Morning Briefing
Summaries of health policy coverage from major news organizations
UnitedHealth Changes Policy After Prior-Authorization Controversy
Axios: UnitedHealth Backs Off Contentious Prior Authorization Plan
UnitedHealth is backing off a controversial plan to require prior authorizations for colonoscopies and other endoscopic procedures. But the debate over insurer sign-offs that it stoked will likely linger. While prior authorizations are supposed to ensure that health services are medically necessary, critics say they can create barriers to care and drown the health system in red tape. (Dreher, 6/1)
The Boston Globe: Compass Medical Of Quincy Announces Sudden Closure Of All Facilities
A Quincy-based health organization with six locations south of Boston on Wednesday announced the sudden closure of all its medical facilities, leaving the future of healthcare for its patients up in the air. Compass Medical, which has clinics in Braintree, East Bridgewater, Easton, Middleborough, Quincy, and Taunton, shared the news of its “imminent plan to close our practices,” in a statement on the company’s website. (Alanez, 6/1)
The Boston Globe: Cambridge Health Alliance Announces Layoffs, Eliminates Open Positions
Cambridge Health Alliance is laying off 69 people, reducing the hours of another 15 employees, and eliminating 170 open positions due to post-pandemic financial pressures. The reductions are largely in administrative areas, and the health system is continuing to hire, particularly in primary care and behavioral health. Additionally, the health system is aiming to rehire more than half of the employees that were let go into new positions. (Bartlett, 5/31)
Modern Healthcare: Oak Street Health To Open In Arkansas, Iowa, Kansas And Virginia
Oak Street Health will open primary care centers in four more states this year, the CVS Health division announced Wednesday. Chicago-based Oak Street Health will open clinics in Arkansas, Iowa, Kansas and Virginia beginning this summer, growing its footprint to 25 states. Oak Street Health will also open additional centers in Arizona, Colorado, Georgia, Illinois, Indiana, Louisiana, New York, Ohio and Pennsylvania this year, according to a news release. (Berryman, 5/31)
Modern Healthcare: BJC HealthCare, Saint Luke’s Health System Plan Merger
BJC HealthCare and Saint Luke’s Health System signed a nonbinding letter of intent to form a $10 billion nonprofit system with 28 hospitals across Missouri, Kansas and Illinois. Richard Liekweg, president and CEO of St. Louis-based BJC, would serve as the CEO of the combined health system if a definitive agreement is reached and the transaction passes the customary regulatory review and approvals. The health system’s board would include representation form both BJC and Kansas City, Missouri-based Saint Luke’s. (Kacik, 5/31)
Stat: Nuance's AI Scribe Tool Comes At A Steep Cost For Hospitals
Microsoft-owned Nuance Communications sells its AI medical scribe platform to health care providers on a simple promise: If they shell out big bucks for the high-tech product, they can decrease doctor burnout and ultimately make more money by enabling doctors to see more patients. But executives at four health systems using the software, called DAX, told STAT that while the software might make it possible to see more patients, or justify higher charges to insurers for visits, the high price tag means it’s certainly not boosting their bottom lines. (Trang, 6/1)
