HealthcareInsights.MD will be on vacation and resume Monday, April 7.

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About health insurance/insurers

Humana opens first Walmart clinic: The first grand opening of a CenterWell Senior Primary Care clinic located next to a Walmart will take place March 26 in Gladstone, Missouri.
The new clinic officially opened and began accepting new patients in late 2024, according to a March 20 news release. In July 2024, Humana said it would lease 23 former Walmart Health sites from the retail giant for CenterWell clinics. Walmart shuttered its health centers in 2024. 
Comment: I wonder why Humana thinks it will succeed when other healthcare entities have failed miserably when they entered into this sector.

Low Marketplace Premiums Often Reflect High Deductibles Not news except the study quantifies these differences: Silver-plan deductibles typically exceed $5,000, while bronze plans approach $7,500 — representing up to 21 percent of annual income for those at 250 percent of poverty. Out-of-pocket maximums are generally above $9,000 at both metal tiers. While higher-premium options offer lower deductibles, they often include substantial prescription drug deductibles. 

About healthcare IT

The Healthcare Email Security Report: Key insights from 180 email-related healthcare breaches A great overview of this important topic. For example: According to IBM, the true average cost of a data breach in healthcare is $9.8 million. 

About healthcare personnel

Why we’re getting the expensive problem of employee burnout — and how to fix it — all wrong: We hear a lot about worker burnout, but a new study from the American Journal of Preventative Medicine puts an eyebrow-raising price tag on it. It found that a worn-out employee can cost an organization $21,000 per year in lost productivity — meaning that for the average 1,000-person company, workforce disengagement and burnout could ring up to $5 million a year.  

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Ohio payer beats UnitedHealthcare in racketeering lawsuit, awarded $50M: An Ohio jury awarded Medical Mutual of Ohio over $50 million in damages on March 12 after the payer prevailed in its lawsuit against FrontPath Health Coalition and HealthScope Benefits, a subsidiary of UnitedHealthcare. 
FrontPath offers employee benefits solutions, and HealthScope is a third-party administrator. 
The two companies were accused of conspiring to form an enterprise that consisted of their executives and engaging in fraudulent practices that manipulated the bidding process for a health benefits contract with the city of Toledo in 2015 and 2018. Medical Mutual claimed that the two companies gained unauthorized access to its confidential financial data, which they then used to artificially lower bids, according to a March 14 news release from the company.
The defendants were found to have committed federal wire fraud, telecommunications fraud, tampered with records, and obstructed justice by submitting false bid information. The jury found that the conspiracy resulted in significant damages to Medical Mutual and ultimately caused taxpayers to pay higher healthcare costs than necessary.

About pharma

Optum Rx’s new payment model favors brand names over generics: Effective March 20, Optum Rx will increase reimbursements to pharmacies for brand-name drugs and cut them for generics. 
Optum Rx said the new pharmacy payment models are in response to price increases set by brand name drug manufacturers. 
“With this change, Optum Rx is addressing a legacy, industrywide model that was originally designed to help promote the use of affordable generics,” the company said in a news release. “Effective generic adoption is now quite strong, and increasingly, more high-cost branded drugs are entering the market, raising costs for pharmacies.”

Purdue Pharma files new $7.4B bankruptcy reorganization plan to settle opioid claims: The company hopes to emerge from the Chapter 11 bankruptcy process it entered in 2019 with a new reorganization plan, filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York. The plan lays out more than $7.4 billion in payments to compensate opioid victims and “abate the opioid crisis,” Purdue said in a press release.

Sanofi pays $600M upfront for Dren Bio's bispecific myeloid cell engager: Sanofi agreed to acquire a targeted bispecific myeloid cell engager from Dren Bio for $600 million upfront, boosting the French drugmaker's efforts in resetting the immune system and its goal of becoming the leader in immunology.
The deal for the CD20-directed candidate DR-0201 also includes potential development and launch milestone payments of $1.3 billion.
The companies noted that DR-0201 targets and engages specific tissue-resident and trafficking myeloid cells to induce deep B-cell depletion via targeted phagocytosis. The bispecific has shown robust B-cell depletion in preclinical testing and two ongoing Phase I trials.

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In other news:
Deaths of two important people who contributed to the healthcare field:
Dr. Sheldon Greenfield, Who Exposed Gaps in Health Care, Dies at 86: Dr. Sheldon Greenfield, whose pioneering research found that older patients with breast and pancreatic cancer got subpar treatment and that patients who grill their doctors during consultations receive better care, died on Feb. 26 at his home in Newport Beach, Calif. He was 86…
Dr. Greenfield was a founder and director of the Center for Health Policy Research at the University of California, Irvine, and a leader of the Medical Outcomes Study, involving more than 22,000 patients and 500 physicians. It determined in 1986 that doctors often ordered exorbitant and unnecessary tests and referred patients to a specialist when a primary care doctor or a nurse practitioner could have delivered equally good care. 

James Reason, Who Used Swiss Cheese to Explain Human Error, Dies at 86: By analyzing hundreds of accidents in aviation, railway travel, medicine and nuclear power, Professor Reason concluded that human errors were usually the byproduct of circumstances… rather than being caused by careless or malicious behavior.
That was how he arrived at his Swiss cheese model of failure, a metaphor for analyzing and preventing accidents that envisions situations in which multiple vulnerabilities in safety measures — the holes in the cheese — align to create a recipe for tragedy.

About health insurance/insurers

Cigna, Blue Cross Illinois parent close $3.3 billion Medicare deal: Blue Cross & Blue Shield of Illinois parent Health Care Service Corp. has closed its $3.3 billion purchase of Cigna’s Medicare operations, the companies announced Wednesday
The deal, which includes Medicare Advantage, Medicare Part D and Medicare supplement assets along with the CareAllies consulting unit, quadruples Chicago-based Health Care Service Corp.'s Medicare Advantage membership to about 800,000 and closes the book on Cigna's Medicare plan business. 

5 Key Facts about Medicaid Program Integrity – Fraud, Waste, Abuse and Improper Payments You should read the entire article, but here is one key fact: Medicaid Paid an Estimated 94.9% of Total Outlays Properly, and Improper Payments are Mostly Due to Insufficient Information.

About pharma

Optum Rx to drop prior authorization for dozens of prescription drugs Optum Rx, the pharmacy benefit manager under UnitedHealth Group, is set to eliminate prior authorization requirements for approximately 80 prescription drugs in an effort to simplify access to medications for patients with chronic conditions. 
The changes are expected to reduce prior authorizations by 25%, representing more than 10% of all prior authorizations across its pharmacy network, according to a March 19 news release from the company. 

About healthcare IT

Digital Health Adoption Trends by Each Generation: From Gen Z to Boomers: A recent survey reveals that 58% of Americans used virtual care in the past year, although this represents a slight decrease (5 percentage points) compared to 2023. Wearable devices and connected devices are also increasingly common, with 53% of consumers owning at least one, and 54% using them to track health metrics digitally.  
However, the way people engage with digital health varies significantly across age groups. Rock Health utilized from its 2024 Consumer Adoption of Digital Health Survey to gather insights into how different generations, from Gen Z to the Silent Generation, are using digital health tools and services.   
Comment: Look at the chart at the beginning of the article.

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About pharma

AstraZeneca buys cell therapy biotech in up to $1bn deal: AstraZeneca has struck a deal to acquire biotechnology company EsoBiotec for up to $1bn, as the London-listed pharmaceutical group expands its investments in cell therapies for treating cancer. 

About the public’s health

US births decline to lowest level in 40+ years: n 2023, there were 3.6 million births in the U.S. — the lowest the birth rate has been since 1979 when 3.5 million were recorded — according to data published March 18. 
The birth rate fell 2% compared to 2022, following a decadeslong decline in U.S. births. The data, compiled by the National Center for Health Statistics, also showed a 3% decrease in the general fertility rate, from 56 births per 1,000 women ages 15 to 44 in 2022 to 54.5 births per 1,000 in 2023.
A record high in 2023 was the mean age of mothers at first birth, at 27.5 years old. 

