Morning Briefing
Summaries of health policy coverage from major news organizations
Class-Action Lawsuit Filed Against UnitedHealth Over Change Hack
Modern Healthcare: Pharmacy Group, Providers Sue UnitedHealth Over Change Outage
Pharmacists and providers are still allegedly waiting on delayed payments from the Change Healthcare outage, according to a proposed class-action lawsuit filed Friday. The National Community Pharmacists Association, which represents more than 19,000 independent pharmacies, joined 39 providers in alleging Change Healthcare parent company UnitedHealth Group's actions in response to a February cyberattack allegedly affected their ability to make payroll, pay rent and purchase medical supplies. (Berryman, 7/22)
Hospital watch —
Becker's Hospital Review: 15 Health Systems Dropping Medicare Advantage Plans
Medicare Advantage provides health coverage to more than half of the nation's seniors, but some hospitals and health systems are opting to end their contracts with MA plans over administrative challenges. Among the most commonly cited reasons are excessive prior authorization denial rates and slow payments from insurers. (Emerson, 7/22)
Modern Healthcare: Rural Hospital CEOs Risk Cuts Unless Medicare, Medicaid Pay Grows
Rural hospitals are weighing which services to cut if lawmakers do not boost Medicare and Medicaid reimbursement and streamline pay processes, CEOs said. Half of rural hospitals were operating in the red last year, up from 43% in 2022, according to a February report from the consulting firm Chartis Center for Rural Health. As a result, a growing number of providers in rural communities are slashing obstetric and chemotherapy services, among others, the report found. (Kacik, 7/22)
Houston Chronicle: Texas AG To Probe Medicaid Fraud Allegations At Texas Children's
Federal and state officials are investigating allegations that Texas Children's Hospital unlawfully billed Medicaid for transgender care. The developments follow multiple public statements made by a nurse who claims to have seen evidence indicating that Texas Children's illegally charged the government for hormone treatment and other transgender care. The nurse, who has publicly identified herself as Vanessa Sivadge, said she worked with patients seeking transgender care at the hospital. (Gill, 7/22)
Becker's Hospital Review: Mount Sinai Pushes Back On Threats To 'Lock Up' Execs Amid Beth Israel Closure Plans
As the closure of New York City-based Mount Sinai's Beth Israel hospital remains in limbo, the health system has expressed concerns over threats to "lock up" specific Mount Sinai senior executives should the hospital close in violation of a temporary restraining order. The hospital was supposed to close on July 12, according to its revised closure plan, but the New York State Department of Health's continued review of the plan has delayed the closure. (Ashley, 7/22)
St. Louis Post-Dispatch: Report: Most St. Louis Hospitals Charge Above ‘Fair Price’
Most hospitals in St. Louis are charging businesses and health insurers above a benchmark that a national business group considers a “fair price” for medical services, according to a new report Monday from a coalition of St. Louis employers. (Barker, 7/22)
Becker's Hospital Review: Intermountain Unveils $680M Colorado Hospital
Murray, Utah-based Intermountain Health has unveiled its $680 million Lutheran Hospital in Wheat Ridge, Colo., which will replace the existing Lutheran Medical Center, according to a July 22 news release shared with Becker's. The 620,000-square-foot new hospital comprises 226 licensed beds. In addition to maintaining a Level 2 trauma designation, the hospital will also have a rooftop helipad with access to stroke care, labor and delivery and trauma rooms. (Ashley, 7/22)
On the battle over Steward Health —
Bloomberg: Bankrupt Steward Health Finds Buyers For Two Hospitals Amid Senate Probe
Bankrupt Steward Health said it found buyers for two of its hospitals in Arkansas and Louisiana, as the nation’s largest for-profit health system braces for a bipartisan Senate investigation into its financial woes. Steward is selling the Wadley Regional Medical Center in Hope, Arkansas, to Pafford Health Systems Inc. and Glenwood Regional Medical Center in West Monroe, Louisiana, to an affiliate of American Healthcare Systems. Pafford and AHS have agreed to pay $200,000 and $500,000 for the hospitals, respectively, and assume certain liabilities, according to court documents filed on Sunday. (Randles, 7/22)
WKBN 27: Steward Health Has Not Received ‘Qualified Bids’ For Sale Of Local Hospitals
The Steward Health Care System has canceled auctions for its locations in Ohio and Pennsylvania. According to court documents filed on Sunday in the U.S. Bankruptcy Court for the Southern District of Texas — where Steward Health is based — the organization has “not received bids that constitute a qualified bid” needed to hold an auction. Auctions were originally scheduled for June 27 and were postponed before this announcement. (Yudt, 7/22)
