Facing A Crisis, UnitedHealth Turns To Its Former CEO To Shape It — Again
Stephen Hemsley returns to his old job at a difficult time for the company. Other industry news is on Oak Street Health, Prime Healthcare, Optum Health, and more.
Bloomberg:
The Man Who Built UnitedHealth Into an Industry Giant Now Has to Turn It Around
Stephen Hemsley never fully dropped the reins when he stepped down as UnitedHealth Group Inc.’s chief executive officer eight years ago. With the health giant in crisis, he’s taking back his old job – and confronting one of the toughest turnaround tasks any executive has ever faced. Widely credited with building UnitedHealth into the conglomerate it is today, Hemsley, 72, was reluctant to end his tenure as CEO in 2017, according to people familiar with the matter who asked for anonymity to describe internal company discussions. (Tozzi, 5/20)
More health industry news —
Modern Healthcare:
CVS Taps Dr. Creagh Milford As President Of Oak Street Health
Dr. Creagh Milford has been named president of CVS Health-owned primary care provider Oak Street Health. Milford succeeds Brian Clem, who joined Oak Street in 2015 and became president in 2019. Clem is leaving to spend more time with his family, a CVS Health spokesperson said. Milford will continue to be interim president of retail health at CVS until the company finds a replacement, the spokesperson said. (Hudson, 5/20)
Chicago Tribune:
Sens. Durbin And Duckworth Question Prime Healthcare
Sens. Dick Durbin and Tammy Duckworth are questioning a California-based health system that recently bought eight Illinois hospitals, after cuts to services at several of those locations. The senators sent a letter to Prime Healthcare founder, chairman and CEO Dr. Prem Reddy on Tuesday expressing concern about the changes and asking him to answer questions about the health system’s plans. (Schencker, 5/20)
Modern Healthcare:
FTC: Welsh, Carson, Anderson & Stowe Must Limit Work With USAP
The Federal Trade Commission finalized a consent order Tuesday that requires private-equity owner Welsh, Carson, Anderson & Stowe to minimize its work with U.S. Anesthesia Partners. The order also requires Welsh, Carson to notify the agency if it plans to acquire or invest in other anesthesia or hospital-based physician practices. The FTC filed a lawsuit against Welsh, Carson and USAP in September 2023 for allegedly violating antitrust laws. (DeSilva, 5/20)
Bloomberg:
Blackstone Leads Bidding For $1 Billion AGS Health Deal
Blackstone Inc. is emerging as the frontrunner to acquire revenue cycle management provider AGS Health from private equity firm EQT AB, people familiar with the matter said. Blackstone has pulled ahead of other bidders and could reach a deal as soon as the coming days, the people said, asking not to be identified because the information is private. A transaction could value AGS Health at $1 billion or more, according to the people. (Chew, Kalesh, and Baigorri, 5/20)
Modern Healthcare:
Optum Health Struggles With CMS' V28 Change To Medicare Advantage
For two years, UnitedHealth Group told investors it was working through a key federal change to how Medicare Advantage insurance companies are paid. Now shareholders are wondering whether the industry giant was promising returns it couldn't deliver. In April, UnitedHealth disclosed that Optum Health's 2025 revenue would be $10 billion less than anticipated. The company attributed the reduction to new Medicare Advantage members whose health was improperly assessed by their former plan, a continued unanticipated rise in medical costs and a federal payment change announced two years ago. (Tepper, 5/20)
St. Pete Catalyst:
Mayor Says Moffitt Cancer Center Still Has A Home In St. Petersburg
The city recently approved construction of apartment towers on downtown property once earmarked for Moffitt expansion. Mayor Ken Welch tells the St. Pete Catalyst the cancer institute is not out of picture. (Parker, 5/19)
Modern Healthcare:
Value-Based Care Could Take Off If Home Care Worker Shortage Ends
Home care workers could hold the key to helping providers and insurers rein in costs and be successful in value-based care arrangements — if they can find enough workers. Johns Hopkins University, Aetna and Massachusetts announced initiatives last week to recruit and train more non-medical home care workers as an aging population is ratcheting up healthcare costs. The initiatives aim to raise the stature of these workers and improve their skills so they can help keep patients out of the hospital and lower overall costs. (Eastabrook, 5/20)
Stat:
Mental Health Apps Show Cost Savings, Boost Adoption Case
Developers of digital mental health treatments now have fresh economic data to help make the case for broader coverage of their apps. (Aguilar, 5/20)
In pharma and tech news —
Modern Healthcare:
Function Health, Prenuvo Go All In On Preventative MRIs
A new cohort of companies are selling preventative MRIs and blood tests directly to patients. Their pitches focus on extending patients’ lives by identifying tumors, cancers and other diseases earlier than traditional tests given by primary care clinicians during annual physicals. These longevity companies are part of digital health’s trendiest and most frequently funded categories attracting celebrity and established investors alike. (Turner, 5/20)
Becker's Hospital Review:
Devicemakers Amplify Electric Fields For Cancer Treatment
Medical devicemakers are tapping into electric fields as a new treatment for cancer, The Wall Street Journal reported May 16. For decades, electricity has been used to treat cardiovascular conditions and serious mental illnesses, but companies are now pioneering how electric fields and pulses can be used in cancer care. (Twenter, 5/20)
