Read today’s Kaiser Health News
In other news:
About health insurance/insurers
Which Medicare Advantage insurers gained, lost members for 2025 FYI
Claims Adjudication Costs Providers $25.7 Billion - $18 Billion is Potentially Unnecessary Expense
Key Takeaways:
—Claims adjudication cost healthcare providers more than $25.7 billion in 2023 – a 23 percent increase from the previous year.
—70 percent of denials were ultimately overturned and the claims paid, but only after multiple, costly rounds of review.
About hospitals and healthcare systems
37% of hospitals still losing money: Last year, Kaufman Hall reported 40% of hospitals were losing money; the three percentage point drop shows slow progress toward financial stability but the 37% of hospitals still losing money are faced with tough decisions. In recent weeks, multiple hospitals have announced layoffs or restructures; others are ending service lines or outsourcing administrative functions.
UHS net income increases 59% in 2024: King of Prussia, Pa.-based Universal Health Services posted a net income of $1.1 billion in 2024, up from a net income of $717.8 million in 2023, according to its Feb. 26 financial report.
10 health systems ditching their health plans FYI
About pharma
Medicare spending on diabetes drugs surged over 5 years, US report shows: Medicare spending on some diabetes drugs, including popular treatments such as Ozempic, surged nearly five-fold to $35.8 billion between 2019 and 2023, a U.S. government watchdog's report showed this week.
Medicare, the government-backed program for adults aged 65 and older and those with disabilities, only covers the use of GLP-1 drugs for diabetes, but not for weight loss.
Eli Lilly unveils high-dose, low-cost Zepbound vials: Six months after Eli Lilly began selling discounted vials of its blockbuster weight loss drug Zepbound, the company expanded the offering Feb. 25 to include cheaper, high-dose Zepbound vials.
Walgreens rises on report that Sycamore would split company: Walgreens Boots Alliance Inc. shares rose Thursday morning after a report that a potential take-private deal from Sycamore Partners would lead to a breakup of the drugstore chain.
Sycamore, which has been reportedly exploring a purchase of Walgreens for months, is planning on splitting up the company’s US and UK pharmacy businesses, as well as its specialty pharmacy unit, the Financial Times reported Thursday.
About the public’s health
FDA advisory meeting to select strains for flu vaccines cancelled :An FDA advisory committee meeting to determine the composition of influenza vaccines has reportedly been cancelled, raising concerns that manufacturers won't have sufficient time to produce the shots ahead of the upcoming season.
The Vaccines and Related Biological Products Advisory Committee (VRBPAC) was tentatively scheduled to meet on March 13 to discuss which strains should be included in next season's flu vaccines. However, several panel members were notified late on February 26 that the meeting had been called off.
Moderna's $590M US contract for bird flu jab is on ice: report: Amidst Moderna's struggles to find its post-pandemic footing, a $590-million US government contract awarded in the final days of the Biden administration was a welcome boost for the biotech. But now that funding — for Moderna to develop mRNA vaccines for pandemic influenzas, including the bird flu — may be rescinded, according to a Wednesday report from Bloomberg.
Citing people familiar with the matter, Bloomberg said health officials are reevaluating the contract — which was awarded by a division of the Department of Health and Human Services (HHS) — as part of a broader government initiative to scrutinise spending on mRNA vaccine technology.
About healthcare IT
Telemedicine Adoption and Low-Value Care Use and Spending Among Fee-for-Service Medicare Beneficiaries: In this cohort study, telemedicine adoption was associated with modestly lower use of 7 of 20 examined low-value tests (most point-of-care) and no changes in use of other low-value tests, despite a small rise in total visits that might offer more testing opportunities. Results suggest possible benefits of telemedicine and mitigate concerns about telemedicine contributing to increased spending.
Teladoc Health reports $1B loss in 2024, driven by BetterHelp Q2 impairment charge: During its fourth-quarter 2024 earnings call with investors, which also revealed full-year 2024 financial results for the business, Teladoc Health executives emphasized the company’s “strong finish” to the year despite posting a $1 billion loss for its full fiscal year in 2024.Executives touted customer interest in its newer weight management solution, the addition of 4 million members in the U.S. to Teladoc programs and the 6% growth in underlying visit volumes during the year.
About healthcare personnel
Americans' Ratings of U.S. Professions Stay Historically Low: Three in four Americans consider nurses highly honest and ethical, making them the most trusted of 23 professions rated in Gallup’s annual measurement. Grade-school teachers rank second, with 61% viewing them highly, while military officers, pharmacists and medical doctors also earn high trust from majorities of Americans.
The least trusted professions, with more than half of U.S. adults saying their ethics are low or very low, are lobbyists, members of Congress and TV reporters.
About health technology
Medical Device Recalls Reach Highest Level in Four Years:
Medical Device Recalls By the Numbers
Key statistics from the report regarding the medical device sector indicate:
Medical device recall events increased 8.6% in 2024, from 975 (in 2023) to 1,059.
Medical device recalls of a Class I severity are at a 15-year high.
Total impacted units surged 55.4%, from 283.4M in 2023, to 440.4M in 2024. With this increase, impacted units are at their highest rate in three years.
Top 5 causes by recall event
The report pinpointed the top causes of medical device recalls based on the number of recall events. Device failure was the leading cause of recall activity in 2024. This marks the first time this has been the leading cause. The other top causes based on the number of recall events were:
Quality
Software
Mislabeling
Parts issue