Morning Briefing
Summaries of health policy coverage from major news organizations
FTC's New Noncompete Ban Quickly Challenged By Lawsuit
The Washington Post: Groups Sue To Block FTC’s New Rule Barring Noncompete Agreements
The U.S. Chamber of Commerce and other business groups on Wednesday sued the Federal Trade Commission over a new rule that would make most noncompete agreements illegal, setting up a potential showdown over the scope of the agency’s authority. (Mark, 4/24)
Modern Healthcare: Vertical Integration In Healthcare Under Fire From Republicans
The call to rein in giant healthcare corporations isn't just coming from the left. Conservative lawmakers on Capitol Hill are growing increasingly vocal with their own demands to crack down on consolidation and vertical integration in the industry, spurred on most recently by the Change Healthcare ransomware attack. (McAuliff, 4/24)
Modern Healthcare: Anthem Blue Cross Faces Lawsuit Over Discharge Delay Allegations
The California Hospital Association is suing Anthem Blue Cross of California, alleging the insurer does not follow state laws related to patient discharge requirements. The suit, filed Tuesday in Los Angeles County Superior Court, alleges the payer delays patient discharges and refuses to transfer patients from hospitals to post-acute care facilities or services such as skilled nursing, behavioral health, long-term care, rehabilitation facilities or home health services. (DeSilva, 4/24)
Military.com: Toxic Exposure Screenings: Vets Report Spotty Follow-Up On Questionnaire Meant To Boost Health Care And Benefits
Confusing. Lackluster. Generic. A little bit of a letdown. Those are some of the ways veterans are describing toxic exposure screenings they've gotten at Department of Veterans Affairs health centers, screenings that were designed as a tool to get more vets help after medical evidence accumulated that service had made many sick. Rolled out with great fanfare in November 2022, toxic exposure screenings for all VA patients were mandated by the PACT Act, the sweeping law passed in August of that year that expanded benefits and health care for millions of veterans exposed to environmental hazards during their military service. (Kheel, 4/24)
Stat: Generative AI For Clinical Notes Has Limitations, New Studies Show
After stratospheric levels of hype, early evidence may be bringing generative artificial intelligence down to Earth. A series of recent research papers by academic hospitals has revealed significant limitations of large language models (LLMs) in medical settings, undercutting common industry talking points that they will save time and money, and soon liberate clinicians from the drudgery of documentation. (Ross, 4/25)
Layoffs and financial trouble —
Modern Healthcare: UPMC Layoffs Hit 1,000 Employees, Citing Market Challenges
UPMC is laying off about 1,000 employees, or slightly more than 1% of its workforce. The layoffs are effective immediately, a spokesperson said Wednesday. The cuts mostly affect non-clinical, non-member-facing and administrative employees, Paul Wood, chief communications officer at UPMC, said in a statement. (Hudson, 4/24)
Modern Healthcare: Optum Layoffs Target NaviHealth Employees, Document Shows
UnitedHealth Group’s Optum Care Solutions’ naviHealth division has laid off 114 people, or 15.2% of employees in certain job classifications who work in Tennessee and remote locations. The company attributed the layoffs to “a reduction in force or restructuring” and said the positions are being eliminated, according to a document sent to employees last week and obtained by Modern Healthcare. (Berryman, 4/24)
The Boston Globe: Steward Bankruptcy, Management Change Possible, State Officials Say
Massachusetts officials are bracing for a potential bankruptcy filing by Steward Health Care as the cash-strapped hospital system nears a deadline to repay a consortium of lenders. Health and Human Services Secretary Kate Walsh said Wednesday that she is going “to bankruptcy school” with outside experts to prepare for what could be a major turn in the long-running struggle of the for-profit chain — one that could lead to new ownership and leadership for its eight hospitals in Massachusetts. (Weisman, 4/24)
