Today's News and Commentary

About Covid-19

Pfizer seeks authorization of coronavirus shot for children under 5  “Pfizer and its German partner, BioNTech, on Wednesday finished submitting an application for regulatory authorization of a coronavirus vaccine for children younger than 5.”

DOJ asks federal appeals court to reverse order lifting travel mask mandate “The Justice Department asked a federal appeals court on Tuesday to overturn last month's court decision by a federal judge that declared the mandate requiring masks on airplanes and other public transportation unlawful.
In a 48-page document filed in the 11th U.S. Circuit Court of Appeals, the Justice Department argues that the order issued by the Centers for Disease Control and Prevention in early 2021 "falls easily within the CDC's statutory authority."

About health insurance

 Data Note: 2022 Medical Loss Ratio Rebates “Expected rebate amounts vary by market segment, with the majority going to individual market enrollees, including ACA Marketplace enrollees. Insurers in the individual market estimate they will issue $603 million in rebates, small group market insurers will issue $275 million in rebates, and large group market insurers will issue $168 million in rebates later this year.”

Optum's buying streak continues with acquisition of Healthcare Associates of Texas: report “Optum is still on an acquisition hot streak, scooping up Healthcare Associates of Texas, Axios reported Wednesday.
Sources told the news outlet that the purchase from Webster Equity Partners would earn HCAT a $300 million enterprise value and earnings before interest, taxes, depreciation and amortization in the high teens. UnitedHealth Group, Optum's parent company, has made overtures to purchase HCAT in the past, according to the report.”

Humana rebrands Kindred at Home as CenterWell in 14 more states “Humana is transitioning Kindred at Home to its CenterWell brand in 14 additional states, the insurer announced Wednesday.
The second phase of the transition brings the number of states where Kindred has made or begun the switch to 21, Humana said. Updating the branding is a key step in integrating Kindred at Home into Humana's broader healthcare services enterprise.”

About hospitals and healthcare systems

8 health systems opening hospitals FYI. Despite financial stresses, building continues.

Texas hospital will pay employees $10K to get healthcare degree “University Medical Center of El Paso (Texas) has launched two programs focused on retaining current employees.
Under the CARES Pursuing Upward Learning and Legacy program, the hospital will pay up to $5,000 per year for two years for an employee to get their degree in a hard-to-fill career field, such as nursing, respiratory or imaging…
Employees do not have to currently work in clinical areas to be considered for the program. However, they must be a full-time employee with at least one year of employment, according to a flier from the hospital. They also must apply for admission via an approved educational program and agree to stay at UMC four years after graduating from the program.”

 Butler Health, Excela Health will merge to scale operations in western PA “Butler Health System and Excela Health, two health systems based in western Pennsylvania, are planning to merge into a new health system serving the region, the organizations announced Wednesday. 
The systems hope to leverage the merger to scale and be more relevant in the region’s competitive marketplace. The new health system will support five hospitals including Butler, Clarion, Frick, Latrobe and Westmoreland. It is expected to generate more than $1 billion in revenue and employ about 7,300 people, including more than 1,000 clinicians. The total population served will be 750,000.”

About pharma

 Biogen, Samsung Bioepis launch first US biosimilar, a copycat of Roche's Lucentis, at 40% discount “Byooviz’s FDA approval covers Lucentis’ indications of wet age-related macular degeneration, macular edema following retinal vein occlusion and myopic choroidal neovascularization. The biosimilar currently isn’t allowed for diabetic macular edema or diabetic retinopathy because the dosing formulation is different…
Byooviz [has] list price of $1,130 per single-use vial, a 40% discount from Roche’s originator, according to the companies.”
However, even at that price, it is still more expensive than Avastin, which many ophthalmologists have been successfully using.

Regeneron pays Sanofi $900M for full rights to cancer drug Libtayo as it looks to become a force in oncology “In addition to that up-front payment, Sanofi will receive an 11% royalty on worldwide sales of Libtayo as well as $100 million in regulatory milestone payments and up to $100 million of sales-related milestone payments over the next two years. Regeneron expects the deal to be complete in the third quarter of this year.”

Astellas Subsidiary Xyphos and GO Therapeutics Ink Deal Worth More Than $763 Million “Under the agreement, the companies will select two novel antibodies using GO Therapeutics’ platform-based approach for targeting cancer-specific glycoproteins.
Xyphos will bring its CAR T-cell know-how to the collaboration. The company’s proprietary convertibleCAR technology creates cell therapies that can mobilize immune cells to find and destroy target tumor cells.”

Bristol Myers triples-down on Immatics, bringing deal to $4.2B total biobucks. Why not just buy it? “Bristol Myers Squibb is once again revising a massive research collaboration with immunotherapy drug discovery biotech Immatics. BMS is adding new deal with $60 million upfront and $700 million down the line for at least two new programs, plus expanding its prior arrangement.
That brings the total value of the collaborations to $4.2 billion in biobucks. The deal was originally signed in 2019 by Celgene before it was absorbed into BMS, and BMS again inked an agreement with Immatics in 2021…
The new agreement will involve Immatics’ gamma delta T cell-derived, allogeneic adoptive cell therapy platform, called ACTallo. The companies will develop multiple allogeneic, or so-called off-the-shelf, TCR-T and CAR-T programs.
Besides the initial two programs, BMS also has an option for up to four additional programs each. BMS will pay the upfront fee plus milestones and royalties.” 

About healthcare IT

 Oracle secures regulatory approvals for $28B Cerner takeover. Deal set to close next week “Software maker Oracle cleared the final regulatory hurdle for its pending $28.3 billion acquisition of Cerner, the companies announced Wednesday. The deal is set to close next week.
Oracle said it obtained the required antitrust approvals for the deal, including European Commission clearance. The company expects to complete the tender offer following the expiration of that offer at midnight Eastern time on June 6, the company said in a press release.” 

About healthcare quality

Aetna and HCSC join NCQA’s Digital Solutions Program for Quality Assurance “The National Committee for Quality Assurance has launched a Digital Quality Assurance Solutions Pilot Program in which health care plans, delivery systems, and health information technology companies can test and analyze to align quality measurements across the health care industry.
Aetna, Health Care Service Corporation, 1UpHealth, ApolloMed, Change Healthcare, and Centauri Health Solutions will participate in a six-month pilot project that will include workshops, product feature testing, and feedback sessions…
Participants will evaluate quality improvement and care management efforts and comment on the NCQA health performance dataset and information reports, in which health care systems align themselves to a standardized set of quality and safety metrics.”

Today's News and Commentary

Twelve propositions on the state of the world This article, by Martin Wolf of the Financial Times (FT), is an excellent overview on the “state of the world.” This link is only good for the first three readers who access it. It is well worth reading if you can get access to the FT.

20 best-managed healthcare companies “One healthcare company is among the top 10 best-managed businesses in the U.S., according to the annual ranking by the Drucker Institute.” That company is J&J. See the article for 19 others in the top 150.

About Covid-19

 Trends in Medical Debt During the COVID-19 Pandemic Perhaps contrary to common opinion: “We found no evidence of a net association between the COVID-19 pandemic and medical debt, overall or across areas with different incomes and pandemic severity. These results are consistent with any increase in medical debt being offset by decreases in elective medical procedures and new health care–related governmental policies.” 

About health insurance

 Moody's: Outlook stable for insurers even as Medicaid, ACA enrollment declines loom “Insurers can expect a stable credit outlook and low double-digit earnings growth this year after a strong first quarter, according to a forecast from Moody's Investors Service.
The analysts' report finds that the average growth in earnings before interest, taxes, depreciation and amortization (EBITDA) was 3.7% in the first quarter among seven major national payers. When excluding investment income and realized gains and losses, however, EBITDA was up 10.3% on average.
What was driving this performance? Strong enrollment growth in Medicare Advantage and Medicaid as well as improvements in the commercial book, analysts said.”

About hospitals and healthcare systems

 Highmark reports operating gain of $100M, net loss of $150M “Pittsburgh-based Highmark Health posted an operating gain of $100 million for the three months ended March 31, according to its financial results released May 31.
Highmark Health — which includes the eight-hospital Allegheny Health Network — reported $6.4 billion in revenue for the first quarter of 2022, according to a May 31 news release.The organization had a net loss of $150 million, which was driven by lower equity performance, Highmark said.
Allegheny Health Network reported a $67 million loss before interest, taxes, depreciation and amortization for the first quarter, largely due to high labor and supply chain costs. It had an operating loss of $100 million.”

About pharma

U.S. Consumers Overpay for Generic Drugs “Generics account for only a slice—about 18%—of overall U.S. retail prescription drug expenditures, which reached nearly $350 billion in 2020.5,6 Nonetheless, by one estimate, U.S. use of generic and biosimilar drugs in place of branded drugs in 2020 saved $338 billion, with 10-year estimated savings from generics of nearly $2.4 trillion.”
However: “An analysis by Schaeffer Center researchers, for example, found that Medicare Part D standalone drug plans paid $2.6 billion more in 2018 for 184 common generic medications compared with prices for the same drugs available to cash-paying Costco members…
A 2018 Schaeffer Center study found that commercially insured patients’ copayments for a generic prescription exceeded the total cost of the medicine more than a quarter of the time (28%), with an average overpayment of $7.32.24 Total overpayments in the commercial claims studied amounted to $10.51 per member per year. Known as a copayment “clawback,” the practice was abetted by “gag clauses” in PBM/ insurer contracts that prevented pharmacists from telling consumers they could save money by paying the cash price; Congress outlawed such gag clauses in 2018.25 However, PBM contracts commonly require pharmacies to give the PBM their lowest price when accepting reimbursement for a prescription. As a result, pharmacies are careful to set cash prices higher than their negotiated PBM rates. Without prohibition of such anticompetitive contract clauses, pharmacies will not offer competitive cash prices for fear of triggering these best-price clauses.”
The problems with patients filling their prescriptions at “cash” pharmacies is that coordination of care may suffer (no feedback about their filling/refilling prescriptions) and the amount of spending is not counted toward their deductibles and annual out of pocket maximums.
Read the article for thoughtful solutions to these problems.

