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Morning Briefing

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Tuesday, May 14 2024

Full Issue

Providers Worry About Liability In Aftermath Of Change Healthcare Hack

Modern Healthcare reports on rising concern among health providers over what costs and what legal or regulatory consequences could follow the Change Healthcare hack. And Crain's Detroit Business covers how a digital forensics firm negotiates deals during cyberattacks.

It’s been two-and-a-half months since Change Healthcare’s systems went dark due to a cyberattack, and questions remain unanswered about when its customers will know the full extent of the damage. Meanwhile, providers are wondering what regulatory or legal consequences they could face — and whether they will bear costs associated with lawsuits and patient notifications for a breach that occurred outside their own systems. (Hudson, 5/13)

When a ransomware attack happens, companies and insurers seek out specialty operators, firms that are often clandestine but experts in dealing with these criminals. In Troy, Michigan, digital forensics firm N1 Discovery plays that role. Their teams are often only a degree removed from the hackers themselves. The cat to their mouse. Forensics for the digital age. (Walsh, 5/13)

Ascension’s hospitals, doctor’s offices and other care locations in Florida are open and operational as the health system continues to work on restoring its computer network following a ransomware attack. The St. Louis-based chain, which operates 140 hospitals in 19 states, on Monday said its electronic records system and MyChart online patient portal remained offline after last week’s cyber breech. Additionally, systems used to order certain tests, procedures and medications remain unavailable. (Mayer, 5/14)

In other industry news —

The Office of the National Coordinator for Health Information Technology announced Monday it is setting up a grants for two projects on AI and behavioral health. The first will focus on the development of ways to evaluate and improve the quality of healthcare data used by artificial intelligence technology. The second is aimed at accelerating the adoption of health information technology in behavioral health. (Turner, 5/13)

Companies racing to read the genome accurately, quickly, and affordably have hit a snag recently, with several firms reporting that their growth has slowed, stalled, or reversed. Upstart Element Biosciences is hoping it can succeed despite the challenging market conditions. (Wosen, 5/14)

Bayer (BAYGn.DE) beat first-quarter analyst forecasts as it reported a slight drop in adjusted earnings on Tuesday, providing a respite for the CEO's turnaround efforts.The group also lowered its full-year earnings outlook, citing negative currency effects, but retained its operating forecast. The company's quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-off items, slipped 1.3% to 4.41 billion euros ($4.76 billion), above an average analyst estimate of 4.15 billion euros posted on the company's website. (Burger, 5/14)

Philips (PHG.AS) has sued SoClean, a maker of ozone-based cleaning systems for breathing devices, in an effort to make it pay part of a $1.1 billion settlement Philips reached last month with people who say they were injured by Philips' recalled devices. In a complaint filed late Friday in Pittsburgh, Pennsylvania, federal court, the Dutch conglomerate said that if any users were injured after using its machines for treating sleep apnea and other breathing problems, those injuries were caused "in whole or in part" by ozone in SoClean's products. (Pierson, 5/13)

Merck (MRK.N) said on Monday it had discontinued an experimental combination treatment testing a new type of immunotherapy in patients with a severe form of skin cancer after side effects led to high discontinuation. This is the latest setback for the experimental drug, vibostolimab, and the related promising new class of immunotherapies called anti-TIGIT. Merck was testing vibostolimab along with Keytruda, its top-selling cancer drug, in a late-stage study in patients with resected high-risk melanoma. (5/13)

Â鶹ŮÓÅ Health News: Nursing Homes Wield Pandemic Immunity Laws To Duck Wrongful Death Suits

In early 2020, with reports of covid-19 outbreaks making dire headlines, Trever Schapers worried about her father’s safety in a nursing home in Queens. She had delighted in watching her dad, John Schapers, blow out the candles on his 90th birthday cake that February at the West Lawrence Care Center in the New York City borough. Then the home went into lockdown. (Schulte, 5/14)

In an unusual move, Sandoz is no longer cooperating with a U.K. industry trade group following a dispute over allegations that the company inappropriately marketed a biosimilar medicine. (Silverman, 5/13)

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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