February 16, 2024

Healthcare Authority Newsletter - February 2024 #2

W. Jerad Rissler

Arnall Golden Gregory LLP

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News Briefs

Senators Consider Oversight of AI in Healthcare Industry

Senators mulled how to best oversee artificial intelligence applications in the healthcare industry at a finance committee hearing. Lawmakers particularly focused on preventing algorithmic bias and unfair care denials by health plans.

(Source: Healthcare Dive, 2024-02-08)

Federal cybersecurity experts are warning healthcare information technology experts about a new threat that has become significant in less than a year. Akira ransomware was first identified in May 2023 and has claimed at least 81 victims, according to the Health Sector Cybersecurity Coordination Center in the U.S. Department of Health and Human Services.

(Source: Medical Economics, 2024-02-08)

Congress is wading into the question of whether the Hospital at Home model of care should be made permanent. U.S. Senators Marco Rubio (R-Florida) and Tom Carper (D-Delaware) have introduced a bill that would set up a pilot program to test whether the Acute Hospital Care at Home initiative could be expanded to new populations beyond those needing acute care services.

(Source: HealthLeaders Media, 2024-02-09)

The Centers for Medicare and Medicaid Services Quality, Safety & Oversight Group sent a memo to state survey agency directors, effective immediately, clarifying HIPAA compliance for texting patient information and hospital orders at critical access hospitals. Texting guidance CMS released to hospitals in 2018 indicated that the practice of texting patient orders from a provider to a member of the care team was not compliant with the agency's Conditions of Participation. CMS said in the new memo, Texting of Patient Information and Orders for Hospitals and CAHs, that back in 2018, it had concerns with "record retention, privacy, confidentiality, security, and the integrity of existing systems at that time." While computerized provider order entry is still the agency's preferred method of order entry by a provider, those choosing to incorporate texting of patient information and orders into electronic health records must utilize and maintain data security and encryption as well as ensure the integrity of author identification on secure texting platforms that comply with the Health Insurance Portability and Accountability Act of 1996, CoPs, and the HITECH Act, CMS said.

(Source: Healthcare IT News, 2024-02-12)

The Centers for Medicare and Medicaid Services has released a Notice of Proposed Rulemaking to bolster oversight of Accrediting Organizations in the Medicare and Medicaid program. In recent years, CMS has identified several concerns related to Accrediting Organization performance.

(Source: Healthcare Finance News, 2024-02-09)

In January, the Biden administration announced new rules to streamline the prior authorization process for patients with certain health plans, after attempts stalled out in Congress, including a bill that passed the House in 2022. But states are considering prior authorization bills that go even further. Last year, lawmakers in 29 states and Washington, D.C., considered some 90 bills to limit prior authorization requirements, according to the American Medical Association, with notable victories in New Jersey and Washington, D.C.

(Source: KFF Health News, 2024-02-12)

The number of healthcare bankruptcies in 2023 increased 71 percent from 2022, reaching the highest level in the last five years, a report from Gibbins Advisors revealed. In 2023, there were 79 healthcare bankruptcy filings, up from 46 in 2022 and 25 in 2021.

(Source: RevCycle Intelligence, 2024-02-07)

Private equity deals in healthcare services declined last year after a pandemic-era increase, but PE deals still notched the third highest on record by deal count, according to a Pitchbook report. PE sponsors announced or closed an estimated 788 deals in 2023, though the pace of dealmaking declined moderately quarter over quarter.

(Source: Healthcare Dive, 2024-02-12)

A two-day summit of law enforcement leaders from federal, state, and local levels is intent on strengthening investigations into elder abuse and fraud, including oversight of nursing homes. The event -- convened by the U.S. Department of Justice -- is the latest in a series of signs that federal officials are taking aggressive steps to police long-term care facilities it suspects of providing inadequate care.

(Source: McKnight's Long-Term Care News, 2024-02-08)

The transition to value-based care will require changes in the electronic health record systems physicians are using. Meanwhile, documenting clinical quality and sharing data are two needs driving intentions to upgrade technology in healthcare practices over the next 18 months.

(Source: Medical Economics, 2024-02-06)

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.