In First-Of-Its-Kind Case, Health Care CEO Charged With Insider Trading
Terren Peizer, chairman and CEO of Ontrak, a telehealth provider, is accused of selling millions of dollars worth of company stock just before his company disclosed the loss of Cigna as a major customer, news outlets report. A lawyer for Peizer insisted the CEO is innocent and said "the government has clearly overreached in this case."
Reuters:
US Authorities Charge Healthcare Company Ontrak's Boss With Insider Trading
U.S. authorities on Wednesday charged the head of the health care company Ontrak Inc with insider trading, marking the first criminal case involving the use of a special trading plan designed to help shield executives from such charges. Ontrak Chairman and CEO Terren Peizer sold more than $20 million of Ontrak stock between May and August 2021 while in possession of material non-public negative information related to the company's largest customer, authorities said. (Gillison and Singh, 3/1)
The Wall Street Journal:
Healthcare CEO Faces Charges Of Making Illicit Stock Sales In Prearranged Trades
Ontrak Chief Executive Terren Peizer set up the prearranged trading plans in May and August 2021, just before his company disclosed the loss of health insurer Cigna Corp. as a major customer, according to a federal grand-jury indictment unsealed Wednesday. Mr. Peizer sold about 641,000 shares of Ontrak stock when he was aware of the undisclosed bad news, according to the Securities and Exchange Commission, which also sued him. When Ontrak revealed on Aug. 19, 2021—three days after he began trading—that Cigna cut ties with Ontrak, the stock dropped 45%. (Michaels, 3/1)
In other corporate news —
Modern Healthcare:
Cleveland Clinic Reports $1.25B Net Loss For 2022
The Ohio-based organization reported a $1.25 billion net loss in 2022, compared with a $2.21 billion gain in 2021, according to unaudited results released Wednesday. Operating expenses jumped 13.6%, or by nearly $1.5 billion, to $12.45 billion, including a 13.8% rise in salaries and wages and a 13.7% jump for pharmaceuticals. (Hudson, 3/1)
Modern Healthcare:
AdventHealth Reports $839M Net Loss For 2022
A spike in operation expenses fueled by labor costs weighed down AdventHealth's financial performance last year, the nonprofit health system reported Tuesday. AdventHealth suffered a $837.92 million net loss for 2022, compared with a $1.51 billion gain the prior year. Revenue rose 5.5% to $15.7 billion and investment losses reached $1.16 billion. (Hudson, 3/1)
Becker's Hospital Review:
Texas Hospital Set To Close, Asks University Health To Take Over
San Antonio-based Texas Vista Medical Center, part of Dallas-based Steward Health Care, is set to close May 1, barring a takeover or significant relief package. Steward has asked San Antonio-based University Health System and Bexar County to take over the troubled hospital. However, both entities have so far declined. Texas Vista was already struggling financially when Steward acquired it in 2017, and the COVID-19 pandemic led to even more significant losses, according to a March 1 Steward Health news release. (Schwartz, 3/1)
Modern Healthcare:
Community Health Systems Selling 2 Hospitals To Novant
Novant Health will pay $320 million for two Community Health Systems hospitals in North Carolina, marking CHS’ exit from the Tar Heel State. (Kacik, 3/1)
Modern Healthcare:
MercyOne-Genesis Health System Merger Closed
Trinity Health’s MercyOne and Genesis Health System have finalized their merger, the nonprofit health systems announced Wednesday. Under the agreement, Davenport, Iowa-based Genesis’ five hospitals and other operations will become part of MercyOne, a West Des Moines, Iowa-based health system that comprises 18 hospitals. (Kacik, 3/1)
In nursing news —
Los Angeles Times:
UC System Hospital Nurses Complain Of Overcrowding
Nurses at the Ronald Reagan UCLA Medical Center and UCSF Medical Center at Parnassus went public this week with complaints about overcrowding and staffing issues that they say have led to eroding conditions for patients. At the Ronald Reagan UCLA Medical Center, patients sometimes lie in hallways on gurneys for days at a time, said Dianne Sposito, an emergency room nurse at the hospital. (Evans, 3/1)
AP:
States Move To Crack Down On Nurses With Bogus Diplomas
Medical licensing officials in multiple states are scrambling to stop nurses with fraudulent academic credentials from caring for patients, after three Florida schools were accused of selling thousands of bogus diplomas. New York regulators told 903 nurses in recent weeks to either surrender their licenses or prove they were properly educated. Delaware and Washington state officials have yanked dozens of nursing licenses. Texas filed administrative charges against 23 nurses. More actions in additional states are expected. (Hill, 3/1)
More health care industry news —
Becker's Hospital Review:
The Hospital CEOs Throwing Their Weight Behind Gun Safety Efforts
In the wake of shootings across the U.S., about 50 leaders of some of the nation's largest health systems and hospitals are pledging efforts to address gun violence. The leaders are members of the newly formed National Health Care CEO Council on Gun Violence Prevention & Safety, which is united to tackle the issue. Council members have signed the following promise: "Guns are now the leading cause of death for kids. This needs to change. As healthcare leaders, we pledge to use the collective power of our voices and resources to curb this epidemic, and make our communities safer for everyone." (Gooch, 3/1)
Stateline:
Small Texas Hospital Tries New Model Aimed At Saving Rural Health Care
After sitting empty and exposed to thieves and vandals for more than two years, the one-story hospital that served Bowie for more than five decades is close to making a comeback — of sorts. Reflecting the struggles facing hospitals throughout rural America, Bowie Memorial Hospital has closed twice since 2015, the first time when citizens refused a tax-supported bailout, and again in 2020, after a failed reopening. (Montgomery, 3/2)
Stat:
Same Patient, Same Drug, Same Insurer — Coverage Denied
Janice Morales-Ferrer is a planner. It’s helped her get ahead in her career and in raising three young kids. But it’s hard to plan when you’ve got a rare disease, especially one with no standard treatment regimen or predictable outcome. (Bannow, 3/2)
Des Moines Register:
Suit Claims Providers Failed To Treat Iowa Man For Deadly Infection
When Burlington resident Thomas Hull went to the hospital in August 2021, tests showed he had a serious bacterial infection in his bloodstream. But it wasn't until returned to the West Burlington hospital a month later that he received antibiotics to address that infection. By then, it was too late, according to a lawsuit filed in Des Moines County District Court last week. (Ramm, 3/1)
KHN:
Information Blackout Shrouds New Reports Of Deaths, Injuries, And Abuse At Montana State Hospital
Jennifer Mitchell remembered getting a call nearly two years ago that her 69-year-old husband, Bill, had crashed his car and had been committed to the Montana State Hospital, the state-run psychiatric hospital for adults about 20 miles from their home in Butte. Physicians thought Bill Mitchell had dementia and could be a danger to himself or others, according to medical records. But once he was admitted, his wife really began to worry. She couldn’t visit him because of covid-19 restrictions, and she couldn’t get details about the care or the medicine he was receiving. “I tried to get an idea of what he was taking, not taking. I could not get answers,” Jennifer said. (Bolton, 3/2)
KHN:
Watch: Dental Device At Center Of Lawsuits Was Used On Patients Without FDA Review
An unproven and unregulated dental device at the center of patient lawsuits has not been evaluated by the FDA, according to a months-long joint investigation by KHN and CBS News. More than 10,000 dental patients have been fitted with an Anterior Growth Guidance Appliance, or AGGA, according to court records. (3/2)
