Today's News and Commentary

About health insurance/insurers

 Payers ranked by Medicare Advantage membership | Q1 2023 FYI.

About hospitals and healthcare systems

 15 health systems reporting Q1 financial results FYI.

 Humana partners with 2 durable medical equipment companies for home care “The Medicare Advantage insurer reached agreements with AdaptHealth Corp. and Rotech Healthcare to provide value-based DME services to members in its HMO plans starting July 1. Each company will service a different region of the country, Humana said in the announcement.”

About pharma

 Senate panel advances bill that would ban spread pricing “Despite pushback from Republicans, a key Senate committee has advanced a bill that aims to reform pharmacy benefit managers, including a ban on spread pricing.
The PBM bill was among four passed by the Senate Health, Education, Labor and Pensions (HELP) committee on Thursday, one day after the senators heard input from major PBM and pharmaceutical manufacturer executives. The HELP committee approved the bill by a vote of 18 to 3.
The most contentious part of the PBM bill was a provision that would prevent these firms from deploying spread pricing models for their clients. In this model, a PBM would charge the insurer or plan sponsor more for a drug than it costs at the pharmacy and then pocket the difference.”
Comment: I do not usually report committee actions, but this one may have “legs.”

About the public’s health

 WHO says mpox is no longer a global health emergency “After a heated meeting this week, WHO’s emergency committee for mpox recommended an end to the emergency, and WHO Director-General Tedros Adhanom Ghebreyesus agreed with its assessment.” However: Monkeypox is back, coinciding with a rise of STD rates in Chicago. And the CDC is reporting a rise in all STIs.
 

US FDA eases restrictions on blood donation “The U.S. Food and Drug Administration on Thursday set guidelines for blood donation organizations, recommending they screen donors based on one set of criteria, ending a restrictive policy that applied only to men who have sex with men and their female partners…
Individuals, other than those who report having a new sexual partner or multiple partners and had anal sex in the past three months, will be eligible to donate blood, provided all other eligibility criteria are met.”

About healthcare IT

Physician Electronic Health Record Use After Changes in US Centers for Medicare & Medicaid Services Documentation Requirements “On January 1, 2021, the US Centers for Medicare & Medicaid Services (CMS) modified outpatient evaluation and management (E/M) coding requirements, including the elimination of history and physical examination documentation. Centers for Medicare & Medicaid Services sought to reduce physician documentation burden by reducing electronic health record (EHR) documentation time. This study assesses changes in outpatient physician documentation time after these changes…
Across the 2 largest EHR vendors in the US, this study, along with that of Apathy et al, 3 found small reductions in documentation time following the changes in CMS E/M coding requirements, but not at clinically meaningful levels. Apathy et al observed a small decrease immediately postimplementation, while reductions took longer to manifest in the Cerner EHR sample. The magnitude of reduction was modest in both studies and less than the 19-second CMS-estimated reduction in documentation time per visit.”

About healthcare personnel

Medical Liability Claim Frequency Among U.S. Physicians “ In 2022, 31.2 percent of physicians had been sued during their careers to date.
The risk of getting sued varies widely by certain factors, especially over the longer term. In both the short and longer term, the widest variation in liability risk comes from specialty. Among the strongest and most consistent results is that OB/GYNs, general surgeons, orthopedic surgeons and other surgeons have a much higher incidence of claims.
Of OB/GYNs, 62.4 percent have been sued in their careers, followed by 59.3 percent of general surgeons. Controlling for other factors, OB/GYNs and general surgeons are 33.6 and 28.6 percentage points more likely than general internists to have ever been sued…
Twenty four percent of women physicians have been sued in their careers compared to 36.8 percent of their male counterparts…
 Finally, there is a strong positive correlation between longer-term claim frequency and age. Physicians under the age of 40 are 15.6 percentage points less likely and those over 54 are 21.9 percentage points more likely to have ever been sued than their age 40-54 counterparts.”

About health technology

Fake Publications in Biomedical Science: Red-flagging Method Indicates Mass Production[Preprint and not yet peer reviewed] “From 2010 to 2020 the RFP [red-flagged fake publications] rate increased from 16% to 28%. Given the 1.3 million biomedical Scimago-listed publications in 2020, we estimate the scope of >300,000 RFPs annually. Countries with the highest RFP proportion are Russia, Turkey, China, Egypt, and India (39%-48%), with China, in absolute terms, as the largest contributor of all RFPs (55%).”

Today's News and Commentary

About Covid-19

 The Public Health Emergency Ends Today

 What the end of the covid public health emergency means for you A really good summary of the practical implications of the PHE’s end.

About hospitals and healthcare systems

 17 health systems commit to hiring, promoting more low-income workers by 2027 “Seventeen health systems including big names like CommonSpirit Health and Providence have signed onto a pledge that at least 10% of their new hires will hail from ‘economically disadvantaged areas’ by 2027, according to a release from social determinants of health leadership organization the Healthcare Anchor Network (HAN).
The so-called Impact Workforce Commitment agreed upon by the systems also includes a promise to increase the number of employees they will promote into skilled, high wage roles from positions that do not require a bachelor’s degree by 2027, according to HAN’s announcement.”

About pharma

 White House Assembles Secret Team to Tackle Drug Shortages, Quality Woes “As US drug shortages hit a five-year high and concerns mount about the safety of medicines, the Biden administration has quietly assembled a team to address chronic problems hurting America’s drug supply.
Since the beginning of the year, a group of White House officials has been meeting frequently to increase the availability and quality of medications, according to several people familiar with the matter. The effort has intensified as Americans struggle to find common drugs like antibiotics and amid high-profile safety lapses like deadly eye drops.”
Despite your reading this article, it is still a secret team- all the reports here are from anonymous sources.

About healthcare IT

 A couple new product entries into the AI field:

IBM unveils new watsonx, AI and data platform  “IBM said companies can use the watsonx platform to train and deploy AI models, automatically generate code using natural language and use various large language models built for different purposes such as chemical creation or climate change modeling.”
It is supposed to be less costly than the Watson version it is replacing.

Introducing PaLM 2 [From Google] Among the many applications is: “Med-PaLM 2, trained by our health research teams with medical knowledge, can answer questions and summarize insights from a variety of dense medical texts. It achieves state-of-the-art results in medical competency, and was the first large language model to perform at ‘expert’ level on U.S. Medical Licensing Exam-style questions. We're now adding multimodal capabilities to synthesize information like x-rays and mammograms to one day improve patient outcomes. Med-PaLM 2 will open up to a small group of Cloud customers for feedback later this summer to identify safe, helpful use cases.”

About healthcare personnel

 KKR-Backed Envision Healthcare Plans Chapter 11 Bankruptcy Filing “Envision Healthcare is planning to file for chapter 11 bankruptcy protection, according to people familiar with the matter, capping one of the biggest losses ever for the physician-staffing company’s backers at private-equity firm KKR
The bankruptcy filing, which could be made as soon as this weekend, will wipe out the investment of KKR, which took Envision private in a $5.5 billion buyout in 2018. Including debt, the deal was worth about $10 billion, making it one of KKR’s largest investments in the healthcare industry.
Envision now has around $7 billion of debt outstanding, much of which trades at under 10 cents on the dollar as the company’s finances have steadily deteriorated over the last two years.” 

Part-Time Physician: Is It a Viable Career Choice?On average, physicians reported in the Medscape Physician Compensation Report 2023 that they worked 50 hours per week. Five specialties, including critical care, cardiology, and general surgery reported working 55 or more hours weekly.
But there's a small segment of physicians that has bucked the norm. They've scaled back their hours to part-time, clocking in only 25-30 hours a week.”

Today's News and Commentary

About health insurance/insurers

Clover Health execs say MCR improvements, cost reduction program put it on path toward profitability “Clover Health made significant strides in addressing its medical cost ratio (MCR), which executives said Tuesday sets the company up for its future profitability goals.
The Medicare Advantage insurtech reported an MCR of 86.6% in the first quarter of 2023, down from 96.4% in the prior-year quarter. Clover Health also slimmed its losses to $72.6 million in the first quarter, down from $75.5 million in the first quarter of 2022.
Revenues were down substantially, however. Clover brought in $527.8 million in revenue for the first quarter, compared to its $874.4 million haul in the first quarter of 2022. That said, premium revenue grew year over year, reaching $317.1 million.”

Troubled insurtech Bright Health focused on sale of California MA plans, execs say “Selling off the last of its insurance business is critical to staving off bankruptcy. The company secured an extension to its credit facility through June 30. According to a company spokesperson, ‘Bright must deliver an initial draft purchase agreement with respect to the proposed sale of the California Medicare Advantage business to one or more interested buyers no later than May 31, 2023.’
The company overdrew its credit facility and needs to raise about $300 million to avoid going under.”

Oscar Health to exit California's ACA exchange in 2024 “Oscar Health will pull out of California's individual market for the 2024 plan year, CEO Mark Bertolini told investors Tuesday…
Oscar Health posted a net loss of $39.7 million in the first quarter of 2023, slimming its losses considerably from $75.1 million in the prior-year quarter. Revenues in the quarter were $1.5 billion in the first quarter of 2023, up from $972.8 million in the first quarter of 2022.
The company reported about 1 million total members in its plans in both 2022 and 2023, although there were 56,000 fewer members this year than last. Membership in its individual and small group plans dropped from 1,032,768 in 2022 to 948,431 in 2023.”

About hospitals and healthcare systems

 Market Analysis and Monthly Hospital & Physician KPIs MARCH 2023 DATA Lots of interesting stats in this report, but focus on these:
”Per-physician expenses continued to rise in the first quarter of 2023, as they have each quarter for more than two years. Total Direct Expense per Full-Time Equivalent (FTE) — including advanced practice providers — rose to $973,420 in Q1 2023, up 14.2% versus the same quarter of 2022…
Per-physician revenues increased in the first quarter, as they have each quarter for the past year. Median Net Revenue per Physician FTE reached $668,775 in Q1 2023, up 15.7% from Q1 2022 and up 6.8% from Q4 2022.”
How are hospitals profiting by employing physicians?

Group purchasing organization Premier exploring potential sale, other strategic alternatives “The board of healthcare group purchasing organization Premier Inc. announced Monday that it has retained financial and legal advisers to explore a potential sale or other strategic alternatives…
In quarterly earnings reported last week, the company reported nine-month net revenues had fallen roughly 8.8% from the previous year. Nine-month net income attributable to stockholders had also dropped from $236 million in fiscal 2022 to $154 million in fiscal 2023.”

CommonSpirit plans to have virtual nursing in every market by end of '23 “Chicago-based CommonSpirit Health intends to have virtual nursing in each of its markets by the end of 2023, with plans to have it across the entire system within five years.
The health system, which has more than 140 hospitals across 21 states, has started rolling out its proprietary virtual nursing technology with a recent launch at Saint Joseph Hospital in Lexington, Ky…
CommonSpirit has two types of virtual nurses: ones who work at a command center to help with admissions, discharges and transfers, and ones who are part of the care team, attending rounds with physicians and being available to patients at the push of the button. The system is debuting the initiative in its medical-surgical units.”

About pharma

 3rd Circ. Says J&J Talc Unit's Ch. 11 Should Proceed The headline is the story.

 DEA extends telemedicine option for prescribing controlled medications “The federal government will allow doctors to keep using telemedicine to prescribe certain medications for anxiety, pain and opioid addiction, extending for six months emergency flexibilities established during the coronavirus pandemic…
The ability to prescribe controlled medications remotely will run through Nov. 11, 2023. And that deadline will be longer still if doctors have already established a telemedicine relationship with patients. In that circumstance, physicians can keep prescribing the medications virtually through Nov. 11, 2024.”

Eli Lilly damages tripled to $184M in Medicaid rebate fraud case “When a federal jury last year ordered Eli Lilly to pay $61 million for skimping out on Medicaid rebates, the company vowed to fight the verdict. But instead of the result Lilly wanted, the award has been tripled to more than $183 million.
On Tuesday, Illinois federal judge Harry Leinenweber ruled that Eli Lilly owes triple damages from last year's award after whistleblower Ronald Streck convinced a jury that the company violated the False Claims Act and short-changed Medicaid on rebate payments.
Since the case falls under the False Claims Act, the award was eligible for ‘trebled’ damages, according to court filings.”

About the public’s health

 FDA advisers endorse making birth control pill available over the counter “Advisers to the Food and Drug Administration on Wednesday unanimously endorsed making birth control pills available without a prescription, overriding concerns raised by the agency about whether the medication could be used in a safe and effective manner without physician oversight.
The FDA’s outside experts expressed confidence, in a 17-0 vote, that consumers could use an oral contraceptive called Opill correctly. They said the benefits of over-the-counter status, such as increased access to contraception, outweighed the risks, including a potential lack of adherence to daily pill-taking that could result in unintended pregnancies…
The FDA does not have to follow the guidance of its advisers, but a rejection of the OTC application — especially given the committee’s view — would be awkward for an administration that has repeatedly pledged to protect reproductive rights following the Supreme Court’s overturning of Roe v. Wade, which guaranteed the nationwide right to abortion.”

About health technology

 Human ‘pangenome’ published, with goal of making genomics more useful for diverse populations  Read the entire article- it is fascinating!
“An international team of scientists has assembled the first human ‘pangenome’ — an attempt to make a more representative reference genome, one that captures almost all the genetic variability residing in the DNA of humans around the globe.
The technological achievement, published Wednesday in Nature, is the result of years of work by more than 100 researchers behind The Human Pangenome Project, a $30 million effort launched in 2019 and funded by the U.S. National Human Genome Research Institute.”

About healthcare finance

Bicycle rides to 2nd $1.7B Big Pharma deal in 2 months, this time with Bayer “Bayer has taken its radiopharmaceutical pipeline up a gear, paying out $45 million upfront to Bicycle Therapeutics in a collaboration spanning multiple oncology targets.
Bicycle will use its phage platform to discover and develop so-called bicyclic peptides, which consist of 9 to 20 amino acids that can bind to specific targets. This morning’s release offers few clues to the number and exact application of the peptides to be covered by the deal beyond ‘several undisclosed oncology targets.’
The German Big Pharma will oversee and bankroll all development from preclinical work through potential commercialization. Including the upfront payment, Bayer’s total payout to Bicycle could top out at $1.7 billion once development and commercial milestone fees are taken into account.”

