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Morning Briefing

Summaries of health policy coverage from major news organizations

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Friday, Apr 10 2026

Full Issue

Prospect Medical Self-Insured But Had No Funds For Malpractice Lawsuits, Court Filings Show

The company pledged to pay directly for the legal defense of its facilities and doctors and to cover negotiated settlements, instead of paying premiums to a commercial insurer. Then they went bankrupt. When companies self-insure, there is no safety-net fund and very little oversight, which can lead to plaintiffs not getting paid.

The collapse of Prospect Medical, a for-profit hospital chain plundered by private equity and the company鈥檚 management, has generated a painful litany of woes. Amid a debt-fueled acquisition spree that saw the small California company grow to 17 hospitals in six states, Prospect was repeatedly cited for dangerous medical care, poor infection control and unsanitary facilities. The company stiffed state and local governments on more than $135 million in taxes and didn鈥檛 pay vendors for equipment, services and supplies. It shuttered four safety-net hospitals in a Philadelphia suburb that it had promised to keep open, laying off thousands. (Elkind, 4/9)

More health industry updates 鈥

Celebrity-backed Function Health has acquired mobile healthcare company Getlabs to expand its user-facing lab testing capabilities. Function Health provides a subscription-based service that offers customers more than 160 lab tests. Under the acquisition, members will be able to obtain blood draws and other services at home, at the office 鈥渙r wherever they are,鈥 according to a Thursday news release. Financial details were not disclosed. (DeSilva, 4/9)

Zac Jiwa, a federal Medicare official, delivered a eulogy of sorts at a Thursday Medicare event highlighting the successes of the Health Tech Ecosystem initiative.聽The eulogy鈥檚 subject? The clipboard.聽(Trang and Wilkerson, 4/9)

Medicare navigation company Chapter has banked a $100 million series E funding round as it continues to grow and build out its platform. Generation Investment Management led the round, and Fifth Down Capital and 8VC joined as new investors, according to an announcement released on Thursday. Existing backers Stripes, XYZ Venture Capital, Addition, Narya Capital, Susa Ventures and Maverick Ventures also backed the round. (Minemyer, 4/9)

麻豆女优 Health News: For Many Patients Leaving The ICU, The Struggle Has Only Just Begun

The accident happened in Pittsburgh on Nov. 16. Joseph Masterson, a lawyer who was just days from retiring at age 63, suffered cardiac arrest while driving, plowed into a guardrail, and lost consciousness. Other drivers stopped, broke the car window, and pulled him to safety. A passing volunteer firefighter performed CPR until an ambulance arrived to take Masterson to UPMC Mercy hospital. He spent 18 days in the medical intensive care unit there, 14 of them on a ventilator. (Span, 4/10)

麻豆女优 Health News: Watch: As AI Makes More Health Coverage Decisions, The Risks To Patients Grow

This year, executives from nearly every major health insurance company made the same declaration in calls with Wall Street analysts: Using artificial intelligence to make coverage decisions would help save them money. Even the Trump administration is testing AI鈥檚 usefulness in managing the prior authorization process for the Medicare program, as well as seeking to override AI regulation by states. (Tahir and Norman, 4/10)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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