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Scientists Say NIH Officials Told Them To Scrub mRNA References on Grants: National Institutes of Health officials have urged scientists to remove all references to mRNA vaccine technology from their grant applications, two researchers said, in a move that signaled the agency might abandon a promising field of medical research.
 The mRNA technology is under study at the NIH for prevention and treatment of infectious diseases, including flu and AIDS, and also cancer. It was deployed in the development of covid-19 vaccines credited with saving 3 million lives in the U.S. alone — an accomplishment President Donald Trump bragged about in his first term.
A scientist at a biomedical research center in Philadelphia wrote to a colleague, in an email reviewed by KFF Health News, that a project officer at NIH had “flagged our pending grant as having an mRNA vaccine component.”
“It’s still unclear whether mRNA vaccine grants will be canceled,” the scientist added.

About healthcare quality and safety

How has the quality of the U.S. healthcare system changed over time? This MUST-read from the KFF is a treasure-trove of information on the many dimensions of US healthcare quality.

About health insurance/insurers

CMS doubles down on Medicare drug price negotiations: CMS will not change the Biden administration's plan to negotiate prices for 15 previously named prescription drugs, and the agency's next potential leader says he will defend the program in court.
In January, CMS selected Ozempic, Rybelsus, Wegovy, Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet, and Otezla to be included in the second round of negotiations aimed at reducing drug costs for Medicare beneficiaries. 
On March 14, CMS said it had signed agreements with manufacturers, who will now participate in meetings and roundtables throughout 2025 to negotiate maximum fair prices for the 15 drugs, with final agreements due by Nov. 1.

MedPAC Report Calls for Increases in Doc Pay for Medicare Services: Physician and other health professional services should get an annual 1.3% increase in Medicare claims reimbursement, and Congress should set a separate safety-net payment averaging 1.7% more for clinicians serving low-income fee-for-service (FFS) beneficiaries.
Those were two recommendations from the Medicare Payment Advisory Commission's (MedPAC) March report o Congress. The independent agency advises Congress on issues related to payment, quality of care, and access to care for 65 million beneficiaries.

About hospitals and healthcare systems

National Hospital Flash ReportKey Takeaways
1. Hospital performance remains stable at the start of 2025.
This is due to a confluence of greater service volume and rising expenses.
2. Expenses continue to be driven primarily by the cost of drugs. However, the rate of cost growth has slowed considerably.
3. Inpatient revenue grew more quickly than outpatient revenue in January. More patients were treated in the hospital and emergency room. 

Physician Flash Report [Based on Data From More Than 200,000 Employed Physicians and Advanced Practice Providers In More Than 100 Specialties]
• Overall revenue per wRVU continues to fall, highlighting broader reimbursement challenges and an indication that traditional fee-for-service structures aren’t sustainable.
• When examining revenue per wRVU by specialty cohort, primary care revenue is holding steady while other specialties have seen a decline.
• Value-based care and other risk sharing models could be a material driver of these differences, and points to value- based care as having a positive impact on revenue.

About pharma

Lifetime Health Effects and Cost-Effectiveness of Tirzepatide and Semaglutide in US Adults: This economic evaluation found that although tirzepatide and semaglutide offered substantial long-term health benefits, they were not cost-effective at current net prices. 

About the public’s health

FDA chooses flu vaccine strains after interagency meeting: A little over two weeks after cancelling a planned advisory committee meeting to determine the composition of influenza vaccines, the FDA has released recommendations for which viral strains should be included in shots for the 2025-2026 season. According to the agency, the decision followed a meeting of scientific and public health experts from the FDA, Centers for Disease Control and Prevention and the Department of Defense.
The abrupt cancellation of the advisory committee meeting — which had been scheduled for March 13 — raised concerns that manufacturers would not have sufficient time to produce the vaccines ahead of the upcoming flu season.
However, in releasing its new recommendations, the FDA said it "does not anticipate any impact on timing or availability of vaccines for the American public."  

About healthcare personnel

The feminization of medicine, explained: The feminization of medicine has accelerated dramatically in the last four decades.
In the 1980s, women made up about 30% of medical school students, but now they make up 54%. Between 2004 and 2022, the number of women in the active physician workforce jumped 97%, compared to an increase of 13% among men. And for the sixth year in a row, women outnumber men in medical schools. 

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MedPAC estimates $84B in Medicare Advantage overpayments in 2025:  The federal government will spend $84 billion more on Medicare Advantage enrollees this year than if they were enrolled in fee-for-service plans, according to new estimates from the Medicare Payment and Advisory Commission. 
MedPAC, which advises Congress on Medicare policy, published its annual report March 13. 
The group estimated that CMS will spend 20% more on Medicare beneficiaries enrolled in MA plans than if those beneficiaries were enrolled in fee-for-service in 2025. 

Highmark Health Plans reports $166M loss, cites GLP-1s as headwind: Highmark Health Plans reported a $166 million operating loss in 2024, driven by rising medical costs. 
Highmark, which operates health plans, health system Allegheny Health Network and several other businesses, reported its 2024 financial results March 13. 
In addition, Highmark reported $29.4 billion in 2024 operating revenue and a $209 million operating loss.

10 payers recently fined by states FYI

Will the Trump Administration Fast Track the Privatization of Medicare? A great analysis fro the KFF.

About hospitals and healthcare systems

Hospitals are making gains in safety, leading to better patient and staff experiences Data in this report show that:
—Hospitals are performing at or better than pre-pandemic levels on multiple measures of quality and patient safety, including patient falls and pressure injuries (i.e., bed sores) that reflect work led by nurses to care for patients.
—Millions of patients report that their overall care experience is improving. Press Ganey data from more than 1 million members of the health care workforce show a rebound from pandemic lows in engagement, resilience and safety culture.
—Patient safety, patient experience, workforce experience, and well-being are all tied together by a hospital or health system’s culture of safety. Across clinical settings — the single largest driver of a patient’s reported experience of care is how well their care team members work together. Better teamwork has long been shown to drive better outcomes.  

About pharma

10 drugs poised to be best-sellers in 2026 FYI 

About the public’s health

Cases of whooping cough across N.C. more than double compared to this time last year Measles is not the only childhood disease that is spreading.

About healthcare personnel

Arkansas bans noncompete agreements for physicians: Arkansas has enacted a law prohibiting health care employers from enforcing noncompete agreements that restrict physicians from joining competing organizations. Arkansas Gov. Sarah Huckabee Sanders “signed a bill earlier this month that augments existing state law by voiding noncompete provisions in physician contracts that would prevent them from joining a rival organization. The law will take effect in mid-July.” Arkansas will now join “several other states, including Pennsylvania, Maryland and Illinois, which have outlawed noncompete agreements tied to clinicians. California, Minnesota, North Dakota and Oklahoma have blanket noncompete bans for all employers.” 

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Trump's health team takes shape as FDA, NIH picks confirmed: The US Senate on Thursday confirmed Marty Makary as Commissioner of the FDA and Jay Bhattacharya as director of the National Institutes of Health (NIH), completing key appointments to President Donald Trump's health leadership team. 

About health insurance/insurers

CMS to end 4 Medicare payment programs early : The CMS Innovation Center will terminate four Medicare payment models early in a move that aims to save nearly $750 million and shift focus to more viable approaches to value-based care.

The models set to end by Dec. 31, 2025, include:

CMS said the decision reflects ongoing evaluations of financial impact, quality outcomes and operational feasibility and ensures that resources are allocated to programs with the highest potential for success. 

About pharma

Trends In FDA FY 2024 Inspection-Based Warning Letters:The U.S. FDA issued a total of 190 warning letters to drug and biologics manufacturers in Fiscal Year 2024 (FY24). Of those, 113 were based on an FDA inspection, including 12 letters issued to clinical investigators or sponsors following inspections conducted as part of the FDA’s Bioresearch Monitoring (BIMO) Program. For the purposes of this article, we have chosen to analyze 111 of those letters, removing two due to their focus on new animal drugs and medical devices, respectively.1
The FY24 warning letter total is higher than the 94 letters issued in FY23 and the 74 letters issued in FY22. While the FDA’s top observations remained generally consistent, the FY24 breakdown for both country of origin and facility type varies greatly from previous years.