All the rumors are true: Syneos Health inks $7.1B acquisition with investment firm trio “All the rumors are true. After months of sale speculation, Syneos Health has officially been snapped up by three private investment firm affiliates for the eye-watering sum of $7.1 billion.
The North Carolina-based CRO has inked a deal to be acquired by Elliott Investment Management, Patient Square Capital and Veritas Capital for $43 per share in cash. The total transaction is valued at $7.1 billion, a figure that includes outstanding debt. The purchase price adds a 24% premium to Syneos’ closing stock price on Feb. 13—the last day of trading before media reports surfaced suggesting the CRO was searching for a buyer.”

Today's News and Commentary

About health insurance/insurers

 Healthcare billing fraud: 11 recent cases As usual, they largely involve Medicare and/or Medicaid.

About pharma

Five-Year Sales for Newly Marketed Prescription Drugs With and Without Initial Orphan Drug Act Designation  “In this study, drugs initially approved for an orphan-designated condition were just as lucrative for their manufacturers as drugs developed for more common conditions. In 6 cases, indications for orphan-designated drugs were expanded to nonorphan indications within 5 years; in such cases, drug manufacturers benefit from Orphan Drug Act incentives and can extend to all uses the high prices set for the first indication. The study was limited to drugs made by public companies, excluded sales in non-US markets, and lacked data on sales volume.
Manufacturers offset smaller volumes of orphan drugs with higher prices; from 2008 to 2018, launch prices for orphan-designated drugs were 7 times higher than prices for nonorphan drugs.3 Congress could reform the statutory incentives in the Orphan Drug Act, such as by requiring manufacturers to repay tax credits when orphan-designated products are commercial successes.”

Gilead Sciences prevails in US government lawsuit over HIV drug patents “A federal jury on Tuesday found that Gilead Sciences Inc did not infringe U.S. patents with its HIV-prevention regimens using the drugs Truvada and Descovy, handing the government a defeat in its billion-dollar lawsuit.
The Delaware jury found the government's patents were invalid and not infringed following a five-day trial and a morning of deliberations.
The federal government had argued that Gilead failed to compensate the U.S. Centers for Disease Control and Prevention (CDC) for discovering that its drug Truvada, which was first approved to treat HIV, could also help prevent infection by the virus.”

About the public’s health

Draft Recommendation Statement- Breast Cancer: Screening “The USPSTF recommends biennial screening mammography for women ages 40 to 74 years.” 

About health technology

Mighty Mice to the Rescue: How Mice in Microgravity Help Patients With Muscle and Bone Loss on Earth No comment…just read this decimating article.l;

Today's News and Commentary

About Covid-19

 Evaluation of Waning of SARS-CoV-2 Vaccine–Induced Immunity “This systematic review and meta-analysis of secondary data from 40 studies found that the estimated vaccine effectiveness against both laboratory-confirmed Omicron infection and symptomatic disease was lower than 20% at 6 months from the administration of the primary vaccination cycle and less than 30% at 9 months from the administration of a booster dose. Compared with the Delta variant, a more prominent and quicker waning of protection was found.” 

About health insurance/insurers

The Health Coverage of Noncitizens in the United States, 2024 “Key Findings

  • The uninsurance rate among nonelderly people who are not citizens will be nearly four times higher than it is for the entire nonelderly U.S. population in 2024 (39.2% vs. 9.8%).

  • More than 80 percent of uninsured people who are not citizens live in families that include at least one employed worker, but many work in industries that do not offer employer-sponsored coverage. More than 1 in 3 (36.0%) people who are not citizens have employer coverage, compared to 54.4 percent of all nonelderly people in the United States.

  • People who are not citizens are less likely to have public health coverage, with many facing federal and/or state eligibility restrictions.

    • Only 16.5 percent of uninsured people who are not citizens are eligible for Medicaid, Children's Health Insurance Program (CHIP), or subsidized Marketplace coverage.

    • Two-thirds of uninsured noncitizen adults are ineligible for public health coverage based solely on their immigration status.”

Medicare Improperly Paid Providers for Some Psychotherapy Services, Including Those Provided via Telehealth, During the First Year of the COVID-19 Public Health Emergency From the HHS OIG: “Based on our sample results, we estimated that of the $1 billion that Medicare paid for psychotherapy services, providers received $580 million in improper payments for services that did not comply with Medicare requirements, consisting of $348 million for telehealth services and $232 million for non-telehealth services…
We recommend that CMS: (1) work with Medicare contractors to recover $35,560 in improper payments for the sampled enrollee days, (2) implement system edits for psychotherapy services to prevent payments for incorrectly billed services, and (3) strengthen educational efforts to make providers aware of educational materials on meeting requirements and guidance for psychotherapy services. The report contains three other recommendations.”

Kaiser posts $233M operating profit in Q1, health plan adds 120,000 members “Oakland, Calif.-based Kaiser Permanente reported $233 million in operating income for the first quarter, up from a $72 million operating loss in the first quarter of 2022. Its operating margin grew from -0.3 percent in the first quarter of 2022 to 0.9 percent in the first quarter of this year.”

Blue Shield of California posts $910M loss in 2022 “Blue Shield of California lost $910 million in 2022 as medical costs rose, according to the company's 2022 annual report.
Medical benefits cost the company $22.1 billion in 2022, up from $20.1 billion in 2021 and $18 billion in 2020…”

Benchmarking Changes And Selective Participation In The Medicare Shared Savings Program “In contrast to earlier participation patterns, the composition of the MSSP after 2017 increasingly shifted to providers with lower preexisting levels of spending relative to their region, consistent with a selection response. Changes occurred through the entry of new ACOs with lower baseline spending, the exit of higher-spending ACOs, and the reconfiguration of participant lists favoring lower-spending practices within continuing ACOs.”
Comment: Those who tout the success of the MSSP should study this article. Self-selection is skewing the results.

About pharma

Paul Girolami, businessman, 1926-2023 This FT obituary is well worthy reading.
“Sir Paul Girolami was one of Britain’s outstanding postwar business leaders. As chief executive and later chair of Glaxo in the 1980s, Girolami, who has died aged 97, transformed a minor player in the pharmaceutical industry into a world leader. That Glaxo, now GSK, still holds that position is due in no small measure to the decisions taken by Girolami during his period at the helm.”

 About healthcare personnel

Nursing School Enrollment Drops After 20-Year Rise, Worsening Shortage “For the first time in two decades, the number of students enrolled in entry-level baccalaureate nursing programs declined, according to the American Association of Colleges of Nurses (AACN) latest enrollment data. The 1.4% drop in students training to be registered nurses (RNs) last year hampers ongoing efforts to fill the nursing pipeline during a national nursing shortage. The number of applications to nursing schools also has decreased…
Despite the recent drop in enrollment, AACN reported that nursing schools turned away thousands of qualified applicants last year because of a shortage of faculty and clinical training sites. Last year, more than 78,000 qualified applications were turned away from nursing schools nationwide, AACN reported. The majority of those were in the entry-level bachelor's programs.”

About healthcare finance

Baxter breaks off biopharma solutions segment in $4.25B private equity deal “In a deal announced Monday, the medtech giant is set to separate out its biopharma solutions business, which offers drugmakers support in the form of products like injectable delivery systems and services that include regulatory resources, help with drug formulation and development, and packaging capabilities.
Private equity firms Warburg Pincus and Advent International are snapping up the segment. They’ll pay Baxter $4.25 billion in cash, which the devicemaker said will translate into net proceeds of about $3.4 billion after taxes. The deal is set to close sometime in the second half of this year.
The biopharma solutions business is among Baxter’s smallest. In 2022, it brought in $644 million in sales—a decline of 4% year over year—representing just 4% of the company’s $15.1 billion in total sales for the year.”

How Low Can It Go? Health Care Leads With Nearly $5.7B Invested In Bummer Month For Global Venture Funding “Global funding reached $21 billion, down 56% from $47.8 billion in a year-over-year comparison. This is the second-lowest amount recorded in a single month since July 2022 when venture capital started to scale below $30 billion. 
The slowdown has impacted all funding stages. Seed was down more than 50% year over year, while early-stage funding dropped 48%. Late-stage funding was down the most at 62%…
Health care was the sector that raised the largest amounts with close to $5.7 billion invested. Companies that raised large rounds at the early stages include RNA-based medicine provider Orbital Therapeutics, medical robotics company Noah Medical and drugs from plants developer Enveda Biosciences.”

Today's News and Commentary

12 top healthcare companies by revenue FYI
“UnitedHealth Group is the top healthcare company by revenue, with the average revenue for the last four quarters hitting $333.5 billion.”

About Covid-19

WHO declares end to Covid global health emergency “The World Health Organization ended the Covid-19 global health emergency on Friday, saying it was time for countries to transition from treating Covid as an emergency to dealing with it as a disease that is here to stay.
The decision was made on the advice of a panel of independent experts, the so-called Covid-19 emergency committee, which met Thursday.”

 Disease experts warn White House of potential for omicron-like wave of illness “The White House recently received a sobering warning about the potential for the coronavirus to come roaring back, with experts reaching a consensus that there’s a roughly 20 percent chance during the next two years of an outbreak rivaling the onslaught of illness inflicted by the omicron variant.
A forecast from one widely regarded scientist pegged the risk at a more alarming level, suggesting a 40 percent chance of an omicron-like wave.”

About health insurance/insurers

Cigna boosts guidance as it reports $1.3B in profit in Q1 beat “The Cigna Group rounded out earnings for the large national insurers Friday morning when it reported $1.3 billion in profit for the first quarter of 2023.
That's on par with the prior-year quarter, where the company reported $1.2 billion in profit, and with the fourth quarter of 2022, where Cigna also reported $1.2 billion in profit.”

Gaps in Medicare Advantage Data Limit Transparency in Plan Performance for Policymakers and Beneficiaries Read the entire report (or at least Table 1). While CMS seems to have control of many aspects of MA plans, a large amount of data is either not available or not being disclosed.

Medical Credit Cards and Financing Plans CONSUMER FINANCIAL PROTECTION BUREAU REPORT. Some important highlights:
—Many medical credit cards offer people deferred interest, or springing interest, terms for a time period of between six and eighteen months. If someone has a remaining balance after the designated promotional period, they are charged all the interest that would have accrued since their original purchase date. These products are typically more expensive than other forms of payment due to the higher interest payments.
—People paid $1billion in deferred interest payments for these healthcare charges from 2018-2020. People used cards or loans with deferred interest terms to pay for almost $23 billion in healthcare expenses, and over 17 million medical purchases, from 2018 to 2020.
—From 2017 to 2020, the share of medical borrowing on deferred interest grew relative to other deferred interest borrowing. This is true across all ranges of credit scores.
—CFPB analysis indicates that, between 2015 and 2020, people incurred interest on 20 percent of their healthcare purchases when using deferred interest cards or loans. People with credit scores below 619 incurred interest more frequently, for about 34 percent of their healthcare purchases. In part, people with lower credit scores may have been more likely to incur interest because they were more likely to have shorter periods before they were charged deferred interest.
—Patients who should be eligible to receive reduced or free care through a financial assistance program or their insurance plan may instead be signed up for a medical card or loan. Many people would be better off without these products for two reasons: the financial burden can be higher and their ability to challenge an inaccurate bill is complicated when they are working through a third party financial institution.
—The terms of credit for medical credit cards and financing plans can vary greatly in terms of annual percentage rates (APRs), length of the special financing period, and other terms. The APR of the typical medical credit card is 26.99 percent; currently, the mean APR for all general purpose credit cards is approximately 16 percent.”
Comment: States have cracked down on exorbitant “payday loans;” they need to pay attention to these highly usurious and unethical credit cards.

About pharma

 Acelyrin readies biggest biotech IPO so far this year with $540M upsized offering “The upsized public offering will now see the California biotech offer 30 million shares of common stock at $18 apiece. There will also be the option for underwriters to snap up a further 4.5 million shares at the same price, which could potentially boost proceeds to around $620 million.
It would mark a significant cash injection for a company that has already raised$408 million from private investors in recent years. The biotech’s backers have been attracted by izokibep, a small therapeutic protein inhibitor of IL-17A that Acelyrin licensed from Affibody and is in late-phase development in three immunological diseases.”

About the public’s health

 Cigarette Smoking in the US Drops to Lowest Level Since 1965, CDC Says “Just 11.5% of Americans regularly lit up cigarettes last year, better than the 12% goal set by the US government’s Healthy People 2020 plan and the lowest level since 1965, according to a report from the Centers for Disease Control and Prevention. Still, about one in five adults reported using a tobacco product in 2021, nearly unchanged from the previous year, with e-cigarette use rising to 4.5%.”

Achieving Whole Health for Veterans and the Nation: A National Academies of Sciences, Engineering, and Medicine Report A really good summary of the Academy’s publication: Achieving Whole Health: A New Approach for Veterans and the Nation. National Academies Press; 2023.
Whole health is physical, behavioral, spiritual, and socioeconomic well-being as defined by individuals, families, and communities. To achieve this, whole health care is an interprofessional, team-based approach anchored in trusted longitudinal relationships to promote resilience, prevent disease, and restore health. It aligns with a person’s life mission, aspiration, and purpose.”

About healthcare IT

 Community Health Systems sued for data breach affecting 1 million “Franklin, Tenn.-based Community Health Systems is facing a lawsuit for a January data breach that compromised the protected health information of 1 million patients…
The patient-led lawsuit, filed May 3 in the U.S. District Court of Tennessee, alleges that the breach happened as a result of the health system not implementing adequate security measures.”

Today's News and Commentary

About Covid-19

 Covid was fourth leading cause of death in 2022, CDC data shows “The waning of the pandemic led to fewer deaths in America in 2022 than in 2021, according to preliminary data from the Centers for Disease Control and Prevention. But heart disease and cancer deaths rose, and covid-19 remained remarkably lethal, killing more than 500 people a day.
The report shows an overall drop of 5.3 percent in the death rate from all causes, a signal that the country last year had exited the worst phase of the pandemic. Deaths from covid dropped 47 percent between 2021 and 2022.”

About health insurance/insurers

 CVS pressing pause on M&A after Oak Street, Signify buys “CVS Health said it will not pursue any major acquisitions in the near future following its recent purchases of Dallas-based Signify Health and Chicago-based Oak Street Health.
’I think over time we'll look at other assets, but right now we need to focus on execution of the assets that we just acquired,’ President and CEO Karen Lynch told investors during the company's first-quarter earnings call May 3.”

