts, but he disagrees.) He insists his angle is much more likely to interest a talk show host, even though he's never hosted a talk show. Would you perform surgery on yourself? Moe would! And with disastrous results.

If you're going to be a Moe, at least get a better haircut.

The Larry: Easygoing and passive, he doesn't want to stir up controversy or offend anyone. No matter what the medium, he insists on appealing only to audiences and show hosts that already agree with his message, so he misses out on the opportunity to win over new fans - and their friends.

The Larrys are also easily forgotten. If they won't do, say or write anything provocative during their marketing campaign, they won't engage their audience, which means few will remember them.

The Larrys tend to quietly go along with everything their PR agency suggests. They don't ask questions when they have them, and they don't contribute their ideas. Their campaigns may be a bit lackluster because they're afraid they'll bother somebody if they actively participate.

The Curly: He's the star of the stooges - and he doesn't even know it. The Curlys are the clients with great stories, powerful messages and a big lack of self-awareness. "Why would anyone want to interview me?" they ask.

In truth, everyone has a great story, and a pro will find it and use it. Nothing breaks my heart more than to hear someone tell me, "I was with an agency and I paid them thousands of dollars, but all I got was one mention in a weekly paper in Boondocks, Idaho. No one's interested in me."

What a cruel blow to a person's self-esteem! PR companies that tell you "no one's interested" are really saying, "We didn't get results, so we're blaming you."

Yes, your message, the energy and interesting content you bring to the media and the quality of your book or product will determine whether you ultimately meet all of your goals. But don't believe for a minute that no one's interested in you. It's simply not true.

From what Alex tells me, the actor who played Curly in the original "Stooges" was painfully insecure in real life. That led to heavy drinking, overeating and other self-destructive behaviors, which took a terrible toll on his health. He suffered a stroke in 1946, never fully recovered, and died six years later. Such a sad end for a man who made so many people laugh.

"The Three Stooges" make for great entertainment on the big screen, but if you want a successful media campaign, don't be a stooge!  When you've hired a team of professionals with a strong track record and plenty of years in the business, trust them.  Let them do their jobs.

Be ready to participate in your campaign by asking questions, sharing ideas, and providing any materials or information that might be useful.

And remember, you do have a story that others want to hear. You're no less important than the next guy.  Don't make me knock you over the head with a dead fish for you to believe that!

About Marsha Friedman

Marsha Friedman is a 22-year veteran of the public relations industry. She is the CEO of EMSI Public Relations (www.emsincorporated.com), a national firm that provides PR strategy and publicity services to corporations, entertainers, authors and professional firms. She also co-hosts "The News and Experts Radio Show with Alex and Marsha" on Sirius/XM Channel 131 on Saturdays at 5:00 PM EST.

10 Apr 2012

Galesburg Jobs Fair Provides Opportunities

By Andie Pivarunas

Galesburg, Illinois - Congressman Bobby Schilling (IL-17) joined the offices of U.S. Senators Dick Durbin and Mark Kirk, Illinois State Senators John Sullivan (D-47) and Darin LaHood (R-37) and State Representatives Don Moffitt (R-74) and Norine Hammond (R-94)  in support of Carl Sandburg College's 21st Annual Jobs Fair held today in Galesburg.  

"Jobs fairs like today's serve as a great reminder that there openings right  here in the 17th District," Schilling said.  "With unemployment at a federal level and here at home having been too high for too long, it's easy for folks looking for work to become discouraged.   I can't emphasize enough how important it is for folks in Springfield and in Washington to work together on creating an environment that encourages private-sector job creation, giving our unemployed friends and neighbors hope, opportunity, and a bright career path."

"With the national unemployment rate above 8 percent and rates even higher in many communities throughout Illinois, job fairs like the one in Galesburg today provide important resources and connections for those hunting for new jobs or those looking to expand and enhance their careers," said a spokesperson for Senator Kirk.

The unemployment rate in Knox County was at 9.5 percent as recently as February, significantly higher than February's national unemployment rate of 8.3 percent.  The jobs fair enabled job seekers from Galesburg and the surrounding area to connect with the more than 60 employer representatives attending, develop contacts in the many industries represented, explore career options, and collect information for their job hunt.

