Morning Briefing
Summaries of health policy coverage from major news organizations
8 In 10 US Counties Have 'Health Care Deserts'
A growing number of Americans find themselves living in "health care deserts," areas lacking in the specific infrastructure and services needed to ensure timely access to medicine and care, new data suggests. According to new research from health care and prescription price-comparison website GoodRx, 81 percent of U.S. counties—home to more than 120 million Americans—fall under this definition in some way. This includes those which lack proper access to either pharmacies, primary care, hospital beds, trauma centers or community health centers. (Cameron, 7/16)
Health care industry developments —
Methodist Le Bonheur Healthcare is cutting about 160 jobs in August. The layoffs, which represent about 1% of the Memphis, Tennessee-based system’s 12,000-person workforce, are part of a plan to consolidate labor and delivery services at Methodist South with services at Methodist Le Bonheur Germantown and Methodist Olive Branch hospitals, effective Aug. 1, according to a Wednesday news release. (Hudson, 7/16)
Geisinger Health System will eliminate nearly 100 jobs as it seeks to shore up finances in its insurance operation. That represents less than 1% of Geisinger Health Plan employees, a spokesperson for the Danville, Pennsylvania-based nonprofit company wrote in an email. The layoffs will leave the insurance unit with about 1,100, workers, the spokesperson wrote. (Tepper, 7/16)
Virtua Health and ChristianaCare signed a nonbinding letter of intent to create an eight-hospital nonprofit health system spanning four states. The proposed $6 billion merger, announced Wednesday, would create a regional system across more than 10 contiguous counties in New Jersey, Delaware, Pennsylvania and Maryland. The combined system would employ nearly 30,000 workers. Virtua and ChristianaCare did not say when the proposed transaction is expected to close or disclose governance details. (Kacik, 7/16)
Medicare Advantage insurers are shying away from their most popular type of health plan as cost pressures continue to strain the sector. Beginning this month, companies such as UnitedHealth Group subsidiary UnitedHealthcare and Blue Shield of California stopped compensating brokers and other third-party marketers for enrolling new beneficiaries into many PPOs. Similarly, Elevance Health pulled most of its Medicare Advantage plans from online brokerages in May and began requiring paper applications in 22 states. (Tepper, 7/16)
Steward Health Care sued Dr. Ralph de la Torre, alleging the former hospital chain chair and CEO, along with other former executives, bankrupted the company through a series of fraudulent transactions. In the lawsuit, the Dallas-based for-profit health system cited several deals that allegedly prioritized personal profits over the well-being of the company. One of those transactions included a January 2021 $111 million dividend, allegedly orchestrated by de la Torre and another board member, which benefited Steward insiders while the company was insolvent. (Kacik, 7/16)
A former coworker of Tampa General Hospital CEO John Couris has been arrested for allegedly sending him death threats for at least the past two years. Lawrence Brunn, 63, of Oakmont, Pennsylvania, and Couris previously worked together at Jupiter Medical Center in Jupiter, Florida, before Couris joined Florida-based Tampa General, according to a criminal complaint the FBI filed Tuesday in federal court in Florida. (DeSilva, 7/16)
In tech news —
KKR & Co., the buyout firm that’s been scouting for takeover targets amid the recent market volatility, is considering a potential acquisition of Italian health-care technology firm GPI SpA, according to people with knowledge of the matter. The US private equity firm has been speaking with advisers in recent weeks as it considers a potential deal to take Trent-based GPI private, the people said, asking not to be identified as the matter is private. Shares of GPI have risen 24% in Milan trading this year, giving the company a market value of about €377 million ($438 million). (Nair and Gopinath, 7/16)
Artificial intelligence has started to integrate with so-called traditional medicine to prevent and treat illnesses, according to a new report from the World Health Organization and other United Nations bodies. But the organizations warn that this practice can lead to exploitation of indigenous people and their resources. (Paun and Schumaker, 7/16)
If there’s one constant in healthcare cybersecurity, it’s change.From the ever-evolving tactics to the Whack-a-Mole of hacker groups, health system cybersecurity leaders must remain vigilant to protect their organizations today while preparing for tomorrow’s threats. (Bruce, 7/16)