Morning Briefing
Summaries of health policy coverage from major news organizations
Oscar Health IPO Could Shake Up Digital Health Industry
Modern Healthcare: Oscar Health's $1B IPO Sets The Stage For More Health Tech Exits In 2021
Oscar Health has unveiled a plan to go public for $1.054 billion, making it the largest public debut by a health tech startup so far this year and there could be many more digital health startups maturing soon. As interest rates remain low and investment interest in the stock market remains high, the New York City-based company's offering is a harbinger for good things to come in the digital health space, particularly as many of these startups mature and new ways to go public pop up in the market, according to Michael Yang, managing partner of the Omers Venture investment firm. "It's just building off the crescendo of the last two years," Yang said. "You had a few in '19, you build that drumbeat in '20 and by '21, people are just kind of conditioned to expect this." (Tepper, 2/22)
FierceHealthcare: COVID-19 Costs, Care Deferrals Came Back To Bite Insurers In Q4 2020
While health plans reported sky-high profits in the early parts of 2020 due to care deferred under the pandemic, rising costs related to COVID-19 and more stable care utilization dinged their finances in the fourth quarter. Cigna was the most profitable of the major national insurers in the fourth quarter, bringing in $4.1 billion in earnings for the quarter. While those profit numbers fell short of the expectations of Zack's analysts, Cigna's profits far outpaced its competitors in the quarter. In second place was UnitedHealth Group, with $2.2 billion in profits. (Minemyer, 2/22)
Philadelphia Inquirer: Money-Losing Tower Health Replaces CEO After Sustaining Big Losses In Philly And Suburban Hospitals
Tower Health, the financially troubled health system that owns six hospitals in the Philadelphia area, announced Monday that it had replaced its chief executive with a board member on an interim basis. In a move that was unsurprising to health-care leaders in the Philadelphia region, the board replaced Clint Matthews, who led Tower through a dramatic expansion since 2017 in a bid to compete with Philadelphia’s academic medical centers such as Penn Medicine and Jefferson Health. Matthews’ successor is P. Sue Perrotty, 67, a retired bank executive who joined the nonprofit’s board in 2019. (Brubaker, 2/22)
In news about health care workers —
Becker's Hospital Review: Oregon Hospital Workers File Strike Notice
The union representing 156 technical employees at St. Charles Health System's St. Charles Bend (Ore.) hospital campus filed a strike notice Feb. 22, according to a hospital news release. The strike of indefinite duration is set to begin March 4 unless an agreement is reached. "We were driven to do this by the hospital," labor organizer Sam Potter told the publication. "Our members have been waiting for and fighting for fair pay and a fair contract. We've waited long enough." (Gooch, 2/22)
AP: Bone Cancer Survivor To Join Billionaire On SpaceX Flight
After beating bone cancer, Hayley Arceneaux figures rocketing into orbit on SpaceX’s first private flight should be a piece of cosmic cake. St. Jude Children’s Research Hospital announced Monday that the 29-year-old physician assistant — a former patient hired last spring — will launch later this year alongside a billionaire who’s using his purchased spaceflight as a charitable fundraiser. (Dunn, 2/22)
