IHC is truly on the hot seat - and it knows it

Pignanelli: As with millions of Americans, my family will travel to the theater this weekend to view the latest Star Wars movie, "Revenge of the Sith." We will cheer for the Jedi warriors, knowing the dreaded Empire will prevail. Such is the attitude of the health-care community in Utah regarding the weirdly worded Privately Owned Health Care Organization Task Force, which commences on Thursday. Thousands are hoping this legislative committee will demand major renovations to Intermountain Health Care, but have resigned themselves that Utah's ever-expanding medical services empire will triumph. (Politicos utilize a Star Wars analogy in describing IHC — an obnoxious practice I enjoy as an attorney/lobbyist representing Regence Blue Cross Blue Shield of Utah.)

This task force was created by the Legislature after a heated debate focused on separating IHC's hospitals from IHC's health insurance arm. Sponsored by Sen. Michael Waddoups, the duties of the committee are substantive and include investigating IHC market penetration and whether the tax exemption IHC enjoys is appropriate. Committee members will spend $300,000 — an unprecedented amount — on analysts to provide qualitative information for the next two years.

There is no dispute regarding the high quality and competitive cost of services IHC supplies Utahns; the concern is with market dominance. The company directly controls at least 52 percent of all hospital beds and is the state's largest health insurer, with 450,000 lives. IHC is also the major provider of care to employees who receive insurance from the LDS Church, teacher organizations and state government. Despite the warm and fuzzy commercials, the universal complaint from doctors and competitors is that IHC abuses its strength in negotiations (in other words, they can be jerks).

The stakes are high in this controversy. IHC and its opponents know this task force will be the last opportunity for such a comprehensive review of health care for at least a generation. Insurance companies and other hospital networks are hiring specialists to substantiate allegations against IHC's conduct. IHC has wasted no time in bombarding committee members with proposed alternative discussion items and with its own experts. Furthermore, legislators anticipate IHC will utilize its massive and well-paid public relations machine to inundate Utahns with television and newspaper advertisements. Both sides know the winner will be the one who has most influenced the debate of the task force.