Who needs Humira? AbbVie projected to be the top pharma company by sales in 2028: analysts “Reports of the demise of AbbVie—concurrent with the loss of exclusivity for its mega-blockbuster drug Humira—have been greatly exaggerated.  
At least that’s the consensus view of sell-side analysts polled by Evaluate Pharma, who predict that the Illinois-based pharma giant will generate more prescription sales than any company in the industry in 2028.
They see AbbVie's $65.7 billion in expected 2028 sales closely followed by Roche at $65 billion. Johnson & Johnson ($62.3 billion), Merck ($59.7 billion) and Pfizer ($57.1 billion) round out the top 5 in their projections.”

Pfizer to sell stake in GSK's consumer healthcare firm after spin-off “Pfizer plans to sell its stake in Haleon, the consumer healthcare company to be spun-out of GSK later this year, as it continues to increase its focus on medicines and vaccines. GSK said Wednesday that Pfizer ‘intends to exit its 32% ownership interest in Haleon in a disciplined manner, with the objective of maximising value for Pfizer shareholders.’”

World Health Organization Resolves to Improve Clinical Trials Globally “In an effort to prepare for future health emergencies, the World Health Organization (WHO) has adopted a resolution geared toward delivering higher quality data and improving the conduct and coordination of clinical trials around the world.”
Here is the full text of the resolution from the Seventy-fifth World Health Assembly last week.

About the public’s health

 Biden-Harris Administration Establishes HHS Office of Environmental Justice The “U.S. Department of Health and Human Services (HHS) is establishing an Office of Environmental Justice (OEJ) to better protect the health of disadvantaged communities and vulnerable populations on the frontlines of pollution and other environmental health issues. The new office will sit within the Office of Climate Change and Health Equity at HHS…
As the HHS-wide hub for environmental justice policy, programming, and analysis, the Office of Environmental Justice is tasked with:

  • Leading initiatives that integrate environmental justice into the HHS mission to improve health in disadvantaged communities and vulnerable populations across the nation.

  • Developing and implementing an HHS-wide strategy on environmental justice and health.

  • Coordinating annual HHS environmental justice reports.

  • Providing HHS’ Office of Civil Rights with environmental justice expertise to support compliance under Title VI of the Civil Rights Act of 1964.

  • Promoting training opportunities to build an environmental justice workforce.” 

WHO: Monkeypox won’t turn into pandemic, but many unknowns “The World Health Organization’s top monkeypox expert said she doesn’t expect the hundreds of cases reported to date to turn into another pandemic, but acknowledged there are still many unknowns about the disease, including how exactly it’s spreading and whether the suspension of mass smallpox immunization decades ago may somehow be speeding its transmission.”

Outcomes Following Taxation of Sugar-Sweetened Beverages: A Systematic Review and Meta-analysis Use of higher taxes on harmful items (like cigarettes) have consistently been the best way to reduce usage. This meta-analysis of sugar-sweetened beverages reconfirms this fact.
”In this systematic review of 86 studies and a meta-analysis of 62 studies, implemented SSB taxes were associated with higher prices of targeted beverages (tax pass-through of 82%) and 15% lower SSB sales, with a price elasticity of demand of −1.59. No negative changes in employment were identified.”

About healthcare IT

 VA now required to report performance, costs of troubled EHR system to Congress This article is a update on the long saga of the VA’s (less than successful and over-budget) implementation of its IT system. “The Department of Veterans Affairs (VA) will now have to submit regular reports to Congress about the performance of its new $16 billion medical records system, including incidents that risk patient safety, under new legislation headed to President Joe Biden's desk.
The Senate approved a bill (PDF) last week that aims to increase transparency surrounding the VA's electronic health record modernization (EHRM) program, a project that has been plagued with problems as it has been rolled out to three VA locations.
This legislation already passed the House of Representatives and will now go to the president to be signed into law.”

BD to patch cybersecurity risks found in drug dispensing, lab management tech “BD said it would issue software updates for two of its products after discovering separate privacy concerns and potential hacking risks in each.
The affected technologies are BD’s Pyxis systems for medication management and dispensing and its Synapsys workflow management software for clinical diagnostic labs. BD voluntarily reported each of the cybersecurity issues to the FDA and other relevant authorities, including the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, or CISA.”

About health technology

 Racial and Ethnic Discrepancy in Pulse Oximetry and Delayed Identification of Treatment Eligibility Among Patients With COVID-19 “Are there systematic racial and ethnic biases in pulse oximetry among patients with COVID-19, and is there an association between such biases and unrecognized or delayed recognition of eligibility for oxygen threshold–specific therapy?…
The study results suggest that overestimation of arterial oxygen saturation levels by pulse oximetry occurs in patients of racial and ethnic minority groups with COVID-19 and contributes to unrecognized or delayed recognition of eligibility to receive COVID-19 therapies.”

NZ-based AI firm launches tool to assess heart risk through retinal scans in U.S.Toku Eyes, a New Zealand-based healthcare AI company, is launching its tool that assesses heart risk through a retinal scan in the U.S.
The tool, called ORAiCLE, uses an AI platform to identify cardiovascular threats more accurately than existing risk calculators, the company claims. The platform recognizes subtle changes in aspects like blood vessels and pigmentation to identify a person’s risk of a stroke or heart attack in the next five years…
Since using a retinal camera and the AI software requires minimal training, it is more cost-effective and accessible, the company argues. The AI platform uses an image of the back of the eye to do its assessment. It then provides personalized health guidance or recommends a specialist referral. The company says the technology also works accurately with low-resolution images.
 ORAiCLE is being released as a wellness device and therefore does not require FDA clearance…”

Today's News and Commentary

HHS Secretary Becerra Establishes ARPA-H within NIH, Names Adam H. Russell, D.Phil. Acting Deputy Director “Health and Human Services Secretary Xavier Becerra… announced the formal establishment of the Advanced Research Project Agency for Health (ARPA-H) as an independent entity within the National Institutes of Health and the appointment of Adam H. Russell, D.Phil., as acting deputy director…
With broad technical and management experience across several disciplines, ranging from cognitive neuroscience and physiology to cultural psychology and social anthropology, Dr. Russell will guide the early stages of building the administrative structure of the agency and oversee the hiring of initial operational staff to ensure the agency is stood up as effectively and efficiently as possible. President Biden will appoint an ARPA-H Director who will be responsible for administration and operation of ARPA-H and will report to the HHS Secretary.”

About Covid-19

 As summer begins, US COVID-19 cases six times higher than last year “As the US marks Memorial Day weekend and the unofficial start of summer, the seven-day average for COVID-19 cases in the U.S. are more than six times what they were a year ago. 
The Johns Hopkins Coronavirus Resource Center showed a seven-day average of 119,725 cases as of Saturday. That figure held at 17,887 cases on May 28 of last year…
The seven-day average of 470 deaths reported on Friday marked a decrease from 637 on the same day last year.”

About health insurance

 Medicare recipients to see premium cut — but not until 2023 “Medicare recipients will get a premium reduction — but not until next year — reflecting what Health and Human Services Secretary Xavier Becerra said Friday was an overestimate in costs of covering an expensive and controversial new Alzheimer’s drug.
Becerra’s statement said the 2022 premium should be adjusted downward but legal and operational hurdles prevented officials from doing that in the middle of the year. He did not say how much the premium would be adjusted.”

About hospitals and healthcare systems

 National Hospital Flash Report: May 2022  Among the highlights:
—”The median Kaufman Hall Year-To-Date (YTD) Operating Margin Index reflecting actual margins was -3.09% through April.
The median change in Operating Margin was down 38.1% from last month and 76% from April 2021…
—Patient Days were down 5.7% month-over-month and 1.8% compared to April 2021. Adjusted Patient Days dropped 6.5% from March to April but were up 1.8% compared to April 2021…
—Volume lags resulted in poor revenue performance in April. Gross Operating Revenue was down 7% from March and Outpatient (OP) Revenue dropped 7% from March levels. However, Gross Operating Revenue is up 6.6% YTD, while OP Revenue is up 8.5% YTD. Similarly, Inpatient Revenue dropped 7.1% from the previous month and is up 5.3% this year…
—Total Expenses remained high in April, dropping only 4.3% from March. Expenses have continued to rise compared to 2020 and are well above pre-pandemic levels. As labor shortages and supply chain challenges continued, Total Expenses grew by 8.3% YOY and 9.6% YTD…
—The emergency department is no longer the hospital’s front door.
More patients are seeking care outside of the hospital, choosing urgent care centers, telemedicine, and even primary care providers instead of the emergency department…
—Patients are sicker and more expensive to treat.”

About pharma

 The FDA is busy busting up drug counterfeiting rings—but is it doing enough to protect patients? “The FDA’s Office of Criminal Investigations staged 130 counterfeit drug busting operations between 2016 and 2021, according to a new report published in the journal Annals of Pharmacotherapy. But one expert says all of those operations ‘barely scratch the surface’ of the problem and that serious safety risks remain…
All told, about 65% of the FDA’s enforcement actions centered on phony products sold over the internet. In about 85% of the FDA’s operations, patients could obtain the counterfeit drugs—often controlled substances like opioids, stimulants and benzodiazepines—without a prescription…”

The top 20 drugs by worldwide sales in 2021 FYI. No surprise, #1 is Comirnaty (Pfizer/BioNTech’s Covid 19 vaccine). #2 is Humira.

Amgen's Neulasta faces more competition as FDA okays another biosimilar “Amneal Pharmaceuticals announced Friday that the FDA approved Fylnetra (pegfilgrastim-pbbk), its biosilimar version of Amgen's Neulasta. In recent years, the US regulator has cleared several biosimilar competitors to Neulasta, which is used to reduce the incidence of infection associated with febrile neutropenia in patients undergoing chemotherapy.”
Each new biosimilar lowers the market charges for that drug, so any new approvals are very welcome.

GSK expands vaccine portfolio with $3.3-billion deal for Affinivax “GSK announced Tuesday a definitive agreement to acquire Affinivax for up to $3.3 billion, including an upfront payment of $2.1 billion, boosting its vaccine portfolio against pneumococcal disease. Hal Barron, GSK's chief scientific officer, said the deal ‘further strengthens our vaccines R&D pipeline, provides access to a new, potentially disruptive technology, and broadens [our] existing scientific footprint in the Boston area.’
According to GSK, Affinivax's Multiple Antigen-Presenting System (MAPS) technology ‘supports higher valency than conventional conjugation technologies, enabling broader coverage…and potentially creating higher immunogenicity than current vaccines.’ The company's lead vaccine candidate AFX3772 includes 24 pneumococcal polysaccharides plus two conserved pneumococcal proteins, while a 30-plus valent pneumococcal candidate vaccine is also in preclinical development.”

