Morning Briefing
Summaries of health policy coverage from major news organizations
Security Flaws Found in GE Medical Devices
Modern Healthcare: Cybersecurity Flaw Discovered In 100+ GE Medical Devices
A cybersecurity vulnerability discovered in more than 100 medical devices from GE Healthcare could compromise patient data, cybersecurity company CyberMDX said Tuesday. It's the latest example of how medical devices—increasingly connected to the internet or internal hospital networks—could provide another window for hackers targeting healthcare. The flaw discovered by CyberMDX's research team affects 104 types of radiological devices including CT scanners, X-ray machines and ultrasound devices, across product lines like GE Healthcare's Innova, Optima, Brivo, Definium, Precision, Discovery, Seno, Revolution, Odyssey, PETtrace, Ventri and Xeleris, according to CyberMDX. (Kim Cohen, 12/8)
In other health care industry developments —
Modern Healthcare: Federal Judge Tosses Regulators' Bid To Block Jefferson-Einstein Deal
A federal judge dismissed a lawsuit Tuesday that looked to block the Jefferson Health and Albert Einstein Healthcare Network merger, poking holes in regulators' argument that it would stifle competition and lead to price increases. The Federal Trade Commission and the Pennsylvania Attorney General sued to block the deal that would add three acute-care hospitals and a rehab hospital to Jefferson's 14-hospital network, noting that the combined entity would control at least 60% of the acute-care market around North Philadelphia. But federal and state regulators failed to prove that insurers wouldn't be able to find viable substitutes for the merged system and thus would have to submit to higher reimbursement rate mandates, U.S. District Court Judge Gerald Pappert wrote. (Kacik, 12/8)
Modern Healthcare: Care New England CEO Swiftly Rebuffs StoneBridge Buyout Offer
Care New England's CEO appeared to reject a turnaround firm's $550 million buyout offer Tuesday, saying that its ongoing merger talks bar discussion with other would-be suitors. The Providence, R.I.-based health system is the second to swiftly rebuff StoneBridge Healthcare's advances. Erlanger Health System in Chattanooga, Tenn. responded to the turnaround firm's offer in August by declaring itself "not for sale." (Bannow, 12/8)
FierceHealthcare: Cleveland Clinic Makes Deal With Sisters Of Charity To Acquire Mercy Medical Center
Cleveland Clinic signed an agreement with Sisters of Charity Health System to fully acquire Mercy Medical Center, a hospital based in southeastern Ohio. The transaction, announced Tuesday (PDF), the terms of which were not disclosed, is expected to be finalized by Feb. 1. It comes as Cleveland Clinic continues to battle lower patient volumes caused by the pandemic. (King, 12/8)
Becker's Hospital Review: Advocate Aurora To Give $66M In Employee Bonuses
Advocate Aurora Health, with headquarters in Milwaukee and Downers Grove, Ill., will be giving about $66 million in bonuses to employees before the year's end. The health system's president and CEO, Jim Skogsbergh, announced the bonuses in a staff video memo shared with Becker's Dec. 8. In the video, Mr. Skogsbergh said the bonuses aren't based on financial or quality performance, "because frankly, this is a year that we're off on almost all of our numbers, as are most healthcare organizations who have invested so heavily in their workforce despite the devastating financial impact of COVID-19." Rather, he said the bonuses are for hard work during the COVID-19 pandemic. (Haefner, 12/8)
Modern Healthcare: Private Equity Investment In Healthcare Was Strong Through Q3 But May Fade In Q4
Investments into biotechnology and healthcare technology companies drove private equity and venture capital funding in healthcare past the $60 billion mark in the first three quarters of 2020, according to a new report. Healthcare companies raised a collective $22.44 billion across 732 private equity and venture capital deals in 2020's most recent quarter, representing the third-highest funding total and highest deal total in a single quarter since 2016, according to the report from S&P Global Market Intelligence, indicating "strong investor interest in the industry amid the uncertain COVID-19 situation." (Kim Cohen, 12/8)
