Healthcare Authority Newsletter - March 2025 #3

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News Briefs


Congress Extends Telehealth Flexibilities for Another Six Months

Pandemic-related telehealth flexibilities set to expire March 31 have recently been extended for another six months as federal lawmakers approve a continuing resolution to fund the government and avoid a shutdown. Congress has passed the Full-Year Continuing Appropriations and Extensions Act 2025 (FY2025), which allowed for continuation of several public health, Medicare, and Medicaid authorities and programs.

(Source: Hospice News, 2025-03-17)

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Bipartisan Legislation Aims to Strengthen Medical Supply Chain

A bipartisan, bicameral group of senators has introduced legislation that would give the president new authority to negotiate and strike trade deals -- which includes the handling of tariffs -- with foreign countries for medical goods such as drugs and devices. The bill, also backed by industry pharmaceutical and group purchasing organizations, aims to strengthen the country's medical supply chain, which lawmakers said became strained during the COVID-19 pandemic.

(Source: FierceHealthcare, 2025-03-14)

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Health System Corporate Venture Arms Boosting Tech Investments

There are at least 23 health system corporate venture arms in the U.S., according to a tracker from Becker's Health IT. Industry experts say they are growing and diversifying in response to the enormous challenges facing healthcare organizations, from meager profit margins and crisis-level staffing shortages to technological changes and the transition to outcomes-based care and reimbursement.

(Source: Global Corporate Venturing, 2025-03-13)

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CMMI to End Certain Payment Models by End of 2025

The Center for Medicare and Medicaid Innovation (CMMI) is planning on ending four payment models by the end of the year in a bid to achieve a projected $750 million in savings, though the agency did not say where the savings would take place. Four models will end early, by Dec. 31, with the Centers for Medicare and Medicaid Services tasked with minimizing the disruption to patients in these models.

(Source: Healthcare Finance News, 2025-03-13)

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Lawmakers Introduce MATCH IT Act to Improve Patient Safety

The introduction of the Patient Matching and Transparency in Certified Health IT Act of 2025 (MATCH IT) marks a significant step toward improving patient safety and privacy within the U.S. healthcare system. Spearheaded by Representatives Mike Kelly and Bill Foster, their bipartisan legislation aims to reduce patient misidentification while promoting interoperability between healthcare systems.

(Source: Biometric Update, 2025-03-13)

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Lack of AI Governance in Healthcare a Top Concern, ECRI Says

ECRI, a nonprofit focused on healthcare safety and quality, has named insufficient governance of artificial intelligence in healthcare as one of its top 10 patient safety concerns for 2025. The report, which ECRI published Monday, warned AI could lead to misdiagnosis and outlined steps healthcare providers should take to mitigate risks posed by the technology.

(Source: Healthcare Dive, 2025-03-11)

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More Hospitals Using AI Nurses, Some See Them as a Threat

Hundreds of hospitals are using increasingly sophisticated computer programs to monitor patients' vital signs, flag emergency situations, and trigger step-by-step action plans for care -- jobs that were all previously handled by nurses and other health professionals. Hospitals say AI is helping their nurses work more efficiently while addressing burnout and understaffing. But nursing unions argue that this poorly understood technology is overriding nurses' expertise and degrading the quality of care patients receive.

(Source: ABC News, 2025-03-16)

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Report Urges Stronger Cybersecurity for P.E.-Owned Companies

A new report by Clearwater Security found that incident response and resilience was a major issue for private equity-owned healthcare companies, which need to improve consistency in cybersecurity governance in light of their high-growth business model. The assessment found systemic gaps in security preparedness, as healthcare organizations need more documented policies for cybersecurity practices from provider practices to digital health companies.

(Source: FierceHealthcare, 2025-03-13)

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More Than 1,000 Acute Care Hospitals to Share $700M in Opioid Lawsuit

More than 1,000 acute care hospitals will receive a share of $700 million as part of the settlement of class action lawsuits against several pharmaceutical companies accused of helping to cause the opioid abuse epidemic. The agreement condenses four separate class-action settlements against Cencora (formerly AmerisourceBergen), Cardinal Health, McKesson, Johnson & Johnson, Teva, and Allergan, among other defendants.

(Source: HealthLeaders Media, 2025-03-11)

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MedPAC Urges Tying Rate of Physician Pay to Economic Index

The Medicare Advisory Payment Commission, which advises Congress on Medicare policy, is recommending tying the rate of physician and other health professionals' payment increases in 2026 to the Medicare Economic Index minus one percentage point, according to its annual report. Provider groups have been pushing MedPAC to tie payment increases to the MEI, saying rate increases need to better keep up with the costs of providing care. But groups are split as to whether the recommendation goes far enough in addressing rising costs.

(Source: Healthcare Dive, 2025-03-17)

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Many PCPs Working During PTO, Study Finds

Despite being on vacation, many primary care physicians find themselves logging into electronic health records, unable to fully step away from their professional responsibilities. A new study published in JAMA Network Open analyzed EHR activity logs and found that physicians frequently engage in work-related tasks during paid time off, particularly at the beginning and end of their vacations.

(Source: Medical Economics, 2025-03-12)

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Arnall Golden Gregory LLP 2025

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