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10 Apr 2012

Boomers Stand to Inherit Trillions

By Ginny Grimsley
Expert Says Closed-End Funds a Good Investment Option

Baby boomers stand to inherit $10 trillion in the next few years and women will get the bulk of it, according to a Cornell University study, because they outlive men an average of seven years.

"Women already control 60 percent of the nation's personal wealth - they outnumber men and they are traditionally the shoppers," says financial expert Scott T. Schultz, author of Scott Schultz's Guide to Closed-End Funds (www.closedendfundguru.com).

"It's sad that, despite the fact that nearly a third make more money than their husbands and they're starting businesses at twice the rate men are, 38 percent of women ages 30 to 55 worry they'll eventually live in poverty because they can't adequately save for retirement," he says.

With the first of the boomers hitting 65 this year, the nation will see an even greater number of retirement-aged women holding the country's purse strings.

"Many will inherit money and property from their parents and/or their husbands, and many will live another 30 to 40 years," Schultz says, citing the Cornell study. "They'll need to invest their money to ensure they have enough to avoid that impoverished retirement they fear, but they - and the nation - have lost confidence in the stock market; April 2011 saw the lowest number of investors since 1999."

What brokers don't tell clients about, he says, is closed-end funds. Schultz, ranked the No. 1 Separate Account Money Manager for three consecutive years by USA Today, says he earned that national honor by relying almost solely on these limited-issue stocks. Because they're available only in finite numbers and because watchful brokers can find them "on sale," they're a better bet as an investment for those who are willing to sit on them awhile.

Why is the American public so in the dark about closed-end funds? Noting his book is the first written on the topic in more than 20 years, Schultz says there are a few reasons:

• Brokers can't generate a lot of commissions from them. Brokers move open-ended funds quickly because they earn a commission with each transaction. It's easy money for them, Schultz says. Closed-end funds require a longer term investment strategy, so brokers who want to get rich quick won't use them.

• They require more effort from the broker, who has to work to find the "sales." One advantage of closed-end funds is that they can sometimes be purchased at a discount, so the investor starts off ahead of open-end investors who are paying full price for stocks, Schultz says. Even if the fund never gets back up to its full value, any increase at all is a gain. But the broker has to be willing to work to find the good investments with good discounts. And then he or she has to be willing to sit on them.

• Closed-end funds are boring! For a lot of brokers, it's just plain fun to trade stocks in products and initiatives with an exciting ring to them, whether it's Facebook or a treasure-hunting ship. These brokers are constantly trading stocks - and generating transaction feeds, lawyer fees and underwriting fees every time - because that's what they like to do. Closed-end funds require thoughtful, sometimes tedious research before buying, and then the patience of a saint as both the broker and the investor wait for the bid price to increase.

About Scott T. Schultz

Scott T. Schultz began his career in 1983 at E.F. Hutton and was ranked the nation's No. 1 Separate Account Money Manager by USA Today for three consecutive years using GIPS verified/audited performance numbers supplied by Morningstar, Inc. Schultz was a GOP nominee for U.S. Congress in 1988, and met with Presidents Ronald Reagan and George H.W. Bush at the White House. He graduated from Michigan State University with a degree in journalism.

10 Apr 2012

TREASURY ANNOUNCES $72.2 MILLION INCREASE IN SMALL BUSINESS LENDING AT IOWA BANKS

By Treasury Public Affairs

WASHINGTON - Yesterday, the U.S. Department of the Treasury released a report showing that Iowa banks have increased their small business lending by $72.6 million since receiving capital through Small Business Lending Fund (SBLF).

 

The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses to help them grow and create new jobs.  Treasury invested more than $4 billion in 332 institutions, located in over 3,000 communities in 48 states, through the SBLF.  Nationwide, institutions participating in the SBLF significantly increased small business lending in the last quarter of 2011 by $1.3 billion over the prior quarter?for a total of $4.8 billion over their baseline.

 

"This report shows that the Small Business Lending Fund is having a powerful impact," said Deputy Secretary of the Treasury Neal Wolin.  "The program is helping spark new lending to local entrepreneurs looking to invest in their businesses and create new jobs."

 

To view the report on the SBLF that Treasury released yesterday, including a detailed list of the change in lending at banks receiving SBLF capital, please click here.

