Health Care Industry Deals Went Mega-Scale This Year

Modern Healthcare: 'Mega-Mergers' Dominated In 2021, Analysis Finds
Fewer hospital mergers and acquisitions so far in 2021 is offset by a high percentage of "mega-merger" transactions, according to a new analysis. Seven transactions involving 20 hospitals took place during the third quarter of 2021, with transacted revenue totaling $5.2 billion, according to a quarterly report released Wednesday by consulting firm, Kaufman Hall. This year's transactions have involved large health systems that have merged or were acquired by other large systems. The average revenue of selling organizations was $659 million in 2021, more than double the average of $329 million between 2015 and 2020. (Ross Johnson, 10/6)

In other financial news —

Modern Healthcare: AHA Asks Congress To Stop Looming Medicare Cuts
The American Hospital Association is urging Congress to stop cuts to Medicare before they take effect next year, citing the uncertain trajectory of the COVID-19 pandemic and possible variants. "Now is not the time for reductions in Medicare payments to providers," Stacey Hughes, executive vice president of AHA wrote in a letter to Congressional leadership. Without Congressional action, Medicare will face a 4% cut triggered by the COVID-19 relief bill that passed earlier this year. (Hellmann, 10/6)f

Modern Healthcare: Hospitals Spending $24B More Per Year On Clinical Labor
Nationwide, hospitals and health systems are spending $24 billion more per year on qualified clinical labor than they did prior to the pandemic, according to an analysis by Premier. From higher turnover rates and employees working overtime, to soaring costs for travel nurses, healthcare facilities have significantly higher expenses for hiring and retaining workers than in previous years. While the first COVID-19 surge led health systems to focus on obtaining supplies for patients and caregivers, the second surge has been all about labor, said Mike Alkire, president and CEO of Premier. (Devereaux, 10/6)

Modern Healthcare: Upcoding Continues To Inflate Reimbursement, Industry Overseers Say
Massachusetts hospitals continue to bill insurers for more complex care even though data indicate that patients aren't sicker, mirroring a nationwide trend, according to a new report. Hospitals coded about 2 in 5 patients at the highest severity levels—severity levels three and four—in 2020, up from about 1 in 4 patients in 2013, according to the Massachusetts Health Policy Commission's Market Oversight and Transparency Committee report issued Wednesday, which excluded COVID-19 hospitalizations. But there hasn't been a corresponding increase in the prevalence of chronic disease, age or life expectancy that would explain that increase, data from the Center for Health Information and Analysis show. (Kacik, 10/6)

Modern Healthcare: ADA's Newest Exec Comes From Medical Debt Collection Operation
The former head of a questionable medical debt collection operation has apparently moved on to a position at the American Dental Association. Until at least July, Tim Steffl was president of the Center for Consumer Recovery, a not-for-profit group that convinces hospitals to donate medical debt it then collects on using a for-profit vendor, a practice that concerned several industry experts. The ADA announced on Tuesday it had hired Steffl as president and CEO of its Business Innovation Group, or ADABIG. He will be responsible for ensuring the group is profitable and meets strategic and financial goals. He'll also create a strategy for scaling ADA practice transitions, a service within ADABIG that matches dentists with practice owners seeking associates or buyers. (Bannow, 10/6)

KHN: ‘An Arm And A Leg’: How One State Protects Patients From Hospital Lawsuits
In Maryland, hospitals had been suing people — taking them to court and garnishing wages — even though these patients legally qualified for financial assistance, also known as charity care. Those lawsuits are now illegal, because of the state’s new Medical Debt Protection Act. But in many other states, it still happens. This episode, the fourth in our series on charity care, focuses on how that change came about — as well as the coalition of consumer-protection advocates, riled-up activists and health care worker unions that made it happen. (Weissmann, 10/7)

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CIDRAP: Study Finds C Difficile Is Prevalent Outside Of Healthcare Settings
A study presented last week at IDWeek 2021 suggests Clostridiodes difficile is more prevalent outside of the hospital than previously thought. And the soles of people's shoes may play a significant role in spread of the bacterium. Researchers at the University of Houston analyzed environmental samples collected from public areas, healthcare settings, and shoe soles in 11 countries from 2014 through 2017 for the presence of C difficile, which causes severe diarrhea and is the leading cause of hospital-associated infections but is increasingly being reported in community settings. The aim was to examine the prevalence and the strain types of the bacterium in different settings. (10/6)

Fox News: Virtual Care With Remote Monitoring Reduces Patients' Pain, Drug Errors: Study
Patients monitored virtually after nonelective surgery had significantly reduced pain and greater detection and correction of medication errors, according to researchers at McMaster University in Ontario. The national study, published this week in the British Medical Journal (BMJ), analyzed outcomes of post-surgical patients that received care virtually and through remote automated monitoring (RAM). Care included video calls with doctors and nurses, and use of wearable devices for self-monitoring of vital signs. The study also looked at the impact that virtual care and automated monitoring had on easing hospital burden. (McGorry, 10/6)