Tax hikes, improving economy bode well for state budget

SACRAMENTO — Although a modest deficit will linger into next year, California's finances are poised for marked improvement as the state reaps the benefits of newly approved taxes and the economy continues to recover, the Legislature's top budget advisor said Wednesday.

Schools can expect more money eventually, and the state may even start to see surpluses, according to Legislative Analyst Mac Taylor, who provides nonpartisan counsel to lawmakers. He said a healthier budget should then allow officials to turn their attention to California's other chronic financial issues, such as an unstable tax base and an expensive debt burden.

In a report released Wednesday, his office estimates that state officials will need to close a $1.9-billion budget gap in the spending plan they pass next summer, about one-eighth of the problem they faced this year. The gap is smaller than it might have been because state officials, as part of a regular process, recalculated how much tax revenue arrived in recent years, resulting in a $1.4-billion boost.

A big chunk of the remaining deficit is due to the lagging stock price of Facebook, which went public this year. The analyst's office said there would be $626 million less in tax revenue than expected from the initial public offering. The state also is saving far less from closing redevelopment agencies than officials had projected.

Nonetheless, Gov. Jerry Brown hailed the analyst's forecast.

"This report validates the hard work the state has done to cut its deficit and balance its budget over the long term," he said in a statement. "California is now on the path for a fair and sustainable budget as long as we continue to exercise fiscal discipline and pay down debt."

Chipping away at California's most intractable budget problems has been Brown's primary goal since beginning his second tour of duty in Sacramento in 2010.

On election day last week, voters approved Proposition 30, the governor's plan to temporarily raise the sales tax and income taxes on high earners, providing an estimated $6 billion annually for state coffers. Voters also passed Proposition 39, which changes the corporate tax code to raise an estimated $1 billion a year for the general fund and clean energy projects.

Within six years, the report said, California could find itself with a $9-billion surplus, a stark turnaround after many years of severe budget deficits. But continuing financial challenges could quickly eat up any extra money.

Taylor said surplus dollars may be used to shore up the underfunded public pension system or pay back more debt. "We still have a lot of catching up to do," he said.

There will also be intense pressure from activists to restore funding to social services cut during many budget crises.

"We're turning the corner," said Chris Hoene, executive director of the California Budget Project in Sacramento, a think tank that advocates for low-income families. "We should approach the budget with some cautious optimism."

Despite the improved financial outlook, Taylor said the state will probably burn through its existing reserve of nearly $1 billion and end up with a nearly $1-billion deficit by the end of the current fiscal year.

Most of the problem, he said, is the lack of savings from dissolving redevelopment agencies. The state may reap only $1.4 billion, he said, less than half of the Brown administration's estimate.

Facebook, once expected to provide California with a tax windfall, has also been a disappointment. Brown administration officials expected to reap $1.9 billion in taxes by the end of the current fiscal year from the company's initial public offering, but the report issued Wednesday said they should count on only $1.25 billion.

Kim Rueben, a senior fellow at the nonpartisan Tax Policy Center in Washington, D.C., said California needs to be more careful when dealing with potential tax windfalls like Facebook, perhaps routing the money to a separate reserve fund.

"You don't want it to be in your day-to-day budget," she said.

chris.megerian@latimes.com

Read More..

Erdrich wins National Book Award for fiction

NEW YORK (AP) — The National Book Awards on Wednesday honored both longtime writers and new authors, from Louise Erdrich for "The Round House" to Katherine Boo for her debut work, "Beyond the Beautiful Forevers."

Erdrich, 58, has been a published and highly regarded author for nearly 30 years but had never won a National Book Award until being cited Wednesday for her story about an Ojibwe boy and his quest to avenge his mother's rape. A clearly delighted and surprised Erdrich, who's part Ojibwe, spoke in her tribal tongue and then switched to English as she dedicated her fiction award to "the grace and endurance of native people."