Mallinckrodt, Endo set for $6.7B merger: Confirming rumours that surfaced yesterday, Mallinckrodt and Endo announced Thursday that the companies will combine in a cash and stock transaction valued at $6.7 billion. The deal comes as both firms look to recover from financial and legal challenges related to the US opioid epidemic, which saw both declare bankruptcy.
Under terms of the agreement, Endo shareholders will receive a total of $80 million in cash and will own 49.9% of the combined company, with Mallinckrodt shareholders owning the remaining 50.1%. The transaction, which has been approved by both boards, is expected to close in the second half.

About the public’s health

The toll of chronic conditions: Where each state stands: West Virginia has the highest proportion of adults with at least one chronic condition of any state, according to new analysis from KFF.
The report is based on 2023 survey data from the CDC's Behavioral Risk Factor Surveillance System. Figures represent the percentage of adults ages 18 to 64 who reported at least one of the following health conditions: hypertension, diabetes, cancer, arthritis, asthma, chronic obstructive pulmonary disease, depression or kidney disease. 

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In other news: Food Is Medicine In The US: A National Survey Of Public Perceptions Of Care, Practices, And Policies: We conducted the first national survey on knowledge, perceptions, and experiences around Food Is Medicine during February–April 2023. Fewer than half of respondents said that they received clear food- and nutrition-related advice from their primary health care providers, but a majority expressed interest in participating in Food Is Medicine interventions. More than two-thirds felt that Medicare and Medicaid should help pay for Food Is Medicine programs in health care, and more than half said that private insurance should do so. These results suggest a need for increased nutrition-related training of health care professionals, development of Food Is Medicine accreditation standards for health care organizations, and new regulatory incentives and contract requirements for Medicare Advantage and Medicaid managed care plans to encourage Food Is Medicine interventions in care delivery.

About health insurance/insurers

CMS deletes Medicare Advantage vision statement, signaling another shift from health equity: The Centers for Medicare & Medicaid Services (CMS) wiped away the agency’s stated intentions for the future of Medicare Advantage (MA), underlining new uncertainty for the future of health-related social needs, CMS Innovation Center models and the federal health program.

Healthcare billing fraud: 10 recent cases FYI 

About pharma

Telehealth platforms in senators’ crosshairs over relationship with Eli Lilly, Pfizer: On Tuesday, a group of senators sent letters to five telehealth companies that offer care through direct-to-consumer portals from pharmaceutical manufacturers Pfizer and Eli Lilly, interrogating their financial relationships. The questions seek to determine whether contracts between pharma and telehealth companies could violate the federal anti-kickback statute.  

Roche pays $1.4B to get in on Zealand's obesity candidate: Zealand Pharma's quest to find a partner for its long-acting amylin analogue petrelintide has come to an end, with an agreement announced Wednesday that will see Roche pay $1.4 billion to come on board. "We consider Roche the ideal partner," remarked Zealand CEO Adam Steensberg, adding that the Swiss pharma "has a strong history of… redefining disease care."

The pharma industry's 2025 revenue projections FYI

The Top 15 U.S. Pharmacies of 2024: Market Shares and Revenues at the Biggest Chains, PBMs, and Specialty Pharmacies FYI

About the public’s health

Free COVID-19 Test Program Stops Taking Orders:
Key Takeaways

  • The federal program providing free at-home COVID tests has stopped accepting orders

  • Orders that were placed before 8 PM ET on March 9 will still be shipped

  • COVID cases, hospitalizations and deaths have been declining in the U.S. 

About healthcare IT

Ethics in Patient Preferences for Artificial Intelligence–Drafted Responses to Electronic Messages: This survey study of 1455 respondents showed that while overall satisfaction was high (>75%) regardless of author, respondents preferred responses written by AI over those written by a human (mean difference, 0.30 points on a 5-point Likert scale for satisfaction). However, when an AI author was disclosed, satisfaction was lower for AI compared with a human author (mean difference, 0.13 points). 

About healthcare personnel

Employee Leave Requests Are on the Rise: More than half of employers (57%) reported an increase in employees requesting leave in 2024, according to recent figures from AbsenceSoft, a leave and accommodation management solutions provider. Of the employers who reported an increase, more than half (53%) experienced an increase of 21% or more. The length of a typical leave varies depending on the type of leave, according to AbsenceSoft, while company-paid leave policies can also vary significantly.
Although the pace of employee leave requests has slowed — 62% of employers reported an increase in the number of leave requests in 2023, while a whopping 96% did in 2022 — employee conditions and employer availability are contributing to the continuing increase. The primary reasons for leave are recovering from injury and illness (57%), managing mental health challenges (47%), caring for an aging parent (37%), and taking parental leave (34%). The data highlights the growing responsibilities of the sandwich generation, as employees balance caregiving for both children and aging parents…

About health technology

New FDA pulse oximetry guidelines could stall under Trump: After years of concerns that pulse oximeters may provide less accurate results for people with dark skin pigmentation, the Food and Drug Administration issued a draft guidance in January clarifying requirements for the devices. However, experts are concerned the guidance may not move forward under the Trump administration. 

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In other news:

For Google, health equity becomes ‘health optimization’ as Trump targets DEI FYI

NIH still terminating research grants, defying federal orders: Boston Globe: In defiance of federal orders, the National Institutes of Health (NIH) is still terminating grants to researchers across the country, The Boston Globe reports.
The agency is pulling funding for science that doesn’t comply with President Donald Trump’s executive orders, according to the Globe.

About hospitals and healthcare systems

Medicaid cuts would cost hospitals $80B in 2026, spike uncompensated care costs: Report: Hospitals and health systems could face severe financial consequences if Congress moves forward with proposed Medicaid funding cuts, with new research projecting an $80 billion revenue loss for providers in 2026 and a sharp rise in uncompensated care costs.
This month, the Senate is expected to vote on a budget resolution passed by House Republicans on Feb. 25. The legislation directs the Energy and Commerce Committee, which oversees Medicare and Medicaid, to identify $880 billion in savings over the next 10 years.

About pharma

Eli Lilly expands telehealth access to low-cost Zepbound with Teladoc Health, LifeMD tie-ups:Earlier this week, Eli Lilly partnered up with telehealth providers LifeMD and Teladoc Health to offer its lower cost, single-vial Zepbound (tirzepatide) to patients in the virtual care companies' full-service weight loss management programs.
The companies are directly contracting with Eli Lilly's self-pay pharmacy, GiftHealth. The move could be a boon for telehealth weight loss programs, which have proved lucrative for virtual primary care companies.

The Prescription Drug Gender Divide: Women Spent Over $8.5 Billion More Than Men in 2024: Key takeaways: 

  • Women consistently spend nearly 30% more out of pocket on prescriptions than men, totaling $8.5 billion more in 2024 alone.

  • Women visit doctors more often, fill more prescriptions, and manage more chronic conditions — leading to higher total out-of-pocket costs across the board.

  • Women 18 to 44 years old face the steepest price gap, spending up to 64% more than men — all while balancing career, family planning, and caregiving.

  • Women also significantly outspend men on mental health treatments. Women spend 113% more on depression medications and 103% more on anxiety treatments.  

About the public’s health

Electronic Cigarette Use Among Adults in the United States, 2019–2023:
 Key findings: Data from the National Health Interview Survey

  • The percentage of adults who used electronic cigarettes increased from 4.5% in 2019 to 6.5% in 2023.

  • In both 2019 and 2023, men were more likely than women to use electronic cigarettes.

  • In 2023, young adults ages 21–24 were most likely to use electronic cigarettes (15.5%).

  • The percentage of adults who used electronic cigarettes varied by race and ethnicity in both 2019 and 2023.  

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NIH unveils plan to centralize grant reviews in effort to save $65M+ annually:The National Institutes of Health unveiled a plan on March 6 to move the peer review of grant applications, cooperative agreements and research and development contracts to a central location at the agency’s Center for Scientific Review (CSR). The move is intended to save more than $65 million annually, the agency said.

