Morning Briefing
Summaries of health policy coverage from major news organizations
Hospital Pricing Data Pulls Back Veil On Bad Insurer Deals
The New York Times: Why Hospitals And Health Insurers Didn’t Want You To See Their Prices
This year, the federal government ordered hospitals to begin publishing a prized secret: a complete list of the prices they negotiate with private insurers. The insurers’ trade association had called the rule unconstitutional and said it would “undermine competitive negotiations.” ... But data from the hospitals that have complied hints at why the powerful industries wanted this information to remain hidden. It shows hospitals are charging patients wildly different amounts for the same basic services: procedures as simple as an X-ray or a pregnancy test. (Kliff and Katz, 8/22)
On happenings in the health industry —
Axios: Illumina CEO On Closing A Merger The FTC Sued To Block
Illumina CEO Francis deSouza tells Axios that his company is not trying to defy U.S. or European regulators by completing its $7.1 billion purchase of cancer testing company Grail, despite doing so amidst ongoing government reviews. Illumina argues that the merger could make early cancer detection more affordable and widely available, but there are concerns that it could be anticompetitive. (Primack, 8/20)
Stat: Flagship, Orbimed, ARCH Top List Of High-Performing Biotech VC Firms
Flagship Pioneering is on track to return its investors’ money an eye-popping 15 times over, according to public records gathered by STAT. The Cambridge-based firm’s fourth fund, which officially launched in 2012, reported the highest investment multiple of any fund included in a new STAT report published on Monday that looks at returns for 17 major biotech venture capital firms during 2020. Other top performers were Alta Partners’ 2018 fund and ARCH Venture Partners’ 2007 fund, each of which returned at least $5 for each $1 an investor put in. (Sheridan, 8/23)
Axios: LumiraDx Slashes Takeover Price, Citing A Slowdown In COVID Testing
London-based LumiraDx has slashed $2 billion off the size of a proposed takeover by a SPAC, citing decreases in COVID-19 testing volume. The move tracks with reduced sales forecasts by industry giants like Abbott and Quest Diagnostics, but also feels like it's on a bit of a lag. (Primack, 8/22)
Modern Healthcare: Clinical Decision-Support Tech Companies Raised $1.1B So Far This Year
Clinical decision-support software companies raised more than $1 billion during the first half of 2021—double the amount raised during the same period last year. Investors poured $1.1 billion into companies that sell clinical decision-support tools—products that analyze data and provide recommendations on patient care—during the first six months of 2021, up from $545 million during the same period in 2020, according to a second-quarter report from market research firm Mercom Capital Group. (Kim Cohen, 8/20)
Modern Healthcare: Geisinger Offers AI-Enabled Payment Plans For Patients
Geisinger is giving patients options to pay medical bills by viewing their out-of-pocket expenses. The Danville, Penn.-based system this week introduced a billing solution that allows patients to customize their payment plans. Patients with out-of-pocket balances of more than $250 after insurance can choose customized payment plans offered at no fees or interest. (Ross Johnson, 8/20)
Modern Healthcare: Google Says Health Projects Will Continue—Even If Google Health Won't
Google is unwinding its three-year-old Google Health division as it reorganizes health projects and teams across the company. Alphabet's Google created the Google Health division in 2018, shortly after announcing Dr. David Feinberg, then CEO of Geisinger Health, would join the company as a vice president. Feinberg, who was tapped to become CEO of Cerner this week, was charged with bringing Google's health efforts under a single umbrella. (Kim Cohen, 8/20)
In news on key health industry figures —
The Boston Globe: Biotech Founder David Sabatini Placed On Leave After Harassment Probe
A prominent biology professor and biotech founder at the Massachusetts Institute of Technology has been placed on administrative leave following an investigation into claims of sexual harassment, according to a letter from the dean of MIT’s School of Science that was sent to biology faculty members Friday. Dr. David Sabatini, who leads the Sabatini Lab at MIT’s Whitehead Institute, “is no longer associated” with the institute or the Howard Hughes Medical Institute, Dr. Nergis Mavalvala wrote in the letter, a copy of which was obtained by the Globe. Mavalvala wrote that the investigator’s report “raises very serious concerns about sexual and workplace harassment.” (Stoico, 8/21)
Stat: SENS Research Foundation Removes Aubrey De Grey
Antiaging science’s most prominent prophet, Aubrey de Grey, has been removed from his post as chief science officer at SENS Research Foundation, the organization he co-founded more than a decade ago, over concerns he was interfering in an investigation of sexual-harassment allegations against him. Since June, De Grey had been on administrative leave, while the foundation conducted an independent inquiry into the allegations. And though that investigation remains ongoing, the SENS Foundation board of directors decided to “separate from Dr. de Grey, effective immediately,” according to a statement issued late Saturday evening. A spokesperson for the foundation confirmed that he is no longer an employee. (Molteni, 8/22)
Philadelphia Inquirer: Penn Medicine Apologizes For Notorious Doctor Who Conducted Experiments On Holmesburg Prison Inmates
The dean of Penn Medicine on Friday issued an apology for the work of Dr. Albert Kligman, a longtime faculty member who was a pioneer of anti-acne medication but has since become notorious for conducting medical research on inmates, most of them Black, at Philadelphia’s Holmesburg Prison. The apology was included in a statement by J. Larry Jameson, the dean of Penn Medicine, posted online. Jameson also outlined steps that Penn Medicine is taking to address the harm caused by Kligman’s conduct, “which are not now, and never were, morally acceptable.” (Moran, 8/21)