Boo's nonfiction book, set in a Mumbai slum, also is a story of a boy and his harsh and illuminating education in the consequences of crime or perceived crime. The author, a Pulitzer Prize-winning journalist currently on staff with The New Yorker, said she was grateful for the chance to live in a world she "didn't know" and for the chance to tell the stories of those otherwise ignored. She praised a fellow nominee and fellow Pulitzer-winning reporter, the late Anthony Shadid, for also believing in stories of those without fame or power.

Poetry winner David Ferry is a year older than one of the night's honorary recipients, Elmore Leonard. Ferry, 88, won for "Bewilderment: New Poems and Translations," a showcase for his versatile style. He fought back tears as he confided that he thought there was a chance for winning because he "was so much older" than the other nominees. He called the award a "pre-posthumous" honor.

The other competitive prize Wednesday went to William Alexander, whose "Goblin Secrets" won for young people's literature.

Alexander quoted fellow fantasy writer Ursula Le Guin in highlighting the importance of stories for shaping kids' imaginations and making the world a larger place than the one they live in.

"We have to remember that," Alexander said.

The ceremony went smoothly even though Superstorm Sandy badly damaged the offices of the award's organizer, the National Book Foundation, whose staffers had to work with limited telephone and mail access.

Winners, chosen by panels of fellow writers, each received $10,000. Judges looked through nearly 1,300 books.

Honorary prizes were given to Leonard and New York Times publisher and chairman Arthur O. Sulzberger Jr.

Read More..

F.D.A. Seeks More Control Over Drug Compounders

Susan Walsh/Associated Press

Barry Cadden, chief pharmacist for the company that made the contaminated drugs, at a Congressional hearing on Wednesday.

WASHINGTON — The commissioner of the Food and Drug Administration on Wednesday called on Congress to empower the agency to better police compounding pharmacies like the one at the center of a national meningitis outbreak. But Republican lawmakers pushed back, arguing that the agency has enough authority, leaving it unclear whether the House would support efforts to increase oversight.

In a contentious hearing of the House Committee on Energy and Commerce, the commissioner, Dr. Margaret Hamburg, testified that a tangle of conflicting court decisions and the lack of a clear definition of compounding in the law had limited the agency’s ability to build a case against compounding pharmacies that fail to meet basic safety standards.

“There is an enormous lack of clarity, and we should seize this opportunity to address it,” Dr. Hamburg said.

In many cases, such pharmacies are not required to give investigators access to their books, agency officials say. Federal regulators sometimes have to appeal to local courts to gain access to the pharmacies or their records, although, by law, large drug manufacturers must submit to regular inspections. Compounding pharmacies are now regulated primarily by the states.

Dr. Hamburg’s remarks signaled that the Obama administration will press for new legislation in response to the meningitis outbreak, which was caused by contaminated pain medication made by a compounding pharmacy in Massachusetts. So far, 461 people have fallen ill, and 32 of them have died.

The central question is whether the F.D.A. has enough power to crack down on large-scale compounding companies that behave more like drug manufactures than the neighborhood pharmacies that mix medicines for individual patients — the traditional purview of compounders.

Republicans on the committee said the outbreak appeared to have been preventable under existing regulations.  

“After a tragedy like this, the first question we all ask is, ‘Could this have been prevented?’ ” said Representative Cliff Stearns, Republican of Florida, who is chairman of the Subcommittee on Oversight and Investigations. After reviewing documents, he said, “The answer appears to be yes.”

The agency’s critics maintain that the 1938 Food Drug and Cosmetic Act provides it with plenty of authority, but that the F.D.A. failed to use it to shut down the Massachusetts pharmacy, the New England Compounding Center.  

Barry Cadden, the chief pharmacist at the company, and one of the principal owners, invoked his Fifth Amendment right to remain silent in response to every question posed to him during the hearing.

The agency has had dealings with the compounding center in the past, including an inspection in 2002 after reports of problems and a warning letter to the company in 2006. The agency argued that those steps failed to head off the meningitis outbreak in part because the company took advantage of gray areas in the law to elude oversight.

 “Throughout this time, N.E.C.C. has repeatedly disputed F.D.A.’s jurisdiction over its facility,” Dr. Hamburg said in her written testimony.