About hospitals and healthcare systems

15 healthcare mergers and acquisitions making headlines in April FYI

Option Care Health to acquire health and hospice firm for $3.6 billion “Option Care Health, the largest independent provider of home health services, announced a deal Wednesday to acquire home health and hospice firm Amedisys for $3.6 billion.
The all-stock transaction will turn the Bannockburn [IL]-based Option into a mammoth provider of post-acute care services that also will include hospital-at-home and palliative care. The combined firm will generate approximately $6.2 billion in annual revenue.”

North Carolina Senate passes bill waiving UNC Health from state, federal antitrust enforcement “According to the bill’s text, UNC Health’s board would be able to ‘enter into cooperative agreements with any other entity for the provision of healthcare, including the acquisition, allocation, sharing or joint operation of hospitals or any other healthcare facilities or healthcare provider, without regard to their effect on market competition.
When partnering with community hospitals and other health systems in various regions of the State, the System is acting according to State policy by ensuring that healthcare is made available to all parts of North Carolina; its activities constitute State action for purposes of antitrust law, the bill reads.”

This action by North Carolina is a good reminder to review how states can exempt healthcare organizations from federal anti-trust actions. [Note: This response was generated by CHAT GPT and I checked it for accuracy.]
Antitrust exemptions for healthcare entities at the state level are granted through state laws or regulations, which can vary depending on the state. Each state may have its own criteria and procedures for granting such exemptions.
One common approach for states to obtain antitrust exemptions for healthcare entities is to establish a Certificate of Public Advantage (COPA) program. Under a COPA program, state regulators grant antitrust immunity to certain healthcare providers or systems in exchange for their commitment to fulfill certain public health goals, such as improving access to healthcare services or enhancing the quality of care.
To establish a COPA program, a state must pass a law or issue regulations that provide a legal framework for granting antitrust exemptions. The state may then create a regulatory body or designate an existing agency to oversee the COPA program and review applications from healthcare providers seeking antitrust immunity.
Once a healthcare provider is granted a COPA, it is immune from certain federal antitrust laws, such as the Sherman Antitrust Act, while operating within the parameters of the program. However, the immunity is not absolute, and the state can revoke a COPA if the provider fails to fulfill its public health commitments or engages in anticompetitive behavior that harms consumers.
It is worth noting that antitrust exemptions for healthcare entities are controversial, as they can potentially limit competition and lead to higher healthcare costs. Therefore, states considering such exemptions should carefully weigh the potential benefits and drawbacks before implementing them.

About pharma

 Kroger paying $68M to settle opioid claims in West Virginia Just a reminder that these lawsuits are ongoing.

 J&J's consumer group Kenvue set for $41B IPO, the largest US market debut in more than a year “J&J's consumer group Kenvue will be listed on the New York Stock Exchange starting today, May 4, for $22 per share, according to a statement from the two companies. The companies are selling more than 172 million shares to the public, pricing the offering at around $41 billion.
This will be the largest IPO in U.S. markets in more than a year, according to CNBC. Kenvue will trade under the ticker ‘KVUE.’
After the IPO closes, which is expected on May 8, J&J will hold around 90% of the total shares in Kenvue.”

Florida passes PBM regulation bill While Congress debates what to do about drug costs: “Florida Gov. Ron DeSantis signed the Prescription Drug Reform Act on May 3 to limit pharmacy benefit manager practices and hold "Big Pharma accountable."
The law bans clawbacks, mail-order rebates, spread pricing, patient steering and networks solely composed of affiliate pharmacies, according to a news release. It also aims to block data-sharing without patients' consent. 
On the ‘Big Pharma’ side, the legislation requires drugmakers to report price increases surpassing 15 percent after one year and cumulative list price increasing 30 percent or more within three years.”

About the public’s health

One Dose of HPV Vaccine Prevents Infection for at Least Three Years “A single dose of the human papillomavirus vaccine is highly effective at preventing infections over three years, most likely lowering rates of cervical cancer and other diseases linked to the virus, according to a new study in Kenya.
A single-dose strategy would dramatically extend supplies of the vaccine, lower costs and simplify distribution, which would make vaccination a more viable option in countries with limited resources, experts said.”

About healthcare IT

 CMS Officials Provide Update on National Quality Strategy Goals “A year ago, officials from the Center for Medicare and Medicaid Services unveiled a National Quality Strategy. In a May 1 update on the strategy, CMS officials discussed several goals, including annually increasing the percentage of digital measures used in CMS quality programs. CMS officials also said the organization would build one or more quality data systems that can receive data using the FHIR data standard by 2027…
[Also,] CMS is incorporating equity into the measurement strategy of every quality and value-based program possible…”

Today's News and Commentary

About Covid-19

Wisconsin Supreme Court won't order ivermectin use for COVID “Wisconsin's conservative-controlled Supreme Court ruled Tuesday that a hospital could not be forced to give ivermectin to a patient with COVID-19, saying a county judge did not cite a legal basis for ordering the facility to administer the drug, as reported by ABC News.
The FDA has not approved ivermectin for use in treating COVID-19 and warns that misusing it can be harmful, even fatal. The Wisconsin lawsuit is one of dozens filed across the US seeking to force hospitals to administer ivermectin for COVID-19…
In Tuesday's ruling, the Wisconsin Supreme Court ruled 6-1 in favor of Aurora Health Care, with three liberals and three conservatives in support and only conservative Justice Rebecca Bradley dissenting. The decision upholds an appeal court's ruling against Allen Gahl, who sued Aurora in October 2021 when doctors refused to treat his uncle with ivermectin.”
Comment: Common sense and science prevails.

About health insurance/insurers

 Arbitration panel hands Envision a victory over UnitedHealth, awards $91.3M judgment “An arbitration panel has handed Envision Healthcare a $91.3 million judgment against UnitedHealthcare over underpaid claims, the physician staffing firm said Tuesday.
The independent, three-member panel from the American Arbitration Association made the ruling March 30, Envision said. The arbitrators will also weigh whether Envision is entitled to attorney's fees as well as prejudgment interest, according to the news release.
The $91,270,257 award covers claims for services provided to UnitedHealthcare members in 2017 and 2018, when Envision was still in UHC's network. The arbitration panel determined that the insurer ‘unilaterally reduced reimbursement to Envision clinicians in violation of the network agreement,’ according to the release.”

About hospitals and healthcare systems

 National Hospital Flash Report End of April report on March Data:
“Key Takeaways

  1. Hospital finances improved in March.

    Hospital margins continued to stabilize in March with a slight improvement over February. Margins, however, continue to sit at razor-thin, near-zero levels, putting hospitals in a vulnerable position should a recession or a new public health emergency materialize.

  2. Material expenses are burdening hospitals.

    Increased material costs associated with drugs and supplies as a result of inflationary pressures continue to negatively affect hospital margins. Additionally, workforce shortages persist, driving up the cost of labor, albeit at a slower pace than material costs.

  3. Patient volumes continue to rebound.

    Outpatient volumes remained strong in March, while lengths of stay decreased hinting at a reduction in patient acuity. Hospitals still face a bottleneck discharging patients to post-acute sites of care. Furthermore, workforce shortages still hamper hospitals' ability to treat patients admitted to their institutions.”

Spring 2023 Leapfrog Hospital Safety Grade You can look up all surveyed hospitals. Some highlights:

  • “Twenty-nine percent of hospitals received an “A,” 26% received a “B,” 39% received a “C,” 6% received a “D,” and less than 1% received an “F.”

  • The top ten states with the highest percentages of “A” hospitals are: New Jersey, Idaho, Utah, Pennsylvania, Connecticut, North Carolina, South Carolina, Colorado, Virginia and Massachusetts.

  • There were no “A” hospitals in Delaware, District of Columbia or North Dakota.”

About pharma

Pfizer to start selling stake in Advil maker Haleon within months, says CFO “Pfizer said it would begin offloading its 32 per cent stake in consumer health business Haleon as it focuses on reducing debt linked to its $43bn acquisition of Seagen and boosting returns to shareholders…
GSK and Pfizer combined their consumer healthcare businesses in a joint venture in 2019 that sat within GSK before it was spun off via a listing on the London Stock Exchange. The listing created the world’s biggest pureplay consumer health company with a valuation of £30.5bn.”

EU states push for law to limit dependency on drug ingredients from China “A majority of EU member states are pushing for legislation to address shortages of critical drugs and to reduce dependency on imported chemicals from China and other countries. In a paper seen by the Financial Times, Belgium and 18 other countries — including Germany and France — have gone further than Brussels’ recent proposals to overhaul the bloc’s pharmaceuticals laws, calling for a ‘last-resort’ mechanism to swap medicines between member states and the establishment of a list of critical drugs whose supply chains must be monitored.”

About the public’s health

 First vaccine targeting RSV wins FDA approval. More are coming. “U.S. regulators Wednesday approved the first vaccine to prevent the respiratory ailment RSV, a decision that marks a turning point in the six-decade-long quest to protect vulnerable people against the virus.
A shot developed by pharmaceutical giant GSK to protect older adults against the respiratory syncytial virus is the first to get a greenlight from the Food and Drug Administration.”

Gut Microbiome Changes Throughout the Day and With the Seasons “The investigators found that nearly 60% of related bacterial groups fluctuate with a distinct 24-hour cycle…
Seasonal fluctuations were even more pronounced, with certain types of bacteria following one of two distinct patterns over the course of a year…
Seasonal fluctuations might be influenced by location, climate, pollen, humidity and other environmental factors, he suggested. These findings could offer a potential explanation why humans are more susceptible to colds and flu during specific seasons, since the microbiome is known to influence immune response.
The fluctuating microbiome also plays a role in how drugs are metabolized, and therefore could alter the results of clinical trials unless it's taken into account…”
Comment: If the microbiome is constantly changing, how effective are probiotics?

About healthcare IT

Telehealth providers cheer DEA move to temporarily extend virtual prescribing flexibilities “Under the proposed rule, Schedule 2 medications or narcotics would require an in-person prescription. Schedule 3 or higher medications, including buprenorphine, can be prescribed for 30 days via telehealth but would require an in-person visit before a refill. Non-narcotic drugs like Ambien, Valium, Xanax and ketamine also fall into this category. If a patient is referred to a provider, an in-person appointment is not required as long as one took place with the referring physician.
If a telemedicine relationship was established during the COVID-19 public health emergency, the DEA will extend the in-person exam waiver for an additional 180 days.”

Toolkit: Analyzing Telehealth Claims to Assess Program Integrity Risks From the HHS OIG: “This toolkit provides detailed information on methods to analyze telehealth claims to identify program integrity risks associated with telehealth services… [It] is intended to assist public and private sector partners—such as Medicare Advantage plan sponsors, private health plans, State Medicaid Fraud Control Units, and other Federal health care agencies—in analyzing their own telehealth claims data to assess program integrity risks in their programs…
Through the use of proactive, data-driven analyses, including measures such as those detailed in this toolkit, public and private partners can more effectively identify potential fraud, waste, and abuse schemes in their health care programs.”

About healthcare personnel

In pandemic’s wake, over 40% of doctors regret career choice “Between Dec. 9, 2021, and Jan. 24, 2022, nearly 2,500 U.S. physicians responded to a survey by researchers from the AMA, the Mayo Clinic, Stanford University School of Medicine and the University of Colorado School of Medicine. The researchers found that professional fulfillment scores fell, dropping from 40% in 2020 to 22.4% in 2021.
Published in Mayo Clinic Proceedings, the study, Changes in Burnout and Satisfaction With Work-Life Integration in Physicians Over the First 2 Years of the COVID-19 Pandemic, also found that—consistent with those trends in professional fulfillment—57.5% of physicians indicated they would choose to become a doctor again, dropping from 72.2% in 2020. This is also a decrease from 68.5% in 2017, 67% in 2014, and 70.2% in 2011.”

About health technology

 Nanox scores clearance for cloud-connected X-ray bed after years of FDA review “Nanox has secured a long-awaited clearance from the FDA for its multi-source X-ray bed, designed to operate as a smaller, lighter imaging system in clinics and hospitals.
The Nanox.ARC can employ up to five separate X-ray-emitting tubes at once—mounted together above the patient on a tiltable gantry—to take multiple pictures of the inner body and digitally reconstruct them into a three-dimensional image, similar to a CT scan…
In its announcement this week, Nanox said it plans to offer access to its multi-source imager through a pay-per-scan business model—with scan readings and analyses being performed remotely through its teleradiology network.”
Comment: Look at the photo in the article. The possibilities for diagnostics in remote areas are exciting.

FDA: The heart-checking smart toilet seat is a go “The battery-powered, Internet-connected Heart Seat is designed to replace a standard home toilet seat, automatically capturing and uploading SpO2 and heart rate data using the same types of sensors built into smartwatches and other devices for checking vital signs. 
The system can also flag readings for healthcare providers The FDA cleared its use in adults ages 22 and older.”

Today's News and Commentary

About Covid-19

Most federal covid vaccine mandates to end May 11 “The Biden administration will end its requirements that most international travelers, federal workers and contractors, health-care workers and Head Start educators be vaccinated against the coronavirus effective on May 11 — the same day it terminates the pandemic-related public health emergency.” 

About health insurance/insurers

Milliman Retiree Health Cost Index “A healthy 65 year old retiree needs to save between $90,000 and $203,000 for healthcare costs if they retire in 2023.”

Medicare Advantage, Part D Premiums Increased Slightly in 2023 “The average monthly Medicare Advantage premium grew by 50 percent from 2022 to 2023. The average premium in 2023 was $9 per month, compared to $6 in 2022, marking the second year in a row that premiums increased.
However, the average premium was still relatively low due to high enrollment in zero-dollar premium plans.
In 2023, 84 percent of Medicare Advantage plans selected by eHealth consumers had a zero-dollar monthly premium. This figure is down slightly from 87 percent in 2022 but is up significantly from 63 percent in 2018.”

Half of All Eligible Medicare Beneficiaries Are Now Enrolled in Private Medicare Advantage Plans “According to recently released data from the Centers for Medicare & Medicaid Services (CMS), Medicare Advantage now provides Medicare coverage for just over half of eligible beneficiaries. In January 2023, 30.19 million of the 59.82 million people with both Medicare Part A and Part B were enrolled in a private plan.”

