Morning Briefing
Summaries of health policy coverage from major news organizations
Senate Panel Subpoenas Steward Health CEO Over Bankruptcy Filing
Modern Healthcare: Steward Health’s Ralph De La Torre Subpoenaed By Senate Committee
A Senate committee held an extremely rare vote Thursday to subpoena Steward Health Care Chair and CEO Dr. Ralph de la Torre and launch a formal investigation of the hospital chain's bankruptcy filing. The Senate Health, Education, Labor and Pensions Committee, citing de la Torre's repeated refusals to come before the committee voluntarily, voted 20-1 to subpoena the executive and 16-4 to launch a formal investigation of Steward that could include sworn testimony and future subpoenas for others in the Steward chain of command. (McAuliff, 7/25)
In other health industry developments —
Modern Healthcare: Optum Layoffs Hit 524 Workers, Including Some Clinicians, Nurses
UnitedHealth Group’s Optum Health division will lay off 524 employees in California and remote locations, according to a report by the state's Employee Development Department. The affected employees include physicians, physician assistants, registered nurses, licensed practical nurses, patient care coordinators, nurse practitioners and social workers, according to the company's Worker Adjustment and Retraining Notification Act notice obtained by Modern Healthcare. (Berryman, 7/25)
The Boston Globe: Brigham And Women’s Nurses Strike Inches Closer After Union Vote
Nurses at Brigham and Women’s Hospital overwhelmingly approved a measure that will allow their union to call for a one-day strike at the state’s second largest hospital. The Massachusetts Nurses Association, which represents 4,000 nurses at the hospital, said the vote was near unanimous with 99.4 percent in favor of a possible 24-hour work stoppage. (Lee, 7/25)
Modern Healthcare: Ascension To Sell 13 Illinois Sites To Prime Healthcare
Ascension plans to sell 13 hospitals and other care sites in Illinois to Prime Healthcare, the systems said Thursday. The definitive agreement marks another divestiture for nonprofit Ascension in the Midwest as it continues to shrink its footprint. (DeSilva, 7/25)
Modern Healthcare: CHS Hospital Sales To Continue Despite Failed Novant Health Deal
Community Health Systems is negotiating deals to divest some assets and does not anticipate running into the same issues that last month killed its plan to sell two hospitals to Novant Health. During a second-quarter earnings call with financial analysts Thursday, executives at the Franklin, Tennessee-based provider said the buyer pool is shifting and those changes should benefit its efforts. (DeSilva, 7/25)
Los Angeles Times: Molina Healthcare Inc. Acquires Connecticare Holding Co. Inc.
Long Beach-based Molina Healthcare Inc. agreed to acquire Connecticare Holding Co. Inc. for $350 million on July 23. The transaction will be funded with cash on hand and is subject to regulatory approvals. It is expected to close in early 2025. “The addition of ConnectiCare to Molina brings a well-rounded government-sponsored healthcare plan and a new state to our portfolio,” said Joe Zubretsky, president and chief executive of Molina in a statement. (7/25)
Modern Healthcare: Envision Healthcare Ends Private Equity Case, Leaves California
Envision Healthcare, a top private equity-backed emergency physician staffing company, is exiting California and avoiding a lawsuit that threatened the legality of its business model in the state. The Nashville, Tennessee-based company had been battling the American Academy of Emergency Medicine, which sued in 2021 after Envision Healthcare won a contract that the American Academy of Emergency Medicine Physician Group previously held at Placentia-Linda Hospital. (McAuliff, 7/25)
Bloomberg: WeightWatchers Chief Medical Officer Meister Leaves After Less Than Year
The chief medical officer of WW International Inc., better known as WeightWatchers, has stepped down from her role after less than a year, people familiar with the matter said. WeightWatchers announced Amy Meister’s appointment in October as the company was attempting to reposition itself by offering prescription weight-loss drugs after decades of promoting dieting. The company said in a press release at the time that Meister’s appointment would “further WeightWatchers’ commitment to providing the most clinically proven tools and interventions surrounding weight health.” (Muller, Swetlitz and Garde, 7/25)
Also —
The Boston Globe: 'July Effect' Kicks In At Hospitals As Brand-New Doctors Arrive
For Dr. Jeremy Faust, July 1 is like New Year’s Day. That’s when thousands of new medical school graduates enter teaching hospitals across the country and provide care to patients as doctors for the first time. ... With that excitement also comes a seemingly perennial debate around a phenomenon called the “July effect” — the idea that the inexperience of first-year residents, commonly called interns, might lead to a decrease in patient safety or increase in medical errors. (Getahun-Hawkins, 7/25)