 

Small businesses play a critical role in the U.S. economy and are central to growth and job creation.  Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation.  But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.

 

The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets.  The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its small business lending, providing a strong incentive for new lending to small businesses so they can expand and create jobs.  For more details on the SBLF program, please click here.

 

The SBLF is one part of the Obama Administration's comprehensive agenda to help small businesses access the capital they need to invest and hire.  The State Small Business Credit Initiative (SSBCI), which is also a key part of the Small Business Jobs Act, has allocated $1.4 billion to small business programs in 54 states, territories, and municipalities to help spur additional lending to small businesses and manufacturers.

 

Last week, President Obama also signed the Jumpstart Our Business Startups (JOBS) Act into law, which will allow Main Street small businesses and high-growth enterprises to raise capital from investors more efficiently, helping small and young firms across the country to grow and hire faster.  For more details on the key elements of the JOBS Act, please visit here and here.

 

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10 Apr 2012

New Survey Reveals How Much Local Customers Hate to Wait!

By Emily Reass
Most won't wait more than ten minutes at a retail outlet

(April 2012) To keep local customers happy, retailers might want to focus less on the register and more on the clock. In these busy, hectic times, retailers better hop to it and wait on customers quickly, or customers will hop on out of there - because customers HATE TO WAIT!

In a new national survey:
• 76% of respondents say a wait any longer than five to ten minutes at a retail business is unreasonable.
• 94% say a reasonable amount of time to wait at a retail business is 5 - 10 minutes or less.

If a retail business makes them wait fifteen minutes or longer:
• 63% say it shows bad customer service and a lack of respect for their time.
• 52% say they take their business elsewhere
• 48% say they assume the business is not well run and badly managed.

When asked what bothered them the most about a retailer:
Most often ranked as the #1 annoyance (in order):
• A rude staff
• They made me wait
• I paid too much

In other survey findings:
• 87% of respondents say they would use a technology that kept them from waiting in line at a retail stores if it saved them 15 minutes of waiting.
• 2 out of 3 respondents say they would use online check-in or download an app that saved their place in line at a retail business.

The survey also asked respondents for the most annoying time waster in their lives.
Most often ranked as the #1 annoyance (in order):
• Getting Placed on Hold
• Waiting in Line
• Sitting in Traffic

Great Clips, a local hair salon brand and the first ever to introduce time saving online check-in, asked consumers about waiting as part of a campaign to introduce the new online check-in app. The technology, which allows customers to check in from their desktops or smart phones, has trimmed haircut wait times from about fifteen minutes to five minutes, so customers can pretty much walk right in with little or no wait.

"In all our research, in focus group after focus group, we hear that today's busy singles and families alike are stressed out, exhausted and short on time - and today, time is money," says Rhoda Olsen, CEO of Great Clips. "Online check-in gives people back those few extra minutes that can take your day from good to great."

Online check-in is already gaining steam, with more than one million customers checking in online in 2011. In 2012, that number is even greater with an average 200,000 checking in online per month. With more than 80,000 new downloads of the app each month, it's clear customers find it helpful.

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10 Apr 2012

Loebsack Statement on Department of Labor's March Jobs Report

By Rick Martin

Washington, D.C. - Congressman Dave Loebsack today issued the following statement in response to the Department of Labor's announcement that the unemployment rate dropped slightly to 8.2 percent in March and 120,000 jobs were added.

"Numbers do not mean anything to Iowans who are still out of work.   Today's report shows that any progress is tenuous at best and Congress still has a lot of work to do for there to be a meaningful recovery.  The small steps that have been taken up to this point to get the economy heading in the right direction have provided only a small boost.  Congress needs to come together and move forward with commonsense, bipartisan solutions in order to create jobs and boost the economy."

 

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06 Apr 2012

Within 48 Hours, Two Loebsack-Backed Initiatives Signed by the President

By Randy Stalsberg

With signature, JOBS Act and STOCK Act become law

 

Washington, D.C. - Congressman Dave Loebsack released the following statement after both the JOBS Act and the STOCK Act were signed into law by President Obama.