CVS closes $10.6B acquisition of Oak Street Health to expand primary care footprint “CVS Health has sealed the deal on its acquisition of Oak Street Health, picking up about 169 medical centers in 21 states. 
The acquisition will broaden CVS Health's value-based primary care platform and significantly benefit patients' long-term health by improving outcomes and reducing costs – particularly for those in underserved communities, according to the company in a press release Tuesday.”

Insurer Market Power And Hospital Prices In The US “We found that the market-leading insurer in the least competitive (most concentrated) insurance markets pays 15 percent less to hospitals than the market-leading insurer in the most competitive (least concentrated) markets. We also found the price relationship to be more pronounced for for-profit hospitals than for not-for-profit hospitals. Our results invite the question of whether dominant insurers are passing savings on to employers in the form of lower premiums.”

About hospitals and healthcare systems

How CHS, Tenet, HCA and UHS fared in Q1 FYI

 CommonSpirit Health finalizes acquisition of 5 Utah hospitals, 35 medical clinics “CommonSpirit Health officially sealed the deal on picking up five hospitals and 35 medical group clinics from Steward Health Care, the health systems said Monday.
The deal, announced in February, also includes imaging and urgent care centers, other outpatient ventures and a clinically integrated network of providers. Colorado-based Centura Health will manage all the operations.”

About pharma

 Pfizer pulls off Q1 surprise with strong sales even as COVID vaccine demand plummets “With analysts expecting a free-fall in sales from COVID products, Pfizer pulled off a surprise Tuesday morning with its first-quarter earnings report.
Revenue for the period came in at $18.3 billion, routing the analyst consensus of $16.6 billion. With the performance, Pfizer reaffirmed its expectations for 2023 revenue to fall between $67 billion and $71 billion.”

J&J refuels CAR-T ambitions with $245M upfront to Cellular Biomedicine for pair of therapies “J&J’s pharma unit Janssen has handed over $245 million in upfront cash and the promise of further milestone payments to Cellular Biomedicine for two autologous CAR-T therapies being investigated in non-Hodgkin lymphoma. In return, Janssen gets the exclusive ex-China rights to the therapies as well as an option on commercializing the drugs in China.”

The Role Of Financial Incentives In Biosimilar Uptake In Medicare: Evidence From The 340B Program “We investigated whether the 340B Drug Pricing Program, which offers eligible hospitals substantial discounts on drug purchases, inhibits biosimilar uptake. Almost one-third of US hospitals participate in the 340B program. Using a regression discontinuity design and two high-volume biologics with biosimilar competitors, filgrastim and infliximab, we estimated that 340B program eligibility was associated with a 22.9-percentage-point reduction in biosimilar adoption. In addition, 340B program eligibility was associated with 13.3 more biologic administrations annually per hospital and $17,919 more biologic revenue per hospital. Our findings suggest that the program inhibited biosimilar uptake, possibly as a result of financial incentives making reference drugs more profitable than biosimilar medications.”

About the public’s health

A new Supreme Court case seeks to make the nine justices even more powerful This case could have serious implications in all fields, but especially in healthcare.
“The Supreme Court announced on Monday that it will reconsider one of its modern foundational decisions, Chevron v. National Resources Defense Council (1984), which for decades defined the balance of power between the federal judiciary and the executive branch of government.
Chevron established that courts ordinarily should defer to policymaking decisions made by federal agencies, such as the Environmental Protection Agency or the Department of Labor, for two reasons: Agencies typically have far greater expertise in the areas they regulate than judges, and thus are more likely to make wise policy decisions. And, while federal judges are largely immune from democratic accountability, federal agencies typically are run by officials who serve at the pleasure of an elected president — and thus have far more democratic legitimacy to make policy choices.
Nevertheless, next term the Court will hear a case, Loper Bright Enterprises v. Raimondo, which explicitly asks ‘whether the court should overrule Chevron.’ In the reasonably likely event that the Court does overrule this seminal decision, that would mean the death of one of the most cited decisions in the federal judiciary — according to the legal database Lexis Nexis, federal courts have cited Chevron in over 19,000 different judicial opinions.”

Study: Ingredient found in salad bowls and burger wrappers less safe than previously thought “Acompostable salad bowl seems like an Earth-friendly way to enjoy a healthy lunch. But the toxic chemicals used in containers like molded-fiber salad bowls, sandwich wrappers, and French fry pouches may be leaching into food despite efforts to make those materials safer, according to the results of a study published in March in the journal Environmental Science and Technology.
The presence of “forever chemicals” in materials used to contain or carry food is far from new. Various formulations of compounds called per- and polyfluoroalkyl substances, or PFAS, are used in materials like pizza boxes, popcorn bags, and paper straws because they’re both water-proof and oil-proof. That means they’re perfect for keeping fake butter or salad dressing from seeping out of microwave popcorn packets and takeout salad bowls, as well as for maintaining structural integrity while protecting a steaming, cheesy pizza.
But PFAS are also toxic. They’ve been linked to testicular and kidney cancers, ulcerative colitis, low birth weights, and even decreased immune response to vaccines.”

 Feds: Hospitals that denied emergency abortion broke the law “Two hospitals that refused to provide an emergency abortion to a pregnant woman who was experiencing premature labor put her life in jeopardy and violated federal law, a first-of-its-kind investigation by the federal government has found…
The federal agency’s investigation centers on two hospitals — Freeman Health System in Joplin, Missouri, and University of Kansas Health System in Kansas City, Kansas — that in August refused to provide an abortion to a Missouri woman whose water broke early at 17 weeks of pregnancy. Doctors at both hospitals told Mylissa Farmer that her fetus would not survive, that her amniotic fluid had emptied and that she was at risk for serious infection or losing her uterus, but they would not terminate the pregnancy because a fetal heartbeat was still detectable.
Ultimately, Farmer had to travel to an abortion clinic in Illinois.”

US News State rankings: Health Care FYI

About healthcare IT

Merck entitled to $1.4B in cyberattack case after court rejects insurers' 'warlike action' claim “A New Jersey appellate court on Monday ruled that a group of insurers can’t use war as an argument to deny Merck coverage from the notorious cyberattack that afflicted the company and others back in 2017.
Upholding a prior ruling, the appeals court said in an opinion (PDF) that the ‘hostile/warlike action’ exclusion clause shouldn’t be applied to a cyberattack on a non-military company—even if it originated from a government or sovereign power. In this case, the hack was tied to Russia as part of its aggression against Ukraine, according to U.S. officials.”

Are mental health apps better or worse at privacy in 2023? See the article for improved and worsened sites as well as a comparison chart.

About healthcare personnel

 Hospital-Physician Integration Is Associated With Greater Use Of Cardiac Catheterization And Angioplasty “We used Medicare claims data from the period 2013–20 to identify patients who received a new diagnosis of stable angina, a common cardiovascular condition that entails clinical discretion in treatment choice. Using linear probability models and an instrumental variables model, we found that patients whose care was managed by a hospital-integrated cardiologist were no more likely to receive stress tests (an office-based procedure) than those whose care was managed by an independent cardiologist. However, these patients were much more likely to receive high-intensity, hospital-based coronary interventions.” 

About health technology

 Dual CRISPR therapy plus long-acting ART eliminates HIV in mice “In a study published May 1 in Proceedings of the National Academy of Sciences, a research team led by scientists from the Lewis Katz School of Medicine at Temple University and the University of Nebraska Medical Center (UNMC) described how they used CRISPR to inactivate or snip out two different genes in HIV-infected humanized mice. By combining this approach with a long-acting form of antiretroviral therapy, the researchers were able to eliminate the virus in around 60% of the models—a big boost from the 29% they reported back in 2019.”

Today's News and Commentary

About health insurance/insurers

 Reported by STAT: “A new report from A.M. Best, a ratings agency for insurance companies, shows that premiums and claims have increased quite a bit for stop-loss insurance from 2014 through 2021. Stop-loss is the coverage that self-insured employers buy to protect themselves against expensive and unexpected medical claims from their workers…
Back in 2014, stop-loss insurers spent a little more than 74 cents of every $1 in premiums to cover these catastrophic claims. By 2021, that soared to 85 cents of every dollar, according to A.M. Best’s data. What gives? The main reason is there have just been more big-dollar claims. The main culprit? New, incredibly expensive drugs.
‘Cell and gene therapies have been frequently named as the top cause of catastrophic claims,’ A.M. Best analysts wrote in their report. ‘Regulators might see a need to intervene to avoid potential insolvencies given an enormous financial impact from these new drugs, especially on small and medium-sized groups.’” 

Medicare Could Have Saved Up To $128 Million Over 5 Years if CMS Had Implemented Controls
To Address Duplicate Payments for Services Provided to Individuals With Medicare and Veterans Health Administration Benefits
The headline explains the story.

About hospitals and healthcare systems

 Post-pandemic, even hospital care goes remote “The Mayo Clinic was among the first hospitals in the country to experiment with sending acute patients home for remote care four years ago. Now, some 250 similar programs exist throughout the country.
That's largely because during the pandemic, the federal agency that runs Medicare and Medicaid relaxed normal rules requiring around-the-clock, on-site nurses for hospitals requesting the exception. This allowed at-home hospital care programs to rapidly expand. Those pandemic-era waivers will remain in place until at least the end of 2024, although some experts anticipate policy changes allowing such programs to remain in place permanently.”

About pharma

 The top 10 pharma drug ad spenders for 2022 FYI. The list is by drug.

 Astellas inks deal to buy Iveric Bio for $5.9 billion “Astellas on Monday announced that it entered into an agreement to acquire Iveric Bio for $40 per share in cash, or a total equity value of about $5.9 billion, in a move the Japanese drugmaker says will sharpen its focus on therapies for blindness and regeneration.”

About the public’s health

More than One in Five Adults with Limited Public Transit Access Forgo Health Care Because of Transportation Barriers Key Findings

  • 21 percent of U.S. adults without access to a vehicle or public transit went without needed medical care last year. Individuals who lacked access to a vehicle but reported neighborhood access to public transportation services were less likely to skip needed care (9%). 

  • 5 percent of all U.S. adults reported forgoing healthcare due to transportation barriers. 

  • Black adults (8%), adults with low family incomes (14%), and adults with public health insurance (12%) were all more likely to forgo needed care due to difficulty finding transportation. 

  • Adults with a disability (17%) were more than three times as likely to report skipping care due to transportation concerns.

Conclusion
Reliable access to transportation, whether it be a vehicle or neighborhood public transit, is a social driver of health in the United States.”

About healthcare IT

Comparing Physician and Artificial Intelligence Chatbot Responses to Patient Questions Posted to a Public Social Media Forum  “In this cross-sectional study of 195 randomly drawn patient questions from a social media forum, a team of licensed health care professionals compared physician’s and chatbot’s responses to patient’s questions asked publicly on a public social media forum. The chatbot responses were preferred over physician responses and rated significantly higher for both quality and empathy.”
Comment: If it is easy to teach a machine empathy and it performs better than physicians, what does that say about medical education? 

Video Telemedicine Experiences In COVID-19 Were Positive, But Physicians And Patients Prefer In-Person Care For The Future “Although majorities of both populations reported satisfaction with video visits during the pandemic, 80 percent of physicians would prefer to provide only a small share of care or no care via telemedicine in the future, and only 36 percent of patients would prefer to seek care by video or phone. Most physicians (60 percent) felt that the quality of video telemedicine care was generally inferior to the quality of in-person care, and both patients and physicians cited the lack of physical exam as a key reason (90 percent and 92 percent, respectively). Patients who were older, had less education, or were Asian were less likely to want to use video for future care. Although improvements to home-based diagnostic tools could improve both the quality of and the desire to use telemedicine, virtual primary care will likely be limited in the immediate future. Policies to enhance quality, sustain virtual care, and address inequities in the online setting may be needed.”

Data Breach Lawsuits Tied to Tracking Pixel Use On the Rise In Healthcare “As data breach notifications tied to the use of tracking pixels continue to surface, experts have observed a wave of lawsuits following close behind. BakerHostetler observed more than 50 lawsuits being filed against hospital systems related to third-party tracking tech since August 2022, according to the firm’s 2023 Data Security Incident Response Report (DSIR).
The DSIR was based on BakerHostetler’s analysis of the more than 1,160 incidents that its Digital Assets and Data Management Practice Group helped clients manage in 2022.”

About healthcare personnel

85% of nurses plan to leave hospital roles 1 year from nowA nursing workforce that has been shrinking dramatically may be headed toward even greater challenges. Only 15 percent of nurses working in hospital settings say they plan to stay in their current positions one year from now, according to a survey of more than 18,000 nurses conducted by AMN Healthcare, the largest healthcare staffing company in the country.
The 85 percent who said they are making other career plans reported they are seeking travel nursing opportunities, considering going back to school, looking into part-time or per diem work or departing the profession completely. 
Additionally, 55 percent of nurses across the profession reported feeling like they want to quit often.”

About health technology

Medtronic’s next-gen leadless pacemakers score FDA approval “Medtronic has secured the FDA’s approval for the latest generation of its miniaturized, wireless pacemaker implants, the Micra AV2 and VR2. 
According to the company, the newest models can offer up to 40% more battery life over their predecessors—boosting them out to 16 and 17 years, respectively—and making them a more attractive option for comparatively younger patients while requiring fewer replacement procedures. In fact, Medtronic estimates that the time span will cover more than 80% of the patients who receive pacemaker implants.
Compared to traditional pacemakers, the Micra is less than a tenth the size and weighs less than 2 grams, comparable to a small capsule. While past implants have been placed under the skin near the collarbone and wired into the cardiac muscle with small leads, these devices are embedded within the heart’s chambers through a minimally invasive procedure.”

Today's News and Commentary

About health insurance/insurers

Facing industry pushback, Joint Commission plans to introduce proposed sustainability measures as optional “After receiving industry feedback on new proposed standards on sustainability, the Joint Commission currently plans to roll them out as optional, Fierce Healthcare has learned. 
The accreditation standards, aimed at those participating in the hospital and critical access hospital accreditation programs, would require hospitals to designate a person responsible for overseeing the reduction of greenhouse gas emissions, measure specific data, develop goals and action plans to reduce those emissions and annually track progress.
In a virtual meeting on decarbonizing the sector hosted by the National Academy of Medicine on Thursday, the commission’s president and CEO Jonathan Perlin, M.D., Ph.D., presented the organization's plan. The proposal remains in an open comment period, which ends next week.”

