News Briefs
High Court Ruling on Chevron Doctrine Could Impact Health Credit
When the Supreme Court overturned the Chevron doctrine on June 28, it ended the mandate that federal courts should defer to federal agencies' interpretations when deciding on ambiguous statutes -- which diminishes agency authority and shifts power to the courts, triggering ripple effects that could have widespread credit effects, according to Moody's Investors Service. This development carries mixed implications for the healthcare industry.
(Source: Healthcare Finance News, 2024-07-12)
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Report Finds P.E. Investment in Health Providers Less than 4%
Private equity investment in providers is fairly small, despite the swell of political and media attention to its role in the healthcare ecosystem, according to a report published by PitchBook. P.E.-backed providers currently make up less than four percent of the U.S. healthcare provider market by revenue, according to the market data research firm.
(Source: Healthcare Dive, 2024-07-15)
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After Strong Start, Hospital M&A Volume Declined But Still Solid
Hospital and health system dealmaking volume fell from a busy start of the year, though a couple of megamergers and "an emphasis on strategy over scale" have kept the sector pretty lively through the second quarter. Per a Kaufman Hall report, 11 health system transactions were announced during the three months that ended on June 30, well below 2022's 20 and the counts of prior years. The total transacted revenue during the quarter was $10.8 billion, which was also below the last two year's second quarters but more in line with earlier years' tallies.
(Source: FierceHealthcare, 2024-07-11)
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After Report, FTC to Sue PBMs for Prescription Rebate Tactics
The Federal Trade Commission is preparing to sue the largest three pharmacy benefit managers over their negotiations over the prices for drugs including insulin, The Wall Street Journal reported. The FTC plans to file lawsuits related to rebates brokered with drug manufacturers, people familiar with the matter told the WSJ.
(Source: Healthcare Finance News, 2024-07-11)
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Doctors Immigrating from Other Countries Could Solve Shortage
Working physicians from other countries must pass all the necessary medical licensing exams and also complete a three-year U.S. residency program, despite having already done residency training in another country. Some believe these doctors could help solve the chronic workforce shortages that plague the healthcare system if only there were a way to get more of them into practice.
(Source: CT Mirror, 2024-07-14)
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As Patients Seek Care Again, Physician Pay Increases Dramatically
Physicians are working harder for more pay as patients return for care like doctor practices haven't seen since before the COVID-19 pandemic hit in 2020. A new report by the American Medical Group Association shows median primary care physician compensation eclipsed $300,000 for the first time for such doctors that included family practice, internal medicine, and general pediatrics specialties.
(Source: Forbes, 2024-07-12)
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CMS Proposal to Decrease Physician Pay by 2.8 Percent Draws Ire
The Biden administration is proposing a 2.8 percent decrease to physician payments in its newly released pay proposal for physicians, drawing near-immediate protest from the industry. The calendar year 2025 Medicare Physician Fee Schedule proposed rule outlines new policies focused on primary care, preserved telehealth flexibilities, and a strengthened Medicare Shared Savings Program, but the release is headlined by a proposal to decrease average base payment rates by 2.93 percent from calendar year 2024.
(Source: FierceHealthcare, 2024-07-10)
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Despite State Laws, Nursing Homes Still Struggle with Staffing
California, Florida, Massachusetts, New York, and Rhode Island have sought to improve nursing home quality by mandating the highest minimum hours of care per resident among states. But an examination of records in those states revealed that putting a law on the books was no guarantee of better staffing. Instead, many nursing homes operated with fewer workers than required, often with the permission of regulators or with no consequences at all.
(Source: The New York Times, 2024-07-12)
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Hospice CARE Act Aims to Change Medical Review Processes
The forthcoming Hospice Care Accountability, Reform and Enforcement (Hospice CARE) Act from U.S. Rep. Earl Blumenaur (D-Oregon), if enacted, would implement a number of changes to medical review processes. Though the bill language is still in development, it will likely contain proposed updates to payment mechanisms for high-acuity palliative services, changes to the per-diem payment process, and actions to improve quality and combat fraud.
(Source: Hospice News, 2024-07-12)
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Doctors Use AI to Battle Insurers in Fight to Cover Patient Care
For a growing number of doctors, AI chatbots -- which can draft letters to insurers in seconds -- are opening up a new front in the battle to approve costly claims, accomplishing in minutes what years of advocacy and attempts at healthcare reform have not. Doctors are turning to the technology even as some of the country's largest insurance companies face class-action lawsuits alleging that they used their own technology to swiftly deny large batches of claims and cut off seriously ill patients from rehabilitation treatment.
(Source: The New York Times, 2024-07-10)
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