FDA Grants Fast-Track Label to Pfizer’s Combination Therapy for NASH “The FDA has handed Fast-Track designation to Pfizer’s investigational combination therapy ervogastat and clesacostat for the treatment of nonalcoholic steatohepatitis (NASH), a progressive form of nonalcoholic fatty liver disease.
The agency’s decision is based on study results showing that the ervogastat and clesacostat treatment combination led to a reduction of liver fat along with a favorable tolerability and safety profile.”

About the public’s health

 Daily E-cigarette Use and the Surge in JUUL Sales: 2017–2019 “Among baseline nondaily tobacco users, only those aged 14 to 17 years had an increase in the 2-year incidence of new daily tobacco use (2014 cohort = 4.8%, 95% confidence interval 4.3, 5.5 vs 2017 cohort = 6.3%, 95% confidence interval 5.8–7.0) to rates approaching those in the 1990s. In 2019, three-quarters of new daily tobacco users aged 14 to 17 vaped daily and had e-cigarette dependence scores similar to daily cigarette smokers and older adult e-cigarette vapers. We estimate that about 600 000 Americans aged <21 years used JUUL products daily in 2019, a rate 2.5 times those aged 25 to 34 years.”

FDA investigating hepatitis A outbreak possibly linked to fresh strawberries “The FDA with the US Centers for Disease Control and Prevention, the Public Health Agency of Canada, the Canadian Food Inspection Agency and state and local partners, said the strawberries were branded as FreshKampo and HEB and purchased between March 5 and April 25.
They were distributed nationwide and sold at a number of retailers including Aldi, HEB, Kroger, Safeway, Sprouts Farmers Market, Trader Joe's, Walmart, Weis Markets and WinCo Foods.”

Association of Sugar-Sweetened, Artificially Sweetened, and Unsweetened Coffee Consumption With All-Cause and Cause-Specific Mortality “Moderate consumption of unsweetened and sugar-sweetened coffee was associated with lower risk for death.”
An accompanying editorial comments: “Unfortunately, Liu and colleagues' study does not quite get at what we really want to know. Is drinking coffee laden with sugar and calories still potentially beneficial, or at least not harmful? The coffee consumption data used in their study reflected consumption from approximately 10 years ago in a country [UK] where tea is a competing beverage. The average dose of added sugar per cup of sweetened coffee was only a little over a teaspoon, or about 4 grams. This is a far cry from the 15 grams of sugar in an 8-ounce cup of caramel macchiato at a popular U.S. coffee chain. Nonetheless, Liu and colleagues' data are reassuring in demonstrating that most study participants who drank coffee added no or only small amounts of sugar and this pattern of intake was not harmful from a mortality risk perspective and was potentially beneficial.”

Top-RatedHealthcare: The US States with the Best HealthcareWe ranked all 50 states based on five factors: % of “A” Grade Hospitals (patient safety), number of honor roll hospitals, number of hospitals in America’s top 50, hospitals per million people and staffed hospital beds per million people. These factors combined give each state a healthcare rank you can use as a guide to where you can find the best level of healthcare in the US.”
See if you agree with the rankings. For example, this methodology ranks Hawaii #47- very much lower than many other “lists.”

Austin pushing to effectively decriminalize abortion ahead of ruling on Roe “The city of Austin is attempting to shield its residents from prosecution under a Texas law that would criminalize almost all abortions if Roe v. Wade is overturned — the first push by a major city in a red state to try to circumvent state abortion policy.
Councilmember Chito Vela is proposing a resolution that would direct the city’s police department to make criminal enforcement, arrest and investigation of abortions its lowest priority and restrict city funds and city staff from being used to investigate, catalogue or report suspected abortions.”

About health technology

 Medtronic, DaVita to form new kidney care company “According to a news release, the new company will bring together Medtronic’s capabilities as a healthcare technology leader and DaVita’s expertise as a comprehensive kidney care provider. The new company will focus on developing a wide range of novel kidney care products and solutions, including future home-based products to make different dialysis treatments more accessible.”

Today's News and Commentary

This week is the American Society of Clinical Oncology (ASCO) 2022 Meeting. Here is a link to the abstracts.

HHS withdraws controversial Trump-era sunset rule that required review of all regulations “The Department of Health and Human Services (HHS) has withdrawn a controversial Trump-era rule that would have required the agency to do a massive review of its existing regulations. 
HHS issued a final rule Thursday that would get rid of the sunset rule passed at the tail end of the Trump administration. The agency said the rule’s requirements for reviewing existing agency regulations to keep them up to date created major burdens on staff and the industry.”

About Covid-19

 CDC Plans to Stop Reporting Suspected Covid Cases to Ease Burden “The Centers for Disease Control and Prevention plans to simplify the Covid-19 hospital data it collects as the demands of the pandemic evolve and some assembled information has become outdated or redundant. 
The agency is likely to stop collecting data from hospitals on suspected Covid cases that haven’t been confirmed by tests, for example, and may also wind down federal reporting from rehabilitation and mental health facilities that aren’t major intake points for virus cases, according to a draft of the plan that was viewed by Bloomberg News.”
On the other hand: CMS turning attention to hospitals with Covid outbreaks “The Centers for Medicare and Medicaid Services is probing hospitals where a high rate of patients have gotten Covid-19 infections after cases spiked to record highs this year.
Jon Blum, the agency’s principal deputy administrator and chief operating officer, told POLITICO on Wednesday that the regulator is focusing on facilities with Covid outbreaks, taking into account patient and health workers’ safety complaints, a change from the agency’s “less rigorous” process early in the pandemic.”

COVID-19 vaccine effectiveness in patients with cancer: remaining vulnerabilities and uncertainties “Vaccine effectiveness was compared between a cohort of patients with cancer and a control cohort of participants without cancer. Although initially similar between the cohorts, vaccine effectiveness waned more rapidly in the cancer cohort, falling to 47·0% (95% CI 46·3–47·6) at 3–6 months, than in the control cohort, in which it decreased to 61·4% (61·4–61·5). Waning of vaccine effectiveness was greatest in patients with leukaemia or lymphoma or a recent cancer diagnosis and in those who had received systemic anticancer therapy or radiotherapy within the preceding 12 months. A post-hoc analysis estimated that vaccine effectiveness was 74·6% (72·8–76·3) against COVID-19-related hospitalisation and 90·3% (89·3–91·2) against COVID-19-related death at 3–6 months after the second dose in the cancer cohort; other studies have reported a more severe disease course and higher mortality associated with SARS-CoV-2 breakthrough infections in patients with cancer versus those without.”

About health insurance

 More in the news about the effects of termination of ACA plan subsidies. Today’s The Washington Post has a great summary of the issues and impact. The other side of the coin is this study: What Will Happen to Healthcare Spending if the American Rescue Plan Act Premium Tax Credits Expire?  “Key Findings:

  • Hospital spending would decline by $3.8 billion.

  • Prescription drug spending would decline by $3.4 billion.

  • Spending on services provided outside of hospitals and physician offices would decline by $2.8 billion.

  • Spending on physician practice services would decline by $1.3 billion.

  • Florida, Georgia, North Carolina, South Carolina, and Texas would experience the largest decline in total healthcare spending, ranging from 1.3% to 1.9%.”

About hospitals and healthcare systems

 UPMC's big losses in Q1: 6 things to know These issues are common to many hospitals. “The provider-payer cited the effect of COVID-19 and the most recent surge, along with labor conditions and supply markets as the reason for increased employment, staffing and operating expenses that have exceeded growth in revenue.” Also, the financial market dip had an effect: “The system lost $242 million in the first quarter from investing and financing activities. In the first quarter of 2021, the company made $326 million from investing and financing activities.”

Cleveland Clinic reports $282M quarterly loss “‘Operating revenues in the first quarter of 2022 were impacted by lower patients served, partially due to the postponement of nonessential surgeries and procedures during the month of January,’ the system said in an earnings release…
Cleveland Clinic reported expenses of $2.96 billion in the first quarter of this year, up from $2.56 billion in the same quarter of 2021. The system saw expenses rise across all categories, including supplies and salaries, wages and benefits.”

About the public’s health

Association of Inappropriate Outpatient Pediatric Antibiotic Prescriptions With Adverse Drug Events and Health Care Expenditures “The cohort included 2 804 245 eligible children… Overall, 31% to 36% received inappropriate antibiotics for bacterial infections and 4% to 70% for viral infections. Inappropriate antibiotics were associated with increased risk of several adverse drug events, including Clostridioides difficile infection and severe allergic reaction among children treated with a nonrecommended antibiotic agent for a bacterial infection… Thirty-day attributable health care expenditures were generally higher among children who received inappropriate antibiotics, ranging from $21 to $56 for bacterial infections and from −$96 to $97 for viral infections. National annual attributable expenditure estimates were highest for suppurative OM ($25.3 million), pharyngitis ($21.3 million), and viral URI ($19.1 million).”

Massachusetts General vaccinating employees against monkeypox “Boston-based Massachusetts General Hospital this week began vaccinating some employees against monkeypox who were in close contact with a patient diagnosed with the virus…
Previously, the Jynneos monkeypox vaccine had been used in the U.S. only in clinical trials, Brett Petersen, MD, deputy chief of the CDC's Poxvirus branch, confirmed to the newspaper. 
The workers were in close contact with the male patient, who was hospitalized at Massachusetts General Hospital from May 12-20.”
And in a related article: FDA Approves IV Form of TPOXX for Smallpox “The FDA has approved SIGA Technologies’ intravenous formulation of TPOXX (tecovirimat) for the treatment of smallpox.
The agency previously approved TPOXX in oral form in July 2018 as the first drug indicated for treatment of smallpox. But the new approval gives an option for those who are unable to swallow oral capsules of the drug, the company said…
SIGA said the drug could also be used in the treatment of monkeypox…”

Associations of Clinical and Social Risk Factors With Racial Differences in Premature Cardiovascular DiseaseAmong 2785 Black and 2327 White participants followed for a median 33.9 years (25th–75th percentile, 33.7–34.0), Black (versus White) adults had a higher risk of incident premature CVD (Black women: HR, 2.44 [95% CI, 1.71–3.49], Black men: HR, 1.59 [1.20–2.10] adjusted for age and center). Racial differences were not statistically significant after full adjustment (Black women: HR, 0.91 [0.55–1.52], Black men: HR 1.02 [0.70–1.49]). In women, the largest magnitude percent reduction in the β estimate for race occurred with adjustment for clinical (87%), neighborhood (32%), and socioeconomic (23%) factors. In men, the largest magnitude percent reduction in the β estimate for race occurred with an adjustment for clinical (64%), socioeconomic (50%), and lifestyle (34%) factors.”