About hospitals and healthcare systems

 West Virginia systems to form 4-hospital academic system “West Virginia may gain a larger academic health system through the combination of Huntington-based Mountain Health Network, Marshall Health and Marshall University, which have signed a letter of intent to combine. 
The governing boards for each party voted unanimously the week of April 24 to authorize a letter of intent to form an integrated academic health system with the Joan C. Edwards School of Medicine, the medical school of public Marshall University.”
Comment: Let’s see what the FTC says about this consolidation.

About pharma

Talcum powder cancer claims target J&J’s new consumer carve-out The talc suit liability will fall to the new consumer product spinoff, Kenvue, which is still planning its IPO. 

The first Humira biosim is doing Amgen more harm than good—for now “The U.S. launch of a biosimilar to AbbVie’s Humira appears to be hurting the copycat’s developer itself.
After AbbVie reported a Humira U.S. sales decline of 26% in the first quarter, Amgen said its rival TNF blocker Enbrel suffered an even bigger loss.
Enbrel’s U.S. sales slid 33% in the first quarter compared with the same period last year, falling to $564 million. The drug’s sales haul was 29% smaller than Wall Street had expected.”

Comparison of Research Spending on New Drug Approvals by the National Institutes of Health vs the Pharmaceutical Industry, 2010-2019 “The results of this cross-sectional study found that NIH investment in drugs approved from 2010 to 2019 was not less than investment by the pharmaceutical industry, with comparable accounting for basic and applied research, failed clinical trials, and cost of capital or discount rates. The relative scale of NIH and industry investment may provide a cost basis for calibrating the balance of social and private returns from investments in pharmaceutical innovation.”

About the public’s health

FDA approves Pfizer's Prevnar 20 for infants, children “Pfizer announced that the FDA has okayed expanded use of the company's Prevnar 20 vaccine to include infants and children. Specifically, the pneumococcal conjugate vaccine is now approved to prevent invasive pneumococcal disease caused by 20 Streptococcus pneumoniae serotypes in infants and children ages six weeks through 17 years, as well as to prevent otitis media in infants six weeks through five years of age caused by the original seven serotypes contained in Prevnar.”

Popular keto and paleo diets aren’t helping your heart, report says “Ketogenic and paleo diets may be trendy, but they won’t do your heart any favors.
That’s the conclusion of a report from the American Heart Association, which analyzed many of the most popular diets and ranked them based on which approaches to eating are best and worst for your heart.
The authors said one of the purposes of their report was to counter widespread misinformation about nutrition promoted by diet books, blogs and people on TikTok, Instagram and Twitter — where posts promoting keto and paleo eating plans have surged in recent years…
The DASH diet and three others with high scores were grouped into what the heart association called Tier 1. The others in the Tier 1 group included the pescatarian diet (92 points), the Mediterranean diet (89 points) and the vegetarian diet (86 points).”

 Interactive Quarterly Early Release Estimates FYI- interactive site from the CDC that provides longitudinal data about health conditions, health behavior, insurance status, and more.

 The Health Costs of Gun Violence: How the U.S. Compares to Other Countries “The Centers for Disease Control and Prevention (CDC) estimates that nearly 49,000 Americans died from firearm-related causes in 2021, up from about 45,000 in 2020.1 In 2019, firearms accounted for 10.4 deaths for every 100,000 people in the U.S., around five times greater than in the countries with the second- and third-highest death rates, France (2.2) and Switzerland (2.1).
Less publicized, however, is how gun violence burdens the health care system. Each year in the U.S., firearm-related injuries lead to roughly 30,000 inpatient hospital stays and 50,000 emergency room visits, generating more than $1 billion in initial medical costs. In 2020 alone, deaths from these injuries cost $290 million, an average of $6,400 per patient. Medicaid and other public insurance programs absorbed most of these costs.”

The World Health Organization on Its 75th Anniversary A really good review.

HHS Awards $147 Million to Support Ending the HIV Epidemic in the United States Yesterday, “the Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services (HHS), awarded more than $147 million to 49 recipients to advance the Ending the HIV Epidemic in the U.S. (EHE) initiative, which is part of the Biden-Harris Administration’s ongoing efforts to reduce the number of new HIV infections in the United States by at least 90 percent by 2030. This funding will help states and metropolitan areas with the highest levels of HIV transmission link people with HIV to essential care, support, and treatment, as well as support training and other resources for these jurisdictions.”


About healthcare IT

Washington becomes first state to adopt health data protections post-Roe “The ‘My Health, My Data Act’ will require search engines and health trackers to add more privacy disclosures for consumers when they’re handling their sensitive health data, and it will require companies to get authorization in plain language from customers before they sell such data. It also gives Washington residents the new rights to force a company to delete their health data.
Data processors will have to comply with the law by March 31, 2024, though small businesses will have several additional months to come into compliance.”

About healthcare personnel

Behind Optum's physician acquisition strategy “UnitedHealth Group's Optum, parent company of ASC chain SCA Health, is on a spending spree, scooping up physician groups and expanding its portfolio. 
The company is now affiliated with more than 70,000 physicians, making it the largest employer of physicians in the country.”

Today's News and Commentary

About Covid-19

 Covid is still a leading cause of death as the virus recedes “Federal health officials say that covid-19 remains one of the leading causes of death in the United States, tied to about 250 deaths daily, on average, mostly among the old and immunocompromised.
Few Americans are treating it as a leading killer, however — in part because they are not hearing about those numbers, don’t trust them or don’t see them as relevant to their own lives.”

About health insurance/insurers

Health insurance CEOs set another record for pay in 2022 “In 2022, the CEOs of the seven major publicly traded health insurance and services conglomerates — CVS Health, UnitedHealth Group, Cigna, Elevance Health, Centene, Humana, and Molina Healthcare — combined to make more than $335 million, according to a STAT analysis of annual financial disclosures. That was 18% more than the record from 2021. High-flying stock prices again fueled a vast majority of the gains.”

About hospitals and healthcare systems

Hospital Price Transparency Enforcement Updates CMS is no longer offering amnesty and grace periods for hospitals that are not in compliance. See Updates to Enforcement Processes at the bottom of the announcement.

Atrium Health reports $105M operating loss in 2022 “ Charlotte, N.C.-based Atrium Health reported a $105.2 million 2022 operating loss — compared with a $311 million gain in 2021.
The system, with 27 acute care facilities, reported 2022 operating expenses of $7.8 billion, 8.3 percent higher than 2021. Of that total, personnel costs accounted for $4.6 billion, 7.3 percent higher than  2021.
Overall, the system reported a $1.1 billion loss in 2022, largely mirroring a 2021 net income of $1.1 billion.”

About pharma

FDA Approves First Orally Administered Fecal Microbiota Product for the Prevention of Recurrence of Clostridioides difficile Infection “Today, the U.S. Food and Drug Administration approved Vowst, the first fecal microbiota product that is taken orally. Vowst is approved for the prevention of recurrence of Clostridioides difficile (C. difficile) infection (CDI) in individuals 18 years of age and older, following antibacterial treatment for recurrent CDI.”

Efficacy and Safety of Low-Dose Triple and Quadruple Combination Pills vs Monotherapy, Usual Care, or Placebo for the Initial Management of Hypertension “This systematic review and meta-analysis of 7 trials enrolling 1918 patients found that low-dose combination antihypertensives were more efficacious than monotherapy, usual care, or placebo in terms of mean blood pressure reduction and achieving blood pressure target. Low-dose combinations were also well tolerated but were associated with higher rates of dizziness than monotherapy or usual care.”
Comment: The “old teaching” was that single doses should be titrated up before adding a second medication or switching to a different chemical class. A more approach is based on the finding that low doses of multiple medications may work better and have fewer side effects. However, insurance companies that often operate by algorithms would question this approach.

Alzheimer’s: Medicare will cover Leqembi for all patients if FDA approves drug, CMS chief says This decision is important because it can have a significant effect on Medicare premiums.

 Earnings reports released today: Merck, AstraZeneca, Eli Lilly, AbbVie, Sanofi, Bristol Myers, and Baxter International.
And in a related article:
Drugmakers scout for deals, ramp up research spending

EU publishes proposed drug laws overhaul, setting up tussle with industry “Brussels on Wednesday published a long-awaited draft of its proposed overhaul of laws governing the European Union's pharmaceuticals industry, setting up a tussle with drugmakers which warn they will invest and innovate elsewhere.
The biggest overhaul of existing medical laws in two decades is aimed at ensuring all Europeans have access to both innovative new treatments and generic drugs, and ending huge divergences in access and price between countries…
The Commission proposes to cut the length of basic market exclusivity that drugmakers get before generics can enter the market to eight from 10 years.
But it also offers a sweetener for companies: they get two more years of protection if they launch their new medicines in all 27 member states within two years.”
Comment: As is the case in the US, drugmakers claim the changes will stifle innovation and threaten to “invest and innovate elsewhere.” If the US, EU and UK are of similar minds, where do these companies think they will go? Some possibilities: Ireland, Israel and South Korea.

About the public’s health

Interactive US Maps of Noise Exposure See the interactive map. Rates of exposure vary by state, age and sex.

Cranberries for preventing urinary tract infections “This update adds a further 26 studies taking the total number of studies to 50 with 8857 participants. These data support the use of cranberry products to reduce the risk of symptomatic, culture‐verified UTIs in women with recurrent UTIs, in children, and in people susceptible to UTIs following interventions. The evidence currently available does not support its use in the elderly, patients with bladder emptying problems, or pregnant women.”

About healthcare IT

 Teladoc posts $69M net loss for Q1 “Telehealth company Teladoc reported a net loss of $69.2 million for the first quarter of 2023. 
The company's first-quarter revenue reached $629 million, up 11 percent from the first quarter of 2022, according to an April 26 news release from Teladoc.”

Amazon killing off its Halo fitness and health tracking devices“Amazon is scrapping its Halo fitness tracker device, a setback for a company long known for having its finger on the pulse of what consumers desire. The e-commerce company said on Wednesday it will stop supporting the devices effective July 31...
Amazon is winding down its fitness and health tracking brand just three years after launching it. At the time, the company billed the products and services as "AI-powered health tools" that that could monitor activity and sleep, measure body fat, and provide users with information about their health. 
But Amazon faced significant competition in the fitness and health tracking segment from companies including Apple, Garmin and Google-owned Fitbit.”

About healthcare finance

Quest Diagnostics pens $450M deal for cancer detection startup Haystack Oncology “The clinical testing giant plans to acquire Baltimore-based Haystack for its technology to detect minimal residual disease by catching the early signs of a solid tumor’s recurrence by sifting out small pieces of cancer DNA floating in the bloodstream.
The deal includes $300 million in upfront cash, plus an additional $150 million should Haystack’s tests achieve certain performance milestones. Quest said it expects the deal to close by the end of June.”

Today's News and Commentary

Risant Health launches with Geisinger “In an innovative move designed to improve the health of communities, achieve better health care outcomes, and improve health care affordability, Kaiser Foundation Hospitals and Geisinger Health are announcing the launch of Risant Health and a definitive agreement to make Geisinger the first health system to join Risant Health to expand access to value-based care in more communities across the country. Upon regulatory approval, Geisinger becomes part of the new organization through acquisition.
Risant Health is a new nonprofit organization, created by Kaiser Foundation Hospitals, to expand and accelerate the adoption of value-based care in diverse, multi-payer, multi-provider, community-based health system environments. Risant Health’s vision is to improve the health of millions of people by increasing access to value-based care and coverage and raising the bar for value-based approaches that prioritize patient quality outcomes. In addition to Geisinger, Risant Health will grow its impact by acquiring and connecting a portfolio of like-minded, nonprofit, value-oriented community-based health systems anchored in their respective communities. 
Health systems that become part of Risant Health will continue to operate as regional or community-based health systems serving and meeting the needs of their communities, providers and health plans while gaining expertise, resources, and support through Risant Health’s value-based platform. Risant Health will operate separately and distinctly from Kaiser Permanente’s core integrated care and coverage model while building upon Kaiser Permanente’s 80 years of expertise in value-based care.”

About health insurance/insurers

 Humana posts stronger-than-expected Q1 earnings with robust membership growth “Humana had a strong start to 2023 bringing in $1.2 billion in net income, or $9.87 a share, in the first quarter, up from $930 million, or $7.29 a share, a year ago…
Humana said in a statement that its first-quarter 2023 performance was underpinned by robust membership growth and favorable inpatient utilization trends in the individual Medicare Advantage (MA) business.”

Medicaid work requirements could toss 600,000 enrollees off insurance “Roughly 600,000 low-income Americans could lose their health insurance if House Republicans' proposal to require certain Medicaid enrollees to work is signed into law, according to new estimates from the Congressional Budget Office
The provision, included in GOP leadership’s bill to raise the debt ceiling, would save the federal government about $109 billion over the next decade, according to a letter nonpartisan congressional scorekeepers sent to House Budget Committee Chairman Jodey Arrington(R-Tex.) yesterday. 
By the numbers:
—The nonpartisan agency estimates that roughly 15 million Medicaid enrollees would be subject to the work requirement, though many would qualify for an exemption. 
—An average of 1.5 million adults are predicted to fail to meet the work requirement
—Of them, the CBO expects that about 900,000 enrollees live in states that would likely foot the bill to preserve their coverage. 
—The remaining 600,000 are estimated to become uninsured.”

And in a related story:
White House warns 21 million Americans at risk of losing Medicaid under GOP proposal “As many as 21 million Americans could be at risk of losing their Medicaid coverage under the House GOP’s work requirement proposal, according to a new Biden administration analysis shared exclusively with Vox.
The projections are both a warning about the potential consequences of the strict reporting requirements Republicans are contemplating and ammunition for Democrats in the upcoming negotiations over raising the federal debt limit.
The House’s work requirement proposal — dubbed a “community engagement” requirement in the bill’s text — would mandate that many Medicaid recipients work, look for work, or participate in another kind of community service for at least 20 hours per week (though some conservatives want that number to be even higher).”

About hospitals and healthcare systems

 Universal Health Services boasts $163M profit in Q1 driven by acute, behavioral volume increases “Major volume gains across both its acute and behavioral care businesses led Universal Health Services (UHS) to a $163.1 million profit for the opening frame of 2023, the King of Prussia, Pennsylvania-based company announced Tuesday after market close.
The for-profit’s latest numbers are a $9.2 million boost over the first quarter of 2022’s $153.9 million net income…
The revenue and volume gains put UHS in line with fellow for-profits HCA Healthcare and Tenet Healthcare. Both companies enjoyed stronger-than-expected performances during the first quarter and have updated their full-year guidance to reflect what they described as continued recovery momentum.”

