Health Systems Eye Microhospitals In Effort To Increase Access At Lower Cost

Modern Healthcare: Why Health Systems Say Microhospitals Are A Worthy Investment
More microhospitals are popping up nationwide as health systems try to increase access to care without pouring money into large-scale projects. Hospital operators have touted the model as cheaper to build and requiring less capital to operate than a traditional hospital, while still providing critical services to patients in areas with care gaps. Services can also be customized based on what a market needs, operators say. (Hudson, 3/31)

More health industry updates —

HealthcareDive: Solventum Cuts 800 Positions 
Solventum, the 3M healthcare spinoff, eliminated 800 positions as part of a restructuring strategy to help fuel growth. CEO Bryan Hanson, in an investor day presentation last week, said the restructuring plan would save the company $120 million annually and require a one-time cost of $120 million. The plan, called the “Solventum Way,” was announced in December. (Zipp, 3/26)

Crain's Grand Rapids Business: How Corewell Health’s Nursing Program Eases Staffing Shortages 
An initiative Corewell Health launched four years ago with Grand Valley State University to bring more nurses into the profession has been meeting expectations amid a persistent staffing shortage. Since starting in 2022, hundreds of GVSU nursing students have gone through the scholarship and mentorship program that provides a talent pipeline for Corewell Health, which committed to invest more than $19 million over six years to support 500 students who pursue a nursing degree at the university. (Sanchez, 3/27)

Fierce Healthcare: Nonprofit Hospital Margins Flipped Positive In 2024: Fitch
Nonprofit hospitals’ 2024 financial performances are beating the prior year’s tough numbers, though even the stronger organizations remain “well below pre-pandemic levels,” Fitch Ratings said. In a Thursday brief describing the financial profiles of its rated nonprofit hospitals, the agency attributed the year-to-year improvements to stronger revenues and volumes as well as slightly mitigated, but still pressured, labor spending. (Muoio, 3/27)

Modern Healthcare: Chevron Ruling Could Lower Costs Of Hospital Fraud Litigation
Health systems could spend less money and time fighting fraud allegations if their legal challenges to federal oversight are successful. Supreme Court cases, including Loper Bright Enterprises v. Raimondo and Securities and Exchange Commission v. Jarkesy, along with a federal lawsuit questioning the constitutionality of whistleblower cases are poised to revamp healthcare fraud enforcement. Decisions in these cases, combined with the Trump administration's renewed emphasis on deregulation, could narrow the scope of healthcare fraud investigations and ease federal oversight, healthcare lawyers said. (Kacik, 3/28)

Healthcare Dive: DOJ Backs Up Providers In Suit Against Claritev 
The Department of Justice agrees that Claritev, formerly known as MultiPlan, conspired with health insurers to underpay doctors for medical care, according to a statement of interest filed by antitrust regulators on Wednesday in the consolidated lawsuit from providers against the cost management firm. (Pifer, 3/26)

KFF Health News: ‘They Won’t Help Me’: Sickest Patients Face Insurance Denials Despite Policy Fixes
Sheldon Ekirch spends a lot of time on hold with her health insurance company. Sometimes, as the minutes tick by and her frustration mounts, Ekirch, 30, opens a meditation app on her phone. It was recommended by her psychologist to help with the depression associated with a stressful and painful medical disorder. In 2023, Ekirch was diagnosed with small fiber neuropathy, a condition that makes her limbs and muscles feel as if they’re on fire. Now she takes more than a dozen prescriptions to manage chronic pain and other symptoms, including insomnia. (Sausser, 3/31)