Appeals Court Appears Skeptical Of NIH Policy On Research Payments
At issue, STAT explains, is the multibillion-dollar question of whether the National Institutes of Health violated federal law when it announced a plan to slash support for research overhead.
Federal appeals court judges’ questions and comments during a hearing Wednesday suggested they may be skeptical of some of the Trump administration’s central arguments in a lawsuit challenging its proposed changes to research overhead payments. (Wosen, 11/5)
More health industry news from the Trump administration —
Nonprofit hospitals and health clinics are alarmed about a change that's coming to federal drug purchasing discounts next year. They'll have to pay up front and then get rebates — rather than direct price cuts — in a pilot with eight pharmaceutical companies. The new system, greenlit by the Trump administration, is a win for drugmakers, and it could be a big hassle for providers. (Goldman, 11/6)
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White House Calls This 9/11-Era Fund ‘Wasteful.’ Red And Blue States Rely On It
President Donald Trump’s push to eliminate a federal disaster preparedness program threatens a fund used by state health systems from Republican-led Texas to the Democratic stronghold of California. The Hospital Preparedness Program was created more than two decades ago in response to the Sept. 11, 2001, terrorist attacks on New York City’s World Trade Center and the Pentagon, and the deadly anthrax attacks that began days later. The fund has provided nearly $2.2 billion to states, territories, major cities, and other entities over the past 17 years to ready health care systems for the next pandemic, cyberattack, or mass-casualty event. (Thompson, 11/6)
In other updates —
It’s not shaping up to be a banner year for healthcare mergers and acquisitions. The number of deals that closed during the first three quarters of the year totaled 1,015, a 17.5% drop compared with 1,230 recorded during the same period in 2024, based on data from Modern Healthcare’s Mergers & Acquisitions dashboard. Deal-making this year has been affected by uncertainties about policy, regulation and the economy, according to Baker Donelson, KPMG and Ziegler, which provided the data. (Broderick, 11/5)
The Maryland Attorney General’s Office reached a $200,000 settlement with Patapsco Healthcare in Randallstown after investigators found that residents at the nursing home received substandard care that violated state law. (Karpovich, 11/5)
Carrum Health launched a substance use disorder treatment program for employers a year ago and has now expanded it to include cannabis, cocaine and methamphetamine as employer demand surges. (Landi, 11/5)