About healthcare quality and safety

10 top threats to patient safety in 2025: ECRI: n 2025, the top threats to patient safety reflect a mix of long-standing challenges and emerging risks, according to a new report from ECRI and the Institute for Safe Medication Practices…
Here are the 10 most pressing patient safety challenges in 2025, per the report:  

  1. Dismissing patient, family and caregiver concerns

  2. Insufficient governance of artificial intelligence

  3. Spread of medical misinformation 

  4. Cybersecurity breaches 

  5. Caring for veterans in non-military health settings

  6. Substandard and falsified drugs

  7. Diagnostic errors in cancers, vascular events and infections 

  8. Healthcare-associated infections in long-term care facilities 

  9. Inadequate coordination during patient discharge

  10. Deteriorating working conditions in community pharmacies  

About health insurance/insurers

CMS Notes Progress on Accountable Care Goals: Earlier this year, the United States Centers for Medicare and Medicaid Services (CMS) acknowledged progress that had been made on its goal for Traditional Medicare beneficiaries to be in a care relationship with accountability for quality and total cost of care by 2030. In fact, as of January 2025, 53.4% of people with Traditional Medicare (fee-for-service) were in an accountable care relationship with a provider, representing more than 14.8 million people and a 4.3% increase from January 2024…
As of 2025, there are 28 ACOs receiving advance investment payments (an increase of 47% from last year), with half of beneficiaries assigned to these ACOs residing in areas with a health professional shortage or in a medically underserved area.
Additionally, for the 2025 performance year, CMS approved 228 applications for the Medicare Shared Savings Program. That includes 55 new accountable care organizations (ACOs) and 173 ACOs that are renewing or reentering, the largest annual number of renewals in the history of the program. The total number of ACOs participating in the Shared Savings Program for performance year 2025 is 476. There was also a 16% increase in the number of Federally Qualified Health Centers, Rural Health Clinics, and Critical Access Hospitals participating in the program from last year.
CMS further notes that 103 ACOs are continuing their participation in the Realizing Equity, Access, and Community Health (ACO REACH) Model and 78 Kidney Contracting Entities and 15 CMS Kidney Care First Practices are continuing their participation in the Kidney Care Choices (KCC) Model. The ACO Primary Care Flex (ACO PC Flex) Model, a highlight of CMS’ support of primary care as the foundation of accountable care, boasted 24 participating ACOs. The ACO PC Flex model began on January 1, 2025, and serves 349,000 traditional Medicare beneficiaries.

6 BCBS plans reporting losses in 2024 FYI
On the other hand: Excellus BCBS posts $26M profit in 2024 

About hospitals and healthcare systems

Buying across borders: 6 systems acquiring hospitals in a new state FYI 

About pharma

CVS is opening smaller stores that only have pharmacies : The pharmacy chain is opening around a dozen stores this year that are about the half the size of its traditional layout and have only a pharmacy — ditching the front-end of the store that traditionally has sold snacks, greeting cards and other consumer staples.
The smaller stores are one aspect of CVS’ turnaround plans, which have also included more than 1,000 store closures and thousands of layoffs, as the chain looks to adjust in an industry currently undergoing an upheaval. 

On the heels of FDA nod for cancer drug, Sun Pharma buys Checkpoint Therapeutics for up to $416M FYI

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In other news:

NIH has paused patenting of discoveries, slowing their use in developing treatments:For the past five weeks, employees at NIH technology transfer offices have been barred from filing new patent applications and been restricted from licensing existing ones, according to emails obtained by STAT and interviews with current and former NIH employees. 
 On Jan. 29, the NIH’s acting director, Matthew Memoli, sent an email to senior agency officials instructing them to pause all technology transfer discussions with outside parties and not negotiate any new agreements. 

About hospitals and healthcare systems

748 hospitals at risk of closure, state by state FYI

About pharma

Federal judge stops compounded copies of Eli Lilly weight loss, diabetes drugs: A federal judge has effectively ended the ability of compounding pharmacies to make their own copies of Eli Lilly’s weight loss and diabetes drugs Zepbound and Mounjaro. 
In a sealed decision filed late Wednesday, Judge Mark Pittman of the Northern District of Texas declined to issue an injunction to stop the Food and Drug Administration (FDA) from declaring there was no longer a shortage of the medicines’ active ingredient, tirzepatide.  

10 Best-Selling Drugs of 2024 Rake in Billions Amid Exclusivity Threats A great review of the topic.

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In other news:

31 million Americans borrowed money for health care last year: Poll : More than 31 million Americans borrowed money last year to pay for health care, a new survey found.
Those Americans borrowed about $74 billion, despite most of them have some form of health insurance, the West Health-Gallup survey found. 

How Will Trump’s Tariffs Impact Healthcare? The Key Things To Know A simple, but nice, overview of the topic.

About health insurance/insurers

Below are a couple articles about Medicaid that should enlighten what is going on at the federal level to cut costs.
5 Key Facts About Medicaid and Hospitals 
More Than 70 Million Americans Are on Medicaid. This Is Where They Live. 

About hospitals and healthcare systems

Dozens of health systems file 'opt-out' antitrust lawsuits against Blue Cross Blue Shield: Dozens of health systems and other provider groups have filed new antitrust lawsuits against the Blue Cross Blue Shield Association and its 33 independent entities, alleging anticompetitive practices that led to suppressed payments to providers. 

The lawsuits, filed in March 4 in federal courts in in Pennsylvania, California and Illinois, come after hospitals and other providers opted out of a $2.8 billion class-action settlement reached in October 2024 with BCBS. Physician groups, surgery centers and home health providers have also joined as plaintiffs in the new complaint.
The plaintiffs claim that BCBS companies conspired to divide geographic markets, restrict competition, and fix reimbursement rates, thereby limiting providers' ability to negotiate fair contracts. The complaints allege that BCBS's longstanding territorial agreements prevented the insurers from competing with each other, in turn artificially lowering payments to hospitals and physicians. 

About pharma

Novo Nordisk offers Wegovy for less than half the price through new direct-to-consumer pharmacy:
KEY POINTS

  • Novo Nordisk will offer its weight loss drug Wegovy for less than half of its usual price per month through a new direct-to-consumer online pharmacy.

  • The cash-pay offering is available to millions of patients without insurance coverage for the blockbuster injection.

  • The pharmacy, called NovoCare, will allow patients to pay $499 in cash per month for the weekly drug. 

Pfizer, BioNTech notch US win—and loss in Germany—amid high-stakes patent fight with Moderna: On Wednesday, the U.S. Patent and Trademark Office's Patent Trial and Appeal Board (PTAB) ruled that all challenged claims on two of Moderna's COVID-19 vaccine patents are "unpatentable." The news came in the form of two docket updates on the PTAB's website, and the decisions are sealed.
For Moderna, the PTAB decisions likely mark a surprise defeat given that the company had sued Pfizer and BioNTech in federal court in Massachusetts for alleged infringement of three patents in 2022, including the two recently invalidated by the PTAB. 

About healthcare IT

5 takeaways from HIMSS '25 FYI

Health AI “Nutrition Label” Advances : CHAI is thrilled to announce a growing movement within the community to move forward deploying CHAI Applied Model Cards (or the recently launched open-source version) moving from public comment and proof of concept to signal an important step for the healthcare ecosystem.
Applied Model Cards, or AI “nutrition labels,” will be used by health systems and solution providers to create a more standard way to present foundational information about AI solutions. Today, health system AI steering committees are frequently left to analyze highly technical materials, or marketing presentations among a wide range of inputs driving a needless complexity in the earliest stages of procurement.

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Judge issues preliminary injunction blocking Trump cuts to NIH research overhead payments: A federal judge on Wednesday issued a nationwide preliminary injunction blocking the Trump administration from slashing National Institutes of Health payments for research overhead, a decision that suggests plaintiffs seeking to overturn the sweeping policy change are likely to eventually succeed. 
The order halts implementation of a cap on payments for indirect costs — facility and administrative fees linked to research — while the judge hears full arguments in three lawsuits that will determine the fate of billions of federal dollars that flow to universities, medical centers, and other grant recipient  

About health insurance/insurers

Commonwealth Fund: How letting the ACA premium subsidies expire could impact states: Enhanced premium subsidies for Affordable Care Act plans are set to expire at the end of this year, and, if they do, the financial impacts would be felt in all 50 states, according to a new report.
Researchers at the Commonwealth Fund and George Washington University's (GWU's) Milken Institute School of Public Health estimate that the end of the tax credits would cost states $34 billion in gross domestic product as well as more than $2 billion in tax revenue. The report also estimates it could lead to 286,000 job losses.
The study noted that states would lose out on $26.1 billion in federal subsidies in 2026, and those lost funds would compound over time. The states that would feel the pain the most are those that did not expand Medicaid, as the marketplace subsidies are critical to extending coverage to more people.

