Study Shows Unscrutinized Hospital Mergers Can Push Prices Up
State regulations can shield hospital mergers from federal scrutiny, Stat notes, and this can ultimately lead to substantial price rises. Meanwhile, the Wall Street Journal covers a report saying that hospital finances are deteriorating due to rising labor and supply costs.
Stat:
Study: Hospital Mergers Without Antitrust Scrutiny Lead To Higher Prices
Hospitals that merge under state regulations that shield them from federal scrutiny tend to eventually break free of those controls and raise prices substantially, new research finds. (Bannow, 8/17)
The Wall Street Journal:
Hospital Finances Are Deteriorating, Fitch Says
Rising labor and supply costs will land many nonprofit hospitals in violation of debt covenants to bondholders this year, according to an analysis released Tuesday by Fitch Ratings. Salaries for nurses are particularly competitive, with Covid-19 driving up demand. Labor costs and other inflation pressures are squeezing budgets at senior-living facilities as well. (Gillers, 8/16)
Stat:
Cepheid Faces Fresh Criticism Over The Pricing Of Its TB Diagnostics
A controversy has broken out over a diagnostic for tuberculosis that, until recently, had been subsidized by the World Health Organization — the latest flare-up over access to a medical product in mostly poor countries. (Silverman, 8/16)
Stat:
Merck, A Loser In Covid Vaccine Race, Invests In Cambridge MRNA Startup
Among the most notable aspects of the Covid-19 vaccine race was who won it: Pfizer and two small biotechs, while most of the world’s largest and oldest vaccine makers either waited too long or picked older and ultimately less effective technologies. Since then, there’s been a minor gold-rush for mRNA among legacy makers. (Mast, 8/16)
Modern Healthcare:
Providence's Net Loss Nears $2B As Industry Trends Dent Results
Providence, a not-for-profit health system based in Washington, on Tuesday reported a first-half net loss of $1.84 billion, as the industry's higher expenses and staff shortages plague another heath system. (Hudson, 8/16)
In news on health care staffing matters —
Crain's Detroit Business:
Michigan Nurses Association Sues UM Over Workload Expectations
The Michigan Nurses Association at the University of Michigan filed a lawsuit against the university on Tuesday over the workload its members are facing. The MNA alleges UM is breaking the law by refusing to bargain over nurses' workloads in its contract negotiations with the University of Michigan Professional Nurse Council. (Fifelski, 8/16)
AP:
Minnesota Nurses Authorize Strike Against 7 Health Systems
Members of the Minnesota Nurses Association voted overwhelmingly to authorize a strike against seven health systems in the Twin Cities and Duluth, union officials say. The vote Monday gave nurse negotiators the ability to call a strike, with a 10-day notice to employers. The union represents 15,000 nurses. The next negotiation session is set for Aug. 30. (8/16)