About pharma

Quantity of Melatonin and CBD in Melatonin Gummies Sold in the US This article highlights the great variance in OTC product ingredients.
“…25 products were analyzed. One product did not contain detectable levels of melatonin but did contain 31.3 mg of CBD. In the remaining products, the quantity of melatonin ranged from 1.3 mg to 13.1 mg per serving size. In products that contained melatonin, the actual quantity of melatonin ranged from 74% to 347% of the labeled quantity. Twenty-two of 25 products (88%) were inaccurately labeled, and only 3 products (12%) contained a quantity of melatonin that was within ±10% of the declared quantity. Five products declared CBD as an ingredient, and the quantity of CBD ranged from 10.6 mg to 31.3 mg per serving. The actual quantity of CBD ranged from 104% to 118% of the labeled quantity.”

National trends in prescription drug expenditures and projections for 2023 “For 2023, we expect overall prescription drug spending to rise by 6.0% to 8.0%, whereas in clinics and hospitals we anticipate increases of 8.0% to 10.0% and 1.0% to 3.0%, respectively, compared to 2022. These national estimates of future pharmaceutical expenditure growth may not be representative of any particular health system because of the myriad of local factors that influence actual spending.” 

About the public’s health

 How and why does exercise improve cognitive function? “Recently, researchers conducted a series of in vitro experiments — experiments in cell cultures — to understand how exercise changes hippocampal cells.”
“They found that contracting muscle cells release chemical signals that increase neuronal growth and firing.
They also found that support cells known as astrocytes prevent neurons exposed to chemical signals from muscle cells from excessive electrical signaling.”

About healthcare IT

 Healthcare Cybersecurity Benchmarking Study (Select Download Whitepaper) A great review of this topic. The big takeaway is that cyber security is so much more than addressing email hacking and organizations are usually reactive than proactive.
”Survey results indicate that healthcare organizations are still mostly reactive rather than proactive when it comes to cybersecurity, especially when it comes to identifying cybersecurity risks. Of the six categories within the Identify function, organizations have particularly low coverage in Supply Chain Risk Management, Asset Management, and Risk Management. More than 40% of organizations are not compliant with conducting response and recovery planning with suppliers and third-party providers…
[For example:] Regardless of size, organizations report the highest coverage for email protection. For most of the metrics that fall under email protection, more than half of organizations report 100% coverage. On the other hand, medical device security is an area of industry-wide vulnerability, with average coverage barely over 50%.”

Black Book Rankings of Virtual Healthcare Platforms Select the top tab. Also check out the other rankings. You do not have to sign up, just select the X in the upper right hand corner.

About health technology

 GE HealthCare shares slide despite revenue growth An addendum to yesterday’s report on this topic:
GE HealthCare, the medical device and software company that recently spun off from parent company General Electric, saw revenue beat Wall Street's expectations and grow 8% to $4.7 billion year over year. But net income was down to $372 million in the first quarter from $389 million a year ago. Profit margins fell to 7.9%, which the company says was primarily caused by interest expenses related to GE HealthCare's long-term debt. When GE HealthCare spun off from General Electric at the beginning of the year, it disclosed it carried $10.25 billion in debt.”

Today's News and Commentary

About Covid-19

 End of data sharing could make Covid-19 harder to control, experts and high-risk patients warn “The federal government’s public health emergency that’s been in effect since January 2020 expires May 11. The emergency declaration allowed for sweeping changes in the U.S. health care system, like requiring state and local health departments, hospitals, and commercial labs to regularly share data with federal officials.
But some shared data requirements will come to an end and the federal government will lose access to key metrics as a skeptical Congress seems unlikely to grant agencies additional powers. And private projects, like those from The New York Times and Johns Hopkins University, which made covid data understandable and useful for everyday people, stopped collecting data in March.
Public health legal scholars, data experts, former and current federal officials, and patients at high risk of severe covid outcomes worry the scaling back of data access could make it harder to control covid.”

About health insurance/insurers

 Best Health Insurance Companies of 2023 FYI

Clover Health's stock could be delisted from the Nasdaq, company says “Clover told investors in a filing last week with the Securities and Exchange Commission that it was notified by the stock exchange that its shares have failed to trade above $1 per share for 30 consecutive business days, as is required for inclusion on the Nasdaq.
Clover said it has 180 calendar days, or until Oct. 17, to regain compliance with the requirement, meaning its stock must trade above $1 for 10 consecutive business days…
Fellow insurtech Bright Health Group also faces a stock delisting from the New York Stock Exchange as it has struggled to keep its stock above $1 per share. It was trading at 17 cents per share midafternoon Monday as it stares down potential bankruptcy at the end of this month.”

HHS Releases Proposal to Expand Health Care for DACA Recipients “he Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), today released a notice of proposed rulemaking (NPRM) that, if finalized, would expand access to health care by reducing barriers for Deferred Action for Childhood Arrivals (DACA) recipients. Earlier this month, HHS announced its intention to release this rule by the end of April, and today’s announcement marks the fulfillment of that promise. The proposed change applies to the Health Insurance Marketplaces, the Basic Health Program, and some Medicaid and Children’s Health Insurance Programs (CHIP).”

Understanding the Intersection of Medicaid & Work: A Look at What the Data Say “KFF analysis of federal survey data from 2021 reveal that, overall, more than six in ten (61%) nonelderly adults with Medicaid who are not also covered by Medicare and do not qualify for Medicaid as disabled under the Supplemental Security Income (SSI) program (referred to hereafter as “Medicaid adults”) were working full or part-time. The leading reasons for not working among remaining Medicaid adults were caregiving responsibilities, illness or disability, or school attendance. The remaining nine percent of Medicaid adults reported that they are retired, unable to find work, or were not working for another reason.”
The entire article is worth reading.

What's next on the No Surprises Act A good, short review of the topic from Axios.

About hospitals and healthcare systems

 Tenet Healthcare reports $143M Q1 net income “Dallas-based Tenet Healthcare reported $143 million in net income for the first quarter of 2023 on revenue of $5 billion.
That figure compared with net income of $139 million on $4.7 billion of revenue in the same period last year. Net income was $102 million for the fourth quarter of 2022.”

About pharma

20 drugs have been in shortage for nearly 8 years: ASHP FYI

 Novartis pens $425M biobucks deal with German biotech, scooping up more radiopharmaceutical tech  “Novartis is doling out $40 million cash for exclusive licensing rights to 3B Pharmaceuticals’ cancer-targeting tech, wrapping up some loose ends for a radiotherapy picked up from Clovis Oncology at the end of last year.
Novartis is giving 3BP the chance to make up to $425 million in biobucks in return for global rights to develop and commercialize therapeutic and imaging applications stemming from 3BP’s technology.”

Novartis prunes assets, axing 10% of pipeline programs to narrow R&D focus “Novartis has undertaken an old-fashioned decimation of its pipeline. The Swiss drugmaker has decided to dump or out-license 10% of its R&D projects to narrow its sights on five core therapeutic areas and focus investment on its most promising programs within those spaces. 
In recent quarters, Novartis has decided to make five therapeutic areas—cardiovascular, hematology, solid tumors, immunology and neuroscience—and a small clutch of technology platforms the focus of its R&D activities.”

About the public’s health

 EU outlines plan to take control of medicine production in health crises “The EU is planning a compulsory licensing system to allow it to take control of the manufacture of drugs and vaccines during a public health emergency, despite calls from pharmaceutical groups to protect patents. Brussels wants the ability to act swiftly to manufacture vital treatments across the bloc during health crises such as Covid-19. The draft proposal from the European Commission and seen by the Financial Times is part of a sweeping reform of pharmaceutical regulation that has unnerved the industry and could change before publication on Wednesday.”
Comment: A great lesson for the U.S., but political lobbying would probably make this action unfeasible.

About healthcare IT

 6 riskiest medical devices for cybersecurity “These devices carry the greatest risks, according to an analysis by cybersecurity firm Armis…”
 
Best Telemedicine Companies of 2023 “To determine the best telemedicine companies, the Forbes Health editorial team analyzed data on the top telemedicine companies, assigning star ratings based on membership fees, types of care offered, provider availability and more. Read on to see which telemedicine companies topped our ranking—and why.”

About health technology

 GE HealthCare reports 8% revenue growth “Following its spinoff, GE HealthCare reported 8 percent year-over-year revenue growth and organic revenue growth of 12 percent in the first quarter.”

About healthcare finance

 J&J Consumer-Health IPO Process to Kick Off Key Test for Moribund New-Issue Market “Johnson & Johnson is poised to begin a roadshow to pitch shares of its consumer-healthcare business, the producer of household names such as Tylenol, in a test for an IPO market that has been in the doldrums for the past year.
Kenvue Inc. plans to start meeting with prospective investors as early as Monday, people familiar with the matter said. The goal is to raise $3.5 billion or more in the offering at a valuation close to $40 billion, the people said. IPO roadshows typically last anywhere from a few days to a week ahead of the stock’s trading debut.
Assuming the company and its advisers manage to pull off the listing, Kenvue’s stock would trade on the New York Stock Exchange under the ticker KVUE.
J&J’s consumer business makes well-known over-the-counter medicines including Tylenol; Band-Aids and other wound-care products; baby-care products such as Johnson’s Baby Shampoo; and skin-care offerings such as Aveeno and Neutrogena. The division slated to become Kenvue generated $14.95 billion in global sales last year, about 15.7% of J&J’s total.”

Today's News and Commentary

World Happiness Report 2023 See, especially Fig. 2.1 on page 34. Once again, Finland tops the list.

About Covid-19

 CDC: XBB.1.16, or ‘Arcturus,’ Responsible for Nearly 10% of New COVID-19 Cases “XBB.1.16, referred to as “arcturus,” was responsible for 9.6% of new infections this week, according to CDC estimates. That’s up from nearly 6% of cases the week before and about 3% two weeks prior.
Given the strain’s growth in the U.S., it is possible that it could overtake XBB.1.5 in the near future as the dominant strain in the country…
Many experts don’t believe arcturus will lead to another surge in the U.S. given the high level of immunity in the population from previous infections, vaccinations or both.”

About health insurance/insurers

 Elevance Health expands concierge care program to chronic conditions like Crohn's disease, diabetes “About a year ago, Elevance Health launched a pilot program to offer digital concierge care to members who were recovering from COVID-19 infections.
Since then, the insurer has expanded that initiative to offer concierge care management to members with a number of chronic conditions including Crohn's disease, cancer and diabetes.”

About hospitals and healthcare systems

18 hospital, health system sales in the works FYI

About pharma

 U.S. Supreme Court preserves broad access to abortion pill “The justices, in a brief order, granted emergency requests by the Justice Department and the pill's manufacturer Danco Laboratories to put on hold an April 7 preliminary injunction issued by U.S. District Judge Matthew Kacsmaryk in Texas. The judge's order would have greatly limited the availability of mifepristone while litigation proceeds in a challenge by anti-abortion groups to the pill's federal regulatory approval.” 

1 pharma trend to watch this quarter: Moody's Because of upcoming “patent cliffs”: “Expect high pharmaceutical acquisition activity to continue, the financial business said, over the next year and year and a half. Pending acquisitions include Amgen buying Horizon Therapeutics for $27.8 billion, Pfizer buying Seagen for $43 billion and Merck buyingPrometheus Biosciences for $10.8 billion. 
Companies with high potential for significant mergers and acquisitions include Bristol-Myers Squibb, Merck and Royalty Pharma. Those with moderate potential are AbbVie, Biogen, Gilead, Pfizer and Viatris; and those with a low potential include Amgen, Eli Lilly, Johnson & Johnson and Regeneron.”

J&J Unit Loses Bid to Dismiss Tylenol-Autism Warning Lawsuit “Johnson & Johnson Consumer Inc. still faces litigation alleging prenatal exposure to Tylenol caused a child’s autism, after a federal judge decided the claims weren’t preempted.
Cherise Chapman alleged the J&J unit didn’t sufficiently caution pregnant women about the risks of acetaminophen pain relief products, long marketed as the only safe pain relievers for use during pregnancy.”

White Bagging, Brown Bagging, and Site of Service Policies: Best Practices in Addressing Provider Markup in the Commercial Insurance Market Read the Introduction to understand this strategy for lowering the cost of specialty pharmaceuticals. 

About healthcare IT

VA pauses $16B Oracle Cerner EHR deployments indefinitely to address error-ridden early rollout “The Department of Veterans Affairs is putting its big-ticket electronic health record overhaul with Oracle on an indefinite pause to address issues among five sites where the new system had been implemented, according to a Friday morning announcement.
The beleaguered effort involves a $16 billion contract with Oracle Cerner, which inherited the project last June when Oracle acquired Cerner for nearly $30 billion. Executives had vowed to get the rollout “back on track” amid lawmaker scrutiny that has persisted into 2023.”

About healthcare personnel

State Department cap on EB-3 visas limits international relief for nursing shortage “International nurses hoping to apply for a green card to work in the U.S. will likely have to wait until 2025 before they can make the move due to a recently imposed cap on new EB-3 visa petition filings, advocates and immigration law experts warn.
The U.S. Department of State’s Bureau of Consular Affairs has announced in its May bulletin a visa retrogression for its EB-3 subcategory, which includes all occupations that require at least an associate’s degree but not a master’s degree.
Because demand for the subcategory’s green cards has hit its 40,000-green card annual limit for the fiscal year, only applicants with petitions filed earlier than June 1, 2022, may continue with their applications, according to the notice.”

Today's News and Commentary

Tomorrow, April 22, 2023, is Earth day

About health insurance/insurers

 Insurers say free preventive care will continue while lawsuit is appealed “‘The overwhelming majority [of our members] do not anticipate making changes to no-cost share preventive services, and do not expect disruptions in coverage of preventive care, while the case proceeds through the courts,’ according to the letter signed groups such as America’s Health Insurance Plans, the Blue Cross Blue Shield Association and the American Benefits Council.”