 

"I am pleased the President signed both of these important pieces of legislation into law.  The American people have been demanding Congress work together to grow the economy.  They also want a government that will work for them, not make a profit off the information they get as part of their work.  The JOBS Act and STOCK Act are a step in the right direction on each front.

 

"These bills are both good examples of what can be achieved when both sides of the aisle stop playing games and work together to find bipartisan solutions.  I was pleased to work with my colleagues on both pieces of legislation and am hopeful they will begin to restore Americans' trust in Congress."

 

The JOBS Act, HR 3606, will help small businesses in communities access capital more easily in order to expand and support job creation and use capital more effectively in order to support growth.  An amendment introduced by Loebsack, which passed with unanimous support, will help women, veteran, and minority- owned businesses take advantage of the benefits and opportunities provided by this legislation.

 

The Stop Trading on Congressional Knowledge (STOCK) Act will prevent Congressional insider trading.  In May 2011, Loebsack was the first person from Iowa and the fourth in the House of Representatives to cosponsor this important legislation.

 

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06 Apr 2012

Governor Quinn Announces New Employment System to Help Connect Jobless with Businesses

By Leslie Wertheimer

Free Illinois JobLink service boasts nearly 92,000 statewide job postings; more than 51,000 resumes

 

CHICAGO - April 4, 2012. In his latest effort to boost the Illinois economy, Governor Pat Quinn today announced a new "help-wanted" system that connects job-seekers with jobs and makes hiring easier and more cost-effective for businesses. Illinois JobLink, developed by the Illinois Department of Employment Security (IDES), allows businesses to post job ads and individuals to post multiple resumes for free. Currently, there are nearly 92,000 total statewide job postings and more than 51,000 resumes posted on the system.

 

"We can increase economic growth in Illinois by connecting people who are looking for a job with employers who are looking to hire," Governor Quinn said. "During this difficult economy, Illinois JobLink is helping workers market their job skills and allowing employers to successfully find the help they need at no cost."

 

Illinois employers including Aon, Chrysler and Ford, have used Illinois JobLink to search for resumes and potential employees. Comparable private job boards can cost employers hundreds of dollars, and studies show that businesses prefer the key word search function to find employees with the unique skills that are needed. Using Illinois JobLink (www.illinoisjoblink.com), employers can create want-ads that require specific skills or search resumes using keywords such as salary, educational attainment and location. In turn, job seekers can create multiple resumes that emphasize their variety of skills.

 

"Hiring is time-consuming and expensive for employers. Illinois JobLink makes hiring easier by allowing employers to focus in like a laser on job seekers that possess the unique skill sets that they need," IDES Director Jay Rowell said. "It also helps our working families identify what job best fits their needs and puts them in a better position to pitch themselves to multiple employers at one time."

 

Illinois JobLink also pulls want-ads from Indeed.com, the largest employment site in the United States. Indeed.com collects postings from thousands of websites, including newspapers, associations, company career pages and job boards. Nationally, more than 550,000 jobs are available on Illinois JobLink.

 

While the Illinois JobLink service is available to everyone, including those who are currently employed, individuals collecting unemployment insurance are required to participate in Illinois JobLink. It also serves as another tool to connect veterans to jobs when they return home.

 

"We in the veteran advocacy community are excited by what Illinois Job Link offers to veterans," Illinois Veterans Affairs Director Erica Borggren said. "Helping employers find veterans is one of the most difficult pieces of the veteran unemployment 'puzzle,' and all job-seeking veterans can benefit from this powerful tool which allows the State's Veteran Employment Representatives to match veterans and employers."

 

Illinois JobLink replaced the previous Illinois SkillsMatch system and individuals and businesses with SkillsMatch accounts are encouraged to update their profiles, which were automatically transferred to the new system. IDES encourages job-seekers to set their resumes to public to ensure maximum exposure to businesses.

 

The state's comprehensive approach to helping match job seekers with employers is complemented by Illinois workNet® (www.illinoisworknet.com), a workforce development system administered by the Illinois Department of Commerce and Economic Opportunity (DCEO).  Illinois workNet utilizes partnerships and technology to expand seamless and real-time access to employment resources, including assistance with hiring and training employees, recruitment services, and tax incentives to keep local Illinois businesses competitive. As of January 2012, the Illinois workNet portal has more than 234,000 individual, workforce and business accounts.

