July 18, 2024

Sinister Optum Layoffs And Closures Continue

UnitedHealth Group’s Optum services subsidiary continues its shedding of jobs. The layoffs have occurred quietly in many areas of the sprawling and amazingly profitable enterprise post the ChangeHealthcare pandemic. In conversations I have had with health plan executives, the layoffs seem to be impacting numerous areas, putting health plans and providers in tough situations. All systems and services are not up yet post the cyberattack and United seems to be abandoning without notice key health plan and provider functions without any reasonable notice or guidance to clients. This is meant to shed questionably profitable areas and assets in favor of the bottom line.

The fact that United is leaving major pieces of the healthcare system at risk is a travesty and should be investigated by the executive and legislative branches. Perhaps the class-action suits against United need to be expanded to cover these unseemly practices we are seeing.

I admire what United built over the years, but I think it got too big. United scaled its empire through acquisition and is now cavalierly exiting areas and blaming it on the cyberattack. As large as it is and as negligent as it was in the cyberattack, it has a moral duty to protect the healthcare system.

#unitedhealthcare #optum #changehealthcare #cyberattacks

https://www.fiercehealthcare.com/payers/optum-lays-more-employees-landmark-optuminsight

Steward Health Care Collapse To Be Investigated

The Chair and Ranking Member of the Senate HELP Committee will investigate the collapse of Steward Health Care and compel testimony from the CEO.  It is a worthy effort.  The entity was grossly mismanaged and private equity’s investment in the business looks to have contributed considerably to the insolvency and fall. 

Additional articles: https://www.fiercehealthcare.com/providers/senate-help-committee-announces-vote-investigate-steward-health-care-compel-ceo-testimony and https://www.modernhealthcare.com/politics-policy/steward-health-care-investigation-bill-cassidy-bernie-sanders

(Some articles may require a subscription.)

#privateequityfirms #hospitals

https://thehill.com/policy/healthcare/4779975-steward-health-committee-steward-investigation

Protecting Against Ransomware Attacks

Good article on rising ransomware attacks and how providers can protect themselves.

#cyberattacks

https://www.healthcaredive.com/news/how-hospitals-can-mitigate-ransomware-attacks-healthcare/719751

Mark Cuban Solving Drug Shortages

While Capitol Hill, the government, and drug makers dither, Mark Cuban and his Cost Plus Drug Company is busy trying to solve part of the drug shortage crisis.  It is working with the Food and Drug Administration (FDA) to import penicillin. Pfizer should be ashamed.

#drugshortages

https://www.reuters.com/business/healthcare-pharmaceuticals/mark-cubans-cost-plus-import-penicillin-address-us-shortage-2024-07-17

2025 ACA Premium Increases High

This site shows the reported state exchange premium hikes for 2025.  While they vary, in general premium increases are high, bucking a trend over the past few years.

#exchanges #premiums #aca #obamacare

https://acasignups.net/2025-rate-changes

Will Chevron Really Lead To Regulatory Slowdown and Litigation?

Some policy experts write in a Health Affairs Forefront blog on the overturn of the Chevron precedent.  The authors argue that the regulatory upheaval may be overhyped. The authors argue a few things – the high court said courts should defer to laws that delegate discretionary authority to an agency, courts can use regulatory guidance, and deference was being chipped away at already.  They do say the court was hostile to the administrative state and that has implications.

While they made some good points, I tend to be on the other end of the scale — for good or ill, the change will have major implications. Here is my blog on Chevron: https://www.healthcarelabyrinth.com/what-does-the-end-of-chevron-deference-mean-for-healthcare/ . Her is my extensive podcast on the topic — out tomorrow: https://www.healthcarelabyrinth.com/32-the-supreme-courts-chevron-decision-will-upend-regulatory-rulemaking-in-america/ .

(Article may require a subscription.)

#regulations #chevrondeference

https://www.healthaffairs.org/content/forefront/loper-bright-and-death-deference-administration-health-policy

Updates On The Medicare Drug Price Negotiations

Interesting article on the status of the various lawsuits against the Medicare drug price negotiations.  So far, the brand drug makers have lost at every pass.  Another article discusses the fact that many are already looking to the introduction of expensive Part B drugs for 2028.

Additional article: https://www.hmpgloballearningnetwork.com/site/frmc/blog/why-were-already-thinking-ahead-2028-part-b-drug-price-negotiations

#branddrugmakers #ira #drugpricing

https://www.hmpgloballearningnetwork.com/site/frmc/blog/clash-over-medicare-key-lawsuits-challenging-iras-drug-negotiation-provisions

— Marc S. Ryan

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