As The Pandemic Hit In 2020, Health Spending Soared Upward
Politico's figures place the medical system as accounting for just less than a fifth of the economy at the end of 2020. Modern Healthcare says overall U.S. healthcare spending jumped 9.1% in 2020, with covid relief money as the primary driver — the biggest jump since 2002.
Modern Healthcare:
COVID-19 Relief Led To Nearly 10% Jump In 2020 Health Spending
U.S. healthcare spending rose 9.7% to $4.1 trillion last year, primarily due to federal COVID-19 relief spending, the actuaries at the Centers for Medicare and Medicaid Services reported Wednesday. The jump marks the largest growth in health expenditures since 2002 and spending was more than 5% higher than during 2019. Much of the increase came from federal spending related to the COVID-19 pandemic, such as the Provider Relief Fund and Paycheck Protection Program loans, according to a report the CMS Office of the Actuary published in Health Affairs. (Goldman, 12/15)
Politico:
Health Spending Growth More Than Doubled In First Year Of Pandemic
The rate of growth in U.S. health care spending more than doubled in the first year of the Covid-19 pandemic, leaving the medical system accounting for just less than a fifth of the U.S. economy at the end of 2020, according to a federal report released Wednesday. Spending on health care rose 9.7 percent last year, up from 4.3 percent increase in 2019 — the fastest year-over-year jump since 2002, according to the Centers for Medicare and Medicaid Services’ office of the actuary. Nearly the entire increase came from the burst of federal spending as the government mobilized to contain the spread of the virus. (Levy, 12/15)
In other health care industry news —
Stat:
Bowing To Pressure, J.P. Morgan Says Health Care Conference Will Be Virtual
The J.P. Morgan Healthcare Conference, biotech’s biggest annual conference, will be virtual, the bank said Wednesday, bowing to pressure from big-name drug companies that balked at an in-person meeting amid escalating cases of Covid-19. “The health and safety of our clients and employees is of the utmost importance, and given the ongoing Covid-19 pandemic, we have made this decision,” J.P. Morgan said in an email to registered attendees, obtained by STAT. “We were not only hopeful to meet in-person but also understand how much this conference means to the San Francisco community, which we fully support.” (Garde and Feuerstein, 12/15)
CNBC:
Amazon Elevates Former Prime Boss Neil Lindsay To Run Health Efforts
Amazon’s former Prime boss has been moved to a role overseeing the company’s health efforts. Neil Lindsay last month was elevated to senior vice president of health and brand within Amazon’s worldwide consumer business, according to his LinkedIn profile and people familiar with the move. (Palmer and Coombs, 12/15)
Stat:
Health Tech's Sky-High Projections In 2021 Have Already Been Punctured
The health technology sector has seen extraordinary enthusiasm among private and public investors this year. In 2021, investments have so far totaled $23.8 billion, nearly tripling 2019’s tally, according to a Deloitte analysis. And more than two dozen companies began trading on public markets, capitalizing on sky-high valuations and the continuing popularity of the blank-check IPO. (Palmer, 12/16)
Modern Healthcare:
Cigna Drops Livongo As Preferred Digital Health Tool
One of the largest health services businesses in the U.S. dropped Livongo from preferred status in its digital formulary Wednesday, with the move coming as the digital health startup's ongoing merger with telehealth provider Teladoc Health reportedly hits bumps in the road. Cigna's $98.6 billion Evernorth, which houses its Express Scripts pharmacy benefit manager, prioritized rival Omada Health over Livongo for chronic disease management in its annual formulary review of digital health apps and therapeutics. (Tepper, 12/15)
Modern Healthcare:
Hospitals Rattled By HR Company Ransomware Attack
Healthcare systems are struggling to manage timekeeping and employee pay following a ransomware attack on one of the country's largest human resources management companies. The Dec. 11 cybersecurity incident affected Ultimate Kronos Group, whose services are used by thousands of organizations, municipal governments, university systems and hospitals. So far, the company has determined that the attack specifically impacts those using the Kronos Private Cloud, which houses banking and scheduling solutions as well as healthcare extensions, said Bob Hughes, UKG executive vice president, in a blog post on Monday. (Devereaux, 12/15)
Also —
The Wall Street Journal:
Three Miles And $400 Apart: Hospital Prices Vary Wildly Even In The Same City
The cost of an ER visit in Boston reveals the wide range of prices at U.S. hospitals, according to a Wall Street Journal analysis of newly public data. (Benedict, Mathews, McGinty and Evans, 12/15)
