News Briefs
Groups Urge Appeals Court to Revive Drug Price Negotiation Suit
Healthcare and drug industry groups urged a U.S. appeals court to revive their challenge to a law requiring manufacturers to negotiate the prices of some drugs with the U.S government's Medicare health insurance program or pay heavy penalties. Pharmaceutical Research and Manufacturers of America, the Global Colon Cancer Association, and the National Infusion Center Association sued the government last year, claiming the program, a signature initiative of Democratic President Joe Biden, violated the U.S. Constitution by giving too much power to federal regulators and imposing excessive fines on companies that refuse to participate.
(Source: Reuters, 2024-05-01)
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Study Finds FTC Inaction on Hospital M&A Increases Prices
The Federal Trade Commission has recently upped its level of enforcement on M&A activity, but a new study finds that the agency didn't take enough action against mergers previously. Underenforcement of antitrust laws negatively harms competition in hospital markets and leads to price increases for patients, according to the research published in the American Economic Review.
(Source: HealthLeaders Media, 2024-05-01)
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CDC's Hospital COVID-19 Reporting Requirement Ends
Hospitals are no longer required to report COVID-19 hospital admissions, hospital capacity, or hospital occupancy data to the Department of Health and Human Services, according to the Centers for Disease Control and Prevention. While hospitals are no longer required to submit the data, the CDC is still encouraging them to do so voluntarily.
(Source: Healthcare Finance News, 2024-05-03)
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Ban on Noncompetes Will Impact Nonprofit Hospitals Too
The widespread ban on noncompete contracts finalized last week by the Federal Trade Commission will throw a wrench into the staffing and finances of nonprofit hospitals, legal experts and Fitch Ratings analysts say. Those changes are expected despite the agency's limited jurisdiction over entities that aren't corporations, experts report.
(Source: FierceHealthcare, 2024-05-02)
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DOJ Boosts Whistleblower Incentives Within Healthcare Industry
The U.S. Department of Justice has taken another step against corporate malfeasance by incentivizing cooperation from individuals involved in misconduct. While the new program applies to all companies, experts have said it specifically targets banks, investment funds, and the healthcare industry.
(Source: Thomson Reuters, 2024-05-02)
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Healthcare Ransomware Attacks Compromise More Sensitive Data
The Rubrik Zero Labs research unit found that the average healthcare organization possesses upwards of 42 million sensitive data records, 50 percent more than the global average of 28 million. Given this figure, Rubrik deduced that ransomware attacks against healthcare organizations can have significant negative impacts on operations and data security and integrity.
(Source: HealthIT Security, 2024-05-01)
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94% of Hospitals Report Financial Hit Due to Change Cyberattack
Almost all U.S. hospitals were hurt financially by the cyberattack on United Health Group's Change Healthcare unit earlier this year, according to a survey from the American Hospital Association. The AHA said that 94 percent of hospitals reported damage to cash flow, and more than half reported significant or serious financial damage due to Change's inability to process claims.
(Source: Reuters, 2024-04-30)
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House Bills Aim to Permanently Extend Telehealth Flexibilities
Bills to permanently extend several pandemic-era waivers were introduced in the United States House of Representatives. The first bill would permanently allow federally qualified health centers and rural health clinics to provide telehealth services, while the second bill would permanently expand the list of healthcare practitioners eligible to provide telehealth services.
(Source: mHealthIntelligence, 2024-05-03)
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Walmart, Optum Shut Down Virtual Care, But Telehealth Evolving
News that Walmart is shuttering all 51 health centers along with its virtual care services came on the heels of recent media reports that Optum also was exiting the telehealth business. Many digital health leaders say these recent moves don't signal an end to the telehealth era -- while certainly the boom during the COVID-19 pandemic is over -- but the virtual care market is evolving and moving away from commoditized models like virtual urgent care.
(Source: FierceHealthcare, 2024-05-01)
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March Hospital Margins Down Due to Lower Volumes, Labor Costs
The nation's hospitals booked thinner operating margins in March thanks to lower volumes and revenues combined with rising labor costs, according to Kaufman Hall's latest National Hospital Flash Report. The Kaufman Hall Calendar Year to Date Operating Margin Index -- a measure of hospital profitability -- was 3.9 percent in March, a 0.2 percentage point drop from 4.1 percent in February.
(Source: HealthLeaders Media, 2024-05-03)
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Over a Third of Nurses Say They're Likely to Change Jobs in 2024
More than a third of nurses said it's extremely likely they'll change jobs this year, according to a survey by staffing firm AMN Healthcare. The results suggest frustration is still high among nurses in the wake of the COVID-19 pandemic, and turnover will likely remain elevated in 2024, the report said.
(Source: Healthcare Dive, 2024-05-06)
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