Republicans on the committee repeatedly cited the 2006 warning letter and the agency’s recent criminal investigation, which involved federal agents seizing computers from the company’s offices.

“We’re just not buying it, doctor,” said Representative Michael C. Burgess, Republican of Texas. “You lack the authority to do anything, yet you send a letter like this?”

Democrats came to Dr. Hamburg’s defense.

 “We need to work together to come up with a solution, but instead what I’m hearing from my Republican colleagues is they want to prosecute the Food and Drug Administration,” said Representative Henry A. Waxman, Democrat of California. “If there’s any ambiguity, it’s our job to clear it up. Why are we looking for anybody to blame other than the company?”

Representative Edward J. Markey, Democrat of Massachusetts, who has proposed legislation to close what he calls regulatory loopholes, said he believed the committee would eventually come together and pass a bill.

Dr. Hamburg proposed requiring large-scale compounders to register with the F.D.A. and report any problems with their products to the agency. She also recommended new labeling requirements that would make clear the origin and the risks of compounded drugs.

Large-scale pharmacy compounding has greatly expanded since the early 1990s, partly because hospitals are increasingly outsourcing the making of the compounded drugs that they need and also because of widespread shortages of medicines made by the big drug manufacturers.

Jess Bidgood contributed reporting from Boston.

Read More..

Looming 'fiscal cliff' bringing Wall Street, Obama back together

NEW YORK — There are growing signs that Wall Street is trying to mend its rocky relationship with a president who castigated them as "fat cats" and ushered through tough new regulations after the financial crisis.

JPMorgan Chase & Co. Chief Executive Jamie Dimon has recently been in contact with the White House and congressional leaders, while Goldman Sachs CEO Lloyd Blankfein publicly called for a new "spirit of compromise and reconciliation." CEOs of 12 major American companies also held a closed-door meeting with President Obama on Wednesday.

The looming "fiscal cliff" is bringing businesses and Obama back together. Both sides are worried that Congress won't strike a deal to avoid the automatic budget cuts and tax increases that economists fear will plunge the nation into a recession early next year.

"He is the president — the election is over," said Kathryn Wylde, president and chief executive of the Partnership for New York City, a nonprofit organization that represents major financial firms and other companies. "The Wall Street community wants to unite behind a strong president."

Wall Street might have overwhelmingly supported Mitt Romney's presidential campaign with donations, but executives have been quietly working behind the scenes with administration officials for months, Wylde said.

Quiz: How much do you know about the "fiscal cliff"?

They have been helping build support for raising revenue — higher taxes — as part of a deal that would include spending cuts and entitlement reform. Getting CEOs on board could help provide "political cover" to congressional Republicans who in previous fiscal fights have thwarted deals with Obama.

"That's where their charm is real," said Jeff Connaughton, a former lobbyist and congressional aide who wrote the book "The Payoff: Why Wall Street Always Wins." "If they actually helped soften up the Republicans on being OK with raising revenue, that's where they could pile up some real brownie points with Obama."

Wall Street executives have been reaching out to both sides of the aisle now that the contentious election is over.

In an opinion piece published in the Wall Street Journal, Goldman CEO Blankfein urged corporations and the Obama administration to work closer together. He also backed tax increases for wealthy Americans so long as the government is serious about cutting government spending.

Dimon, who has sometimes been a critic of Obama, met with White House Chief of Staff Jack Lew last month. He also has reached out to congressional leaders about preventing a fiscal crisis, according to a person familiar with the matter who was not authorized to speak publicly.

As part of that charm offensive, Dimon even called Elizabeth Warren to congratulate her on being elected a U.S. senator from Massachusetts. Warren has been a fierce critic of the banking industry, and earlier this year called for Dimon to step down as a New York Federal Reserve board member because of a perceived conflict of interest.

Warren declined to comment on her phone call with Dimon. But she — like others on Capitol Hill on Wednesday — welcomed the Wall Street executives' urgency to resolve the fiscal cliff. "I think they have enormous value to add to the discussions," she said.

