Medicare Issues Nationwide Enrollment Moratorium On New Medical Suppliers
As part of an ongoing Texas Medicare fraud case, the federal government has imposed a six‑month nationwide block for most new medical supply companies to prevent high‑risk suppliers from entering the system. Plus: AI delays care for some seniors; Stryker cyberattack disrupts surgery schedule; and more.
CBS News:
Medicare Freezes New Supplier Enrollment As Russian‑Linked Texas Fraud Case Unfolds
When the CBS News Texas I‑Team returned to a small North Austin office tied to an alleged multimillion‑dollar Medicare billing scheme, two workers were inside placing what appeared to be medical billing records into large black trash bags. They did not respond when asked whether someone instructed them to discard the documents. Weeks earlier, the same two employees told the I‑Team they had been hired to open mail and scan documents and were unaware of the fraud allegations or arrest of the man who ran the company. (New, 3/17)
WP Intelligence:
Exclusive: Medicare’s AI Experiment Leads To Delayed Care For Some Seniors
Doctors and other providers in six states must get permission from AI-driven tech companies before giving seniors selected medical care. The experiment is a pilot program that could be expanded. (Adams, 3/17)
Stat:
HHS Watchdog Details Misuse Of Antipsychotic Drugs In Nursing Homes
A pair of federal watchdog reports released Thursday urge Medicare to do more to crack down on nursing homes’ use of antipsychotic drugs and inappropriate schizophrenia diagnoses for residents with dementia. (Bannow, 3/19)
More health care industry developments —
Bloomberg:
Stryker Cyberattack Delays Surgeries For Some Patients
The cyberattack against Stryker Corp. has delayed surgeries for some patients, the company said Wednesday, adding to the fallout from the incident last week. The medical technology company said its products are safe and its systems are being restored, but disruptions to ordering, manufacturing and shipping have held up procedures for patients waiting on custom implants. (Swetlitz and Thornton, 3/18)
CBS News:
$900 Million Proposal Aims To End Decades-Long Healthcare Desert In Georgia
A $900 million proposal to build a new hospital in South Fulton aims to address what some call a medical desert. South Fulton doesn't have any hospitals. People who live there have to drive some 30 minutes or more to get to an emergency room. A proposal to build a hospital in Union City would make emergency room care more accessible. (Head, 3/17)
Modern Healthcare:
Highmark Health, BCBS Kansas City Affiliation Approved
Highmark Health and Blue Cross and Blue Shield of Kansas City are set to finalize an affiliation agreement. The deal, which resembles an acquisition with no cash changing hands, was approved by the Missouri Commerce and Insurance Department. The affiliation is expected to close March 31, the two parties announced Tuesday. (Tong, 3/18)
Modern Healthcare:
MedArrive Buys Inbound Health’s Patient Routing Software
Technology company MedArrive acquired some software assets of shuttered hospital-at-home company Inbound Health. MedArrive announced the purchase Wednesday but did not disclose financial terms. (Eastabrook, 3/18)
Modern Healthcare:
Geisinger Seeks Capital Requirement Relief After Risant Merger
Geisinger is asking Pennsylvania regulators to relax capital requirements for its insurance businesses, set as part of its 2024 acquisition by Risant Health. Risk-based capital requirements are designed to ensure an organization has enough money in reserve to cover the risks it assumes. Geisinger is requesting the requirement threshold be lowered for the next 13 years, according to a filing it made on behalf of its insurance subsidiaries and Risant with the Pennsylvania Insurance Department. (Hudson, 3/18)
Modern Healthcare:
Health Insurance Bankruptcies Increased In 2025
States shut down more troubled health insurance companies in 2025 than during the prior year, but the total remained below historical trends. Georgia and Minnesota each declared Sonder Health Plans and UCare insolvent last year, according to a preliminary analysis of financial filings the credit ratings agency AM Best performed for Modern Healthcare. In 2024, Opticare Vision Services was the sole health-related insurance company subject to these measures when Utah placed it in rehabilitation, AM Best reported last week. (Tepper, 3/18)
Also —
The Baltimore Sun:
Why Are Doctors Burning Out And Dying By Suicide
In her surgical care for women with reproductive cancers, Dr. Maryann Wilbur said she faced repeated demands from both insurance companies and the hospitals she worked for to compromise on providing the best care for her patients. “You start to see there are perverse incentives in both directions to withhold care — to perform care that is not needed — to perform the wrong care,” Wilbur told The Baltimore Sun. “What we have here is a reimbursement model that is based around the dollar and not on patient outcomes.” (Hille, 3/18)
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