Morning Briefing
Summaries of health policy coverage from major news organizations
Allina Health Laying Off 350 Workers, Blames 'Financial Challenges'
MPR News: Allina Health Announces Layoffs Affecting Around 350 Workers
Allina Health is laying off some 350 workers, according to an announcement from the health system Monday. That includes staff at Mercy and United hospitals, according to internal emails shared with MPR News. In the health system’s statement, Allina said it is facing “unprecedented financial challenges,” and said the jobs involved in the layoff are in leadership and non-direct caregiving roles. It currently employs 28,500 people in both full and part-time positions. (Wiley, 7/17)
In other industry news —
Stat: As Digital Health Tech Proliferates, A New Institute Aims To Cut Through Hype
A new $50 million nonprofit initiative aims to independently evaluate health technologies’ impact on costs and quality, an attempt to help patients, payers, and providers sort over-hyped products from ones that actually move the needle. The Peterson Center on Healthcare, a nonprofit supporting programs that raise care quality and drive down costs, announced the new Peterson Health Technology Institute Tuesday. The institute plans to publish its methodology for assessing new health technology as soon as September, and start publishing reports on specific sectors, like disease types or tech mechanisms, in 2024, executive director Caroline Pearson told STAT. (Ravindranath, 7/18)
Modern Healthcare: Ochsner, Novant To Build Primary Care Clinics In Southeast
Ochsner Health and Novant Health plan to to build clinics throughout the Southeast that will offer primary care, wellness programs and social services to older adults. The partnership between the two nonprofit health systems, branded as 65 Plus, will also offer social events, fitness centers and health coaching to encourage older adults to live more active lives as they age. The venture is the latest effort by providers and payers to capture the lucrative healthcare market of aging adults, including the large baby boomer generation. (Eastabrook, 7/17)
Reuters: BridgeBio's Heart Disease Drug Meets Late-Stage Study Goal, Shares Soar
BridgeBio Pharma Inc's (BBIO.O) experimental drug for a rare heart disease showed significant improvement in patients in a late-stage study, sending its shares surging 65% on Monday. The drug, acoramidis, is being developed to treat transthyretin amyloid cardiomyopathy in which abnormal deposits of a protein called amyloid buildup in the heart, and can cause heart failure. (Mandowara, 7/17)
Modern Healthcare: Joint Commission CEO Discusses Forthcoming Revisions To Standards
The Joint Commission is staying busy. The accrediting organization is in the process of overhauling its standards, with the aim of refocusing hospital safety and quality goals and decreasing administrative burden on providers. So far, it has retired 14% of its quality standards, with more revisions set to be announced this week. President and CEO Dr. Jonathan Perlin joined Modern Healthcare to discuss the ongoing review process. (Hartnett, 7/17)
On health industry financial developments —
Politico: Health + Hospitals Has Spent Over $2 Billion On Temporary Staff
NYC Health + Hospitals has spent at least $2 billion on temporary staff since the start of the pandemic, internal records show — a far higher sum than previously reported. The actual amount is certain to be even greater. That’s because the figure only reflects the municipal health system’s spending between September 2020 and March 2023, according to invoices obtained through a public records request by the Private Equity Stakeholder Project, a not-for-profit research organization, and shared exclusively with POLITICO. (Kaufman, 7/17)
Reuters: Medical Device Maker Masimo Forecasts Weak Quarterly Sales, Shares Fall
Masimo Corp (MASI.O) on Monday reported preliminary second-quarter sales below analysts' estimates due to weak performance at its healthcare segment, sending the medical device maker's shares down about 28% in after-market trading. The company forecast consolidated revenue for the second quarter between $453 million and $457 million, compared with estimates of $553.2 million, according to Refinitiv. (7/17)
Reuters: Novartis Raises 2023 Forecast, Maps Out Sandoz Spin-Off
Novartis on Tuesday raised its full-year earnings forecast on strong drug sales and mapped out the planned spin-off and stock market debut of its generic medicines division Sandoz for early October. The Swiss drugmaker said in a statement it expected group core operating income to grow by a "low double-digit" percentage in 2023, up from high single-digit growth previously projected. (Burger, 7/18)
Modern Healthcare: NextGen To Pay $31M To Settle False Claims Act Allegations
NextGen Healthcare agreed to pay $31 million to settle allegations that the electronic health record software developer offered kickbacks to attract users, among other alleged False Claims Act violations. (Kacik, 7/17)