CEOs talking about a willingness to accept more taxes is crucial in helping to reduce the overall rancor in Washington, Sen. Charles E. Schumer (D-N.Y.) said. When Republicans start talking about additional tax revenue, "We need somebody else to have their back, and the business community is a great place" to do that, he said.

Sen. Lamar Alexander (R-Tenn.) said business leaders can help spur a deal by warning of the economic consequences of allowing the government to go over the fiscal cliff.

"The election's over and the issue is fixing the debt," Alexander said. "They can create an environment in which senators and congressman are willing to take difficult votes on fixing the debt, because it's going to be hard dirty work, very unpopular, once people see the details of it, but it absolutely has to be done."

At the White House on Wednesday, chief executives met with President Obama for more than an hour to discuss topics such as the fiscal cliff. They mostly listened and tried to give the president constructive feedback on issues facing America's biggest businesses, according to participants.

CEOs believe that the uncertainty is hurting the nation's business climate and preventing hiring. They have urged Congress to extend the tax cuts first championed by President George W. Bush. Obama wants to do so for all but the highest income earners.

Ursula Burns, the CEO of Xerox Corp., said the meeting did not get into specifics such as tax rates. But she noted that any deal would involve working through "some sticky issues."

"This is all about trying to make American business more competitive, trying to have a fair, balanced approach to tax reform, to spending cuts. And the president was very clear that he wants a fair, balanced approach," Burns told reporters after the meeting.

"We were very clear that if we can help him to get to a solution we are absolutely behind him, because going over the cliff is not something that any of us in the room could live with," she said.

andrew.tangel@latimes.com

jim.puzzanghera@latimes.com

Tangel reported from New York and Puzzanghera from Washington.

Read More..

GOP senators cool to idea of Susan Rice as secretary of State

WASHINGTON — Senate Republicans signaled stiffening resistance Tuesday to the Obama administration's possible nomination of U.N. Ambassador Susan Rice to replace Hillary Rodham Clinton as secretary of State.

GOP strategists said lawmakers would use such a nomination as an opening for an extended examination of how the administration handled the Sept. 11 militant attack on the U.S. mission in Benghazi, Libya, that killed four Americans, including the U.S. ambassador. Although the Senate rarely rejects a president's Cabinet picks, the strategists said, the process could be so painful and lengthy that Obama might come to regret his choice.

A senior Republican aide said he couldn't predict whether the nomination would be voted down, but "the question is, is this worth spending political capital and taking punches on a subject they'd like to distance themselves from?"

"Whether it's fair to her or not, she's become a poster child for perceptions that there's been a coverup by the administration," he said, speaking anonymously because he was not authorized to address the topic publicly.

Some Senate Republicans have already begun discussing how they would question Rice, he said, and plan to gather information from House Republican colleagues to bore in on questions they say the administration has not yet satisfactorily answered.

Sen. Jon Kyl (R-Ariz.), the No. 2 Senate Republican, told reporters he considered Rice "tainted" by her role in the administration's handling of Benghazi, and recommended that the White House instead choose Sen. John F. Kerry (D-Mass.), chairman of the Senate Foreign Relations Committee, whom administration officials have also been considering for the diplomatic post.

Administration officials said that Rice, a pillar of Obama's foreign policy team since the 2008 election campaign, was a leading candidate for the post, and that they would not be deterred by Republican warnings. Officials and some others familiar with the process predicted that the GOP would eventually end its resistance to Rice because it would become clear that her disputed comments after the attack were prepared by other U.S. officials for her appearances on Sept. 16 talk shows.

Rice said in those TV appearances that the attack was motivated by anger at a U.S.-made film trailer that denounced the prophet Muhammad, and that it was not a planned assault.

Sen. Bob Corker (R-Tenn.), who is expected to become the ranking minority member of the Senate Foreign Relations Committee, found it "beyond belief" that Rice could have described the attack as motivated by anger over the film, when U.S. officials in Benghazi had told officials in Washington during the attack that it was a terrorist assault.

"I still don't know how anybody of that capacity could have been on television five days later saying the things that were said," Corker said. "I don't know how that could happen."

