Top Weekly Healthcare Stories
The Big Stuff.
Everything you need to know about the Coronavirus.
At this point, we’re all aware of the Coronavirus originating in Wuhan, China. Here’s the latest updates:
- While last week the number of infected was sitting at 650 worldwide, the total reported cases as of this writing is about 2,800. A majority of these infections occurred in Wuhan.
- 40 total cases have been spotted outside of China – 5 officially reported within the U.S.
- The markets sold off Monday as fears spread about a potential epidemic. Companies like Disney, Starbucks, and McDonald’s are suspending their operations during what is normally a higher level of consumer spending activity in China with Lunar New Year celebrations. Here’s more info from Axios on the potential economic impact of the virus.
- Officials have criticized China’s response to the outbreak, blaming the regime’s tendency for censorship while the virus spreads.
- The virus is highly contagious and has a somewhat high mortality rate. Companies like J&J and Moderna are working on a vaccine, but it could take up to a year to bring it to market.
- With all of this news coverage, I can’t help but think we’re all just playing the popular video game Pandemic – which, ironically, saw a spike in sales over the weekend.
The latest trend: patients’ access to their own health data.
Epic, one of the largest electronic health record firms, is NOT at all a fan of HHS’ recently proposed health data sharing rules (read about the proposed ruling here). In an interesting development, Epic’s CEO urged its health system partners in an e-mail to oppose the ruling. On Monday, Epic told Politico that it may sue HHS over the ruling, calling it “deeply flawed.”
- Stuff about the ruling you should know: The HHS proposed ruling is designed to provide clearer guidance on how patient health information can be accessed – namely, making it easier for patients to access their own health information. Epic thinks that the ruling will hurt patient privacy (since 3rd parties will have an easier time accessing that info) and wants to work with HHS to establish more appropriate guidelines.
- The bigger picture: HHS’ wants to make it easier for patients to access their data across health systems – something that Epic probably thinks is a key competitive advantage of theirs. Think about it. If all electronic health records systems – or other third parties – could easily access patient data regardless of the IT system any one provider is using, it becomes less important to have Epic – or any particular health records platform – as your system.
Who’s on board: Apple, Microsoft, and the rest of the Big Tech gang are on board with the interoperability proposal and want the policy to go through so that consumers can access their data “without further delay.” Epic is definitely feeling the heat. They just announced the end of their collaboration with Google.
Blue Cross makes a play for generic drugs.
- Blue Cross Blue Shield wants you to know that it invested in generic drug company Civica Rx this week to promote the development of generics in the market and cut prescription drug costs.
- What is Civica Rx? It’s a nonprofit partnership among health systems with the goal of combating drug shortages in hospitals
- This initiative is growing ever important as generic drugmakers producing key drugs like antibiotics are struggling financially.
Miscellaneous stuff.
- 2019 set a senior care M&A Record
- Cardinal Health recalled 9 million hospital gowns this week.
- What’s going on with ADHD prescriptions? A study found that as prescriptions for stimulants to treat ADHD increased, so did pharma payments to doctors.
Digital Health: Innovation, Collaboration, and Tech Stories
More about those medical records…
- Google isn’t the only Big Tech player getting involved in your medical records. Amazon, IBM, Microsoft also have access to millions of medical records through partnerships with health systems across the U.S.
- Health systems say that the partnerships, which originally were intended to include de-identified patient data, were not intended to mislead. Rather, once they got down the line, the system realized that it wasn’t possible to separate the data that way. As designated business partners under HIPAA, these partnerships are legally permissible. Whether they’re good for the consumer remains to be seen.
- Read the originally reported article from the WSJ here.
SmileDirectClub is in the news again…keep your mouth shut.
- Before issuing refunds to customers, SmileDirectClub is forcing them to sign NDAs, which prevents those customers from submitting bad reviews of SDC’s products online. Something seems a bit…off…with this company.
23andMe is beginning layoffs…
- As its DNA test sales decline. Funny – it’s almost as if their initial business model was built on a fad? They’ll look for additional streams of revenue and ways to monetize their immense DNA dataset.
Uber Health Update.
- The wing of Uber plans to double in size this year and is going on a hiring spree.
Election 2020 Weekly Update
- From the WSJ – healthcare stocks tend to underperform during election years. It makes sense. Investors get skittish as new government enters the various branches of government, and healthcare is one of the highest regulated industries around.
Policy Corner, week of January 27, 2020
A microscope over hospital mergers.
- The FTC is planning to scrutinize hospital mergers much closer in 2020 and beyond.
The Supreme Court’s healthcare flurry.
- The Supreme Court will review religious exemptions to ACA birth control coverage.
- The high court also decided last week that it won’t fast track the ongoing ACA case. It’s a loss for Democrats and a win for Republicans. The decision now guarantees that healthcare will be a major talking point on the campaign trail headed into the 2020 election. Getcha popcorn ready.
Trump stuff.
- He’s attending the March for life rally – the first ever sitting president to do so.
- He may want to reform entitlement programs (AKA Medicare, Medicaid, and Social Security) – but later backed off his statements
- He wants to cut California healthcare funding over the state’s requirement that insurance plans include abortion coverage.
Single-Payer update.
- In an attention grabbing headline, the American College of Physicians, which is a major physician trade group, officially endorsed a single-payer healthcare system for the U.S.
- Be Smart. NOTE that the group did not endorse a candidate’s specific healthcare plan – just that the evidence they came across indicates that single payer may address certain problems in the current healthcare system.
Quick Hits
Biz Hits
- Read One Medical’s S-1 here. It’s the form they send in before they can go public and it talks all about their business model, risks, and growth. Its strategy? Target primary care, deploy a subscription-based model (Wall Street loves those), and partner with health systems for growth.
- The Amedisys CEO thinks that new home health payments under PDGM will cause massive access problems and create ‘home health deserts,’ which will then need to be fixed by CMS. Read his entire interview here.
- Google wants you to know that it plans to protect your privacy when it comes to health data. We all believe that, right?
- Community Health Systems is getting close to the end of its hospital selling spree. Over the last several years, the struggling hospital operator has sold more than 90 hospitals.
- Insys founder Kapoor sentenced to 66 months in prison for opioid scheme
- An executive from Insys was sentenced to 66 months in prison for criminal involvement in the opioid epidemic. It’s the highest ranking pharma exec to be criminally linked to the opioid crisis.
- The Centene/Wellcare deal closed on January 23, creating a managed care behemoth.
- The market power of CVS and Walgreens: ‘Business negotiations’ with the state of Ohio result in Ohio’s Medicaid network losing 272 pharmacies.
State Hits
- In an interesting twist, the previously awarded, high-dollar Louisiana Medicaid managed-care contracts were thrown out after it was determined that the payor selection process was inappropriate.
- Four Chicago hospitals are merging – Advocate Trinity, Mercy , South Shore , and St. Bernard will create their own health system. The hospitals plan to spend $1.1 billion to merge, build a new hospital, and open up to 6 community centers to low-income areas. (ModernHealthcare)
Other Hits
- How Fast Can A New Internet Standard For Sharing Patient Data Catch Fire? (Kaiser Health)
- Churches struggle with mental health in the ranks (WSJ)
- 98.6 Degrees Fahrenheit Isn’t the Average Anymore (WSJ)
- UnitedHealthcare’s report finds that Medicare Advantage beneficiaries spend about 40% less than traditional Medicare. Maybe that’s because deny coverage.
Opinions & Editorials
- Out-of pocket costs for consumers are more important to look at than ever-rising gross drug prices. (WSJ)
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