100 things to know about Blue Cross Blue Shield FYI

Criminal Charges Filed in Southern California Against Medical Professional, Owner of Medical Businesses, and Others for COVID-19 Fraud Schemes “The Department of Justice today announced criminal charges against 18 defendants in nine federal districts across the United States for their alleged participation in various fraud schemes involving health care services that exploited the COVID-19 pandemic and allegedly resulted in over $490 million in COVID-19 related false billings to federal programs and theft from federally funded pandemic programs.”
Read the article for more details. It gives more evidence that the federal government oversight of Covid-19 funding was inadequate.

About hospitals and healthcare systems

For the First Time, HHS Is Making Ownership Data for All Medicare-Certified Hospice and Home Health Agencies Publicly Available Yesterday, “in support of the President’s Executive Order on promoting competition and the Administration’s commitment to transparency, the U.S. Department of Health and Human Services (HHS) is releasing ownership data for all Medicare-certified hospice and home health agencies. For the first time, anyone can now review detailed information on the ownership of more than 6,000 hospices and 11,000 home health agencies certified to participate in the Medicare program on the Centers for Medicare & Medicaid Services (CMS) website.”

About pharma

The top 20 pharma companies by 2022 revenue “For the first time in biopharma history, a company has topped the $100 billion mark in annual revenue. Pfizer passed that milestone, propelled by its massive haul from its COVID-19 products. Its BioNTech-partnered vaccine, Comirnaty, raked in $37.8 billion, and oral antiviral Paxlovid made $18.9 billion.
Subtract the COVID treatments from Pfizer’s top line and its revenue would be $43 billion, which is right in line with the company’s pre-pandemic sales. The Big Pharma's sales gradually increased from $40.8 billion in 2018 to $41.6 billion in 2020.
With its windfall, Pfizer displaced Johnson & Johnson as the industry’s No. 1 revenue generator. J&J had occupied that position for a decade and had been closing in on the $100 billion mark. Sales for 2021 and 2022 came in at $93.8 billion and $94.9 billion, respectively.”

Express Scripts aims to boost independent pharmacists in rural areas “The pharmacy benefit management giant said Thursday that the IndependentRx Initiative is designed to build on a slew of recently announced updates to its model that put a focus on greater transparency. The PBM said it will boost reimbursement to independent pharmacies that are the only location within 10 or more miles of an Express Scripts customer.”

About the public’s health

 US traffic deaths drop slightly in 2022 but still a ‘crisis’ “The number of people killed on U.S. roadways decreased slightly last year, but government officials said the 42,795 people who died is still a national crisis.
Estimates by the National Highway Traffic Safety Administration showed that the number of fatalities dropped 0.3% from the 42,939 killed in 2021. Traffic deaths declined slightly in the fourth quarter, the third straight quarterly drop.
But they’re still close to 2021 numbers, which were the highest in 16 years.”

Today's News and Commentary

About Covid-19

 Oral Fluvoxamine With Inhaled Budesonide for Treatment of Early-Onset COVID-19 “Treatment with oral fluvoxamine plus inhaled budesonide among high-risk outpatients with early COVID-19 reduced the incidence of severe disease requiring advanced care.” 

About hospitals and healthcare systems

Hospital expenses per inpatient day across 50 states FYI.

 About pharma

Narcan manufacturer aims to price over-the-counter kit under $50 “The manufacturer of Narcan, the overdose reversal medication that received over-the-counter status last month, says it aims to price a two-pack of the medication at less than $50.
In a statement Thursday, Emergent BioSolutions said it will take ‘a responsible approach to pricing’ as Narcan becomes available over the counter.”

After Pandemic Delays, FDA Still Struggling to Inspect Foreign Drug Manufacturers “A ProPublica analysis of FDA inspection data as of April shows that the agency’s inspections of overseas drug manufacturers, located mostly in India and China, has dropped precipitously even as the number of manufacturers has remained relatively steady. In fiscal year 2019, the year before the COVID-19 pandemic limited travel and movement, the FDA inspected 37% of the nearly 2,500 overseas manufacturers; in 2022, the agency only inspected 6% of around 2,800. And in India, where the contaminated eyedrops originated, the FDA inspected only 3% of manufacturers in 2022 — significantly less than in 2019, when 45% of plants were inspected.”

About the public’s health

 The “State of the Air” 2023 “…after decades of progress on cleaning up sources of air pollution, nearly 36% of Americans—119.6 million people—still live in places with failing grades for unhealthy levels of ozone or particle pollution. Overall, this is 17.6 million fewer people breathing unhealthy air compared to last year’s report. The improvement was seen in falling levels of ozone in many places around the country, the continuation of a positive trend that reflects the success of the Clean Air Act. However, the number of people living in counties with failing grades for daily spikes in deadly particle pollution was 63.7 million, the most ever reported under the current national standard.” 

Race and Ethnicity–Adjusted Age Recommendation for Initiating Breast Cancer Screening Findings  This cross-sectional study was conducted among the total 415 277 breast cancer deaths in female patients in the US from 2011 to 2020. Study findings suggested that when breast cancer screening was recommended to start at age 50 years for the general female population, Black females should start screening 8 years earlier, at age 42 years, whereas White females could start at age 51 years, American Indian or Alaska Native and Hispanic females at age 57 years, and Asian or Pacific Islander females at age 61 years.
Meaning  These findings suggest that health policy makers and clinicians could consider an alternative, race and ethnicity–adapted approach in which Black female patients start screening earlier.”

About healthcare IT

Performance Measures for Physicians Providing Clinical Care Using Telemedicine: A Position Paper From the American College of Physicians  FYI

 Generative AI’s three possibly insurmountable challenges for health care Well worth reading. The challenges fall in three categories: The truth challenge (accuracy); The time challenge (“That is, new AI systems are mostly sold based on the extent to which they make care faster or cheaper, not more pleasant for provider and patient.”); and The thought challenge (“When doctors no longer engage directly with clinical notes, an active thinking process is replaced with passively waiting for alerts. But as reliance on alerts increases, alert fatigue sets in as doctors stop paying attention to those alerts.”)
With these problems in mind, also read: Augmedix Announces Partnership with HCA Healthcare to Accelerate the Development of AI-enabled Ambient Documentation

About healthcare personnel

 Surge in medical liability premiums increases reaches fourth year “A protracted period of upward volatility in medical liability premiums has extended into a fourth consecutive year and suggests a hard insurance market has spread across many states making it difficult for physicians to find affordable coverage, according to an analysis (PDF) issued today by the American Medical Association (AMA)….
[For examples]:Fifteen states reported double-digit percentage increases in premiums in 2022, up from 12 in 2021. As in 2021, Illinois leads the latest list of states with the largest proportion (63.6%) of premiums that increased 10% or more, followed by New Mexico (33.3%), Oregon (26.7%), Kansas (20%), South Dakota (20%), Kentucky (20%), Massachusetts (16.7%), Montana (16.7%), Missouri (14.8%), South Carolina (11.1%), West Virginia (6.7%), Maine (6.7%), Virginia (6.4%), Nevada (5.6%), and Georgia (4.8%). The size of the largest premium increase in these states ranged from 10% in Maine and Montana to 40.9% in Kansas.
The AMA analysis also found striking differences in premiums by geography. For example, in 2022 some obstetricians and gynecologists faced base premiums ranging from $49,804 in Los Angeles County, California to $226,224 in Miami-Dade County, Florida.”
This issue was a “sleeper” during the pandemic, but now, such high rates will force physicians to move to states with lower rates, sell practices to health systems or retire early. But reform will probably never come unless there is a severe crisis, as the trial lawyers contribute very heavily to political campaigns.

Today's News and Commentary

About Covid-19

Coronavirus (COVID-19) Update: FDA Authorizes Changes to Simplify Use of Bivalent mRNA COVID-19 Vaccines The FDA “amended the emergency use authorizations (EUAs) of the Moderna and Pfizer-BioNTech COVID-19 bivalent mRNA vaccines to simplify the vaccination schedule for most individuals. This action includes authorizing the current bivalent vaccines (original and omicron BA.4/BA.5 strains) to be used for all doses administered to individuals 6 months of age and older, including for an additional dose or doses for certain populations. The monovalent Moderna and Pfizer-BioNTech COVID-19 vaccines are no longer authorized for use in the United States.” 

Biden Administration Will Fund Program to Keep Covid Vaccines Free for the Uninsured “The Biden administration plans to spend more than $1 billion on a new program to offer free coronavirus shots to uninsured Americans after the vaccines move to the commercial market later this year…
The program for the uninsured, which will be modeled partly on an existing childhood vaccination program and will cover an estimated 30 million people, will include a first-of-its-kind partnership with pharmacy chains in which the government will pay the administrative costs of giving the doses to patients. Pfizer and Moderna have pledged to offer the shots at no cost to those who lack insurance.”

About health insurance/insurers

Trends in Premiums, Claims, and Enrollment for Fully Insured Large Group, Small Group, and Individual Health Plans From 2011 to 2021 “From 2011 to 2021, median annual premium per enrollee grew by 5.9% ($5701 to $6035) for large group plans, 9.6% ($5683 to $6228) for small group plans, and 59.0% ($3574 to $5683) for individual plans. Median claims per enrollee grew faster by 14.9% for large group plans, 21.0% for small group plans, and 96.6% for individual plans.. Large and small group plans had a decline in total enrollment from 49.4 to 41.1 million and from 18.8 to 11.5 million, respectively, while individual plan enrollment increased from 10.9 to 14.9 million.
Across all markets, median annual premiums and claims per enrollee increased for almost every state.”

Elevance Health's profits rise 11% in Q1 to $2B Elevance Health raked in $2 billion in profit for the first quarter of 2023, up 11% year over year, according to the company's earnings report released Wednesday.
Revenue was also up by double digits, according to the report, growing by 10.5% to $39.6 billion. The insurer reported $1.8 billion in profit and $35.8 billion in revenue for the first quarter of 2022.”

SCOTUS Case Could Swing FCA Claims Toward Whistleblowers “The case alleges that the Medicaid-backed programs run by the grocery store’s pharmacies defrauded the company by failing to report “usual and customary” prices accurately to regulators. But the company says that it was audited 12,000 times over more than a decade before the issue was brought up and the lack of better guidance from the government doesn’t make it liable for the alleged scheme.”
Comment: The outcome will depend on the justices’ deciding whether intent is important. Court observers are leaning to the conclusion that it will not matter in this case.

Former Physician Associated with 1-800-GET-THIN Sentenced to 7 Years in Federal Prison for Massive Fraud Against Health Insurers A former doctor has been sentenced to 84 months in federal prison for scheming to defraud private insurance companies and the Tricare health care program for U.S. military service members by fraudulently submitting nearly $120 million in claims related to the 1-800-GET-THIN Lap-Band surgery business, the Justice Department announced today…
Omidi is a former dermatologist whose medical license was revoked in 2009 after state authorities found he had engaged in dishonesty and unprofessional conduct related to his application for his California medical license…
Omidi established procedures requiring prospective Lap-Band patients – even those with insurance plans he knew would never cover Lap-Band surgery – to have at least one sleep study, and employees were incentivized with commissions to make sure the studies occurred.
Omidi used the sleep studies to find a reason – the ‘co-morbidity”’of obstructive sleep apnea – that GET THIN would use to convince the patient’s insurance company to pre-approve the Lap-Band procedure.
After patients underwent sleep studies – irrespective of whether any doctor had ever determined the study was medically necessary – GET THIN employees, acting at Omidi’s direction, often falsified the results. Omidi then used the falsified sleep study results in support of GET THIN’s pre-authorization requests for Lap-Band surgery.”

Price Transparency Impact Report A good summary of where payers and hospitals are in their transparency compliance.

About hospitals and healthcare systems

Analysis of Hospital Operating Margins and Provision of Safety Net Services “In this cross-sectional study of 4219 hospitals, higher levels of uncompensated care, low-compensation care, and area socioeconomic disadvantage were associated with lower operating margin, while providing more essential services or being a critical access hospital were not.” 

TWO EXAMPLES OF HOW HOSPITALS CAN RUN AFOUL OF FEDERAL LAWS:

Meharry Medical College Agrees To Settle False Claims Act Allegations “The United States alleged that, from 2016 until March 2020, Meharry submitted fraudulent claims to Medicare seeking payment for physician services provided in the internal medicine, OB/GYN, and psychiatric outpatient clinics, and for psychiatric consultations at Nashville General Hospital. In reality, these services were performed by unsupervised, non-physician residents.”

Sibley Hospital and Johns Hopkins Health System Settle Allegations of Improper Compensation Arrangements “Sibley Hospital (Sibley) and its parent company, Johns Hopkins Health System (Johns Hopkins), have agreed to pay the United States $5 million to resolve allegations arising from claims that Sibley submitted to the Medicare Program, the Justice Department announced today…
Today’s settlement resolves allegations that, from 2008 through 2011, Sibley violated the Stark Law by billing Medicare for services referred by ten cardiologists to whom Sibley was paying compensation that exceeded the fair market value of the services provided. These allegations arose out of conduct that Sibley and Johns Hopkins self-disclosed to the United States.”

About pharma

Alito extends temporary freeze, maintaining abortion pill access for two more days “Justice Samuel Alito maintained the current level of access to a widely used abortion pill for two more days, a temporary measure that gives the high court more time to weigh emergency appeals from the Biden administration and a company that makes the drug.”

Conflicts of Interest [COI] Among Infectious Diseases Clinical Practice Guideline Authors and the Pharmaceutical Industry “We assessed the prevalence of COI associated with guideline-recommended drugs among Infectious Diseases Society of America (IDSA) CPG authors and compliance with Council on Medical Specialty Societies (CMSS) and Institute of Medicine (IOM) guidelines…
Among 10 IDSA CPGs [clinical practice guidelines], approximately one-half of authors (71 of 149 [47.7%]) disclosed a relationship with any pharmaceutical company, and one-third (48 of 149 [32.2%]) had 1 or more COI or high-level COI.”

Inside the Online Market for Overseas Abortion Pills A terrific investigative piece from The NY Times. 

About healthcare personnel

 Physicians who accept Medicare, Medicaid patients at all-time low of 65% “Reduced Medicare and Medicaid payments are having more physicians considering reducing those patient bases, according to Medscape'sPhysician Compensation Report for 2023.  
Sixty-five percent of physicians surveyed said they would continue treating current Medicare or Medicaid patients and take on new ones, according to the report. Medscape said it is the lowest percentage it has seen in its annual compensation reports. Five years ago, 71 percent of physicians said they would continue treating current Medicare or Medicaid patients and take on new ones.”
Comment: Consider the access implications.

