UnitedHealth’s Cyberattack Payouts To Care Providers Top $3.3 Billion
Reuters reports that more than 40% of the payouts went to safety net hospitals and federally qualified health centers serving high-risk patients and areas. In other industry news, Moderna wins $750 million to develop flu vaccines; Steward Health Care will sell its physician network; and more.
Reuters:
UnitedHealth Group Paid Over $3.3 Bln To Care Providers Hit By Cyberattacks
U.S. insurer UnitedHealth Group (UNH.N) on Wednesday said it has advanced more than $3.3 billion so far to care providers impacted by a cyberattack last month on insurance claims system Change Healthcare. UnitedHealth said it has paid more than 40% of that total to so-called safety net hospitals and federally qualified health centers serving high-risk patients and communities. (3/28)
In other news from the health industry —
Reuters:
Moderna Secures $750 Million From Blackstone Life Sciences To Develop Flu Shots
Moderna (MRNA.O) on Wednesday said Blackstone's (BX.N life sciences arm would offer $750 million to help fund development of its flu vaccines, bolstering the company's efforts to advance multiple vaccines in the face of a steep decline in sales of its COVID-19 shots.Moderna is developing several new vaccines, including for cancer and respiratory syncytial virus (RSV), resulting in high research and development spending. (Leo and S K, 3/27)
Reuters:
Blackstone Cures Two Ailments In One Moderna Shot
Lending to a company is fine; taking a piece of its most promising investments is better. With higher costs of capital making spending decisions tougher for chief executives and buyout firms simultaneously struggling to invest stockpiles of cash, the deal, opens new tab between Blackstone (BX.N) and Moderna (MRNA.O) unveiled on Wednesday offers a crafty cure. The hard end of such bargains: surrendering value from potentially lucrative developments. (Guilford, 3/27)
Modern Healthcare:
Kaiser Permanente Expands PACE Nationally With Joint Venture
Kaiser Permanente and healthcare investment firm Town Hall Ventures announced a joint venture, Habitat Health, on Wednesday that will provide integrated home and center-based healthcare services to low-income older adults across the country. Habitat Health will provide services through the Program of All-Inclusive Care for the Elderly, a Medicare and Medicaid-funded care model. Executives from both organizations would not disclose financial details of the for-profit company, which will open its first two PACE programs in Los Angeles and Sacramento, California, in 2025. (Eastabrook, 3/27)
The CT Mirror:
CT Approves Prospect Medical-YNHH Deal, Paving The Way For Sale
After 16 months of consideration, the state’s Office of Health Strategy on Wednesday approved an application for a Certificate of Need from Yale New Haven Health, paving the way for it to potentially purchase three troubled hospitals owned by Prospect Medical Holdings. (Altimari and Carlesso, 3/27)
AP:
Steward Health Care Strikes Deal To Sell Its Nationwide Physician Network To Optum
Financially embattled hospital operator Steward Health Care has struck a deal to sell its nationwide physician network to Optum, a subsidiary of UnitedHealth Group, as it works to stabilize its finances. The move comes as Gov. Maura Healey has said state monitors are keeping eye on the nine health care facilities operated by Steward Health Care in Massachusetts, including hospitals in some of the state’s poorer communities. The Dallas-based company operates more than 30 hospitals nationwide. (LeBlanc, 3/27)
Modern Healthcare:
Tenet Healthcare Completes Sale Of 4 Hospitals To UCI Health
University of California Irvine's health system said Wednesday it has completed its acquisition of four Tenet Healthcare hospitals and their affiliated outpatient locations in Southern California in an $800 million deal. The deal comprises Lakewood Regional Medical Center, Los Alamitos Medical Center, Fountain Valley Regional Hospital and Medical Center, and Placentia-Linda Hospital, which are now part of Orange, California-based UCI Health. (Desilva, 3/27)
Axios:
Hospital Cuts Challenge Expectations Of Post-COVID Rebound
Even as financial conditions improve at health systems across the U.S., a rash of recent stories about layoffs or unit closures underscore a complex picture for the industry. High inflation, worsening reimbursement and increasingly fierce competition for outpatient services are challenging the post-COVID rebound hospitals are hoping for as patients seek delayed care. (Reed, 3/28)
Modern Healthcare:
Walgreens-Backed VillageMD To Close 5 Nevada Clinics
Walgreens' VillageMD is adding Nevada to the list of states where it is closing clinics. The primary care provider will close five clinics in Nevada to exit the state, effective April 30. (Hudson, 3/27)
Also —
Reuters:
J&J Can Contest Evidence Linking Its Talc To Cancer, US Judge Rules
Johnson & Johnson (JNJ.N), opens new tab will get a new chance to contest the scientific evidence linking talc to ovarian cancer, a federal judge ruled on Wednesday, potentially disrupting more than 53,000 lawsuits the company is now facing over its talc products. In a brief written order, U.S. District Judge Michael Shipp in Trenton, New Jersey, who is overseeing the lawsuits that have been consolidated in his court, said recent changes in the law and new scientific evidence require a fresh review of the evidence that linked J&J products to ovarian cancer. (Knauth, 3/27)
