Despite Omicron Surge, Insurers And Hospitals Are ‘In Very Good Shape’
Stat reports that even though federal relief efforts have eased, many hospitals and large insurance firms are doing as well or better than before the pandemic hit.
Stat:
Omicron Squeezed Hospitals More Than Health Insurers In The First Quarter
The beginning of 2022 was kinder to health insurers than it was to hospitals. Many hospitals endured their most financially turbulent period of the pandemic, as the cushion of federal bailout funds faded and labor and supply costs exploded. Conversely, while health insurance companies paid out more to hospitals and doctors than they did a year ago, insurers arguably remain as rich and diversified as ever — especially as they dip even further into taxpayer-funded insurance programs. The early wave from the highly transmissible Omicron variant, which was as brief as it was virulent, ultimately drove a lot of the choppiness. But some experts say even with as much disruption as the virus has caused, hospitals and insurers keep coming out ahead. (Bannow and Herman, 5/6)
In other corporate news —
Modern Healthcare:
Hospitals See Growing Financial Impact From 340B Discount Restrictions
The mounting number of drugmakers imposing restrictions on 340B discounts has led safety net hospitals to expect a larger financial impact, according to survey results published Thursday. Disproportionate share hospitals, rural referral centers and sole community hospitals expect to lose a median of $2.2 million a year in contract pharmacy savings due to 340B discount limits, according to a survey of 550 hospitals conducted for the hospital group 340B Health in March. For 10% of those hospitals, losses are expected to be at least $21 million. Critical access hospitals expect to lose a median of $448,000 a year, up from $220,000 in December. (Goldman, 5/5)
WJCT News:
UF Health Jax To Open Combined ER And Urgent Care Centers
UF Health Jacksonville celebrated construction Wednesday of a new emergency care concept that combine an emergency room with an urgent care center. The event introduced a new center on New Kings Road, where UF Health Jacksonville will see the first patient in October. Other centers are planned on Lane Avenue, opening in November, and off Baymeadows Road, which will open in December. The centers will have a full-service emergency room open 24 hours a day and an urgent care center open in the same building seven days a week. Each facility will be equipped with lab equipment and a radiology suite with X-ray and multi-slice CT scanners. (5/5)
Modern Healthcare:
Cigna Launches Digital Cancer Consult Service
Cigna launched a digital consult service for cancer patients and their providers, the company said Thursday. The service, operated through the company's Evernorth healthcare services division, connects patients with lung, breast, colon and other complex cancers and their local oncologists with specialists at National Cancer Institute centers. Experts at the more than 20 NCI facilities nationwide can review patients' treatment plans and diagnoses and recommend testing, therapies or clinical trial opportunities. (Tepper, 5/5)
Modern Healthcare:
EHR Vendor, Research Group Partner To Expand Clinical Trial Access, Diversity
Electronic health record vendor NextGen Healthcare and Circuit Clinical are teaming up to help providers connect diverse populations of patients to clinical trial access through federally qualified health centers, the companies said Wednesday. NextGen has 14,000 provider and 300 health center clients, and the collaboration with Circuit Clinical, an integrated research organization, will improve clinical trial recruitment. The companies hope that will lead to enhanced treatment options and improved health outcomes for patients of color. (Devereaux, 5/5)
In pharmaceutical news —
Bloomberg:
Centene to Sell Two Pharmacy Businesses for $2.8 Billion
Centene Corp. will sell two pharmacy businesses it acquired in recent years to separate buyers for a total of $2.8 billion in the latest steps of a portfolio review under new Chief Executive Officer Sarah London. The health insurer will divest Magellan Rx to Prime Therapeutics LLC and PantherRx Rare to a group of private equity buyers, according to a statement Thursday. Both businesses were acquired in the last two years under Centene’s former CEO, Michael Neidorff. Neidorff died earlier this year soon after stepping down from the role. (Tozzi, 5/5)
Axios:
The Trouble With Telehealth Prescriptions
Mental telehealth startups such as Cerebral and Done Health are coming under increased scrutiny for the way they prescribe drugs with a high potential for abuse like Adderall. Cerebral announced quality and safety changes on Wednesday, telling clinicians it will stop prescribing Adderall and other controlled substances to treat attention deficit hyperactivity disorder for new patients. (Reed, 5/5)