Today's News and Commentary

Conspiring Against Competition Illegal Corporate Price-Fixing in the U.S. Economy “Large companies operating in the United States have, since the beginning of 2000, paid $96 billion in fines and settlements to resolve allegations of covert price-fixing and related anti-competitive practices in violation of antitrust laws…
Of the $96 billion in penalties, over one-third ($33 billion) was paid by banks and investment firms, mainly to resolve claims that they schemed to rig interest-rate benchmarks such as LIBOR. The second most penalized industry, at $11 billion, is pharmaceuticals, due largely to Price-fixing happens most frequently in business-to-business transactions, though the higher costs are often passed on to consumers. Apart from finance and pharmaceuticals, the industries high on the penalty list include: electronic components ($8.6 billion in penalties), automotive parts ($5.3 billion), power generation ($5 billion), chemicals ($3.9 billion), healthcare services ($3.5 billion), and freight services ($3.4 billion). Information technology’s total is relatively low, at $1.7 billion, apparently reflecting that industry’s heavy reliance on advertising rather than revenue from users.”

About Covid-19

 FDA okays second omicron booster for people at high risk from covid “The Food and Drug Administration on Tuesday cleared the way for people who are at least 65 years old or immune-compromised to receive a second updated [bivalent] shot against the coronavirus, an option designed to bolster protection for the most vulnerable Americans even as the pandemic recedes.”

Universal Masking in Health Care Settings: A Pandemic Strategy Whose Time Has Come and Gone, For Now A thoughtful article on when there is a need to mask- and when there is not a need.

About health insurance/insurers

 HHS Notice of Benefit and Payment Parameters for 2024 Final Rule You should at least skim this document- paying attention to the topic categories.For a summary of some of the topics see this article.

About hospitals and healthcare systems

 59 health systems that got the highest price transparency scores, 11 with the lowest FYI

 CFO Signals™ 1Q 2023 From Deloitte consulting. Though not a healthcare-specific report, one finding very applicable to the field stood out: “Despite continued reports of layoffs across industries, retention and talent availability and hiring continue to dominate CFOs’ list of internal worries.”

About pharma

Markups for Drugs Cost Patients Thousands of Dollars From an AHIP study: “Costs per single treatment for drugs administered in hospitals (2019-2021) were an average of $8,200 more than those purchased through specialty pharmacies. Drugs administered in physician offices were an average of $1,500 higher than specialty pharmacies.”
The article has specific drug examples.

Added Therapeutic Benefit of Top-Selling Brand-name Drugs in Medicare “Question  What was the added therapeutic benefit of the 50 top-selling drugs in Medicare in 2020, as assessed by key non-US health technology assessment (HTA) organizations?
Findings  More than half of top-selling drugs in Medicare did not receive a moderate or high added therapeutic benefit rating by the national HTA organization of France, Germany, or Canada; these 27 drugs accounted for $19.3 billion net spending, or 11% of Medicare net prescription drug spending in 2020.
Meaning  Many top-selling Medicare drugs provided low added benefits; this information can contribute to price negotiation under the Inflation Reduction Act.”

GSK bets on cough drug with $2bn deal for Canadian biotech “GSK has agreed to buy Canadian biotech Bellus Health in a $2bn deal, its largest acquisition since the UK drugmaker spun off its consumer health division last year. The deal is designed to bolster GSK’s drug pipeline by adding Bellus Health’s speciality medicine for a debilitating and persistent cough, a condition that GSK says affects 10mn people. It is the latest in a series of deals from GSK to replenish its drug pipeline ahead of the expected loss of exclusivity on its HIV drug dolutegravir towards the end of the decade. The purchase of Bellus follows the $1.9bn acquisition of Sierra Oncology and a deal worth up to $3.3bn for vaccine maker Affinivax last year.”

About the public’s health

 Screening for Skin CancerUS Preventive Services Task Force Recommendation Statement “The USPSTF concludes that the evidence is insufficient to determine the balance of benefits and harms of visual skin examination by a clinician to screen for skin cancer in asymptomatic adolescents and adults.” 

About healthcare IT

HHS Cybersecurity Task Force Provides New Resources to Help Address Rising Threat of Cyberattacks in Health and Public Health Sector “On April 17, 2023, The U.S. Department of Health and Human Services (HHS) 405(d) Program announced the release of the following resources to help address cybersecurity concerns in the Healthcare and Public Health (HPH) Sector:

  • Knowledge on Demand – a new online educational platform that offers free cybersecurity trainings for health and public health organizations to improve cybersecurity awareness.

  • Health Industry Cybersecurity Practices (HICP) 2023 Edition a foundational publication that aims to raise awareness of cybersecurity risks, provide best practices, and help the HPH Sector set standards in mitigating the most pertinent cybersecurity threats to the sector.

  • Hospital Cyber Resiliency Initiative Landscape Analysis – a report on domestic hospitals’ current state of cybersecurity preparedness, including a review of participating hospitals benchmarked against standard cybersecurity guidelines such as HICP 2023 and the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF).

About healthcare personnel

 FCC Chairwoman Calls for Reclassification of 911 Operators The FCC is calling on the OMB to reclassify 911 operators as first responders and not office administrative staff. It is hoped that such a change will help with recruiting and retention, perhaps by increasing salary categories.

About health technology

Direct-from-blood culture metagenomic [Metagenomics is the study of microbes in their natural living environment] sequencing provides accurate antimicrobial resistance predictions faster than routine methods This abstract was just presented at European Congress of Clinical Microbiology & Infectious Diseases (ECCMID) in Copenhagen. “Antimicrobial resistance (AMR) poses a major challenge when treating bloodstream infections. Beyond identifying species, clinical metagenomics may offer valuable information to predict AMR in a timely and accurate manner…
We demonstrate that metagenomic sequencing can provide rapid and actionable AMR predictions to treat bloodstream infections earlier than conventional laboratory tests.”
Comment: This technique can provide rapid, precise information about infecting bacteria and their sensitivities to treatment.

Today's News and Commentary

About health insurance/insurers

Aligning fee-for-service payment rates across ambulatory settings MedPAC is recommending aligning ambulatory payment systems for hospital-owned and non hospital-owned providers by eliminating the facility fees for the former when the latter cannot charge for that item.

Biden says he’s expanding some migrants’ health care access “President Joe Biden announced Thursday that hundreds of thousands of immigrants brought to the U.S. illegally as childrenwill be able to apply for Medicaid and the Affordable Care Act’s health insurance exchanges.
The action will allow participants in the Obama-era Deferred Action for Childhood Arrivals program, or DACA, to access government-funded health insurance programs.”

Supreme Court looks at whether Medicare and Medicaid were overbilled under fraud law “The case essentially began in 2006, when Walmart upended the retail pharmacy world by offering large numbers of frequently used drugs at very cheap prices — $4 for a 30-day supply — with automatic refills. That left the rest of the retail pharmacy industry desperately trying to figure out how to compete.
The pharmacies came up with various offers that matched Walmart's prices for cash customers, but they billed Medicaid and Medicare using far higher prices, not what are alleged to be their usual and customary prices.
Walmart did report its discounted cash prices as usual and customary, but other chains did not.”

Health Coverage: State-to-State 2023 “AHIP’s Health Coverage: State-to-State details the important role health plans play in all 50 states and Washington, D.C. This report catalogues what health plans contribute in terms of: Access to health care coverage; Number of jobs the industry generates, both directly and indirectly; and Tax revenues paid to support the local economy.”

UnitedHealth Group reports $5.6B in Q1 profit, revenues up 15% year over year “UnitedHealth Group's revenue grew 15% year over year in the first quarter, reaching $91.9 billion, according to the company's earnings report released Friday.
By comparison, the insurer reported $80.1 billion in revenue for the first quarter of 2022. The healthcare giant also reported $5.6 billion in profit for the quarter, up from $5 billion in the prior-year quarter.”

Optum dives into provider loans “Optum now provides financing for healthcare organization customers who need advanced funds.
Optum Pay Advance provides a loan from Optum Bank to healthcare providers who have been Optum Pay customers for at least two years. The loan is provided with one fixed fee and the company adds repayment automatically as a percentage of the organization's future Optum Pay payments, according to the company's website.”

Humana Announces Additional $40 Million Investment in Affordable Housing “Latest round of funding raises Humana’s total financial commitment for affordable housing to $90 million, increases scope of national program to include additional communities.
Humana’s affordable housing program is intended to help vulnerable Americans remain stably housed by expanding the supply of low-cost rental units in communities nationwide, including in the states of Arizona, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin.
Humana’s national housing strategy continues to seek to address members’ housing needs through a three-part approach, including interventions and investments that reduce health care costs and improve outcomes for vulnerable members and communities.”

About hospitals and healthcare systems

M&A Quarterly Activity Report: Q1 2023 “What is increasingly clear is that a new type of post-pandemic activity is taking shape, as mid-sized regional health systems seek partners while they remain in a position of financial strength, with some looking to balance their desire to influence local healthcare delivery with utilizing the capabilities and resources of larger health systems. This trend is reflected in the rapidly increasing size of the smaller party in M&A transactions over the past few years and the number of transactions where the smaller party has between $250 million and $750 million in annual revenues.”

About pharma

 Examining Opportunities to Increase Savings From Medicare Price Negotiations Findings  In this cross-sectional study analyzing 2020 Medicare prescription drug claims, including drugs with generic competitors/biosimilars and ranking drugs by net rather than gross spending was associated with increased estimated savings for 2026 for 10 Part D drugs from $3.2 billion to $9.5 billion and for 2029, when negotiation expands to 60 drugs, from $16.0 billion to $28.3 billion.
Meaning  The study results suggest that as Congress considers future expansions of Medicare price negotiation, relaxing certain eligibility criteria and using net spending for drug selection may substantially increase estimated savings.”

FDA mandates new safety warnings for opioid pain medicines “The U.S. Food and Drug Administration said on Thursday it will require new safety warnings to be added in the prescribing information on labels for opioid pain relievers, including a warning about increased sensitivity to pain.
FDA said data suggests patients who use opioids for pain relief after surgery often have leftover tablets, which puts them at risk for addiction and overdose.
The updated safety warnings for these drugs will provide clarity about which patients opioid pain drugs should be prescribed to and the appropriate dosage and administration, the health regulator said.”

FTC puts health companies on watch for misleading ads “Nearly 700 companies are receiving a warning from the Federal Trade Commission about the civil penalties they face for advertisements containing claims about products that cannot be backed up with reliable evidence. 
Pharmaceutical, retail, and health and wellness companies that market over-the-counter drugs, dietary supplements, homeopathic products and health foods make up a large portion of the 670 companies receiving a notice of penalties from the FTC. With the notice issued, the agency can seek civil penalties — up to $50,120 per violation — against companies that knowingly engage in marketing conduct that has been found unlawful in previous FTC administrative orders.”

About the public’s health

U.S. Malnutrition Deaths Have More Than Doubled “Deaths attributed to malnutrition more than doubled, from about 650 in 2018 to roughly 1,400 in 2022, according to preliminary death certificate data from the California Department of Public Health. The same trend occurred nationwide, with malnutrition deaths more than doubling, from about 9,300 deaths in 2018 to roughly 20,500 in 2022, according to the U.S. Centers for Disease Control and Prevention.” 

 High court temporarily blocks restrictions on abortion pill “In an order signed by Justice Samuel Alito, the court put a five-day pause on the fast-moving case so the justices can decide whether lower court rulings restricting the Food and Drug Administration’s approval of the drug, mifepristone, should be allowed to take effect in the short term.”

Chronic Pain Affects 21% of Americans, CDC Reports “During 2021, an estimated 51.6 million adults (20.9%) had chronic pain lasting 3 months or longer, and 17.1 million (6.9%) had high-impact chronic pain -- pain severe enough to restrict daily activities -- reported S. Michaela Rikard, PhD, of the CDC's National Center for Injury Prevention and Control, and co-authors.
Pain prevalence was higher in adults who were American Indian or Alaska Native, who identified as bisexual, or who were divorced or separated, the researchers said in Morbidity and Mortality Weekly Report.

About healthcare IT

VA Pauses Rollout of $16 Billion Health Record System “The Department of Veterans Affairs is holding up further rollout of a problem-plagued, multibillion-dollar electronic health record system as the contract is renegotiated. 
Officials from the VA and Oracle Corp., which last year acquired the company that developed the system, are in discussions about changes in the contract designed to provide the VA with a record system. 
The system was adopted, in large part, because it is used by the Department of Defense and the Coast Guard and is designed to provide seamless medical records for troops from the time they enlist until the day they die.”

HIMSS 2023 Global Conference Preview and Top 5 Topics HIMSS annual conference starts today. This article provides a good summary of the major topics that will be presented.

About healthcare personnel

 'Crisis' looms as 800,000 more nurses plan to exit workforce by 2027: study “The critical nursing shortage in the United States is going to get worse — much worse — according to results of a comprehensive National Council of State Boards of Nursing and National Forum of State Nursing Workforce Centers study
Key findings of the study: Here's a breakdown of the study's main finding that one-fifth of 4.5 million nurses employed in the profession today say they intend to leave the workforce in the next four years. (Again, this statistic includes the 100,000 nurses who left the profession in the past two years.) 

  • A total of 610,388 RNs reported an "intent to leave" the nursing workforce by 2027, citing stress and burnout as the main drivers.This number also includes retirement-related attrition.

  • These same challenges were most cited by another 188,962 RNs younger than 40 who also said they intended to leave the profession by 2027. In fact, there already has been a 3.3 percent decline in this age group of nurses in the past two years.

  • More than 33,800 licensed practical/vocational nurses have already left the profession due to pandemic burn out.”

 Medscape Physician Compensation Report 2023 As usual, the top earners are plastic surgeons and at the bottom are primary care and public health physicians. One piece of good news, the gender gap has narrowed for the first time in five years.

About healthcare finance

 Merck & Co. agrees to buy Prometheus for $10.8 billion “Merck & Co. announced Sunday that it agreed to acquire Prometheus Biosciences for $200 per share in cash, or a total equity value of about $10.8 billion. The company said the move will bolster its pipeline with the addition of PRA023, a late-stage asset Prometheus is working on for the treatment of ulcerative colitis (UC), Crohn's disease and other autoimmune conditions.”