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PRESS RELEASE: Fund-Raisers Seek Patient Health Data
Privacy waivers in use at Northwestern, Rush
By Sarah A. Klein

November 13, 2004

The biggest physician group at Northwestern Memorial Hospital is
asking patients to waive new federal privacy rights so their names
and medical diagnoses can be passed on to fund-raisers.

The aim is to identify patients interested in specific diseases who
would likely support research initiatives. Raising money by targeting
patients with a given illness was made more difficult by privacy
provisions of the Health Insurance Portability and Accountability
Act, which went into effect in April 2003.

Fund-raisers can still get names, addresses and phone numbers of
patients, and when they received care. But they can't find out, as
they once did, which patients suffer from cancer, Parkinson's disease
or others ailments that might predispose them to support research, or
say, open a wing dedicated to that condition.

Does that really happen? Well, Northwestern University's medical
school, two of its institutes and one of the hospital's two main
towers all bear the name Feinberg. Stricken in 1987, Reuben Feinberg,
banking executive and real estate developer, was rushed to
Northwestern in need of heart surgery. Now deceased, Mr. Feinberg
liked to joke that, had the ambulance turned right rather than left,
another hospital might've gotten the $100 million in grants that his
grateful family foundation gave Northwestern's medical school and the
hospital. He said he never thought of giving money to a hospital
until his stay in one.

That explains why some Northwestern Medical Faculty Foundation
doctors recently began asking patients to waive the privacy rules. Of
local academic medical institutions, only the 500-plus physician
group and Rush University Medical Center ask patients for permission
to use medical info for fund raising. Rush began seeking the waivers
last summer in two departments.

DIFFERENT APPROACHES

Northwestern Memorial Hospital itself, operating independently of the
physician group, promises to use only basic demographic information
for its appeals, as does Children's Memorial Hospital, Loyola
University Medical Center, the University of Chicago Hospitals and
the University of Illinois Medical Center at Chicago. Evanston
Northwestern Healthcare only solicits previous donors and patients
who have given permission.

Most fund-raisers agree that patients' medical histories make
prospecting for donors faster and easier. Individual donors —
including patients — account for 66% of donations to hospitals, says
the Virginia-based Assn. for Healthcare Philanthropy. But about half
of patients will turn down requests for permission to use their
information for fund raising, says William McGinly, president of the
trade group.

Indeed, asking patients to waive their records privacy upon arriving
at the hospital may create the perception the institution is more
interested in money than the patient, says Thomas J. Sullivan,
president of Children's Memorial Foundation, the hospital's fund-
raising arm.

Northwestern Medical Faculty Foundation says it's simply trying to
comply with federal regulations and permit the flow of information
between the medical group and university, which are separate entities
but work together on fund raising.

James Schroeder, faculty group CEO and a rheumatologist, wouldn't
disclose which medical specialties ask patients to sign the waivers,
except to say, "it's being used in those practices who have active
research programs that would be of potential interest to our
patients." He points out, "They don't have to sign it."

SOURCE: Crain's Chicago Business, IL
http://chicagobusiness.com/cgi-bin/news.pl?id=14589

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