CVS terminates ACO REACH contracts, sells MSSP business to Wellvana: March 4, the company announced value-based care company Wellvana is acquiring CVS Health’s Medicare Shared Savings Program (MSSP) business under the CVS Accountable Care umbrella for an undisclosed sum. Wellvana now supports providers in 40 states and serves more than 1 million Medicare patients, according to a news release.
 

About hospitals and healthcare systems

Hospital patient volumes up (almost) everywhere: Patient volumes are climbing for most hospitals across the U.S. as hospitals direct more care outpatient and alleviate capacity constraints.

Recent data from Strata Decision Technology and reported by Kaufman Hall shows how much hospital volumes have increased nationwide over the last three years:

  • Inpatient: 9.3%

  • Observation: 7.8%

  • Emergency: 8.5%

  • Outpatient: 7.2%

About pharma

Growing insurer restrictions limit GLP-1 coverage: GoodRx: Commercial insurance coverage of blockbuster GLP-1 drugs has not expanded much over the past year, despite growing demand and expanded indications, according to a new report from GoodRx. 
Data from 2024 to 2025 indicates coverage of these drugs is increasingly restricted, causing around 6 million people to lose coverage. 

About the public’s health

A short-term, high-caloric diet has prolonged effects on brain insulin action in men: Brain insulin responsiveness is linked to long-term weight gain and unhealthy body fat distribution. Here we show that short-term overeating with calorie-rich sweet and fatty foods triggers liver fat accumulation and disrupted brain insulin action that outlasted the time-frame of its consumption in healthy weight men. Hence, brain response to insulin can adapt to short-term changes in diet before weight gain and may facilitate the development of obesity and associated diseases. 

About healthcare IT

HIMSS25: Baxter debuts voice-activated wearable device for hospital clinical teams: At the Healthcare Information and Management Systems Society 2025 Global Health Conference & Exhibition on Tuesday, Baxter unveiled its new Voalte Linq device, a wearable badge powered by voice-activated technology in the form of a digital assistant named "Scotty." 
A nurse or other clinical team member can activate the technology by simply saying, "Hey Scotty' and then give an instruction such as "Call nurse for patient in room number 101" or can call a specific medical team member by name. 
Baxter's Voalte platform is a unified digital care communications solution. The Linq device integrates with existing products in Baxter's connected care portfolio including Voalte mobile, nurse call, a hospital call bell system and precision locating, according to the company. Clinical care staff can use the voice-activated device to assign a patient in the hospital as a fall risk so Baxter's bed exit alert is armed.

About health technology

AI-enabled digital stethoscope detects heart failure early: study:An artificial intelligence model for digital stethoscopes can identify patients with weakened hearts that can’t pump blood effectively, according to a new peer-reviewed study published in the March issue of JACC: Advances.
This condition, known as reduced ejection fraction, is an indicator of heart failure. An echocardiogram is typically used to diagnose it, but it’s not widely available because the technology is expensive, it requires specialist training and it’s a time-consuming examination. The new AI model is intended to be used by primary care physicians to detect heart problems earlier before symptoms escalate…
The researchers found that the AI model accurately identified 77.5% of true cases of reduced ejection fraction.

Shift toward imaging outside the hospital could save billions: A recent study published in the American Journal of Roentgenology (AJR) highlights the potential for billions of dollars in healthcare savings by shifting imaging services away from hospitals to outpatient centers…
 The study determined that up to 25% of hospital-based radiology services could be transitioned to outpatient centers. Mass General Brigham has already adopted this model, with 83% of its imaging performed outside of hospitals, far surpassing the 42% recommended by the study. Rosman believes this indicates that potential savings may be even greater than the study estimates.

Continuous glucose monitor [CGM] overestimates glycemia, with the magnitude of bias varying by postprandial test and individual – A randomized crossover trial.: CGM overestimated glycemic responses in numerous contexts. At times this can mischaracterize the GI [Glycemic index]. In addition, there is inter-individual heterogeneity of the accuracy of CGM to estimate fasting glucose concentrations. Correction for this difference reduces, but does not eliminate, postprandial overestimate of glycemia by CGM. Caution should be applied when inferring absolute or relative glycemic responses to foods using CGM, and capillary sampling should be prioritised for accurate quantification of glycemic response

About healthcare finance

Blackstone buys majority stake in CMIC, Japan's largest contract research organization: Blackstone now owns 60% of the CRO, the New York-based firm announced in a March 3 release, while CMIC’s holding company owns the remaining 40%. Blackstone didn't reveal the purchase price for the CMIC stake. 

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Navigating the Maze: A Look at Health Insurance Complexities and Consumer Protections A great monograph.

Fitch Ratings: Potential Medicaid cuts could pressure insurers: The Fitch analysts said insurers likely wouldn't see any major shifts in their businesses for 2025. However, should Congress make major changes to Medicaid—proposals include per capita caps, work requirements and rolling back the federal match for expansion—they could lead to pressure on margins. 

UnitedHealthcare to cut prior authorization by 10%:UnitedHealthcare plans to cut prior authorization requirements by around 10% in 2025. 
In a March 1 notice to providers, the health insurer said it will eliminate prior authorizations for home health services managed by Optum Home & Community, formerly naviHealth. The changes, which take effect April 1, apply to Medicare Advantage and dual special needs plans in more than 30 states. 
The cut is part of a broader effort to eliminate around 10% of UnitedHealthcare's prior authorization requirements in 2025, according to the company. 

Payers ranked by Medicare Advantage special needs plan membership | 2025 FYI

About hospitals and healthcare systems

Duke Health, Novant to partner: Durham, N.C.-based Duke University Health System and Charlotte, N.C.-based Novant Health have shared plans to partner and build new campuses across the state to expand care.
Under the partnership, clinicians from both systems will offer services in new locations to increase primary care and advanced specialty treatment access. The partnership also aims to reduce wait times, create more appointment availability and increase virtual access to specialists, according to a March 3 news release shared with Becker's.  

UPMC's operating loss grows to $339M in 2024: Pittsburgh-based UPMC posted a $338.9 million operating loss (-1.1 operating margin) in 2024, compared to an operating loss of $198.3 million (-0.7 margin) in 2023, according to its Feb. 28 financial report…
Operating expenses totaled $30.1 billion in 2024, up from $27.9 billion in 2023. Salaries, professional fees and employee benefit costs totaled $10 billion, up from $9.7 billion. Insurance claims expenses reached $11.2 billion, up from $10.1 billion. Supplies, purchased services and general expenses were $8.2 billion, up from $7.4 billion. 
UPMC said in the report that its health plan has seen increased medical use and rising pharmacy costs, which include expenses for GLP-1 drugs.
About pharma

Private-equity firm closes in on acquisition of Walgreens: Sycamore Partners is nearing an acquisition of Walgreens Boots Alliance Inc., people with knowledge of the matter said, in a deal that could end the drugstore operator’s tumultuous run as a public company. 
The private equity firm and Deerfield, Illinois-based Walgreens are putting the final touches on a transaction that may be announced as soon as this week, according to the people. The Wall Street Journal reported earlier that Sycamore was closing in on a deal to acquire Walgreens for $11.30 a share to $11.40 a share in cash, or about $10 billion. 

 

About the public’s health

Global, regional, and national prevalence of adult overweight and obesity, 1990–2021, with forecasts to 2050: a forecasting study for the Global Burden of Disease Study 2021 Lots of dire statistics and predictions. Here is part of the story:
In 2021, an estimated 2·11 billion (95% UI 2·09–2·13) adults aged 25 years and older worldwide were affected by overweight and obesity—almost half of the total adult population (45·1% [44·7–45·4]). Of these individuals, approximately 1·00 billion (0·989–1·01) were males and 1·11 billion (1·10–1·12) were females. Eight countries—China, India, the USA, Brazil, Russia, Mexico, Indonesia, and Egypt—accounted for more than half of the global population living with overweight and obesity. The highest numbers were observed in China (402 million [397–407] individuals), India (180 million [167–194]) and the USA (172 million [169–174]; appendix 1 pp 85–112). 