 

As Illinois'' employment agency, IDES works with employers to fill vacancies in several ways including hosting job fairs, providing interview space and connecting job seekers with ready-to-hire employers. Providing soft-skills training to job seekers, such as skills assessment, resume review and interview techniques can be combined with other training courses available through more than 60 workNet centers across the state. This multi-agency, collaborative approach identifies the skills needed by businesses and helps job seekers obtain the skills needed to meet those needs. For more information, visit http://www.ides.illinois.gov/.

 

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03 Apr 2012

Medical Malpractice Reform Grants Diverted to Other Research

By Grassley Press

Top Republican Judiciary Committee Members Question Obama Administration's Commitment to Medical Malpractice Reform

 

WASHINGTON - Senate Judiciary Committee Ranking Member Chuck Grassley, House Judiciary Committee Chairman Lamar Smith and Senate Finance Committee Ranking Member Orrin Hatch are concerned that the Obama administration has diverted tens of millions of dollars intended for research on malpractice reform to other forms of research.

 

In a letter to the Secretary of Health and Human Services Kathleen Sebelius, the members point to a September 9, 2009 address to Congress where President Obama announced an initiative to address the rising costs of health care associated with medical malpractice.

 

The members wrote, "Frivolous lawsuits, the high cost of malpractice insurance and excessive damages awards are dragging down our health care system...However, the AHRQ's (Agency for Healthcare Research and Quality) description of the research being funded (through the President's initiative) does not mention, much less emphasize, reforms to medical malpractice laws, as was clearly implied by the President's speech."

 

The letter specifically calls attention to the fact that none of the $23.2 million awarded has gone to researching or implementing "traditional" medical malpractice reforms and that it appears that all of the research funded by the AHRQ is aimed at proving the obvious: as the number of adverse events declines, the number of malpractice lawsuits also declines.

 

The letter goes on to ask questions about why the grant program has not done what the President publicly committed to do with the money, which is to try to move forward on medical malpractice reform.  It also asks for an accounting and justification of the way that the money has been spent.

 

Here is a copy of the text of the letter to Sebelius.

 

April 3, 2012

Via Electronic Transmission

The Honorable Kathleen Sebelius

Secretary

Department of Health and Human Services

200 Independence Avenue, S.W.

Washington, DC 20201

 

Dear Secretary Sebelius:

 

We are writing to express our concerns with the Patient Safety and Medical Liability Reform Demonstration and Planning grants being funded by the Department of Health and Human Services (HHS).

 

On September 9, 2009, President Obama, in a speech to a joint session of Congress on health care, directed you to move forward on an initiative aimed at reducing health care costs.  Specifically, he stated:

..., many in this chamber - particularly on the Republican side of the aisle - have long insisted that reforming our medical malpractice laws can help bring down the cost of health care. I don't believe malpractice reform is a silver bullet, but I have talked to enough doctors to know that defensive medicine may be contributing to unnecessary costs.  So I am proposing that we move forward on a range of ideas about how to put patient safety first and let doctors focus on practicing medicine.  I know that the Bush Administration considered authorizing demonstration projects in individual states to test these issues.  It's a good idea, and I am directing my Secretary of Health and Human Services to move forward on this initiative today.

(Emphasis added).

On June 11, 2010, pursuant to the President's orders, the HHS, through the Agency for Healthcare Research and Quality (AHRQ), awarded $23.2 million to fund demonstration and planning projects.  The AHRQ's press release confirmed that the "grants [we]re part of the patient safety and medical liability initiative that President Obama announced during a September 9, 2009, address to a joint session of Congress."[1] Specifically, the AHRQ has funded seven demonstration grants for a total amount of $19.7 million and 13 planning grants for a total amount of $3.5 million.  The demonstration projects are scheduled to take three years to complete and the planning projects are scheduled to take one year to complete.  According to the AHRQ, the projects are supposed to allow States and health care systems to develop, implement and evaluate medical liability models that "(1) put patient safety first and work to reduce preventable injuries; (2) foster better communication between doctors and their patients; (3) ensure that patients are compensated in a fair and timely manner for medical injuries, while also reducing the incidence of frivolous lawsuits; and (4) reduce liability premiums."[2]

Frivolous lawsuits, the high cost of malpractice insurance and excessive damages awards are dragging down our health care system.