Black Patients Often Never Given a Chance to Join Breast Cancer Trials “Among more than 400 respondents surveyed, 40% of Black patients said they were not told about the possibility of enrolling in a clinical trial versus 33% of patients who identified as being of another race or ethnicity, reported Stephanie Walker, RN, of the Metastatic Breast Cancer Alliance in New York City.
But 92% of Black respondents said they were interested in learning about trials, and 83% said they were either "somewhat or very likely" to consider enrolling, she said during a press briefing ahead of the American Society of Clinical Oncology (ASCO) annual meeting.
Walker noted that roughly 15% of breast cancer patients in the U.S. are Black, and these patients carry the highest mortality rates, yet Black patients make up only 4-6% of trial participants.
The survey identified several barriers to trial participation that if addressed could bolster enrollment, said Walker, including concerns over treatments, trust issues, and worry over potential costs.”

Comparison of Cancer-Related Spending and Mortality Rates in the US vs 21 High-Income Countries “In this cross-sectional study of 22 countries, the median cancer mortality rate was 91.4 per 100 000 population… The US cancer mortality rate was higher than that of 6 other countries (86.3 per 100 000). Median per capita spending in USD for cancer care was $296 (IQR, $222-$348), with the US spending more than any other country ($584). After adjusting for smoking, 9 countries had lower cancer care expenditures and lower mortality rates than the US. Of the remaining 12 countries, the US additionally spent more than $5 million per averted death relative to 4 countries, and between $1 and $5 million per averted death relative to 8 countries. Cancer care expenditures were not associated with cancer mortality rates, with or without adjustment for smoking…”

About healthcare IT

 CVS Health to launch new virtual primary care solution on single digital platform “The new offering, which is being sold to Aetna fully-insured, self-insured plan sponsors, and CVS Caremark clients now, will become effective for eligible Aetna members starting January 1, 2023, and for eligible CVS Caremark members during the second quarter of 2023. It complements Aetna’s virtual care strategy currently in market…
 CVS Health Virtual Primary Care will give members access to primary care, on-demand care, chronic condition management, and mental health services virtually, with the option of being seen in-person when needed at an in-network provider, including MinuteClinic. The virtual primary care provider can also help members identify appropriate in-network specialists and other in-network health service providers, if necessary.”

 About healthcare quality and safety

CMS Proposes to Suppress The Data on 25,000 Preventable Hospital Deaths Last Year. We Say No.  From The Leapfrog Group: “The data targeted for suppression includes rates of serious complications from surgery like sepsis and kidney harm, along with preventable complications from medical care such as deep bed sores, lung collapse, and blood clots…
Just two months ago, leaders at CMS and the Centers for Disease Control and Prevention (CDC) reported that since 2020, federal data shows a significant increase in the number of common hospital infections and patient safety mistakes occurring during the pandemic. These federal officials have the data, but now want to suppress much of it from the American public.”

Today's News and Commentary

About Covid-19

Biden Administration Announces Launch of First Federally-Supported Test to Treat Site “Today, Rhode Island will officially launch the nation’s first federally-supported Test-to-Treat site at a clinic in Providence. Federal reimbursement will now allow individuals who test positive for COVID-19 at the clinic to immediately receive an assessment from a medical provider and get oral antiviral treatments—if prescribed—all in one convenient location that serves some of the state’s highest-risk and hardest-hit populations. The clinic also currently offers vaccination, meaning that federal support will help enhance this site into being a true one-stop shop for individuals to protect themselves and their communities from COVID-19…
The Administration will open federally-supported Test-to-Treat sites in New York and Illinois in the coming weeks, and is working with other regions like Massachusetts and New York City to enhance existing state-led efforts to increase access to oral antivirals like Paxlovid.”

 Vaccines offer little protection against long Covid, study finds “The Covid vaccines, while holding up strong against hospitalization and death, offer little protection against long Covid, according to research published Wednesday in the journal Nature Medicine
Compared to an unvaccinated individual, the risk of long Covid in a fully vaccinated individual was cut by only about 15 percent, the study found.”
To put the findings into perspective: Vaccination significantly reduces the chance of getting Covid-19 infection. If you are infected, vaccination also significantly reduces the chance you will get a serious illness or die. But if you do get a Covid-19 infection, previous vaccination reduces your chances of getting “long Covid” by 15%.

About health insurance

 CMS extends annual postpartum Medicaid, CHIP coverage to 4 states “The Biden administration has approved four states—Florida, California, Oregon and Kentucky—to expand Medicaid and Children’s Health Insurance Program (CHIP) coverage to up to a year postpartum. 
The announcement on Wednesday brings the final number of states choosing to expand postpartum Medicaid coverage to seven overall.”

Normalizing Utilization and Pivot to Value-Based Care Delivery Models Present Opportunities for Employer-Sponsored Health Plans, J.D. Power Finds “Following are key findings of the 2022 study:

  • Overall satisfaction flat year over year: Overall satisfaction has increased 17 points (on a 1,000-point scale) during the past five years, but there is no change in 2022 from 2021, due in part to declines in satisfaction in customer service and dissatisfaction with coverage options and desired network providers.

  • Responsiveness and innovation drive higher satisfaction: The average overall satisfaction score among members who describe their health plan as being “responsive” is 847, which is 346 points higher than among those who describe their health plan as being “slow.” Similarly, the satisfaction performance gap between plans that are perceived as “innovative” (873) and those perceived as “conventional” (604) is 269 points.

  • Call center talent in crosshairs: Customer service call center performance among health plans declines overall in several metrics; including an index score decline of 5 points year over year (791 from 796). Members indicate putting more effort into calls handled by a customer service representative, citing examples of having to repeat information and not having their questions, requests or problems resolved in a timely manner. Phone hold times have increased an average of 52 seconds, or 15% year over year, while knowledge and clarity of information provided has declined.

  • Opportunities continue to leverage digital solutions and tools to improve care delivery: Although engagement activity has remained relatively consistent, members have declining satisfaction with text messaging support (-14 points), website (-6) and mobile app (-6). Consistent with this finding, just 22% of members describe their health plan as being “innovative,” a number that has not changed in the past three years.”

About pharma

 Importation of Prescription Drugs Final Rule  This FDA document provides guidance only for importation of drugs from Canada.
”Essentially, eligible prescription drugs are those that could be sold legally on either the Canadian market or the American market with appropriate labeling.
The final rule excludes certain types of drug products from eligibility: controlled substances, biological products, infused drugs (including peritoneal dialysis solutions), drugs that are inhaled during surgery, drugs that are injected intravenously (into a vein), intrathecally (into the spinal fluid), or intraocularly (into the eye), drugs that are subject to a risk evaluation and mitigation strategy (REMS), and drugs that are not subject to certain provisions of the Drug Supply Chain Security Act. For a drug product not excluded by the final rule, FDA will determine whether the product can be imported safely in the context of a specific SIP [Section 804 Importation Program] on a product-by-product basis.”  

About the public’s health

 Oklahoma governor signs the nation's strictest abortion ban “Oklahoma Gov. Kevin Stitt on Wednesday signed into law the nation's strictest abortion ban, making the state the first in the nation to effectively end availability of the procedure.
State lawmakers approved the ban enforced by civil lawsuits rather than criminal prosecution, similar to a Texas law that was passed last year. The law takes effect immediately upon Stitt's signature and prohibits all abortions with few exceptions. Abortion providers have said they will stop performing the procedure as soon as the bill is signed.”

About healthcare IT

 Anthem Looks to Fuel AI Efforts With Petabytes of Synthetic Data “Anthem Inc.’s chief information officer says he is working with Alphabet Inc.’s Google Cloud to create a synthetic data platform that will let the health insurance company better detect fraud and offer personalized care to its members.
Anil Bhatt said the plan is to use algorithms and statistical models to generate approximately 1.5 to 2 petabytes of synthetic data, including artificially generated data sets of medical histories, healthcare claims and other key medical data, created in partnership with Google Cloud.”

About healthcare personnel

 PROVIDER PAY AND THE DEMIC: REALIZING RECOVERY From the MGMA: “Primary care, surgical specialist, and nonsurgical specialist physician compensation, as well as advanced practice provider (APP) compensation, increased from 2020 to 2021. In particular:

—The area with the biggest percentage decline in median total compensation in the first year of the pandemic — nonsurgical specialist physicians — saw a 3.12% increase from 2020 and a 1.79% increase over 2019’s level.
—Surgical specialist physicians, who had the second-largest drop in compensation from 2019 to 2020, rebounded with a nearly 4% increase from 2020 to 2021, as median total compensation reached $517,501 last year.
—Primary care physicians saw compensation gains slightly behind those seen in 2020, with median total compensation reaching $286,525 in 2021…

With the first quarter of 2022 in the books, medical groups are signaling some optimism, with 85% reporting their year-to-date visit volumes are at or above 2021 levels.”

Today's News and Commentary

Doctors have joined the chorus for more gun restrictions Condolences to the families and friends of the Robb Elementary School victims. Today’s “The Health 202” in The Washington Post has an excellent summery of recent gun control efforts.
Rhetorical question: Why is it that the Republican party opposes gun control legislation and at the same time it claims to be be an advocate of the pro-life agenda?

About Covid-19

 US has a new dominant COVID-19 strain “A highly contagious sublineage of the BA.2 omicron subvariant is now the nation's dominant strain, according to the CDC's latest variant proportion estimates. 
The sublineage, BA.2.12.1, accounted for 57.9 percent of all U.S. COVID-19 cases in the week ending May 21, CDC data shows. BA.2, which became the nation's dominant strain in mid-March, now accounts for an estimated 39.1 percent of all cases.
BA.2.12.1 is estimated to have a 25 percent growth advantage over BA.2, which is already more transmissible than the original omicron strain.”