On Sunday, Sen. Lindsey Graham of South Carolina, an influential Republican on foreign policy issues, predicted that Rice's nomination would have a difficult time making it through the Senate. He said he would not vote for Rice unless she provided more satisfactory explanations of her actions.

A single senator can hold up a nomination if he or she is determined to do so. But a more likely avenue to blocking confirmation would be with a filibuster, aides said. Sixty votes are required to end a filibuster — more than the number of senators in the Democratic caucus.

Senate aides said the Republican caucus, which is regrouping after the election defeat, might decide that shooting down Obama's choice would be a way of underscoring its unhappiness with the administration's treatment of the Benghazi issue. But historically, the Senate has deferred to presidents on Cabinet picks, and Republicans would run the risk of looking unreasonable.

Clinton's intention to leave the post has been public for more than a year, and the candidacies of Rice and Kerry have been discussed for months. Both are interested in the job.

The Washington Post reported Tuesday that Rice was the leading candidate for the diplomatic post and Kerry, a Vietnam veteran, was under consideration as secretary of Defense. If Kerry took either post, Republicans would have a chance to win his Senate seat in a special election — further narrowing the Democrats' majority.

Sources who have been familiar with past nominations say that Obama confers with only a small circle on his top choices, and sometimes emerges with surprise selections. Jim Yong Kim, Obama's choice to head the World Bank, was one such case.

As a second-term president, Obama has wide latitude to pick the candidate he believes will best serve his interests. He is under less pressure to satisfy political constituencies, some Democrats pointed out.

Jay Carney, the White House press secretary, declined to comment on the nomination, but said Obama believed Rice had done an "excellent job" at the United Nations.

paul.richter@latimes.com

Michael Memoli and Christi Parsons in the Washington bureau contributed to this report.

Read More..

RIM to release new BlackBerrys soon after Jan. 30

TORONTO (AP) — Research In Motion Ltd. will release its much-delayed BlackBerry 10 smartphones “not too long” after a launch event on Jan. 30, a senior executive said Tuesday.

Chief Operating Officer Kristian Tear said the company is still fine-tuning the new phones.

The new phones are seen as critical to RIM‘s survival as the smartphone pioneer struggles in North America to hold on to customers who are abandoning BlackBerrys for flashier iPhones and Android phones. The new BlackBerry 10 system is designed for the touch screen, Internet browsing and apps experience that customers now expect. RIM’s current software is still focused on email and messaging and is less user-friendly, agile and robust than iPhone or Android.

On Monday, RIM said details on the BlackBerry 10, including specific availability, will be announced at the event. A touch-screen-only device is expected to be released first followed shortly after by a version with a physical keyboard. Many people still gravitate to BlackBerrys specifically for their physical keyboards, and RIM hasn’t succeeded in the past with touch-only offerings.

Tear said RIM wants to be the No. 1 mobile computing platform, despite the dominance of Apple and Android. He said the Waterloo, Ontario-based company believes it can compete with Silicon Valley because it has access to a lot of talented people and two great universities in the area. He said he’s been involved in two turnarounds before with Sony Ericsson and Ericsson and believes in RIM’s new management.

“It’s not going to be easy,” Tear said. “But everybody is super-focused and super-commited. We’re going to show the world that we are turning this around.”

Steve Zipperstein, RIM’s new chief legal officer, said RIM invented the smartphone and has been the innovator in the mobile space for a long time.

“We’re not going away,” Zipperstein vowed. “We’re going to succeed with BB 10. We’re going to impress our customers. We’re going to fight every day.”

Tear and Zipperstein were hired this past summer by CEO Thorsten Heins, who took over RIM in January after it lost tens of billions of dollars in market value. Heins had vowed to do everything he could to release BlackBerry 10 this year but said in June that the timetable wasn’t realistic. The new BlackBerrys will be released after the holiday shopping season and well after Apple’s September launch of the iPhone 5.

Heins is counting on BlackBerry 10 for a turnaround.

RIM’s platform transition is happening under a new management team and as RIM lays off 5,000 employees as part of a bid to save $ 1 billion this year.