 

The goal of "traditional" medical malpractice reforms is not to hinder meritorious lawsuits, but rather to reduce the incidence of frivolous lawsuits, inflated awards and inflated attorneys' fees.  Generally speaking, traditional malpractice reforms seek practical solutions to combatting frivolous lawsuits, such as caps on punitive damages, caps on noneconomic damages and limits on the percentage of an award that can be taken by a plaintiff's attorney under a contingency fee agreement.  Thus, traditional reforms are necessarily aimed at dealing with the medical system as it exists and influencing the behavior of lawyers and courts by altering legal parameters--substantive and procedural.  Correspondingly, research on traditional reforms should be aimed at assessing the effects of specific legal changes on claims, lawsuits, awards and settlements, either through mathematical models, simulated jury studies or real data.

 

However, the AHRQ's description of the research being funded does not mention, much less emphasize, reforms to medical malpractice laws, as was clearly implied by the President's speech.  Indeed, it does not appear that any of the entities that have received the $23.2 million in grants have the expertise necessary to examine the effects of changes in substantive legal standards and procedural rules on the rate of malpractice claims, lawsuits, and awards.

 

President Obama's September 9, 2009 speech included a reference to "demonstration projects" considered during President George W. Bush's administration.  The day after the President's speech, Tevi Troy, who served as the Deputy Secretary of the HHS, during the Bush Administration, responded to President's Obama's statement.[3] Mr. Troy explained the nature of the demonstration projects considered during the Bush administration.  In particular, he explained the limited purpose of those projects and the fact that they would not solve the crisis created by frivolous lawsuits.  Mr. Troy's article also made it clear that "reducing the incidence of costly and ineffective medical malpractice lawsuits was a high priority of the [Bush] administration."

 

The President's speech gave the clear impression that taxpayers' monies would be spent, in significant part, on projects related to "traditional" medical malpractice reforms.  Contrary to that clear impression, it appears that none of the $23.2 million awarded has

 

gone to researching or implementing "traditional" medical malpractice reforms.  In fact, it appears that all of the research funded by the AHRQ is aimed at proving the obvious:  as the number of adverse events declines, the number of malpractice lawsuits also declines.

 

We are concerned that these developments do not fulfill the President's commitment to move forward on medical malpractice reform.  Accordingly, please respond to the following requests for information:

 

1.      Explain how the HHS' spending $23.2 million on studying "nontraditional" liability reform fulfills the President's promise that his administration would examine a "range of ideas," including the "traditional" malpractice reforms noted above and advocated by Republican Members of Congress?

 

2.      Do you agree that the projects funded by the Patient Safety and Medical Liability Reform Demonstration and Planning grants are not researching "traditional" malpractice reform, but rather are exploring "nontraditional liability reforms"?[4] If you disagree, explain the basis for your disagreement in detail.  Also, identify which projects are researching "traditional" malpractice reforms and how much from the $23.2 million in grants is being spent on studying "traditional" malpractice reforms.

 

3.      Do you agree that the AHRQ is not the most qualified agency to undertake or oversee research related to "traditional" malpractice reforms?  If you disagree, explain in detail how the AHRQ is the most qualified agency within the federal government to undertake or oversee research related to "traditional" malpractice reforms.

 

4.      How, if at all, will the results of each of the 20 demonstration and planning projects directly help to reduce the incidence of frivolous lawsuits and reduce high malpractice insurance premiums, as represented by the AHRQ?  Also, if a project will have no direct impact on reducing frivolous lawsuits and insurance premiums expressly acknowledge that fact.

 

5.      Explain in detail how the results of each of the 20 Patient Safety and Medical Liability Reform Demonstration and Planning projects will directly benefit American taxpayers.  If American taxpayers will benefit from the results of these projects, when will those benefits be seen?

 

6.      Explain in detail how the results of each of the 20 projects will directly contribute to lowering health care costs, as stated by the President?

 

7.      Describe in detail how the HHS and/or the AHRQ will utilize the information generated by each of the 20 Patient Safety and Medical Liability Reform Demonstration and Planning projects?

