State highlights: N.Y. expects $20M savings with psychiatric care overhaul; $4M settlement in Mich. over heart procedures

The Associated Press: N.Y. To Overhaul State Psychiatric Care
New York plans to overhaul its psychiatric services over the next four years by consolidating 24 inpatient hospitals into 15 regional centers and establishing two dozen outpatient hubs. The plan released to The Associated Press by the Office of Mental Health on Wednesday begins in 2014 and is expected to save $20 million the first year (7/10).

Detroit Free Press: Cardiology Practice, Jackson Hospital To Pay $4M In Lawsuit Alleging Medically Inappropriate Heart Procedures
A cardiology practice and a Jackson hospital have agreed to pay the federal government $4 million to settle a lawsuit that claimed patients were subjected to medically inappropriate heart procedures. It was a doctor who blew the whistle on the questionable practices, the government said (Baldas, 7/10).

California Healthline: Contentious Physical Therapy Legislation Approved By Committee
The Senate Committee on Business, Professions and Economic Development on Monday finally approved a contentious bill to allow professional corporations to directly employ physical therapists. Monday's intense and multifaceted discussion followed a hearing in the same committee just a week before, a hearing which went on so long, it had to be carried over to this week (Gorn, 7/10).

California Healthline: Aetna And United Are Out Of California. Who's Moving In?
United Healthcare has more than 4,700 hospitals in its national network. Valley Health Plan has four. That relative scale is one reason why United's departure from California's individual market last week got so many headlines -- even though the health plan only covers 8,000 people -- while the news of Valley's inclusion in Covered California last month got almost none. And on the surface, the thought of losing the nation's largest health insurer doesn't seem to augur much good for the Golden State's health reform efforts. Especially in the wake of Aetna's similar announcement last month (Diamond, 7/10).