RIM was once Canada‘s most valuable company with a market value of more than $ 80 billion in 2008, but the stock has plummeted since, from over $ 140 per share to around $ 8. Its decline evokes memories of Nortel, another former Canadian tech giant, which declared bankruptcy in 2009.

RIM’s stock fell 41 cents, or 4.7 percent, to close at $ 8.40 Tuesday in New York after rising as high as $ 9.07 the previous day, when RIM announced its Jan. 30 launch date.

Gadgets News Headlines – Yahoo! News

Read More..

Man who accused Elmo puppeteer of teen sex recants

NEW YORK (AP) — A man who accused Elmo puppeteer Kevin Clash of having sex with him when he was a teenage boy has recanted his story.

In a quick turnabout, the man on Tuesday described his sexual relationship with Clash as adult and consensual.

Clash responded with a statement of his own, saying he is "relieved that this painful allegation has been put to rest." He had no further comment.

The man, who has not identified himself, released his statement through the Harrisburg, Pa., law firm Andreozzi & Associates.

Sesame Workshop, which produces "Sesame Street" in New York, soon followed by saying, "We are happy that Kevin can move on from this unfortunate episode."

The whirlwind episode began Monday morning, when Sesame Workshop startled the world by announcing that Clash had taken a leave of absence from "Sesame Street" in the wake of allegations that he had had a relationship with a 16-year-old.

Clash, a 52-year-old divorced father of a grown daughter, swiftly denied the charges of his accuser, who is in his early 20s. In that statement Clash acknowledged that he is gay but said the relationship had been between two consenting adults.

Though it remained unclear where the relationship took place, sex with a person under 17 is a felony in New York if the perpetrator is at least 21.

Sesame Workshop, which said it was first contacted by the accuser in June, had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.

Clash said on Monday he would take a break from Sesame Workshop "to deal with this false and defamatory allegation."

Neither Clash nor Sesame Workshop indicated on Tuesday when he might return to the show, on which he has performed as Elmo since 1984.

Elmo had previously been a marginal character, but Clash, supplying the fuzzy red puppet with a high-pitched voice and a carefree, child-like personality, launched the character into major stardom. Elmo soon rivaled Big Bird as the face of "Sesame Street."

Though usually behind the scenes, Clash meanwhile achieved his own measure of fame. In 2006, he published an autobiography, "My Life as a Furry Red Monster," and he was the subject of the 2011 documentary "Being Elmo: A Puppeteer's Journey."

He has won 23 daytime Emmy awards and one prime-time Emmy.

___

Online:

http://www.sesamestreet.org

Read More..

Kidney Donors Given Mandatory Safeguards

ST. LOUIS — Addressing long-held concerns about whether organ donors have adequate protections, the country’s transplant regulators acted late Monday to require that hospitals thoroughly inform living kidney donors of the risks they face, fully evaluate their medical and psychological suitability, and then track their health for two years after donation.

Enactment of the policies by the United Network for Organ Sharing, which manages the transplant system under a federal contract, followed six years of halting development and debate.

Meeting at a St. Louis hotel, the group’s board voted to establish uniform minimum standards for a field long regarded as a medical and ethical Wild West. The organ network, whose initial purpose was to oversee donation from people who had just died, has struggled at times to keep pace with rapid developments in donations from the living.

“There is no question that this is a major development in living donor protection,” said Dr. Christie P. Thomas, a nephrologist at the University of Iowa and the chairman of the network’s living donor committee.

Yet some donor advocates complained that the measures did not go far enough, and argued that the organ network, in its mission to encourage transplants, has a conflict of interest when it comes to safeguarding donors.

Three years ago, the network issued some of the same policies as voluntary guidelines, only to have the Department of Health and Human Services insist they be made mandatory.

Although long-term data on the subject is scarce, few living kidney donors are thought to suffer lasting physical or psychological effects. Kidney donations, known as nephrectomies, are typically done laparoscopically these days through a series of small incisions. The typical patient may spend only a few nights in a hospital and feel largely recovered after several months.

