As Pandemic Squeezes Insurers, More Companies May Start To Spring Up
In other health industry news: a look at hospital ranking systems; Cook County Health's financial struggles; Quorum Health rebounds from bankruptcy; and more.
Reuters:
As Insurers Face Hefty Pandemic Losses, Newcomers See Chance To Step In
Commercial insurers are facing hefty claims from the coronavirus crisis but are also seeing a steep rise in premiums – tempting companies and industry veterans to raise capital, launch new businesses or expand into new lines. New insurance ventures sprang up after Hurricane Andrew in 1992, the 9/11 attacks in 2001 and Hurricane Katrina in 2005. The industry is hoping to replicate that process as premiums increase because of the fallout from pandemic. (Cohn, 7/8)
Stat:
In Hospital Ranking, Doing Good Counts Nearly As Much As Doing Well
You won’t find the usual suspects like Massachusetts General Hospital or the Mayo Clinic at the top of a new ranking of U.S. hospitals. That’s because the rating system relies not just on traditional quality measures, but also on a hospital’s community-minded policies and avoidance of unnecessary care. The rankings show that those hospitals with good clinical outcomes tend to score poorly in addressing inequities that affect the health of their communities. (Begley, 7/7)
Modern Healthcare:
New Ranking System Compares Hospitals By Equity, Community Benefit
Hospitals' charity care spending and other community benefits carry more weight in a new online ranking system that goes beyond traditional quality and safety information. The not-for-profit Lown Institute developed the ranking system, which launched Tuesday and evaluates charity care spending, the amount of low-value services hospitals provide and their patient demographics compared with the community. Other popular ranking systems such as CMS' star ratings, the Leapfrog Group and U.S. News and World Report largely rely on outcomes measures to help consumers decide where to get care. (Castellucci, 7/7)
Crain's Chicago Business:
How COVID-19 Threatens Healthcare In Chicago County
Chicago's county public health system faces a financial reckoning as COVID-19 drives up costs and drains revenue. Two-hospital Cook County Health was under pressure before the pandemic to cut spending and address a rising burden of uncompensated care without a permanent leader. Now $30 million behind budget, the system is grappling with increased costs like employee overtime and shrinking revenues due to fewer nonemergency surgeries and routine appointments. (Goldberg, 7/6)
Modern Healthcare:
Quorum Health Emerges From Bankruptcy, Announces New CEO
Quorum Health announced Tuesday it has emerged from its Chapter 11 bankruptcy with a new CEO, new board and stronger financial footing. Former Acadia Healthcare CEO Joey Jacobs is the new head of the embattled hospital chain, based in Brentwood, Tenn. For-profit Quorum said it achieved the plan outlined in its April restructuring agreement with lenders of reducing debt by about $500 million. The agreement included a $100 million commitment from bondholders and a $200 million equity commitment in exchange for shares in the reorganized company. Quorum said it also restructured its balance sheet. (Bannow, 7/7)
Modern Healthcare:
Physicians' Offices Big Beneficiaries Of Small-Business COVID-19 Relief Loans
Physicians' offices hard-hit by the COVID-19 pandemic received a significant share of forgivable small-business COVID-19 relief loans, according to new government data. After intense public pressure, the Treasury Department and Small Business Administration released loan-level data about Paycheck Protection Program loans above $150,000. The healthcare sector received more than 12% of the total loans disclosed, and the biggest recipients in the healthcare sector were physicians' offices. (Cohrs, 7/7)