About healthcare IT

HIMSS25: Microsoft launches voice-activated AI assistant for clinicians: Microsoft has rolled out a new AI assistant for healthcare professionals that it bills as an all-in-one technology that combines voice dictation, ambient listening and generative AI.
The new tool, Dragon Copilot, combines the natural language speech recognition capabilities of Dragon Medical One with the ambient listening of DAX Copilot, which it launched about a year ago.  

About healthcare personnel

To solve for doctor shortages, states ease licensing for foreign-trained physicians : The changes involve residency programs — the supervised, hands-on training experience that doctors must complete after graduating medical school. Until recently, every state required physicians who completed a residency or similar training abroad to repeat the process in the U.S. before obtaining a full medical license.
Since 2023, at least nine states have dropped this requirement for some doctors with international training, according to the Federation of State Medical Boards. More than a dozen other states are considering similar legislation. 

An Evaluation of the Decline in Primary Care Physician Visits, 2010 to 2021 :The visits led by PCPs and IM subspecialists declined by 43% and 23% between 2010 and 2021, respectively. However, visits led by NP/PA/RNs increased by 98%. From 2010 to 2021, the proportion of preventive care visits provided by PCPs, IMs, and NP/PA/RNs increased by 25%, 7%, and 4%, respectively. PCPs provided fewer acute and chronic care visits in 2021 than in 2010. Regression analyses illustrated that relative to Non-Hispanic White patients, non-White patients had a higher likelihood of seeing PCPs. Patients reporting 1 chronic condition were more likely to obtain care from an IM or NP/PA/RN than a PCP. In contrast, those with 2 or more chronic conditions had a greater propensity to see PCP than NP/PA/RN.

Why Retail Health Giants Are Failing in Primary Care A good review of the topic. 

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Alignment Healthcare posts $701M in quarterly revenue, beats expectations: Alignment Healthcare achieved its first year of positive adjusted EBITDA as a company, the insurer announced on release of its fourth-quarter earnings results.
The insurer has 189,100 members, up more than 58% year over year, and the company' stock is up more than 14% today. 

Clover Health nets $70M adjusted EBITDA but misses revenue goals:Clover Health’s stock dipped Feb. 28 after the company announced an earnings per share loss of four cents and a 2% miss on quarterly revenue estimates, said Zacks Investment Research.
The company recorded a full-year adjusted EBITDA of $70 million, a huge year-over-year increase of $112 million. Quarterly insurance revenue came in at $331 million, and the company’s insurance benefits ratio improved from 87.4% in the fourth quarter of 2023 to 82.8% in 2024.
Its stock is down more than 5%, plunging to less than $4 a share.

BCBS Massachusetts reports $400M loss driven by GLP-1 spending: Blue Cross Blue Shield of Massachusetts reported a $400 million operating loss in 2024, driven by spending on GLP-1 medications and other rising medical costs. 
The nonprofit insurer reported its financial results for 2024 on Feb. 28. The company posted a -4.3% operating margin in 2024, compared to a 0.4% margin in 2023. 

About pharma

First-In-Class Drugs Experienced Different Regulatory Treatment In The US And Europe: The FDA applied substantial regulatory flexibility to first-in-class drugs, with 50 percent lacking clinical endpoints and 30 percent lacking blinding and comparator drugs in the pivotal trials. This flexibility was particularly evident in cancer drugs, for which up to 90 percent lacked clinical endpoints and blinding. The FDA designated 81 percent of first-in-class drugs for expedited programs compared with 30 percent designated by the EMA [European Medicines Agency]. Review durations varied by therapeutic area, ranging from 7.7 months to 14.5 months at the FDA, and were slightly slower at the EMA. Regulators need to carefully balance flexibilities with rigorous assessments of evidence for first-in-class drugs.

About the public’s health

US flu season may have reached its peak, CDC says: The worst flu season the United States has had in more than a decade may have reached its peak, according to the US Centers for Disease Control and Prevention.
Data published by the agency on Friday shows that flu activity is still elevated but has decreased for two consecutive weeks.
There were more than 6 flu hospitalizations for every 100,000 people in the US during the week ending February 22, according to CDC data. That’s less than half as many as there were two weeks earlier, but still more than there have been at this point in the season in at least 15 years – and respiratory illness activity was high or very high in all but 11 states last week 

About healthcare IT

Info from 1.2 million Geisinger patients found on laptop: Prosecutor: Federal investigators found personal data on over 1.2 million patients of Danville, Pa.-based Geisinger on a former contractor's personal laptop, PennLive reported.
Max Vance, who was fired from Microsoft's Nuance Communications over the incident, has been charged with intentionally accessing without authorization and obtaining information from a protected computer, according to the Feb. 28 story. A federal prosecutor revealed the information about the laptop during a hearing at which Mr. Vance was denied bail. 

About healthcare finance

Clearlake to buy majority stake in ModMed that values it at $5.3bn: Private equity group Clearlake Capital is close to clinching a deal to buy a majority stake in healthcare software company Modernizing Medicine in a buyout that values the group at $5.3bn including debt, according to people familiar with the matter. Clearlake, which has more than $90bn of assets under management, beat out rival bids from several other private equity groups after its owner Warburg Pincus put ModMed up for sale earlier this year, two people said. ModMed operates electronic health records systems used by more than 160,000 speciality physicians and surgeons across the US. 

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More Stelara Rivals Hit US, With Discounts Already Reaching 90% : Stelara (ustekinumab) biosimilars are now available from multiple suppliers in the US, after Teva, Sandoz and Biocon Biologics confirmed launches under settlements with originator J&J, while several other approved versions were also expected to imminently hit the market.
However, the latest indications suggest that price competition is going to be aggressive in the ustekinumab arena, with Biocon Biologics indicating a price 90% lower than Stelara, Teva confirming discounting at the 85% level and Sandoz entering the market at an 80% discount – evoking previous experiences with the launch of Humira (adalimumab) biosimilars at similarly high discounts in 2023. 

Overpayment for Generic Drugs Under Medicare Part D: In this cross-sectional study, the large markups paid by Part D sponsors to pharmacies for selected generic drugs resulted in Medicare beneficiaries being liable for hundreds of dollars above product acquisition cost when using their Part D insurance to fill generic prescriptions. The cost to dispense (estimated at approximately $12/prescription) is unlikely to explain the markups observed, as high as $100 for 9 products and exceeding $1000 for abiraterone and imatinib.

About the public’s health

Prevalence and Control of Diabetes Among US Adults, 2013 to 2023 :This study found that the prevalence of adults with diabetes did not significantly change between 2013 and 2023, but glycemic control among those with diagnosed disease worsened in 2021-2023 after nearly a decade of stability. This trend was most pronounced among young adults. The increase of 1% in mean HbA1c levels and 20% decrease in glycemic control would increase the lifetime risk of cardiovascular events.
Potential explanations for these findings include increased sedentary behavior, reduced social support, heightened mental health stressors, and limited access to health care and medications during the pandemic.

Trends in Cervical Precancers Identified Through Population-Based Surveillance — Human Papillomavirus Vaccine Impact Monitoring Project, Five Sites, United States, 2008–2022: During 2008–2022, cervical precancer incidence decreased 79% and higher-grade precancer incidence decreased 80% among screened women aged 20–24 years, the age group most likely to have been vaccinated.
What are the implications for public health practice? Observed declines in cervical precancers are consistent with HPV vaccination impact and support Advisory Committee on Immunization Practices recommendations to vaccinate children against HPV at age 11–12 years with catch-up through age 26 years.

RFK Jr. moves to eliminate public comment on HHS decisions : Health and Human Services Secretary Robert F. Kennedy Jr. posted a document Friday proposing to strip public participation from much of the business his department conducts. The move comes during a time of major upheaval across federal health agencies, and as the public waits to see how Kennedy will enact his pledge of “radical transparency” at the department.
The statement, placed in the Federal Register, said HHS would rescind its longtime practice of giving members of the public a chance to comment on the agency’s plans. It is set to be formally published in the register on Monday, March 3. 
Comment: The Administrative Procedure Act (APA) is the federal law that mandates a public comment period before issuing regulations. Key points about the APA's requirements for the comment period include:

  1. Minimum duration: The APA requires agencies to allow at least 30 days for public comment after publishing a notice of proposed rulemaking in the Federal Register.