Kidneys are by far the most transplanted organs, and there have been nearly as many living donors as deceased ones over the last decade. What data is available suggests that those with one kidney typically live as long as those with two, and that the risk of a donor dying during the procedure is roughly 3 in 10,000.

But kidney transplants, like all surgery, can sometimes end in catastrophe.

In May at Montefiore Medical Center in the Bronx, a 41-year-old mother of three died when her aorta was accidentally cut during surgery to donate a kidney to her brother. In other recent isolated cases, patients have received donor kidneys infected with undetected H.I.V. or hepatitis C.

Less clear are any longer-term effects on donors. Research conducted by the United Network for Organ Sharing shows that of roughly 70,000 people who donated kidneys between late 1999 and early 2011, 27 died within two years of medical causes that may — or may not — have been related to donation. For a small number of donors, their remaining kidney failed, and they required dialysis or a transplant.

The number of living donors — 5,770 in 2011 — has dropped 10 percent over the last two years, possibly because the struggling economy has made it difficult for prospective donors to take time off from work to recuperate. With the national kidney waiting list now stretching past 94,000 people, and thousands on the list dying each year, transplant officials have said they must improve confidence in the system so more people will donate.

The average age of donors has been rising, posing additional medical risks. And new ethical questions have been raised by the emergence of paired kidney exchanges and transplant chains started by good Samaritans who give an organ to a stranger.

Brad Kornfeld, who donated a kidney to his father in 2004, told the board that it had been impossible to find good information about what to expect, leaving him to search for answers on unreliable Internet chat rooms. He said he had almost backed out.

“If information is power,” said Mr. Kornfeld, a Coloradan who serves on the living donor committee, “the lack of information is crippling.”

Under the policies approved this week, the organ network will require hospitals to collect medical data, including laboratory test results, on most living donors to study lasting effects. Results must be reported at six months, one year and two years.

Similar regulations have been in place since 2000, but they did not require blood and urine testing, and hospitals were allowed to report donors who could not be found as simply lost.

That happened often. In recent years, hospitals have submitted basic clinical information — like whether donors were alive or dead — for only 65 percent of donors and lab data for fewer than 40 percent, according to the organ network. Although the network holds the authority, no hospital has ever been seriously sanctioned for noncompliance.

“It’s time we put some teeth into our policy,” said Jill McMaster, a board member from Tennessee.

By 2015, transplant programs will have to report thorough clinical information on at least 80 percent of donors and lab results on at least 70 percent. The requirements phase in at lower levels for the next two years.

Dr. Stuart M. Flechner of the Cleveland Clinic, the chairman of a coalition of medical societies that made recommendations to the organ network, said 9 of 10 hospitals would currently not meet the new requirement.

Donna Luebke, a kidney donor from Ohio who once served on the organ network’s board, said the new standards would matter only if enforcement were more rigorous. She noted that the organization was dominated by transplant doctors: “UNOS is nothing but the foxes watching the henhouse,” she said.

Another of the new regulations prescribes in detail the medical and psychological screenings that hospitals must conduct for potential donors. It requires automatic exclusion if the potential donor has diabetes, uncontrolled hypertension or H.I.V., among other conditions.

The new policies also require that hospitals appoint an independent advocate to counsel and represent donors, and that donors receive detailed information in advance about medical, psychological and financial risks.

Read More..

McAfee proclaims innocence, alters look to evade Belize police

In another twist to an already bizarre story, the founder of the McAfee anti-virus software company contacted an American journalist Tuesday to maintain his innocence and chronicle how he has been evading police.

John McAfee, 67, has been missing since Sunday morning, when his next-door neighbor Gregory Faull, 52, was found dead in a pool of blood in a Belize beachfront home. On Tuesday, McAfee contacted Wired contributing editor Joshua Davis and said he's on the run, scared for his life — and did not commit murder.

Quiz: Test your knowledge about airport security

Belize police on Sunday said they wanted to question McAfee in what they described as a homicide investigation.

Davis tweeted the salient details, including the former CEO saying he feared being killed in custody and — when power was cut to his hiding spot — the grim summation that "this is it."

