Morning Briefing
Summaries of health policy coverage from major news organizations
Embattled CEO Of Steward Health Care Is Stepping Down
The Boston Globe: Steward Health Care CEO Ralph De La Torre Resigns
Dr. Ralph de la Torre, a former heart surgeon who built and became the face of Steward Health Care and its network of neglected hospitals, is stepping down from the company Tuesday and will no longer serve as board chairman and chief executive, the company said in a statement to the Globe Saturday. ... A Steward spokesperson did not say on Saturday if de la Torre will remain a major shareholder in the company he helped found in Boston in 2010. (Arsenault and Bartlett, 9/28)
Modern Healthcare: Hospitals On Defense As Congress Weighs Pay, 340B, M&A Bills
With an election fast approaching and a consequential healthcare package forming in Congress, hospitals are finding themselves in the unusual position of playing defense. Just a few years ago, Congress was acting aggressively to shore up health system finances and hailing hospital workers as heroes combating the COVID-19 pandemic. Now, while lawmakers still praise their local hospitals, they are increasingly advancing bills that would cost health systems money, demand greater transparency and restrict operations. (McAuliff, 9/27)
More health industry developments —
The Boston Globe: Beth Israel Lahey Health Announces Layoffs
Beth Israel Lahey Health, the organization behind more than a dozen New England hospitals, said Friday that hospitals across its system were laying off an unspecified number of workers. A spokesperson for the system declined to say which facilities were losing jobs, nor the type of roles they were cutting. (Gerber, 9/27)
Modern Healthcare: KKR-Backed Brightline Layoffs Hit Clinicians, Clinical Managers
Pediatric mental health startup Brightline is restructuring its business, shrinking its geographic footprint and laying off a portion of its employees. The company confirmed the layoffs in an email but declined to disclose how many people or what percentage of its employees were affected. Co-founder and CEO Naomi Allen wrote in a blog post the company is pivoting from a virtual-only care model to a hybrid approach with plans to open in-person clinics. (Perna, 9/27)
Crain's Detroit Business: Corewell Health East Nurses File Paperwork For Union Vote
Nurses at Corewell Health’s eight Southeast Michigan hospitals filed paperwork Friday to unionize under the International Brotherhood of Teamsters. The union gathered at least 50% of required signature cards from the roughly 8,000 nurses at Corewell’s hospitals in Grosse Pointe, Troy, Dearborn, Farmington Hills, Taylor, Trenton, Wayne and Royal Oak and delivered them to the National Labor Relations Board. (Walsh, 9/27)
AP: WeightWatchers CEO Sima Sistani Is Stepping Down
WeightWatchers is shaking up its leadership. WW International announced Friday that CEO Sima Sistani would leave her role effective immediately. Tara Comonte, a WeightWatchers board member and former Shake Shack executive, was made interim chief executive. (Philips, 9/28)
Modern Healthcare: CommonSpirit's Gains Offset By Claim Denials, Payer Payments
CommonSpirit Health blamed challenges with payers — namely claim denials and reimbursement delays — for an increase in expenses that offset the system's financial gains in fiscal 2024. The health system on Thursday reported an operating loss of $875 million due to a 7% increase in expenses during the fiscal year that ended June 30. In a news release, CommonSpirit said it will take a “firm stance” in contract negotiations with health plans to make sure payers absorb a share of inflation and providers are fully paid for the care they deliver. (Devereaux, 9/27)
On health data and cyberattacks —
Modern Healthcare: Ransomware Attacks Against Providers Have Doubled Since 2021
The number of healthcare providers affected by ransomware attacks is steadily growing. More than two-thirds of healthcare providers reported a ransomware attack in the past year compared with 60% in 2023, according to a survey released Thursday from cybersecurity company Sophos. In 2021, only 34% of providers said they were affected by an attack. (Turner, 9/27)
Modern Healthcare: Epic Lawsuit Heats Up Over Unreleased Particle Dispute Results
Epic Systems is pushing back against Particle Health. Particle Health, a startup that helps providers and health technology companies aggregate and share data, filed a suit Monday alleging the electronic health record giant is using its market power to prevent the development products that would compete with Epic's payer platform. Particle also alleges Epic used its influence to obtain a favorable ruling from Carequality, the national interoperability framework used by more than 50,000 healthcare organizations. (Perna, 9/27)
The Atlantic: Remember That DNA You Gave 23andMe?
23andMe is not doing well. Its stock is on the verge of being delisted. It shut down its in-house drug-development unit last month, only the latest in several rounds of layoffs. Last week, the entire board of directors quit, save for Anne Wojcicki, a co-founder and the company’s CEO. Amid this downward spiral, Wojcicki has said she’ll consider selling 23andMe—which means the DNA of 23andMe’s 15 million customers would be up for sale, too. 23andMe’s trove of genetic data might be its most valuable asset. (Brown, 9/27)