  2. Consideration of comments: Agencies must consider all relevant comments submitted during the comment period before issuing a final rule.

  3. Response to comments: When publishing the final rule, agencies must include a response to significant issues raised in the comments.

  4. Exceptions: In some cases, agencies can issue rules without a comment period if they can justify that seeking public comment is "impracticable, unnecessary or contrary to the public interest." 
    According to the HHS document:

    In a 1971 Federal Register document, the Department adopted a policy that waived the

    APA’s statutory exemption from procedural rulemaking requirements for rules and regulations

    relating to public property, loans, grants, benefits, or contracts (Richardson Waiver)…
    Effective immediately, the Richardson Waiver is rescinded and is no longer the policy of

    the Department. In accordance with the APA, “matters relating to agency management or

    personnel or to public property, loans, grants, benefits, or contracts,” are exempt from the notice and comment procedures of 5 U.S.C. 553, except as otherwise required by law.

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Which Medicare Advantage insurers gained, lost members for 2025 FYI

Claims Adjudication Costs Providers $25.7 Billion - $18 Billion is Potentially Unnecessary Expense 
Key Takeaways:
Claims adjudication cost healthcare providers more than $25.7 billion in 2023 – a 23 percent increase from the previous year.
70 percent of denials were ultimately overturned and the claims paid, but only after multiple, costly rounds of review.

About hospitals and healthcare systems

37% of hospitals still losing money: Last year, Kaufman Hall reported 40% of hospitals were losing money; the three percentage point drop shows slow progress toward financial stability but the 37% of hospitals still losing money are faced with tough decisions. In recent weeks, multiple hospitals have announced layoffs or restructures; others are ending service lines or outsourcing administrative functions.

UHS net income increases 59% in 2024: King of Prussia, Pa.-based Universal Health Services posted a net income of $1.1 billion in 2024, up from a net income of $717.8 million in 2023, according to its Feb. 26 financial report. 

10 health systems ditching their health plans FYI
  

About pharma

Medicare spending on diabetes drugs surged over 5 years, US report shows: Medicare spending on some diabetes drugs, including popular treatments such as Ozempic, surged nearly five-fold to $35.8 billion between 2019 and 2023, a U.S. government watchdog's report showed this week.
Medicare, the government-backed program for adults aged 65 and older and those with disabilities, only covers the use of GLP-1 drugs for diabetes, but not for weight loss.

Eli Lilly unveils high-dose, low-cost Zepbound vials: Six months after Eli Lilly began selling discounted vials of its blockbuster weight loss drug Zepbound, the company expanded the offering Feb. 25 to include cheaper, high-dose Zepbound vials. 

Walgreens rises on report that Sycamore would split company: Walgreens Boots Alliance Inc. shares rose Thursday morning after a report that a potential take-private deal from Sycamore Partners would lead to a breakup of the drugstore chain.
Sycamore, which has been reportedly exploring a purchase of Walgreens for months, is planning on splitting up the company’s US and UK pharmacy businesses, as well as its specialty pharmacy unit, the Financial Times reported Thursday. 

About the public’s health

FDA advisory meeting to select strains for flu vaccines cancelled :An FDA advisory committee meeting to determine the composition of influenza vaccines has reportedly been cancelled, raising concerns that manufacturers won't have sufficient time to produce the shots ahead of the upcoming season.
The Vaccines and Related Biological Products Advisory Committee (VRBPAC) was tentatively scheduled to meet on March 13 to discuss which strains should be included in next season's flu vaccines. However, several panel members were notified late on February 26 that the meeting had been called off.

Moderna's $590M US contract for bird flu jab is on ice: report: Amidst Moderna's struggles to find its post-pandemic footing, a $590-million US government contract awarded in the final days of the Biden administration was a welcome boost for the biotech. But now that funding — for Moderna to develop mRNA vaccines for pandemic influenzas, including the bird flu — may be rescinded, according to a Wednesday report from Bloomberg. 
Citing people familiar with the matter, Bloomberg said health officials are reevaluating the contract — which was awarded by a division of the Department of Health and Human Services (HHS) — as part of a broader government initiative to scrutinise spending on mRNA vaccine technology.   

About healthcare IT

Telemedicine Adoption and Low-Value Care Use and Spending Among Fee-for-Service Medicare Beneficiaries: In this cohort study, telemedicine adoption was associated with modestly lower use of 7 of 20 examined low-value tests (most point-of-care) and no changes in use of other low-value tests, despite a small rise in total visits that might offer more testing opportunities. Results suggest possible benefits of telemedicine and mitigate concerns about telemedicine contributing to increased spending.

 Teladoc Health reports $1B loss in 2024, driven by BetterHelp Q2 impairment charge: During its fourth-quarter 2024 earnings call with investors, which also revealed full-year 2024 financial results for the business, Teladoc Health executives emphasized the company’s “strong finish” to the year despite posting a $1 billion loss for its full fiscal year in 2024.Executives touted customer interest in its newer weight management solution, the addition of 4 million members in the U.S. to Teladoc programs and the 6% growth in underlying visit volumes during the year.

About healthcare personnel

Americans' Ratings of U.S. Professions Stay Historically Low: Three in four Americans consider nurses highly honest and ethical, making them the most trusted of 23 professions rated in Gallup’s annual measurement. Grade-school teachers rank second, with 61% viewing them highly, while military officers, pharmacists and medical doctors also earn high trust from majorities of Americans.
The least trusted professions, with more than half of U.S. adults saying their ethics are low or very low, are lobbyists, members of Congress and TV reporters. 

About health technology

Medical Device Recalls Reach Highest Level in Four Years:
Medical Device Recalls By the Numbers
Key statistics from the report regarding the medical device sector indicate: 

  • Medical device recall events increased 8.6% in 2024, from 975 (in 2023) to 1,059.

  • Medical device recalls of a Class I severity are at a 15-year high.

  • Total impacted units surged 55.4%, from 283.4M in 2023, to 440.4M in 2024. With this increase, impacted units are at their highest rate in three years.

    Top 5 causes by recall event

The report pinpointed the top causes of medical device recalls based on the number of recall events. Device failure was the leading cause of recall activity in 2024. This marks the first time this has been the leading cause. The other top causes based on the number of recall events were:

  • Quality

  • Software

  • Mislabeling

  • Parts issue  

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15 defining healthcare trends and challenges Really thoughtful review of current trends.

About health insurance/insurers

Medicare Advantage enrollment growth slows drastically: The number of people enrolled in a private Medicare Advantage plan grew just 3.1% from 2024 to 2025 — well below projections from the federal government and Wall Street, and one of the slowest years of growth ever in the program.
A little more than 34.4 million older adults and people with disabilities were paying into a Medicare Advantage plan as of Feb. 1 compared with the 33.4 million people in a plan at the same time last year, according to new federal data analyzed by STAT.   

About pharma

'Big Three' PBMs seek appeal in legal spat with Federal Trade Commission: The three largest pharmacy benefit managers are looking to take their legal back-and-forth with the Federal Trade Commission (FTC) to the 8th Circuit Court, according to a court filing issued late last week.
CVS Health's Caremark, Cigna's Express Scripts and UnitedHealth's Optum Rx filed a notice of appeal Friday after a Missouri District Court determined that the FTC's case could move ahead. The agency filed suit against the so-called "Big Three" in September, alleging they played a key role in inflating the price of insulin.
The PBMs hit back with a countersuit in November, arguing the FTC's actions were unconstitutional. 

About the public’s health

The Political Rise of the Anti-Vax Movement An excellent analysis from The Financial Times.

Flu vaccine this season may be poorly matched, early CDC data suggests: This season's influenza vaccine may have been a poor match to a strain of the flu virus that caused many infections this winter, early data released by the Centers for Disease Control and Prevention suggests.
The CDC's latest data come as much of the U.S. is finally seeing signs of a slowdown in influenza activity after waves of illness this past fall and winter that climbed to the worst rates recorded from hospitals and doctor's offices since the 2009 swine flu pandemic.