"Under no circumstances am I going to willingly talk to the police in this country," McAfee reportedly told the editor at the technology magazine. "You can say I'm paranoid about it but they will kill me, there is no question. They've been trying to get me for months. They want to silence me. I am not well liked by the prime minister. I am just a thorn in everybody's side."

As police raided his compound Sunday, McAfee told the writer that he hid in the sand with a cardboard box over his head so he could breathe, and spent the night on a mattress infested with lice. He has continued to change locations, according to the writer's tweets.

Quiz: Test your knowledge of business news

"It was extraordinarily uncomfortable," McAfee told Wired. "But they will kill me if they find me."

Belize police urged McAfee to come forward Tuesday, saying he is only a person of interest, rather than a murder suspect. The police said they have detained an individual but declined to discuss details, citing the ongoing investigation.

Police have a vendetta against him, McAfee told Wired, and are trying to drive him out of Belize.

McAfee made his fortune when the anti-virus company that bears his name went public in 1992. He netted $100 million two years later when he sold his stock. Over the next 20 years, $100 million dropped to $4 million as he lost money to real estate investments, bad business ventures and bonds linked to Lehman Bros.

About five years ago, McAfee moved to a beachfront compound on Ambergris Caye island to lower his taxes, said Daniel Guerrero, the mayor of the town closest to the crime scene.

Belize police arrested McAfee in April and charged him with unlicensed drug manufacturing and possession of an unlicensed weapon, according to police news releases. McAfee said at the time that he planned to sue for false arrest, alleging the police arrested him because he refused to donate money to a local official.

Last week, Faull — a retired contractor from Florida — filed a complaint against McAfee with the local city council, Guerrero said. McAfee's security guards were trespassing on Faull's property, and McAfee's guard dogs were attacking passers-by, Faull's complaint said.

Faull's two-story apartment showed no signs of forced entry. A laptop and iPhone were missing, and police found a 9-millimeter Luger shell casing on the stairs, spokesman Raphael Martinez said.

Police believe McAfee is still in the country but have had little success in tracking him down, perhaps due in part to the latest information he shared with Davis — that he has radically altered his appearance.

laura.nelson@latimes.com

Read More..

Prescription deaths: Lawmaker wants cases reported to Medical Board

« Previous Post | L.A. NOW Home

The chairman of a state Senate committee that oversees the Medical Board said Monday he would introduce a bill requiring coroners to report all prescription drug deaths to the agency — a move aimed at helping authorities identify doctors whose prescribing practices may be harming patients.

Sen. Curren D. Price Jr., responding to a Times' report that authorities have failed to recognize how often people overdose on medications prescribed by their doctors, said the medical board needed coroners reports to improve oversight of potentially dangerous practices.

“There appears to be a disconnect between coroners and the Medical Board,” Price (D-Los Angeles), said in an interview. “Hopefully legislation will tighten that up and provide the kind of accountability we all expect.”

FULL COVERAGE: Legal drugs, deadly outcomes

The Times investigation published Sunday found that in nearly half of the accidental deaths from prescription drugs in four Southern California counties, the deceased had a doctor's prescription for at least one drug that caused or contributed to the death.

The investigation identified 3,733 deaths that involved prescription drugs in Los Angeles, Orange, San Diego and Ventura counties from 2006 through 2011. In 1,762 of those cases — 47% — drugs for which the deceased had a prescription were the sole cause or a contributing cause of death.

The Times found that prescription drug deaths often involved multiple drugs, sometimes prescribed by more than one doctor. In some cases, the deceased also mixed prescribed drugs with illegal drugs, alcohol or both.

The paper identified 71 Southern California physicians who prescribed drugs to three or more patients who later fatally overdosed. The doctors were primarily pain specialists, general practitioners and psychiatrists.

Price said that although there may be legitimate reasons for a doctor's prescriptions being linked to a death, “it’s cause for some further review.”

“I think a red flag goes up any time you have one [doctor] involved in several deaths,” he said. “And I think an investigation is not only warranted but called upon by the public.”

Read More..