Post–COVID Conditions Among Adult COVID-19 Survivors Aged 18–64 and ≥65 Years — United States, March 2020–November 2021 “COVID-19 survivors have twice the risk for developing pulmonary embolism or respiratory conditions; one in five COVID-19 survivors aged 18–64 years and one in four survivors aged ≥65 years experienced at least one incident condition that might be attributable to previous COVID-19.
What are the implications for public health practice?
Implementation of COVID-19 prevention strategies, as well as routine assessment for post-COVID conditions among persons who survive COVID-19, is critical to reducing the incidence and impact of post-COVID conditions, particularly among adults aged ≥65 years.”

About health insurance

SCOTUS should stay out of False Claims Act dispute, says DOJ “The U.S. Supreme Court should not use a whistleblower’s complaint against a for-profit hospice provider to clarify the level of detail required to plead Medicare fraud under the False Claims Act, the Justice Department’s top lawyer has told the court.
U.S. Solicitor General Elizabeth Prelogar said no further clarification of the standard is necessary because there is no true circuit split…”

 New Study: No Surprises Act [NSA] Prevented Over Two Million Potential Surprise Bills for Insured Americans “AHIP and Blue Cross Blue Shield Association (BCBSA) released a survey and analysis which found that in the first two months of 2022, the NSA prevented more than two million potential surprise medical bills across all commercially insured patients. The analysis also found that should this trend hold, more than 12 million surprise bills will be avoided in 2022.”

Measuring progress in improving prior authorization[PA] Highlights from an AMA survey:
— “A strong majority (84% and 84%, respectively) of physicians report that the number of PAs required for prescription medications and medical services has increased over the last five years…
—A majority (65% and 62%, respectively) of physicians report that it is difficult to determine whether a prescription medication or medical service requires PA…
—An overwhelming majority (88%) of physicians report that PA interferes with continuity of care.”

Disparities in Health Care Use Among Low-Salary and High-Salary Employees “In this study, we found that lower-salary employees enrolled in an HDHP with an HSA through their employer spent significantly less on outpatient services and prescription fills compared with higher-salary employees. At the same time, low-salary employees spent significantly more on ED care. These results suggest that low-salary employees may be forgoing outpatient services and instead spending more in the ED compared with higher-salary employees when HDHPs are present. This pattern of health care utilization may lead to delayed diagnosis of health conditions and potentially miss the window and benefits of early diagnosis or prevention.”

8 recent payer mergers and acquisitions A good summary of recent activities.

New York attorney general $13.6M to consumers denied mental healthcare coverage by UnitedHealthcare “New York and federal law requires mental health and substance use disorder parity under all health plans. [Attorney general] James sued UnitedHealthcare under those laws, claiming two practices by the company violated behavioral health parity laws by improperly restricting coverage of psychotherapy. According to Ms. James, UnitedHealthcare had reduced reimbursement to members for psychotherapy and set arbitrary thresholds to trigger reviews of psychotherapy treatments, often leading to denials of coverage.”

About hospitals and healthcare systems

 Financial updates from 16 health systems  A good summary and links to individual results. Many systems had increased revenues but decreased operating margins- due to increased personnel and supply costs.

 Advocate Aurora hit with class action alleging anticompetitive behavior in eastern Wisconsin “Advocate Aurora Health has been hit with a class-action antitrust lawsuit alleging the system has used its market strength in eastern Wisconsin to suppress competition and drive ‘unreasonably high prices.’
Filed Tuesday, the case was brought by Uriel Pharmacy, based in Wisconsin, and its self-funded health plan…
Among the anticompetitive strategies plaintiffs alleged the large nonprofit employed were “all-or-nothing” clauses that require commercial health plans to include all Advocate Aurora facilities in their networks.
Advocate Aurora ‘aggressively’ blocks employers and payers from directing patients to competing facilities, according to the complaint, and ‘has gone to extraordinary lengths to suppress innovative insurance products, such as tiered plans, that would reduce costs for employers.’”
For example: “A colonoscopy with biopsy at Advocate Aurora Health would run employer health plans $10,700 compared to roughly $4,700 at Froedtert & the Medical College of Wisconsin, ‘a facility that is about 15 minutes away and has generally higher quality and safety ratings,’ plaintiffs wrote in a complaint filed Tuesday.”

Top critical access hospitals announced “The 20 highest-ranked critical access hospitals (CAHs) in the country, as determined by the Chartis Center for Rural Health, were recently announced by the National Rural Health Association (NRHA)…
The determining factors for the top 20 CAHs are based on the results of the Chartis Rural Hospital Performance INDEX and its eight indices of performance: inpatient market share, outpatient market share, quality, outcomes, patient perspective, cost, charge, and finance.”

About pharma

Pfizer to provide all patented drugs, vaccines to poor countries on no-profit basis “Pfizer announced Wednesday that it will provide all of its current and future patent-protected medicines and vaccines that are available in the US or Europe on a not-for-profit basis to 45 lower-income countries. The company noted that Rwanda, Ghana, Malawi, Senegal and Uganda have committed to join the programme and will help identify and resolve hurdles to inform the roll out in other countries.”

CVS Will Stop Filling Controlled-Substance Prescriptions for Cerebral, Done “CVS’s move is the most sweeping action by a major pharmacy chain on prescriptions by the telehealth companies in the wake of scrutiny of their prescription practices for attention-deficit hyperactivity disorder medication. Concern over those practices has also prompted an investigation by federal prosecutors, who subpoenaed Cerebral earlier this month and led Cerebral last week to replace its chief executive.
Cerebral and Done between them treat tens of thousands of patients for ADHD, prescribing stimulants such as Adderall.”

 FDA Approves Dermavant’s VTAMA® (tapinarof) cream, 1% for the Treatment of Plaque Psoriasis in Adults: First Topical Novel Chemical Entity Launched for Psoriasis in the U.S. in 25 Years  The headline is the story.

 Teva, Allergan Strike $161M Deal With W.Va. AG In Opioid Case The headline is the story.

About the public’s health

 E-Cigarette use costs US $15 billion per year, reports UCSF in first study of its kind “Use of electronic cigarettes costs the United States $15 billion annually in health care expenditures — more than $2,000 per person a year — according to a study by researchers at the UC San Francisco School of Nursing. 
The study, published on May 23, 2022 in Tobacco Control, is the first to look at the health care costs of e-cigarette use among adults 18 and older.”
And in a related story: Use Patterns, Flavors, Brands, and Ingredients of Nonnicotine e-Cigarettes Among Adolescents, Young Adults, and Adults in the United States “This cross-sectional study of 6131 US residents aged 13 to 40 years found that 25.9% had ever used a nonnicotine e-cigarette, 16.7% had used one in the past 30 days, and 12.4% had used one in the past 7 days; 18.8% had ever co-used nonnicotine and nicotine e-cigarettes. The most-used flavors were sweet, dessert, or candy flavors; fruit flavors; and mint or menthol flavors; most common ingredients were tetrahydrocannabinol, cannabidiol, melatonin, caffeine, and essential oils.
Meaning  These findings suggest that a significant proportion of US residents are using nonnicotine flavored e-cigarettes marketed with unsupported health claims, which warrants further research, regulation, and prevention.”

Tedros Adhanom Ghebreyesus re-elected as director-general of World Health Organization The
re-election extends his tenure for another five years.

About healthcare IT

 CISA Adds 20 Known Exploited Vulnerabilities to Catalog “CISA has added 20 new vulnerabilities to its Known Exploited Vulnerabilities Catalog, based on evidence of active exploitation. These types of vulnerabilities are a frequent attack vector for malicious cyber actors and pose significant risk to the federal enterprise.”

Why Isn’t New Technology Making Us More Productive? “The growth in productivity since the pandemic hit now stands at about 1 percent annually, in line with the meager rate since 2010 — and far below the last stretch of robust improvement, from 1996 to 2004, when productivity grew more than 3 percent a year…
Seemingly small percentage gains in productivity can make a big difference in a country’s wealth and living standards over time. Even an additional 1 percent annual increase in productivity over a few years, to 2024, would generate an extra $3,500 in per-capita income for Americans, McKinsey & Company estimated in a report last year. The 3.8 percent average annual gain from 1948 to 1972 was the engine of the nation’s postwar prosperity.”
The article has many good examples, including Anthem (Elevance Health).

2022 ANNUAL CONSUMER SENTIMENT BENCHMARK REPORT Lots of good information in this report, ranging from patient: 1)satisfaction about transparency to 2) trust in healthcare professionals and institutions to 3)sources of trusted information and more.

Today's News and Commentary

About Covid-19

 Evolution of neurologic symptoms in non-hospitalized COVID-19 “long haulers” Of the 52 patients completing this study: “Non-hospitalized COVID-19 ‘long haulers’ continue to experience neurologic symptoms, fatigue, and compromised quality of life 14.8 months after initial infection.”

As reports of ‘Paxlovid rebound’ increase, Covid researchers scramble for answers “Almost 90% effective at preventing hospitalizations from Covid-19, Pfizer’s antiviral pill has quickly become one of the most powerful additions to the pandemic arsenal since the advent of mRNA vaccines. But as it’s become more widely available, a growing number of people have found the drug only temporarily effective…
Already, there’s been debate over how to address a rebound. Pfizer’s CEO, Albert Bourla, has suggested that patients who experience one take another course of the drug, while the Food and Drug Administration has put out guidance telling physicians the opposite. On Tuesday morning, the Centers for Disease Control and Prevention issued its first official guidance, reiterating the FDA’s advice against re-treatment and telling rebounding patients to isolate for at least five days and mask for at least 10, as the agency currently advises for new infections.”