Texas measles outbreak grows to 124 cases, mostly among unvaccinated: Almost all of the cases are in unvaccinated individuals or individuals whose vaccination status is unknown, and 18 people have been hospitalized so far, according to the Texas Department of State Health Services (DSHS). Five cases included those who have been vaccinated.
Children and teenagers between ages 5 and 17 make up the majority of cases with 62, followed by 39 cases among children ages 4 and under.

HHS may conduct 'rolling review' of health web pages for Trump EO compliance, judge rules: A federal judge is allowing a temporary restraining order related to the abrupt removal of health information web pages to expire, though those resources will for now remain as they are as the Trump administration begins a rolling review of their content.   

About healthcare IT

Digital Screen Time and Myopia :This systematic review and dose-response meta-analysis of 45 studies involving 335 524 individuals revealed a significant dose-response association, characterized by a sigmoidal curve, of screen time with the odds of myopia. Myopia risk increased significantly from 1 to 4 hours of screen time and then rose more gradually thereafter. 

About health technology

The US risks a heavy price for cutbacks in research spending  Excellent analysis by The Financial Times.
One particularly quotable paragraph is:
“Roughly 2 per cent of US federal spending is allocated to science and related R&D. This compares with about 12 per cent of the federal budget in the 1960s during the post-Sputnik space race and 5 per cent during the 1990s and early 2000s. There has also been a sharp reversal in the relative roles played by governmental and private expenditures. During the 1960s, the federal government paid for about two-thirds of all US R&D compared with 30 per cent by the private sector. More recently, the federal government has accounted for only 20 per cent of total R&D spending compared with 70 per cent by the private sector.”
The question is: what happens with further government cutbacks?

About healthcare finance

Blackstone and Omers look to offload healthcare groups in multibillion-dollar deals:
Blackstone and Omers have each put multibillion-dollar healthcare services companies up for sale, as private equity groups seek to offload their investments in a push to return cash to investors, according to people familiar with the matter. Private equity giant Blackstone has hired advisers to work on a sale of its majority stake in health insurance software provider HealthEdge, hoping to clinch a deal that values the company at more than $2.5bn, three people said. Meanwhile, Omers, one of Canada’s largest pension funds, is also working with advisers to sell Premise Health, which operates one of the biggest direct-access care networks in the US, seeking a valuation of about $2bn, the people added. 

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Affordability solutions for the health of America From the BCBSA, this report cites the same sources of health costs, like markups by corporate hospital systems, hospital consolidation,  big pharma's manipulation of patents, etc. Easier said than done with all the special interests. What is interesting is the estimates of how much each factor costs.

DOGE Is Searching for Wasteful Spending. It Isn’t Hard to Find.Instead of fraud, “Last year, more than 90% of improper payments were overpayments.” Medicare and Medicaid accounted for $62.8B and Medicare Advantage another $19.1B. By contrast, $2.76B is due to fraud.
Comment: Instead of firing people, fix the systems! 

About health insurance/insurers

The states that would be the hardest hit by Medicaid cuts FYI

Prevalence of Chronic Medical Conditions Among Medicare Advantage and Traditional Medicare Beneficiaries:In this nationally representative study from 2015 to 2018, the prevalence of obesity, hypertension, hyperlipidemia, and chronic kidney disease was not higher among MA compared with FFS beneficiaries; however, the prevalence of diabetes was higher among MA beneficiaries.
Comment: Differences in the severity of specific medical conditions between groups could not be assessed and the dual eligibles were not separated. Still…with the majority of Medicare recipients in MA plans, it is time to eliminate the risk adjustment payments.

About the public’s health

US flu still high, COVID low but elevated in some areas, RSV declining, CDC says Latest stats on these infections.

2025 Heart Disease and Stroke Statistics Update Fact Sheet:
Heart Disease, Stroke, and other Cardiovascular Diseases

• Cardiovascular disease (CVD), listed as the underlying cause of death, accounted for 941652 deaths in the United States in 2022.

• Heart disease and stroke claimed more lives in 2022 in the United States than all forms of cancer and chronic lower respiratory disease combined.

• Between 2017 and 2020, 127.9 million US adults (48.6%) had some form of CVD. Between 2020 and 2021, direct and indirect costs of total CVD were $417.9 billion ($233.3 billion in direct costs and $184.6 billion in indirect costs/mortality).

• In 2017 to 2020 in the United States, 59.0% of non-Hispanic Black females and 58.9% of non-Hispanic Black males had some form of CVD. This race category had the highest prevalence of CVD.  

About healthcare IT

Hackers Score $1,000 Per Healthcare Data Breach Vs. $5 Per Credit Card Theft Latest stats on how much these breaches cost. Healthcare is still at the top of the list as the most lucrative for hackers.

About healthcare personnel

The Health of US Primary Care: 2025 Scorecard Report — The Cost of Neglect An excellent summary of the issues around primary care shortages.

About health technology

FDA clears first direct-to-consumer celiac disease genetic test Considering how many people are cutting out gluten, this test may be a winner for the company; but will consumers act on the results if negative?

About healthcare finance

In $4.1B deal, Thermo Fisher buys 3M spinoff's filtration unit to beef up bioproduction: The buyout target is Solventum’s purification and filtration business, which generated about $1 billion in revenue last year and is expected to grow sales at mid- to high-single-digit percentages in the future, according to Thermo Fisher.

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About hospitals and healthcare systems

The most common reasons for hospitalizations Top 5 reasons:
Sepsis — 739 stays per 100,000
COVID-19 — 468
Heart failure — 328
Diabetes with complication — 206
Heart attack — 177 

About pharma

Novo's Wegovy and Ozempic removed from US FDA shortage list, compounders on notice: The U.S. Food and Drug Administration said on Friday there was no longer a shortage of Novo Nordisk's popular weight-loss and diabetes drugs, Wegovy and Ozempic, a declaration that will curtail widespread sales of cheaper copies made by compounding pharmacies. 

About the public’s health

France just banned PFAS. Here’s why the U.S. hasn’t.: hemicals” in common products including cosmetics, ski wax and clothing, a move that could reverberate beyond its borders.
These chemicals, known as PFAS, or per- and polyfluoroalkyl substances, include thousands of compounds manufactured to make products and coatings that repel grease, water, oil and heat. The persistent chemicals are found in hundreds of household items, including nonstick cookware, menstrual products, dental floss and medicines. 

Cancer statistics for African American and Black people, 2025: Black men have experienced the largest relative decline in cancer mortality from 1991 to 2022 overall (49%) and in almost every 10-year age group, by as much as 65%–67% in the group aged 40–59 years. This progress largely reflects historical reductions in smoking initiation among Black teens, advances in treatment, and earlier detections for some cancers. Nevertheless, during the most recent 5 years, Black men had 16% higher mortality than White men despite just 4% higher incidence, and Black women had 10% higher mortality than White women despite 9% lower incidence. Larger inequalities for mortality than for incidence reflect two-fold higher death rates for prostate, uterine corpus, and stomach cancers and for myeloma, and 40%–50% higher rates for colorectal, breast, cervical, and liver cancers.

New bat coronavirus discovered in China sparks pandemic concerns:The discovery of a new bat coronavirus in China has sparked concerns about another pandemic.
The virus, named HKU5-CoV-2, is similar to SARS-CoV-2, the virus that causes COVID-19, in that it targets the same human receptor, angiotensin-converting enzyme (ACE2), according to a report in the South China Morning Post.
HKU5-CoV-2 could potentially lead to human-to-human or even cross-species transmission, the researchers found.

Measles, once eliminated in the U.S., sickens 99 in Texas and New Mexico:Nearly 100 people across Texas and New Mexico have contracted measles, state officials say, escalating anxiety over the spread of a potentially life-threatening illness that was declared eliminated in the United States more than two decades ago.
Ninety cases of measles — the majority affecting children under 17 — were detected in Texas’s South Plains, a sprawling region in the state’s northwest, the Texas Department of State Health Services said Friday. The spread marks a significant jump from the 24 cases reported earlier this month. The DSHS said “additional cases are likely to occur in the outbreak area and the surrounding communities.”

About healthcare personnel

Mass firings at HHS: FDA rescinds termination for 'hundreds' of probationary workers: FDA employees started receiving calls late Friday night from the human resources (HR) department. It’s unclear exactly how many workers the department is hoping to reinstate, but early indications suggest hundreds could be asked to rejoin their teams.