Opioid distributors are about to get a BIG TIME fine.
That’s a big fine.
The big distributors of opioids were already expected to be on the hook for a hefty fine stemming from the opioid crisis, but it turns out that the fine is gonna be QUITE a bit more than expected – a range between $10 billion to $45 billion. As you can imagine, the news hammered drug distributors McKesson, Cardinal Health, and Amerisource Bergen, who would be on the hook for the settlement cash.
The companies combined are currently dealing with close to 2,000 lawsuits in 35 states stemming from the nearly 76 billion pain pills that they distributed during a 6 year period (according to the DEA). The prosecutors argued that the drug distributors, in particular, didn’t respond to signs of opioid abuse, and engaged in shady marketing.
Don’t forget that companies like Purdue Pharma, Teva Pharmaceuticals, and Johnson & Johnson (heard of them?) are also on the hook for the crisis, too.
Drug Data Manipulation at the FDA
Finessing the FDA.
Faithful readers of the Healthy Muse might have seen Zolgensma (gesundheit), a drug that treats spinal muscular atrophy in children, making the news in the past few months for its unprecedented $2.1 million price tag. Now, it turns out that the drug’s maker, Novartis, may have manipulated and hidden some of the trial data from the FDA.
High stakes.
While the FDA maintained the drug is still safe and should remain on the market, questions are still arising as to whether or not Novartis knowingly manipulated the data and covered it up. The stakes were high – according to Stat, if the FDA had known about this extra data, the drug’s approval most certainly would have been delayed.
Novartis claims they were as transparent as possible. Some members of Congress are pretty upset and want the FDA to take criminal and civil action against Novartis, the most expensive drug in history, and the big, bad pharmaceutical industry.
Can the iPhone and Apple Watch detect dementia?
Dementia Detectors.
In this week’s cool health tech story from Healthcare Dive, Apple and Eli Lilly are trying to determine whether the Apple Watch and iPhone can detect dementia in patients through small research studies. Basically, they’re observing whether or not common trends exist among those with dementia/cognitive decline as opposed to healthy individuals.
Some promising results.
As it turns out, preliminary results seemed to indicate that individuals with symptoms of dementia displayed differences in device use as compared to healthy folks, including “slower typing, less regularity in schedules, fewer text messages, and greater reliance on helper apps such as the Clock app.”
Pretty interesting stuff, and could be just the beginning of a deep dive into earlier detection of dementia.
CVS’ counter to Amazon Prime
Prime 2.0
Last week, our third story touched on the PillPack – SureScripts fiasco, where traditional PBM heavyweights are taking on Amazon’s attempted entry into the market. Now, CVS is taking on the online retail giant in another way: through a subscription based model similar to Amazon Prime.
Take that, PillPack.
As the traditional drugstore evolves its offerings into a healthcare wellness hub, CVS is offering CarePass – a $48 annual subscription – to customers, which will include free delivery of its drugstore products AND prescription drugs. If that’s not enough for you to consider the service, CVS is also including a monthly $10 coupon, too. I don’t know about you, but I’d say that’s a pretty decent offering.
Policy Corner
A new healthcare plan from the Trump administration?
Everyone was wondering what the Trump administration would do if Obamacare is ACTUALLY struck down in court this time. Is there a plan in place for the expected turmoil?
As it turns out, the White House might release a plan as soon as September with some interesting elements attached, including efforts to end surprise billing, give states more wiggle room on policies, and more.
In other news, the pharmaceutical industry isn’t a big fan of the whole ‘Canadian drug importation’ plan, and, unsurprisingly, the proposal even managed to rile up Canadians too.
Finally, CMS released its final inpatient rule for 2020. From Beckers, here are 8 things to know.
Quick Hits
Biz Hits
- BioScrip, the largest provider of infusion services, announced its merger with Option Care this week
- Walgreens’ struggles continue as the drugstore model flounders – they’re closing about 200 stores globally.
- Addus HomeCare is looking to buy up businesses ahead of the Medicare Advantage 2020 boom.
- How UHS’ Alan Miller Built a Successful Hospital in the Middle of Nowhere
State Hits
- In Texas, a senator questions whether Managed Medicaid is doing its job appropriately after a child is left in foster care to suffer a catastrophic brain injury.
Other Hits
- The next healthcare innovation: the waiting room (Paywall – WSJ)
- From Business Insider: Meet the 30 young leaders who are transforming the future of healthcare and disrupting a $3.5 trillion industry
- Experts: Mental illness not the main driver of mass shootings
My favorite reads this week
- TL;DR: The Best Finance Books in One Sentence
Thanks for reading!
Subscribe to the newsletter to follow healthcare stories in the easiest way imaginable.