About health insurance

 Independence at Home Demonstration Performance Year 7 Results “The IAH Demonstration tests a payment incentive and service delivery model for home-based primary care for Medicare fee-for-service (FFS) beneficiaries with multiple chronic illnesses. The Demonstration tests whether home-based primary care that is designed to provide comprehensive, coordinated, continuous, and accessible care to high-need patients and to coordinate health care across all treatment settings reduces preventable hospitalizations, readmissions, and emergency department visits; improves health outcomes commensurate with beneficiaries’ stage of chronic illness; improves the efficiency of care; reduces the cost of health care services; and achieves beneficiary and family caregiver satisfaction…
In Performance Year 7 of the Demonstration (January 1, 2020 – December 31, 2020), the Centers for Medicare & Medicaid Services (CMS) found that the expenditures for IAH practices’ applicable beneficiaries were approximately 18.0 percent (equating to $42.3 million) below their spending targets, an average reduction of $6,585 per beneficiary. All 10 IAH participants (nine practices and one consortium) reduced the per-beneficiary-per-month (PBPM) expenditures relative to the practice’s PBPM spending target…
All 10 IAH participants met three or more of the six quality measures; three of those practices met the performance thresholds for all six quality measures.”
These findings were a change from the previous 6 years: “Mathematica’s evaluation of the first six years of IAH provided no compelling evidence that the IAH payment incentive reduced Medicare spending or hospital use for high-need patients of practices participating in the demonstration. When examining dually eligible beneficiaries who received home-based primary care from any provider, Mathematica’s analysis found lower expenditures on institutional care and higher expenditures on home-based services—but no reduction in total Medicare or Medicaid spending.”

About the public’s health

  Births: Provisional Data for 2021 From the CDC: “The provisional number of births for the United States in 2021 was 3,659,289, up 1% from 2020 and the first increase in the number of births since 2014. The general fertility rate was 56.6 births per 1,000 women aged 15–44, up 1% from 2020 and the first increase in the rate since 2014. The total fertility rate was 1,663.5 births per 1,000 women in 2021, up 1% from 2020. Birth rates declined for women in age groups 15–24, rose for women in age groups 25–49, and was unchanged for adolescents aged 10–14 in 2021.”
And in a related article:  Temporal Trends in Adverse Pregnancy Outcomes in Birthing Individuals Aged 15 to 44 Years in the United States, 2007 to 2019 “Adverse pregnancy outcomes (APOs) (hypertensive disorders of pregnancy [HDP], preterm delivery [PTD], or low birth weight [LBW]) are associated adverse maternal and offspring cardiovascular outcomes. Therefore, we sought to describe nationwide temporal trends in the burden of each APO (HDP, PTD, LBW) from 2007 to 2019 to inform strategies to optimize maternal and offspring health outcomes…
In aggregate, APOs now complicate nearly 1 in 5 live births. Incidence of HDP has increased significantly between 2007 and 2019 and contributed to the reversal of favorable trends in PTD and LBW. Similar patterns were observed in all age groups, suggesting that increasing maternal age at pregnancy does not account for these trends. Black–White disparities persisted throughout the study period.”

Commentary: The FDA needs more information on supplements. Consumers’ safety is at risk “A national survey conducted for The Pew Charitable Trusts showed about half of adults overestimate the regulatory scrutiny that dietary supplements receive. The reality is that the FDA doesn’t know for certain what products are on the market or what’s in them. This is a serious challenge — one that Congress can address by passing Senate Bill 4090, known as the Dietary Supplement Listing Act of 2022, a bill recently introduced by U.S. Sen. Dick Durbin, D-Ill., and co-sponsored by Sen. Mike Braun, R-Ind…
[F]rom 2007 to 2019, the FDA found almost 1,000 products masquerading as dietary supplements that actually contained active and potentially harmful pharmaceutical compounds from prescription drugs, most commonly erectile dysfunction treatments, steroids and weight loss drugs — including one that was removed from the market in 2010 because it significantly increased risk of heart attack and stroke.”

Plasma Donation Rules Relaxed by FDA to Boost Blood Supply “People with blood pressure measurements outside of the normal range may still donate plasma without first getting a medical exam, the FDA said Monday in draft guidance.”

Screening for Impaired Visual Acuity in Older Adults “The USPSTF concludes that the current evidence is insufficient to assess the balance of benefits and harms of screening for impaired visual acuity in older adults. (I statement).
And in a related article: Screening for Primary Open-Angle Glaucoma “The USPSTF concludes that the current evidence is insufficient to assess the balance of benefits and harms of screening for primary open-angle glaucoma in adults. (I statement).”

Monkeypox likely isn't much of a threat to the public, a White House official says “Dr. Raj Panjabi, Senior Director for Global Health Security and Biodefense at the National Security Council, says the fewer than 10 cases seen in the United States so far have not been severe — ‘flu-like symptoms and a rash which can be painful but resolves in two to four weeks’ — and aren't likely to get much worse…
The virus usually spreads from person to person through sustained, skin-to-skin contact with someone with rashes or lesions.”
And in a related story: CDC releasing some smallpox vaccine doses for monkeypox “Jennifer McQuiston, the deputy director for the CDC’s Division of High Consequence Pathogens and Pathology, said during a press briefing that more than a thousand doses of the Jynneos smallpox vaccine are currently available in the U.S., with more doses expected to become available as production ramps up…
Apart from Jenneos, more than a million doses of the older-generation ACAM2000 smallpox vaccine are available, though CDC officials noted on Monday that this shot has some potential side effects that warrant discussion before widespread use.”

About healthcare IT

New AWS Healthcare Accelerator focuses on health equity “To help tackle health disparities, Amazon Web Services (AWS) is announcing the next AWS Healthcare Accelerator cohort—this time with a focus on health equity. The accelerator is one more way we are harnessing the power of the cloud to make access to healthcare equitable. It builds on other efforts we’ve launched in this area, including the AWS Health Equity Initiative, a $40 million, three-year global commitment designed to support innovations in this space. Both the Health Equity Initiative and the Healthcare Accelerator are part of AWS for Health, an offering of AWS services and AWS Partner Network solutions designed to help organizations increase the pace of innovation, unlock the potential of health data, and develop more personalized approaches to therapeutic development and care.”

The Era of Borderless Data Is Ending “Nations are accelerating efforts to control data produced within their perimeters, disrupting the flow of what has become a kind of digital currency…
France, Austria, South Africa and more than 50 other countries are accelerating efforts to control the digital information produced by their citizens, government agencies and corporations. Driven by security and privacy concerns, as well as economic interests and authoritarian and nationalistic urges, governments are increasingly setting rules and standards about how data can and cannot move around the globe. The goal is to gain ‘digital sovereignty.’”
A fascinating article in today’s The NY Times.

About healthcare personnel

 New Surgeon General Advisory Sounds Alarm on Health Worker Burnout and Resignation “There is a Projected Shortage of More than 3 Million Essential Low-Wage Health Workers in the Next Five Years and a Projected Shortage of Nearly 140,000 Physicians by 2033…
Topline recommendations to address burnout in the Surgeon General’s Advisory include:

  • Transform workplace culture to empower health workers and be responsive to their voices and needs.

  • Eliminate punitive policies for seeking mental health and substance use disorder care.

  • Protect the health, safety, and well-being of all health workers. [For example:]

    • Provide living wages, paid sick and family leave, rest breaks, evaluation of workloads and working hours, educational debt support, and family-friendly policies including childcare and care for older adults for all health workers.

    • Ensure adequate staffing, including surge capacity for public health emergencies, that is representative of the communities they serve. This is critical to protect and sustain health workers and communities.

  • Reduce administrative burdens to help health workers have productive time with patients, communities, and colleagues.

  • Prioritize social connection and community as a core value of the healthcare system.

  • Invest in public health and our public health workforce.”

Today's News and Commentary

About Covid-19

Pfizer covid shot 80 percent effective in young kids, early data shows “Pfizer and its German partner, BioNTech, said Monday that an early analysis showed their three-dose coronavirus vaccine regimen triggered a strong immune response in young children, proving 80 percent effective at preventing symptomatic infections in children 6 months to 4 years old…
A few hours after Pfizer and BioNTech issued a news release announcing the data, which has not been peer reviewed, the Food and Drug Administration said its outside experts will meet June 14 and 15 to discuss the Moderna and Pfizer-BioNTech pediatric vaccines. Pfizer and BioNTech said they plan to finish filing data with the FDA this week — and warned that the efficacy number was fluid because results are still arriving.”

 COVID DATA TRACKER WEEKLY REVIEW “As of May 18, 2022, the current 7-day moving average of daily new cases (101,130) increased by 18.8% compared with the previous 7-day moving average (85,143). A total of 82,820,565 COVID-19 cases have been reported in the United States as of May 18, 2022.” 

About hospitals and healthcare systems

 Mayo Clinic posts $227M operating loss for Q1 as labor expenses shoot up “‘Workforce shortages and corresponding labor cost inflation, persistent supply chain disruptions and shortages, a higher interest rate environment and capital market volatility have all taken center stage for management attention,’ the earnings report said.”

Trinity Health's operating income slips 79% as labor costs soar “Higher labor costs put pressure on Trinity Health's margins in the first nine months of fiscal year 2022, according to financial documents released May 20. 
Livonia, Mich.-based Trinity Health posted revenue of $15.13 billion in the nine months ended March 31, up from $15.12 billion in the same period a year earlier. The health system said net patient service revenue was up 3.3 percent year over year, primarily because of increased volume and payment rates.”
In a related story: Trinity Health to build $1.5M pharmacy

About pharma

EU body calls for suspending some 100 generic drugs over flawed testing by CRO “The EMA's Committee for Medicinal Products for Human Use (CHMP) said "irregularities" were identified in how Synchron Research Services, which is located in Ahmedabad, conducted bioequivalence studies for drugs it tested on behalf of a slew of pharmaceutical firms…
 According to the EMA, the CHMP's review looked at all drugs that had been tested by Synchron for EU companies and found that a majority of them, roughly 100 drugs, had "no adequate bioequivalence data…available from other sources." Some of the companies whose products are affected include Viatris, Novartis' Sandoz and 1 A Pharma units, Johnson & Johnson, Teva, Accord Healthcare, Orifarm Generics, RIA Generics, STADA Arzneimittel, Wockhardt and Zentiva, among several others.”
According to the EMA:  “The list of concerned medicines can be found in the list of medicines concerned by the procedure.”

