About healthcare M&A
Health services: Deals 2022 outlook: Some highlights from this PWC report:
”Deal volumes rose by an extraordinary 56% in the 12 months through November 15 versus 2020, with particularly high growth in physician medical groups, managed care and rehabilitation subsectors.
Deals appetite has persisted despite high multiples — the sector-wide mean enterprise value to EBITDA multiple for the period reached 15.2x.
In the same period, the sector has seen nine megadeals valued at $5 billion or more, plus traditional IPOs and IPOs backed by special purpose acquisition companies (SPACs).
Deals are being driven by forces including capital availability, regulatory pressures, searches for value, resilience imperatives and evolving value chain power dynamics.”
Baxter Completes Acquisition of Hillrom, Creating ~$15 Billion Global Medtech Leader: Read the announcement for details.
Pfizer spurs immuno-inflammatory pipeline with $6.7-billion Arena buy: “The deal announced Monday bolsters Pfizer's pipeline with the addition of development-stage therapeutic candidates in gastroenterology, dermatology and cardiology, including the next-generation oral S1P receptor modulator etrasimod that it expects will contribute to growth ‘through 2025 and beyond.’”
The top 10 M&A targets in medtech for 2022: Read the article for more information on companies in the list.
About Covid-19
U.S. COVID-19 deaths reach 800,000 as Delta ravaged in 2021: Data as of yesterday.
TWO-THIRDS OF STATE MEDICAL BOARDS SEE INCREASE IN COVID-19 DISINFORMATION COMPLAINTS: “The Federation of State Medical Boards (FSMB) has released findings from its 2021 annual survey of its member state medical boards….
When asked about complaints and disciplinary actions related to COVID-19, the survey found:
67% have experienced an increase in complaints related to licensee dissemination of false or misleading information
26% have made or published statements about the dissemination of false or misleading information
21% have taken a disciplinary action against a licensee disseminating false or misleading information”
The Big Vaccine Pivot: Merck Falters on Covid-19 Shots, Then Makes One for Rival J&J: “The Johnson & Johnson -Merck partnership, which the companies announced in March, is now bearing fruit to expand the world’s vaccine supply. After a frantic ramp-up that involved scouting for raw materials, buying equipment and upgrading plants all at the same time, the first Merck-made shots shipped Friday.
Merck is churning out more than 500,000 doses daily for use outside the U.S., including countries desperate for shots.”
Court ruling is a blow to restaurants' COVID claims: “In a sweeping set of rulings, the 7th U.S. Circuit Court of Appeals determined that governmental actions closing or restricting businesses in the early months of the pandemic weren’t losses that insurers have to cover.
The decisions in six cases, made public today, upheld decisions by lower courts to dismiss suits claiming damages by an array of plaintiffs, including the Ritz-Carlton Hotel in Dallas. But their sweeping nature means that the many other cases pending in lower courts… likely will fail over the same issues.”
About health insurance
Affordability of Medical Care Among Medicare Enrollees: “In a nationally representative survey of 13 171 Medicare enrollees that asked several questions about the affordability of their medical care, the overall reported prevalence of ever delaying care during 2017 owing to worries about cost was 11%; the prevalence of having problems paying medical bills was also 11%, and 16% of the respondents experienced 1 of these 2 concerns or both. Unaffordability of care was associated with lower incomes, worse health, and being younger than 65 years with long-term disability.”
MedPAC Likely To Support Pay Increase For Hospitals In 2023: Skilled nursing, home health and inpatient rehabilitation facilities could see 5% base pay decreases. Physicians, ambulatory surgical centers and hospices may see no change in pay from 2022.
Post-acute care providers and stakeholders that could be facing pay freezes said they’re disappointed in MedPAC’s draft proposals. MedPAC’s own commissioners agreed with most recommendations staff presented. However, several members had concerns about leaving physician pay flat in 2023. Recommendations will come to an official vote at next month’s meeting.
MedPAC staff suggested updating hospital payment by the amount determined under current law, which is expected to be 2% for 2023.”
