Morning Briefing
Summaries of health policy coverage from major news organizations
Senate Panel Subpoenas Steward Health CEO Over Bankruptcy Filing
A Senate committee held an extremely rare vote Thursday to subpoena Steward Health Care Chair and CEO Dr. Ralph de la Torre and launch a formal investigation of the hospital chain's bankruptcy filing. The Senate Health, Education, Labor and Pensions Committee, citing de la Torre's repeated refusals to come before the committee voluntarily, voted 20-1 to subpoena the executive and 16-4 to launch a formal investigation of Steward that could include sworn testimony and future subpoenas for others in the Steward chain of command. (McAuliff, 7/25)
In other health industry developments 鈥
UnitedHealth Group鈥檚 Optum Health division will lay off 524 employees in California and remote locations, according to a report by the state's Employee Development Department. The affected employees include physicians, physician assistants, registered nurses, licensed practical nurses, patient care coordinators, nurse practitioners and social workers, according to the company's Worker Adjustment and Retraining Notification Act notice obtained by Modern Healthcare. (Berryman, 7/25)
Nurses at Brigham and Women鈥檚 Hospital overwhelmingly approved a measure that will allow their union to call for a one-day strike at the state鈥檚 second largest hospital. The Massachusetts Nurses Association, which represents 4,000 nurses at the hospital, said the vote was near unanimous with 99.4 percent in favor of a possible 24-hour work stoppage. (Lee, 7/25)
Ascension plans to sell 13 hospitals and other care sites in Illinois to Prime Healthcare, the systems said Thursday. The definitive agreement marks another divestiture for nonprofit Ascension in the Midwest as it continues to shrink its footprint. (DeSilva, 7/25)
Community Health Systems is negotiating deals to divest some assets and does not anticipate running into the same issues that last month killed its plan to sell two hospitals to Novant Health. During a second-quarter earnings call with financial analysts Thursday,聽executives at the Franklin, Tennessee-based provider said the buyer pool is shifting and those changes should benefit its efforts. (DeSilva, 7/25)
Long Beach-based Molina Healthcare Inc. agreed to acquire Connecticare Holding Co. Inc. for $350 million on July 23. The transaction will be funded with cash on hand and is subject to regulatory approvals. It is expected to close in early 2025. 鈥淭he addition of ConnectiCare to Molina brings a well-rounded government-sponsored healthcare plan and a new state to our portfolio,鈥 said Joe Zubretsky, president and chief executive of Molina in a statement. (7/25)
Envision Healthcare, a top private equity-backed emergency physician staffing company, is exiting California and avoiding a lawsuit that threatened the legality of its business model in the state. The Nashville, Tennessee-based company had been battling the American Academy of Emergency Medicine, which sued in 2021 after Envision Healthcare won a contract that the American Academy of Emergency Medicine Physician Group previously held at Placentia-Linda Hospital. (McAuliff, 7/25)
The chief medical officer of WW International Inc., better known as WeightWatchers, has stepped down from her role after less than a year, people familiar with the matter said. WeightWatchers announced Amy Meister鈥檚 appointment in October as the company was attempting to reposition itself by offering prescription weight-loss drugs after decades of promoting dieting. The company said in a press release at the time that Meister鈥檚 appointment would 鈥渇urther WeightWatchers鈥 commitment to providing the most clinically proven tools and interventions surrounding weight health.鈥 (Muller, Swetlitz and Garde, 7/25)
Also 鈥
For Dr. Jeremy Faust, July 1 is like New Year鈥檚 Day. That鈥檚 when thousands of new medical school graduates enter teaching hospitals across the country and provide care to patients as doctors for the first time. ... With that excitement also comes a seemingly perennial debate around a phenomenon called the 鈥淛uly effect鈥 鈥 the idea that the inexperience of first-year residents, commonly called interns, might lead to a decrease in patient safety or increase in medical errors. (Getahun-Hawkins, 7/25)