 

8.      Is each of the 20 Patient Safety and Medical Liability Reform Demonstration and Planning projects unique or are they similar to previous studies?  If any of the current projects are similar to previous studies, explain the HHS's justification for funding that project or projects?

 

9.      When was it decided that the Patient Safety and Medical Liability Reform Demonstration and Planning grants would fund research of "nontraditional liability reforms," as opposed to "traditional" malpractice reforms?  Who made that decision?  If it was a group decision, identify all of the individuals who participated in the group.

 

10.  Did anyone other than an employee of the federal government participate (in any manner whatsoever) in the drafting of the requests for proposals issued in connection with the Patient Safety and Medical Liability Reform Demonstration and Planning grants?  If so, identify the individual(s) and the group he or she was representing.  Also, if applicable, set forth in detail the substance and nature of the individual's participation.

 

11.  Did anyone other than an employee of the federal government participate in the selection of any of the recipients of the Patient Safety and Medical Liability Reform Demonstration and Planning grants?  If so, identify the individual(s) and the group he or she was representing.  Also, if applicable, set forth in detail the substance and nature of each individual's participation.

 

12.  Is one of goals or purposes (official or unofficial) of the Patient Safety and Medical Liability Reform Demonstration and Planning grants to produce studies that will discredit or counter "traditional" malpractice reforms?

 

13.  Is the HHS or any other agency of the federal government currently conducting, participating in or funding research, the (official or unofficial) purpose of which is to discredit or counter "traditional" malpractice reforms?  If so, set forth the details of each such project, including who will conduct the research and who will oversee it.

 

14.  In addition to the $23.2 million being spent on the demonstration and planning projects, another component of the initiative ordered by President Obama is an evaluation project.  JBA/RAND was awarded $2 million for the evaluation project.  According to the AHRQ, the $2 million has been "allocated to evaluate the overall knowledge that is gained from this initiative."[5]

 

(a)    Explain in detail the substance and goals of the evaluation project and explain why it is necessary.

 

(b)   Are salaried federal employees at the AHRQ or in another unit of the HHS capable of understanding and evaluating the results of the demonstration and planning projects?  If so, why weren't they assigned the task of conducting the evaluation project or its equivalent?  If they are not capable, explain how the HHS and the AHRQ will be able to work with any of the information generated by the projects.

 

(c)    How, if at all, will the results of the evaluation project directly benefit American taxpayers?  If American taxpayers will benefit from the results of the evaluation project, when will those benefits be seen?

 

If the HHS and/or the AHRQ possess documents relating to the subject matter of any of the foregoing questions, provide copies of those documents.

 

We ask that you provide written answers and documents by May 3, 2012.

 

Sincerely,

 

 

 

________________________       ________________________

Charles E. Grassley                       Lamar Smith

Ranking Member                         Chairman

Senate Judiciary Committee                      House Judiciary Committee

 

 

 

________________________      

Orrin G. Hatch                         

Ranking Member                        

Senate Finance Committee

 

 


[1] AHRQ Press Release, "HHS Announces Patient Safety and Medical Liability Demonstration Projects:

Funds Allocated to Develop, Implement, and Evaluate Patient Safety Approaches and Medical Liability Reform Models" (June 11, 2010) (available at http://www.ahrq.gov/news/press/pr2010/hhsliabawpr.htm).

2 Id.

3 Tevi Troy, "Med Mal Pal?," Critical Condition, National Review Online's Healthcare Blog (Sept. 10, 2009)(available at  http://www.nationalreview.com/critical-condition/48345/med-mal-pal/tevi-troy).

4 See Allen Kachalia & Michelle M. Mello, New Directions in Medical Liability Reform, 364 N. Engl. J. Med. 1564 (Apr. 2011) (available at http://www.nejm.org/doi/full/10.1056/NEJMhpr1012821) (acknowledging the definition of "traditional" medical malpractice reforms and confirming that the AHRQ's demonstration and planning projects are studying "nontraditional liability reforms.").

5 Carolyn M. Clancy, AHRQ Commentary, "Patient Safety and Medical Liability Reform: Putting the Patient First" (available at http://www.ahrq.gov/news/commentaries/comptsafty.htm). 

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