Top Weekly Healthcare Stories
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On to this week’s stories!
Walmart’s Second Primary Care Clinic Opens.
Walmart Health is continuing its assault on traditional primary care. The retail giant just opened its second primary care clinic. If I had to bet on one company to disrupt primary care, I’d put my money on Walmart.
Envision’s CEO steps down.
On February 6th, Envision Healthcare’s CEO stepped down abruptly after 13 years in the position.
- While the real reason is unclear, the physician staffing firm will be searching for a replacement. The news comes at a time when surprise billing legislation is flying around Capitol Hill.
What’s going on at CVS?
Here’s the lowdown: CVS dropped three members from its board on Feb. 3rd, going from 16 to 13 seats. One of those board members was Mark Bertolini – who was the former CEO of Aetna.
- If you recall, CVS acquired Aetna and has been integrating its operations over the past year. Mr. Bertolini was on the board to assist with that integration, which CVS says is now fully complete.
The only problem is…Mr. Bertolini disagrees. He claims (paywall – WSJ) he was forced off CVS’ board.
From the article: “I was willing to continue to serve on the board of directors in support of the most transformative effort in health care for our nation. However, the board thought otherwise.”
- Either way, we’ll see how the integration is going – CVS reports earnings on Wednesday, February 12.
Everything new on the Coronavirus.
As of this writing, the number of infected is ~41k and reported deaths at ~1k. (Here’s a live updated article). China built a hospital in 10 days. The first American died from the virus in Wuhan over this weekend. And here’s a feature piece from the WSJ on a Chinese healthcare system past the brink with the Coronavirus in full force. Meanwhile, an AI simulation model is predicting that the Coronavirus will infect 2.5 billion people.
Miscellaneous, but still Important.
- A decision on the Anthem-Cigna lawsuit is imminent.
Digital Health Stories
More interoperability stuff. Epic and Hospitals vs. Cerner and Big Tech.
On February 5th, Epic and about 60 hospital chains came out against rules that would make it easier to share medical info – the so-called ‘interoperability’ rules.
- You can catch up on the big health data sharing issue by reading here.
Google’s Regulatory Woes.
Google is facing major regulatory hurdles stemming from its Fitbit acquisition.
- Given its record with privacy and its antitrust issues across the globe, they’re facing some pretty serious regulatory headwinds as of late.
Miscellaneous.
- Read Microsoft’s recent blog post about launching AI for Health and implementing AI to advance the health of people and communities around the world.
- One Medical’s successful IPO signals that investors think the newly public company can disrupt primary care.
Election 2020
Weekly Update
Iowa Caucus.
Pete Buttigieg (Public Option) and Bernie Sanders (Medicare for All) were the big Iowa winners.
- 40% of Iowa caucusers were focused on healthcare as their top issue. This is generally consistent with the nation, according to polls.
Next up…New Hampshire.
Ahead of the New Hampshire primary, a new analysis shows that Pete Buttigieg’s health plan would reduce the deficit by $450 billion and cover 30 million more people.
- Bernie is currently leading in New Hampshire.
Healthcare VCs aren’t preparing for Bernie.
- Even though healthcare accounts for over 20% of all U.S. venture activity, Health care VCs haven’t made plans for a Bernie Sanders presidential win.
Miscellaneous Election News.
- How each Democratic candidate would lower drug prices – in their own words.
Policy Corner
State of the Union Healthcare Stuff.
Here’s a quick recap of the healthcare State of the Union
Trump wants Congress to get past its gridlock on drug pricing – “I am calling for bipartisan legislation that achieves the goal of dramatically lowering prescription drug prices. Get a bill to my desk, and I will sign it into law without delay.”
- He took a shot at Bernie’s Medicare for All proposal.
- He talked about positive progress in kidney care, Alzheimer’s, and the opioid crisis.
- He’s focused on eliminating HIV over the next decade.
- He promised to protect pre-existing conditions. It’s political suicide these days to say otherwise.
Read more: Here’s the full #SOTU2020 transcript.
The White House’s Brag Letter.
Finally, the White House released a statement on its progress in healthcare during Trump’s first term. The statement lists a variety of accomplishments and positive developments that have occurred during Trump’s presidency.
- Many think healthcare is one of Trump’s weakest issues, so it makes sense that the statement was released. Read it here.
How would Medicaid block grants affect major payors?
- During Centene’s Q4 earnings call, CEO Michael Neidorff weighed in on the recent Medicaid block grant proposal and called it a potential net positive for payers.
Other policy updates to know.
- HHS responded to a recent lawsuit against the recent price transparency rules that would force providers and insurers to publicly disclose negotiated reimbursement rates, arguing that the administrative cost caused by the request would be manageable and that providers are only ‘adding’ to the confusion.
Quick Hits
Biz Hits
- Encompass Health, the post acute operator, shared thoughts on its M&A strategy including its willingness to spend on a big deal.
- Cerner teases M&A, divestitures, and touts backing for interoperability rules
- Merck is spinning off a new $6.5 billion firm focused on women’s health and older, generic drugs
- Funding for biotech is no problem.
- Three years after its merger, McKesson is cashing out of Change Healthcare. If you recall, Change Healthcare IPO’d last year.
- Following a ‘Herculean’ Integration Effort, Humana Sees Balanced Growth for Kindred at Home.
State Hits
- Baylor Scott and White, the largest health system in Texas, created a health plan that cut costs for employers, and American Airlines and others want in on the action
- New Hampshire won’t block the HCA, Frisbie hospital merger.
- Utah sends employees to Mexico for lower prescription prices.
Other Hits
- The state of mental health in America.
- KHN covers the practice of ‘prior authorization,’ where insurance companies pre-approve a procedure, but later have the option to deny payment coverage.
- ‘It’s Insidious’: How Juul Pitched E-Cigs to Native American Tribes.
- The booming demand for nurse practitioners – they more than doubled from 2010 to 2017.
- Drug gross price inflation is slowing.
- Former GE exec finds way to cut healthcare costs — and US hospitals are out of the equation.
- Scientists map out and carbon date cancer genomes in huge studies.
- The top 10 health insurance companies in the US.
Thought-Provoking Editorials
- Here’s how we can fix American healthcare, save money, and meet patients’ needs. (USA Today)
- The Coronavirus is bad. Comparing it to the flu is worse.
- Trump’s Medicaid Benefit (WSJ)
- The 90-Day Prescription Isn’t for Everyone. (How a 90-day prescription can lead to overdoses, and more issues) (WSJ)
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