Bayer Backs Out of $670 Million Collaboration Deal With Atara “The collaboration included ATA3271, an allogeneic T-cell immunotherapy, and an autologous version, ATA2271, for high mesothelin-expressing tumors such as malignant pleural mesothelioma and non-small cell lung cancer.
The ending of the partnership follows the death of a patient in an early-phase clinical trial of ATA2271 at Memorial Sloan Kettering Cancer Center in February.”

About the public’s health

 CDC examines hepatitis cases and deaths in children “The CDC is examining 180 reported cases of hepatitis of unknown origin in kids across 36 states and territories, including six cases that resulted in deaths, officials told reporters in a briefing…
CDC is still trying to tease out whether these are part of a true increase in hepatitis among kids — or if the cases were identified as the result of improved pandemic-era surveillance…
The leading hypothesis for a root cause is adenovirus infections, which are common in childhood, officials said.”

CDC tells doctors to be on alert for monkeypox as global cases rise “The alert comes two days after the agency confirmed a monkeypox case in Massachusetts, where a patient with skin lesions associated with the rare virus was treated. New York City officials said Thursday they are investigating a potential case. Federal officials say they expect to identify additional infections in the coming days.”

About healthcare IT

MeMD rebrands as Walmart Health Virtual Care “Walmart announced in May 2021 that it would acquire MeMD, a multispecialty telehealth provider, in an effort to significantly expand its telehealth capabilities. The telehealth platform sits within the retailer's Walmart Health arm, which operates a slate of health clinics as well as other services.”

About health technology

 FDA Reports Thousands of Deaths, Injuries from Philips Respironics Device Breakdowns in Past Year “In a recently promised update on medical device reports (MDR) associated with suspected foam breakdown in certain Philips Respironics devices, the FDA reports it received more than 21,000 MDRs, including 124 reports of deaths, from April 2021 through April 2022.”

Today's News and Commentary

About Covid-19

CDC recommends Pfizer booster shot for kids ages 5 to 11 as Covid cases rise across the U.S. The recommendation follows on the heels of FDA approval.

About health insurance

 Association Between Medicaid Expansion Under the Affordable Care Act and Survival Among Newly Diagnosed Cancer Patients “The 2-year overall survival increased from 80.58% pre-ACA to 82.23% post-ACA in expansion states and from 78.71% to 80.04% in nonexpansion states, resulting in a net increase of 0.44 percentage points (ppt) (95% confidence interval [CI] = 0.24ppt to 0.64ppt) in expansion states after adjusting for sociodemographic factors.”
In expansion states, certain cancer-specific overall survival rates were much higher than those averages (see the article for details).

Court tosses $300,000 hospital bill for promised $1,300 charge An important case for enforcement of “surprise medical bills.”
”Colorado's Supreme Court has ruled in favor of a woman who expected to pay about $1,300 for spinal fusion surgery but was billed more than $300,000 by a suburban Denver hospital that allegedly included charges it never disclosed she might be liable for.
This week's ruling in favor of Lisa French, who underwent two surgeries in 2014, follows efforts by many U.S. states and the federal government to help curb health care costs by restricting or eliminating so-called "surprise billing" and requiring increased price transparency for consumers.
In a unanimous opinion, the Colorado justices ruled Monday that agreements French signed before surgery at St. Anthony North Health Campus in Westminster don't compel her to pay the extra charges, which stemmed from a then-secret list of prices for services that hadn't been disclosed to her.”

Virginia’s ACA Section 1332 State Innovation Waiver “On May 18, 2022, federal reviewers issued a letter approving Virginia’s State Innovation Waiver application to establish the Commonwealth Health Reinsurance Program (CHRP) for an initial period of up to five years, beginning in 2023. Per enactment language, the remaining Virginia statutes establishing the CHRP will become effective on June 17, 2022, 30 days after the Commission provided notice of federal approval.
The CHRP is designed to operate as a traditional reinsurance program by reimbursing ACA individual market health insurers for a percentage of an enrollee’s claims costs exceeding a specified threshold (or “attachment point”) and up to a specified ceiling (or “reinsurance cap”). Specifically, in 2023, the approved program would reimburse claims between an attachment point of $40,000 and an estimated $155,000 cap with a coinsurance rate of 70%. This program is projected to reduce individual premiums in the ACA marketplace by 15.6% for plan year 2023.
The CHRP is designed to be funded in large part through pass-through funds provided by the federal government based on federal premium tax credit savings from lower premium costs in the Virginia marketplace.”

The Manatt State Cost Containment Update “Manatt examines how benchmarking programs can elevate the importance of primary care and behavioral health care investments and allow for the measurement of spending on these critical preventive services.”
The survey of state-specific initiatives is particularly interesting.

About hospitals and healthcare systems

 Mayo Clinic posts $142M operating gain, bucking national trend “Mayo Clinic ended the first quarter of this year with an operating gain of $142 million. In the same quarter last year, Mayo posted operating income of $243 million.
The health system also recorded nonoperating losses of $369 million in the first quarter of 2022. 
Despite losses from nonoperating items, Mayo Clinic ended the quarter with $17.5 billion in net assets, up from $13.2 billion recorded in the same period one year prior.”

About pharma

 Maine Joins Two Other States Considering Making Their Own Insulin  “The State of Maine has enacted legislation that will create a commission to assess whether the state has the resources to manufacture its own insulin…
Maine is the third state, along with California and Michigan, to consider producing its own insulin in an effort to make the essential drug more affordable.”

FDA Urges Drug Manufacturers to Develop Risk Management Plans to Promote a Stronger, Resilient Drug Supply Chain “In 2019, in an effort to address the national drug shortage problem, the federal Drug Shortages Task Force released a report that called for the adoption of risk management plans to proactively assess risk and to predict and prevent supply disruptions that could potentially lead to a drug shortage. Then in 2020, Congress passed the CARES Act to require certain manufacturers to develop, maintain, and implement, as appropriate, risk management plans that identify and evaluate risks to a drug’s supply.
To further assist manufacturers with these requirements, we are issuing a draft guidance, Risk Management Plans to Mitigate the Potential for Drug Shortages, intended to help with the development, maintenance and implementation of risk management plans.
The draft guidance describes a framework for stakeholders to consider when developing risk management plans that aligns with principles stated in the International Council for Harmonisation guidance for industry, Q9 Quality Risk Management, and identifies risk factors to consider when developing the content of risk management plans. The steps needed to reduce risks of a disruption in drug supply may vary among the different manufacturers in the supply chain for a given drug.”

HHS commits $300M to global accelerator targeting antibiotic-resistant bacteria “The Department of Health and Human Services announced Thursday morning a $300 million commitment to supporting a public-private antibiotic-resistant bacteria accelerator over the next decade.
Called the Combating Antibiotic-Resistant Bacteria Biopharmaceutical Accelerator (CARB-X), the accelerator was jointly launched in 2016 by HHS’ Biomedical Advanced Research and Development Authority (BARDA), the National Institute of Allergy and Infectious Diseases (NIAID) and global health charity Wellcome.
The Boston University-led program funds and offers technical, regulatory and business support to private companies in the early stages of developing new products to address antimicrobial-resistant infections.”

 About the public’s health

Oklahoma lawmakers pass bill banning abortions after ‘fertilization’ Oklahoma lawmakers on Thursday passed a bill that would ban abortions from the moment of ‘fertilization,’ effectively prohibiting almost all abortions in the state…
The Oklahoma bill is similar in its enforcement mechanism to the one that was signed into law in Texas last year, allowing civilians to file lawsuits against those who perform or help facilitate an abortion…
The bill states a lawsuit cannot be brought against a woman who had or seeks to have an abortion…
It explicitly allows for the use of the Plan B pill, a widely used form of emergency contraception, but would prohibit medical abortions using pills. The bill exempts from its definition of abortion any procedure to ‘save the life or preserve the health of the unborn child,’ to ‘remove a dead unborn child caused by spontaneous abortion’ or to remove an ectopic pregnancy, in which the fetus grows outside the uterus.”

HHS announces $1.5B grant for states to address ongoing opioid epidemic “The grant funding opportunity will be available through the Substance Abuse and Mental Health Services Administration (SAMHSA)…
The funding will be made available to those increasing access to medications for opioid use disorder (OUD) and supporting prevention, harm reduction, treatment and recovery support services for OUD and other substance use disorders. A portion is earmarked for those with the highest mortality rates. States and territories will also be asked to develop naloxone distribution plans to increase access.” 

HHS Announces $2 Million Funding Opportunity to Establish National Center of Excellence on Social Media and Mental Wellness “U.S. Department of Health and Human Services (HHS), through the Substance Abuse and Mental Health Services Administration (SAMHSA), is announcing $2 million in funding to establish a national center of excellence (CoE) on social media and mental wellness. The purpose of the CoE will be to develop and disseminate information, guidance, and training on the impact—including benefits and risks—that social media use has on children and youth, especially the risks to their mental health. This CoE will also examine clinical and social interventions that can be used to mitigate the risks. Social media use can be associated with negative mental health outcomes, and children and youth are particularly vulnerable.”

Trends in Cancer Mortality Among Black Individuals in the US From 1999 to 2019 “In this cross-sectional study of 1 361 663 deaths from cancer among Black individuals, although cancer mortality decreased considerably among Black individuals from 1999 to 2019, the cancer mortality rate was higher among Black men and women than in other racial and ethnic groups in 2019.”

AMA, Brigham and Women's, Joint Commission's new peer network helps health systems embed equity in care “The American Medical Association (AMA), Brigham and Women’s Hospital and the Joint Commission have launched a new network designed to teach health systems how to better incorporate racial justice equity into their quality and safety practices.
Announced Thursday, the so-called Advancing Equity through Quality and Safety Peer Network is a one-year mentorship and networking program that will be piloted by eight hospitals and health systems including the Dana-Farber Cancer Institute and Vanderbilt University Medical Center.”

Federal judge blocks HHS gender transition coverage requirement after challenge from Christian group “A federal judge in North Dakota has temporarily blocked HHS and the Equal Employment Opportunity Commission from requiring the Christian Employers Alliance and its members to provide health plans that cover employees' gender transition procedures.
The U.S. District Court for the District of North Dakota ruled May 16 that the requirement adopted in 2021 by the two federal agencies applying to most health plans would force the Christian group and its members to violate their religious beliefs and cause irreparable injury.”

