About health insurance/insurers
Best Insurance Companies for Medicare Advantage in 2025 FYI from US News.
About hospitals and healthcare systems
Hospital operating margins to stay low in 2025: Moody's “‘Hospital labor costs rocketed over the last four years, hitting margins and cash flow hard, according to Moody's. And the problem isn't going away any time soon.
‘The steep rise in healthcare wages over the last three years remains a structural problem and credit risk for the hospital industry,’ states Moody's Oct. 15 report on hospital financial performance. ‘While the wage growth rate will remain low in 2025, average hourly earnings will continue to top prior years. Reimbursement increases from payors, particularly government ones will not keep up with higher wages.’
Moody's noted the median operating cash flow margin was 8.5% for nonprofit hospitals in 2019, before the pandemic, and dropped since then to 5.3% in 2023. Growing expenses in labor and supply costs are driving the change, with salaries and benefits comprising 53% of nonprofit hospitals' expenses, according to Moody's. Supply costs comprise 21% of the expenses, based on 2023 medians.”
About pharma
As IV shortage continues after hurricane, U.S. invokes wartime power to speed recovery “The Biden administration says it has invoked the wartime powers of the Defense Production Act to speed rebuilding of a major American factory of intravenous fluids that was wrecked by Hurricane Helene last month. Damage to the plant in North Carolina has worsened a nationwide shortage of IV fluids, and hospitals say they are still postponing some surgeries and other procedures as a result.
Some 60% of the nation's IV supplies had relied on production from the plant, run by medical supplier Baxter, before it was damaged by the storm.”
Teva adopts biotech ethos as it leans into innovative drug development, exec says “Amid a reorganization campaign that’s breathed new life into hybrid generic and innovative medicines player Teva, the company is leaning into novel medicines and formulations more than ever and adopting a biotech mindset as it pushes a range of assets through the clinic.”
Comment: Over the years, Teva has changed from a generic manufacturer to developer of innovative drugs. This history is unusual in the field.
Independent Pharmacies Reluctant to Stock Drugs in Medicare Negotiation Program, New Survey Shows “A new national survey shows more than 90 percent of independent pharmacists may not sell drugs for which the Medicare Part D program is trying to negotiate lower prices.”
About healthcare IT
Why health systems are reducing virtual visits “While 8 in 10 health systems offer at least the same amount of virtual care as two years ago, the rest either stopped or are providing fewer virtual visits, according to the Deloitte Center for Health Solutions.
Here are the top reasons health systems reduced or discontinued virtual care, according to the consultant's survey of 51 healthcare executives released Oct. 16.
1. Physician and clinician team preference for using virtual health appears low: 60%
2. Don't need to take COVID-19 precautions anymore: 60%
3. Interest in virtual care among patients appears low or most patients want to be in person: 40%
4. Changes to payment incentives or lack of adequate reimbursement to organizations: 30%”