Miami Resident Charged with Committing $38 Million Health Care Fraud Scheme, Spending Proceeds on Beachfront Condos and Luxury Vehicles: “According to allegations in the federal grand jury indictment, from February 2015 through July 2021, 63-year-old Armando Valdes owned and operated Gasiel Medical Services, Corp. (“Gasiel”) a medical clinic in Miami, Florida. It is alleged that Gasiel submitted approximately $38 million in false and fraudulent claims to United and Blue Cross for infusions of Infliximab which were medically unnecessary and not provided to patients as billed.”
Such fraud cannot occur in a capitated arrangement where the provider is responsible for in-office expenses.
Centene May Sell Its International Business As Health Insurer Expands In The U.S.: “Centene, which is known for providing government-subsidized health insurance in the U.S., said Friday it is “reviewing its non-core assets as part of its ongoing portfolio optimization processes, including evaluating strategic alternatives for its international business.”
The announcement, made as part of Centene’s annual investor day, comes as the company is on the verge of bolstering its U.S. health insurance offerings with Magellan Health, which sells and manages behavioral health services. Centene is hoping to close its Magellan Health acquisition by the end of this year, the company said.”
About the public’s health
Infant Mortality in the United States, 2019: Data From the Period Linked Birth/Infant Death File: Among the findings: “A total of 20,927 infant deaths were reported in the United States in 2019, down 3% from 2018. The U.S. infant mortality rate was 5.58 infant deaths per 1,000 live births, a historic low for the country, although not significantly different from the rate of 5.67 in 2018. The neonatal mortality rate declined to 3.69 in 2019 from 3.78 in 2018, while the postneonatal mortality rate was unchanged from 2018 at 1.89. The mortality rate declined for infants of non-Hispanic white women in 2019 compared with 2018; declines in rates for the other race and Hispanic-origin groups were not significant. The 2019 infant mortality rate for infants of non-Hispanic black women (10.62) was more than twice as high as that for infants of non-Hispanic white (4.49), non-Hispanic Asian (3.38), and Hispanic (5.03) women… Infant mortality rates by state for 2019 ranged from a low of 3.21 in New Hampshire to a high of 8.71 in Mississippi.”
Beware of Vaping Products with Unproven Health Claims: From the FDA: “The U.S. Food and Drug Administration wants consumers to know certain “wellness” vaping products containing vitamins and/or essential oils are being illegally sold with unproven claims and could be harmful if used. Currently, no vaping products are approved by the FDA to prevent or treat any health conditions or diseases.”
About hospitals and health systems
2 US health systems plan international expansions: Read the article for details of the UPMC and Cleveland Clinic plans.
About healthcare professionals
2021 Fall Applicant, Matriculant, and Enrollment Data Tables: Applications are up to record numbers for all categories. Currently, 52.7% of enrollees are women. “Black or African American” enrollment is up almost 10%.
About healthcare IT
Digital HTN, Diabetes Monitoring Program a Boon for Patients: “A digital health program for hypertension and diabetes was associated with improved patient outcomes, a clinical pharmacist reported.
While 26% of hypertension patients receiving usual care achieved blood pressure control after 6 months, 75% of those in the digital health program met that goal in the same time frame in 2018, Heather Aaron, PharmD, of Ochsner Health in New Orleans, reported…
Patients with diabetes experienced improved hemoglobin A1c as well, with the average going from 7.3% at baseline to 6.7% after 6 months in the digital health program…”
What devices like Apple, Google smartwatches are beginning to display about our health: “The global market for wearable health and fitness devices — including sensor-laden watches, wrist bands, rings, skin patches, eyeglasses and clothing — reached more than $36 billion in 2020 and is projected to reach over $100 billion by 2028…
Now, nearly 30% of Americans now use a wearable health care device, many of which now have the capabilities to track, monitor and transmit data on heart rate and rhythm, blood pressure, body temperature, blood sugar levels, quality of sleep and even early warning signs of Covid-19 infection.”
The article has many good examples of current and emerging technologies.
About healthcare quality
Longitudinal Content Analysis of the Characteristics and Expected Impact of Low-Value Services Identified in US Choosing Wisely Recommendations: “In this qualitative study of 626 recommendations, the plurality identified low-value imaging and laboratory studies, services in the clinical contexts of healthy patients or those with a chronic condition, and services that were low cost and revenue neutral for the given society. Nearly half of identified low-value services had high direct harm potential, while 62% had high potential for cascades (ie, triggering downstream services).”