healthy muse healthcare news.
- Moderna’s vaccine is super effective, SCOTUS most likely won’t strike down the ACA, Amwell and Omada Health’s rumored tie up akin to Teladoc/Livongo, Multiplan’s scathing short selling report, Cano Health going public via SPAC at a $4.4 billion valuation, home health and remote health care are booming (Amazon’s Care Hub announcement), nursing homes are in dire financial straits entering 2021, and more.
Supreme Court will likely keep Obamacare intact.
The Supreme Court held oral arguments this week for the big ACA case. Based on most of the justices’ remarks, the SCOTUS seems to be leaning toward just removing the individual mandate from the law and keeping the ACA intact. (Link for context)
- Keep in mind: These were just the oral arguments, so things could change. But things are trending toward the ACA staying as the healthcare law of the land.
- Get caught up: Read the lawsuit backstory here.
The Booming Home Health Market
Lots of home health news and deals this week! Notable things in the post-acute market:
- First up: two huge mergers. AccentCare and Seasons Hospice announced their intention to merge this week. While the financial details of the transaction weren’t disclosed, the CEOs noted that the combined revenues would be somewhere in the range of Encompass and LHC Group. So, pretty enormous.
- Meanwhile, Addus Home Care purchased Queen City Hospice for $192 million. The deal is significant because it marks the end of Addus’ self-imposed freeze on M&A spending in 2020. I’m taking that as a larger signal that healthcare M&A is coming back big-time in 2021.
Senior lives, Amazon, and the struggling nursing home.
Since Amazon likes staying in the news, the retail giant decided to get some attention from the senior living community. This week, Amazon unveiled its previously announced ‘Care Hub.’
- How it works: It’s like Life Alert on steroids. Alexa is going to help seniors age in place (AKA, in their homes) by allowing for loved ones and other caregivers to remotely monitor seniors living alone.
- Is it kind of invasive? Probably, so you’re going to have to trust Amazon (yikes). But wouldn’t you rather have your grandpa live at home? Read more about the interesting tech here.
Speaking of senior lives…amid the pandemic, nursing homes have struggled to stay financially afloat. Facing staffing shortages, rising supplies costs for PPE, etc. these facilities are going to face stark losses well into 2021.
- Cost savings: In a major cost-saving move, public nursing home operator Diversicare is shifting ALL of its therapy services, including all staffing personnel, to Texas (!!!) therapy operator Reliant Rehabilitation. Read about that move here.
Coronavirus updates.
The U.S. case count increased by 1 million in just a week. Shutdowns are coming back in certain areas – California, Chicago, New York, and others.
- I can’t help but feel as if we’re reaching a point of complacency with the virus, especially with the positive vaccine news coming out. We’re not out of the woods yet – but we’re closer than ever. Stay strong folks!
Now for the good news…
- Big BIG Vaccine news: Moderna’s vaccine proved to be ~95% effective in preventing the disease in its trial results published Monday. This beats out Pfizer’s ~90+% efficacy rate.
- More about the vaccines: They’re both mRNA vaccines. While Pfizer’s vaccine needs to be stored in ultra cold (like, -100 degrees) fridges, Moderna’s is much more distribution friendly.
- Context: Considering the FDA would have accepted a much lower efficacy rate, this news is basically best case scenario. Now we have TWO super-effective vaccines. The biggest question that remains: How long does immunity last?
Next up, Distribution: Once the FDA reviews the data and approves the first couple of vaccines, distribution and logistics will be the next major challenge. Luckily, the Feds are already thinking about how best to distribute vaccines.
- They’ve inked a deal with pharmacies across the nation to administer the vaccine free of charge to the public.
- Of course, the vaccines will prioritize first responders and the neediest populations prior to being released to the general public. HHS is prepping for a general public vaccination program by spring 2021.
Fauci says the pandemic won’t be a pandemic for much longer due to the vaccine rollouts. Kudos to Operation Warp Speed and the army of researchers that developed a vaccine faster than any vaccine EVER. Nuts.
Quick Hits
Biz Hits
Q3 earnings things to know.
The new guys: One Medical and Oak Street Health both reported strong revenue & membership growth during Q3. Both are doing well in their first year as a public firm. (Link).
Interestingly, Cano Health, a player pretty similar in concept to Oak Street, is going public via SPAC at a $4.4 billion valuation. Yet another name to watch in the growing ‘technology enabled primary care’ space. (Link)
Amwell:
- Had an active Q3. Not only did the telehealth player’s revenue jump 80%, Amwell might buy Omada Health in an almost exactly parallel play to the Teladoc-Livongo merger. Follow the leader, am I right? (Earnings Link) (Rumor Link) (What is Omada Health?)
Payors:
- Low utilization was offset by high Covid testing volume costs. Payors are expecting an unprofitable Q4 as healthcare activity continues to pick up. They’re still uncertain about the long-term impact of the pandemic on health insurance enrollment. (Link)
Policy Hits
- Trump officials are moving forward with the ‘Most favored nations’ executive order signed earlier this year. If implemented, it would be a major step to lowering drug prices in Medicare. (Link)
- In a notable move, the FTC decided to sue in order to block Tenet’s $350mil hospital deal with Methodist Le Bonheur in Memphis. The FTC argues that health system concentration would hit 60% in the market – too high in their eyes. (Link
- Joe Biden’s move to lower Medicare’s eligibility age to 60 would have huge revenue ramifications for hospitals. (Link)
- Biden’s health care policy – along with other progressive Democratic policies – relies on the Georgia Senate races. (Link) Read about Biden’s 5 key health care issues he’d like to address in his first 100 days.
Other Hits
- Back to work: Employers are preparing for a mostly-virtual 2021 in forming their benefits packages (WSJ Paywall). Because of the site shift, a huge market has opened up for digital health companies. Read more about the trend here.
- New cancer drugs saved 1.3 million lives between 2000 and 2016. (Link) (Full Paper)
- How telehealth is improving outcomes for patients in rural and underserved populations. (Link)
- A new HIV prevention technique is 9 times more effective than the current preventive treatment. (Link)
Thought-Provoking Editorials
- Supreme Court Justice Alito thinks that lockdowns and mask mandates might be a violation of the First Amendment. Listen to his speech here.
- Why your paycheck is probably lower than it should be – healthcare costs your employer pays. (Link)
- In case you forgot, MultiPlan went public via a SPAC earlier this year. This week, Muddy Waters Capital (lol) released a 14 page report as to why you should short MultiPlan. (I have no position) (Link)
Healthy Muse Top Picks
- Read about how mRNA vaccines went from a dismissed technology to a vaccine leader during the 2020 vaccine race. (Stat)
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