Morning Briefing
Summaries of health policy coverage from major news organizations
Medicare Pays 3 Times Capital Cost Rate For New Hospitals Versus Old
Medicare pays new hospitals three times more for capital costs than it pays established hospitals, costing taxpayers an extra $1.3 million per hospital each year, according to a report the HHS Office of Inspector General published Monday. Under the program's inpatient prospective payment system (IPPS) rule, CMS pays new hospitals for Medicare-related capital costs during their first two years in the program based on their expenses. All other hospitals must cover their capital costs with money from their inpatient payments, no matter their costs. (Brady, 8/16)
UnitedHealth Group and Change Healthcare may not wrap up their merger until at least next year under a new agreement with the Justice Department, as the Biden administration ramps up antitrust scrutiny and federal regulators experience a surge of merger filings across industries. UnitedHealth's Optum data analytics and health services subsidiary in January unveiled plans to buy revenue cycle management company Change Healthcare for $8 billion, in a move company officials said would drive greater connectivity among its healthcare delivery systems—but that critics said could reduce competition in health IT services. (Kim Cohen, 8/16)
More than half of patients referred to physical therapy offered within a health system end up going to outside providers, a new report finds. U.S. health systems lost an estimated $2.5 billion in potential revenue from so-called referral leakage around physical therapy alone across the 3.4 million commercially insured patients examined in the new report from Luna, a company that offers in-home physical therapy. Patient leakage has become an even bigger priority for health systems as they recover from COVID-19. The biggest reason patients stray? Convenience. (Bannow, 8/17)
An Anne Arundel County family was awarded nearly $35 million by a Baltimore jury Monday, ruling that MedStar Harbor Hospital in South Baltimore neglected to properly treat a newly born child’s dropping oxygen levels, causing him to suffer severe brain injuries that will permanently disable him. The jury found that the hospital did not properly handle the deteriorating condition of Jordan Biggs, one of twins born at the hospital on Aug. 19, 2007, who had trouble breathing upon his delivery. (Davis, 8/17)
Attorneys for Theranos Inc. founder Elizabeth Holmes told a federal judge on Monday that she plans to attend her criminal fraud trial with three family members or friends by her side and strongly prefers not to wear a face mask. Preventative measures against Covid-19 were on display in the courtroom here as Ms. Holmes and prosecutors prepared for the high stakes Silicon Valley trial. Plexiglass panels were erected in front of the judge, at the lecterns where attorneys speak and at the end of the jury box. U.S. District Judge Edward Davila said he would ask that jurors wear masks and they may be asked about their vaccination status. (Somerville, 8/16)
