Morning Briefing
Summaries of health policy coverage from major news organizations
CVS Promises To Boost Hiring, Avoids A Repeat Pharmacists Strike
CVS found the right prescription on Wednesday to keep its stores open in the Kansas City area and avoid a repeat of a work stoppage last week by pharmacists: It promised to boost hiring to ease workloads that sometimes make it hard to take a bathroom break. But it won鈥檛 be easy to resolve the problems that have been growing as pharmacists at CVS and other drug stores in the U.S. took on more duties in recent years and are gearing up to deliver this year鈥檚 latest flu and COVID-19 vaccines. (Funk, 9/28)
CVS Health Corp. was sued by a small Iowa pharmacy alleging that the health-care giant violated antitrust laws, the latest salvo in a conflict between independent drugstores and companies that manage drug plans for millions of Americans. Osterhaus Pharmacy Inc. said in the suit that CVS鈥檚 pharmacy benefit management unit demanded unfair fees to fill and dispense prescriptions for certain Medicare beneficiaries, putting it and other independent drugstores at a competitive disadvantage. (LaPara, 9/27)
On news on financial matters across the health industry 鈥
GV (Google Ventures) led a $25 million Series A funding round in聽women's health startup聽Midi Health, the companies said Wednesday.聽Midi Health, a telehealth company focused on women between the ages of 35 and 65, will use the funding to expand operations and launch additional partnerships with U.S. health systems and employers. The company's goal is to offer care in 50 states by the end of next year, said Midi Health CEO and co-founder Joanna Strober. (Turner, 9/27)
Tendo, a patient engagement software company, said on Wednesday it plans to acquire MDsave, a nationwide provider marketplace company, for $150 million.聽Tendo CEO Dan Goldsmith said the $150 million deal will be entirely financed by Tendo's balance sheet and is聽expected to close in October. Goldsmith said the deal聽will allow his聽company to expand product offerings for its health system customers and incorporate its聽platform into MDsave鈥檚聽provider marketplace. (Turner, 9/27)
Private equity firms New Mountain Capital and Marlin Equity Partners are merging employer health tech聽companies Virgin Pulse and聽HealthComp聽in a $3 billion deal announced Wednesday.聽Virgin Pulse, a digital health navigation company for employers, is backed by Marlin Equity Partners while HealthComp, a third-party health plan administrator, is funded by New Mountain Capital. New Mountain Capital will be the majority owner of the combined entity. (Turner, 9/27)
Intermountain Healthcare has struck a deal to add a third-party administrator to its Select Health insurance portfolio. The Aurora, Colorado-based nonprofit health system UCHealth sold UCHealth Plan Administrators to Salt Lake City-based nonprofit Intermountain Health for an undisclosed amount, Select Health announced Tuesday. The new owner has renamed the asset Simplified Benefits Administrators, according to a news release. (Tepper, 9/27)
American drugstore chain Rite Aid could close 400- 500 of its stores due to bankruptcy, according to reports. Rite Aid has proposed closing about one-quarter of its more than 2,100 stores in bankruptcy, the Wall Street Journal reports. Rite Aid would either sell the stores or allow creditors to take control of operations. The company currently has more than $3.3 billion in debt, according to WSJ. (Mentz, 9/27)
In other industry news 鈥
Catholic Medical Center is pursuing an agreement for its acquisition by HCA Healthcare, a for-profit healthcare provider headquartered in Nashville, Tenn., CMC leadership announced Wednesday. HCA operates 182 hospitals and 2,300 鈥渃are sites鈥 in 20 states and the United Kingdom, according to its website. That includes three hospitals in New Hampshire: Parkland Medical Center in Derry, Frisbie Memorial Hospital in Rochester, and Portsmouth Regional Hospital in Portsmouth. (Gokee, 9/27)
The Gale app functions like many popular messaging platforms. Using the company鈥檚 app, facility managers post their staffing needs, and available nurses in the local area receive a notification. Nurses set their availability and can accept or decline shifts. Once a nurse takes a shift, it appears on the healthcare facility鈥檚 schedule. Tony Braswell, the company鈥檚 founder and president, said the platform鈥檚 goal is to give nurses the ability to work flexibly while also helping healthcare systems decimated by staffing shortages fill critical roles. (Bennett, 9/27)
Rapid advances in biology and technology will combine with the growing health needs of an aging population to fuel a 鈥渟cientific renaissance鈥 over the coming decade, the chief executive at drug giant Pfizer told Boston business and civic leaders Tuesday. 鈥淭hose two [trends], when they come together, will produce solutions that were impossible to find before,鈥 helping to treat long-intractable diseases such as Alzheimer鈥檚 and cancer, Pfizer chief executive Albert Bourla said. (Weisman, 9/27)
Biogen, the iconic but embattled biotech firm, is shuttering Biogen Digital Health, its roughly 150-person group focused on using new types of data like those from mobile phones and smart watches, and ending a clinical trial being conducted with Apple early, STAT has learned. Biogen confirmed the organizational change, but said it might lean even more on digital tech startups in the future. (Aguilar and Herper, 9/27)
European drugmakers warned that a proposed complete ban on substances known as PFAS or "forever chemicals" would render medicine production in the region impossible, part of a high-stakes wrangle between manufacturers and environmental regulators. The European Union started to consider in February a ban of the widely used but potentially harmful substances, in what could become the bloc's most extensive piece of regulation of the chemical industry. (Burger, 9/27)
Drug companies are major contributors to climate change, both through direct greenhouse gas emissions and especially through their supply chains. But the pharmaceutical industry has lagged behind others when it comes to understanding and cutting down on its climate impact. In an exclusive analysis that ranks top companies on their efforts to combat global warming, STAT found that, with increasing pressures from investors and other stakeholders, many biotech and pharma companies are now starting to take action. (Ladyzhets, 9/28)
Healthcare companies promoting diversity, equity and inclusion face the twin challenges of persuading veteran clinicians to change their practices and training emerging providers to make tackling disparities an integral part of what they do. Increasingly, health systems are turning to leaders with feet in both the corporate and academic worlds to tackle this joint mission. (Hartnett, 9/27)
Private insurers saw the percentage of medical claims stemming from opioid dependence fall slightly from 2018 to 2022 in the United States, according to data released by FAIR Health. Opioid use and dependence accounted for about two-tenths of 1% of total claims in 2022, compared to one-quarter of 1% in 2018. (Goldman, 9/28)