Notable Healthcare Stories, week of January 13, 2020
Big Pharma. If you can’t beat ’em, undercut ’em.
- It’s well documented that drug companies make the highest margins of any healthcare companies around. So what’s that famous quote Jeff Bezos is known for? “Your margin is my opportunity.” a new biotech startup called EQRx is aiming to compete with the pharma giants – all while undercutting current drug market prices.
- Other responses to high drug prices have come from state governments and nonprofit hospital systems. California is looking to launch its own prescription drug label (WSJ). The label would allow California to negotiate and contract with generic drug makers.
- Meanwhile, nonprofit hospitals are combating drug cost inflation by forming Civica Rx, a nonprofit distribution firm that delivered its first drugs last year.
While the market catches up in its response to rising drug costs, over 215 biopharma CEOs and other pharma leaders banded together and issued a statement committing themselves to ensure access to their drugs while acting with integrity and responsibility.
About that whole Google/Ascension patient privacy story….
- We learned a bit more about this week what Google has been doing behind the scenes in healthcare. A lot of it has to do with accessing data of millions of patients – without provider or patient consent.
- While it all might be in the name of providing better, more efficient care, Google doesn’t have a strong track record with privacy and handling data.
Other countries’ healthcare systems. What are they like?
- Vox recently unveiled a new healthcare series called ‘Everybody Covered.’ The series is intended to show U.S. readers how other countries’ healthcare systems work.
- It’ll be a great resource and I encourage you guys to read the articles (starting with Taiwan), but I should warn you that Vox might have an agenda in its writing every now and then.
Cancer death rate are falling, and that’s awesome.
- Cancer death rates are in a steady decline and dropped by 2.2% from 2016-2017, which is the largest ever drop in a single year.
- Most of this decline is attributable to gains in lung cancer treatment in the form of better drug development and better cancer screening. Also, it really helps that people are smoking a lot less. Either way, this is pretty great news.
J.P. Morgan Healthcare Conference kicks off.
The JP Morgan healthcare conference is this week, where San Francisco basically becomes the Mecca of healthcare. Here’s a preview of the event complete with companies to keep an eye on.
- Also, here’s a good read from Stat on the history
of the conference, and how conversations and deals made there have shaped
healthcare.
- The ghosts of JPMs past: How 20 years of deals, scandal, and science have shaped health care
Healthcare fraud makes up pretty much all fraud in the U.S.
The government recovered $3 billion in total fraud in 2019, and 90% of that fraud was in healthcare. If that’s not an indication that something is wrong, then nothing is.
Finally, here’s a fun, witty article on CES and the healthcare gadgets present.
Top M&A news from the week
- Ardent Health Services, a for-profit health system that operates 30 hospitals, called off its IPO plans. Bummer – I was looking forward to following a new public hospital company.
- JLL Partners is trying to sell American Dental Partners (paywall). With its current level of earnings and the hot market, the large dental platform could command a value just shy of $1 billion.
- HCA bought a majority stake in a multistate nursing school. Nursing shortages are rampant in hospitals, so access to labor is key.
- Accolade, which helps employees navigate health benefits, has hired banks to prepare a 2020 IPO
- MedRisk acquires a therapy specialty network from Select Medical Corp.
- HCA Healthcare Acquires Technology and Analytics Company Valify, a technology/analytics company focused on helping clients reduce the overall cost of healthcare services
- 23andMe has sold the rights to develop a drug based on its users’ DNA
- Eli Lilly, a pharmaceutical giant, is buying Dermira, an eczema drug company, for $18.75 a share, or ~$1.1 billion
Policy Corner
Election 2020 healthcare update.
- Healthcare investors are saying that the 2020 election will shake up healthcare’s investment outlook.
- In the primaries, 56% of nationwide pollers said that healthcare would be a top issue for them in determining a nominee.
- Democrats are going to hit Trump hard on healthcare. Drug pricing looks like the first assault.
Other Stuff to know.
- Here’s a summary of Congress’ upcoming healthcare agenda. Spoiler: not much is expected before a pivotal election year. Still, regulators are going to try and focus on consumer-friendly issues during the year. Meanwhile, the U.S. has an extreme amount of bloat when it comes to healthcare administrative costs – nearly 5 times that of Canada’s costs.
Quick Hits
Biz Hits
- U.S. hospitals saw their first decline in outpatient visits since 1983
- Cigna-Express Scripts bets on digital care as the future of health
- According to a JAMA study, the use of robotic surgery for all general surgery procedures increased from 1.8% to 15.1% JUST from 2012 – 2018. That’s some major headway.
- CVS, Walgreens sued Ohio physicians this week, claiming they share some of the blame for the opioid crisis (they might have a point? What do you guys think?).
- 15 things to know about Amazon’s healthcare strategy heading into 2020
- The home health trends to expect in 2020.
- The Lown institute released its 3rd annual Shkreli Awards – recognizing bad actors in our healthcare system
State Hits
- The Feds are accusing an Indiana hospital system – Community Health Network (no, not that big one) – of violating Stark Law by overpaying physicians.
- Kansas becomes the latest state to expand Medicaid after a long deliberation.
- Meanwhile, the Florida Senate is trying to stop its own Medicaid expansion plans.
Other Hits
- The medications that change who we are.
- Raising the minimum wage might have a positive effect on the suicide rate.
- Netflix’s new show Goop, which is also a wellness brand marketed heavily by Gwyneth Paltrow, is sparking quite a bit of controversy for its continual unscientific health claims.
- Looking to raise a child? There are now sites that let you skip right to that, bypassing that whole love, romance, and marriage thing. (WSJ paywall)
- Co-Parenting Sites Skip Love and Marriage, Go Right to the Baby Carriage
- LONG READ: ‘Against all odds’: The inside story of how scientists across three continents produced an Ebola vaccine
- The High Cost of Having a Baby in America
- Scientists are unraveling the mysteries of pain
- Who Wins in a Personal-Injury Lawsuit? It Can Be the Doctor. (WSJ)
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