 About health technology

 Anti-Mullerian Hormone [AMH] as Predictor of Future and Ongoing Bone Loss During the Menopause Transition AMH below 100 pg/mL will detect [higher risk for bone loss] with sensitivity of 50% in premenopause, 80% in early perimenopause, and 98% in late perimenopause. These findings suggest that AMH measurement can help flag women at the brink of significant bone loss for early intervention.”

Today's News and Commentary

About Covid-19

 Nearly every state expected to see increase in COVID-19 hospitalizations, forecast shows “As the nation's COVID-19 resurgence reaches its highest point since mid-February, daily hospital admission levels and new COVID-19 related deaths in the U.S. are projected to continue increasing over the next four weeks, according to newly updated forecast models used by the Centers for Disease Control and Prevention (CDC).
The forecast now predicts that nearly every U.S. state and territory is projected to see increases in new hospitalizations over the next two weeks.”

Patients charged hundreds of dollars to get Covid drugs already paid for by taxpayers “Doctors and hospitals are charging fees to give Evusheld, the only drug that works to prevent Covid-19 for many immune-compromised people, even though the government is distributing the drug for free.
Evusheld, a monoclonal antibody, is the only Covid prevention option for many people with weak immune systems, as vaccines failed to give them antibodies…
But have offered no plan, at least not publicly, to fix the situation, leaving some immune-compromised people hit with sticker shock when they go to the doctor to get Evusheld.”

NIH announces antiviral drug development awards | National Institutes of Health (NIH) “The National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health, has awarded approximately $577 million to establish nine Antiviral Drug Discovery (AViDD) Centers for Pathogens of Pandemic Concern.
The AViDD centers will conduct innovative, multidisciplinary research to develop candidate COVID-19 antivirals, especially those that can be taken in an outpatient setting, as well as antivirals targeting specific viral families with high potential to cause a pandemic in the future. These include paramyxoviruses, bunyaviruses, togaviruses, filoviruses (including Ebola viruses and Marburg virus), picornaviruses (including enteroviruses and other cold-causing viruses), and flaviviruses (including the viruses that cause yellow fever, dengue and Zika).”
See the article for details about the awardees.

Patents And Regulatory Exclusivities On Inhalers For Asthma And COPD, 1986–2020 “To better understand the strategies that brand-name inhaler manufacturers have employed to preserve their market dominance, we analyzed all patents and regulatory exclusivities granted to inhalers approved by the Food and Drug Administration between 1986 and 2020. Of the sixty-two inhalers approved, fifty-three were brand-name products, and these brand-name products had a median of sixteen years of protection from generic competition. Only one inhaler contained an ingredient with a new mechanism of action… Manufacturers augmented periods of brand-name market exclusivity by moving active ingredients from one inhaler device into another (“device hops”). The median time from approval of an originator product to the last-to-expire patent or regulatory exclusivity of branded follow-ons was twenty-eight years (across device hops on fourteen originator products). Regulatory and patent reform is critical to ensure that the rewards bestowed on brand-name inhaler manufacturers better reflect the added clinical benefit of new products.”

About health insurance

 CMS rolls out changes to Medicare website aimed at usability “One of the key new features is to redesign the Medicare.gov home page to add more detailed information on Medigap policies and plan costs. Other new information on the homepage aims to improve how to compare and select drug coverage.
The changes also include new messages on the homepage that highlight the information most requested by people on Medicare, people nearing eligibility or family members.”

The Children’s Health Insurance Program at 25 A good review of the program’s history and current status.

About pharma

Merck to pay up to $1.4B in cancer deal with Kelun, but details are scarce “Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. 
The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.” However, what exactly is being exchanged remains unknown; Kelun has more than a dozen oncology assets, with 11 in clinical trials and three in preclinical testing.”

Analysis of Supportive Evidence for US Food and Drug Administration Approvals of Novel Drugs in 2020 “This cohort study of 49 drugs approved by the FDA in 2020 found that they were supported by 75 pivotal trials, of which nearly two-thirds were double-masked, more than three-fourths had a randomization component, nearly half used a surrogate measure as a primary end point, and more than one-fourth used a historical, external, or other control. Surrogate measures and historical controls were much more common among oncology drug approvals than among nononcology drug approvals.
Meaning  In this study, the cohort of 2020 novel drug approvals continued a trend of new drugs being supported by smaller numbers of preapproval pivotal trials and fewer features traditionally associated with rigor.

About the public’s health

 Derivation and Validation of the UCAP-Q Case-finding Questionnaire to Detect Undiagnosed Asthma and COPD “Many people with asthma and COPD remain undiagnosed. We developed and validated a new case-finding questionnaire to identify symptomatic adults with undiagnosed obstructive lung disease.”

Biden invokes Defense Production Act for formula shortage “President Joe Biden on Wednesday invoked the Defense Production Act to speed production of infant formula and authorized flights to import supply from overseas, as he faces mounting political pressure over a domestic shortage caused by the safety-related closure of the country’s largest formula manufacturing plant.
The Defense Production Act order requires suppliers of formula manufacturers to fulfill orders from those companies before other customers, in an effort to eliminate production bottlenecks. Biden is also authorizing the Defense Department to use commercial aircraft to fly formula supplies that meet federal standards from overseas to the U.S…”

Today's News and Commentary

About Covid-19

The federal government is offering another round of free COVID tests  “Americans can once again order free COVID-19 tests from the federal government by visiting COVIDtests.gov. In this round, the U.S. Postal Service will deliver eight free rapid antigen tests to any household in the U.S. that wants them, according to the website. That brings to sixteen the total tests offered per household so far.”

About health insurance

Anthem, Inc. Shareholders Approve Corporate Rebranding to New Name, Elevance Health, Inc. “Shareholders approved the change of the holding company name Anthem, Inc. (ANTM) to Elevance Health, Inc. at the 2022 Annual Meeting of Shareholders, the company announced today.”

2022 Workforce Health Index Supplemental Dataset “This dataset provides an aggregate view of per member per year medical spend ($PMPY) at the state level for the prior four years, including a summary of the top five areas of spend by state.” US averages: 2018: $3,914; 2019: $4,192; 2020: $3,907; 2021: $4,248; 2022(est.): $4,232. But, the range is $5739 in Alaska to $1,422 in Hawaii.

Medicaid director owned stock in companies she awarded huge contracts “Ohio Medicaid Director Maureen Corcoran won’t discuss them, but state ethics filings she submitted on Sunday showed that she continued to own stock in three huge health care companies last year — the same year she negotiated and signed billion-dollar contracts with their subsidiaries.”

About pharma

Pharma group wins order striking down patient assistance rule “The biggest U.S. drug industry group has won a court order striking down a federal rule meant to ensure that financial assistance offered by drugmakers to patients is not captured by insurers.
U.S. District Judge Carl Nichols in Washington, D.C. sided with the Pharmaceutical Research and Manufacturers of America (PhRMA) on Tuesday in finding that the U.S. Department of Health and Human Services overstepped its authority when it passed the rule in 2020…
In recent years, some insurers have established so-called accumulator adjustment programs, in which they do not count assistance toward patients' deductibles and out-of-pocket maximums. Such programs effectively capture some of the assistance for insurers instead of patients.
In response, HHS's Center for Medicare and Medicaid Services (CMS) in December 2020 adopted a rule that would require drugmakers to pay higher rebates to state Medicaid programs unless they ensure that patients are able to keep all financial assistance for themselves.
Drugmakers already have to pay rebates to Medicaid programs in order to reduce costs, based on the "best price" available for a drug on the commercial market. The rule, which was set to take effect in January 2023, would have required drugmakers to factor the effect of accumulator adjustment programs into their best price calculations.”

 Cerebral Board Members Agree to Replace CEO Amid Federal Probe Into Prescription Practices In the continuing saga about this online behavioral health company, which is under federal investigation for online medication ordering (see pat postings): “Directors who control the board of Cerebral Inc. agreed on a plan to replace Chief Executive Kyle Robertson, sparking leadership tumult at the mental-health startup as it contends with scrutiny over its prescription practices for controlled substances, people familiar with the situation said Tuesday.”

About the public’s health

 Food deserts reduce breastfeeding initiation Since infant formula has been in short supply, more attention is being directed at increased breast feeding. However, there are a number of systemic issues that need to be addressed before that goal is achieved. In a study presented at the recent ACOG Annual Clinical and Scientific Meeting: “The researchers found that Black individuals had the highest risk for decreased initiation (aRR = 1.26), whereas Hispanic (aRR = 0.58) and Asian or Pacific Islander individuals (aRR = 0.74) had the lowest risk.
Lower education achievement was associated with decreased breastfeeding initiation (middle school: aRR = 5.42; high school: aRR = 3.46; some college: aRR = 1.95)… Education was the social factor most strongly associated with decreased breastfeeding initiation. A history of diabetes (aRR = 1.14) and preterm (aRR = 1.47) or low birth weight (aRR = 1.38) was also associated with reduced initiation, according to the researchers.”

 Newly Released Estimates Show Traffic Fatalities Reached a 16-Year High in 2021 “NHTSA projects that an estimated 42,915 people died in motor vehicle traffic crashes last year, a 10.5% increase from the 38,824 fatalities in 2020. The projection is the highest number of fatalities since 2005 and the largest annual percentage increase in the Fatality Analysis Reporting System’s history…
Preliminary data reported by the Federal Highway Administration show that vehicle miles traveled in 2021 increased by about 325 billion miles, or about 11.2%, as compared to 2020. 
Data estimates show the fatality rate for 2021 was 1.33 fatalities per 100 million VMT [vehicle miles traveled], marginally down from 1.34 fatalities in 2020. While the fatality rate continued to rise in the first quarter, it declined in the other three quarters of 2021, compared to 2020.”

Rare monkeypox case confirmed in Massachusetts “Massachusetts health authorities confirmed a case of monkeypox Wednesday after the Centers for Disease Control and Prevention said it was monitoring the possible spread of the rare but potentially serious viral illness.
A man who recently traveled to Canada was tested for the virus Tuesday, and the infection was confirmed by the CDC on Wednesday, the Massachusetts Department of Public Health said in a statement.”

About healthcare personnel

 Evolving Practice Choices by Newly Certified and More Senior General Internists “ 67,902 general internists, comprising 80% of all general internists initially certified from 1990 to 2017 (n = 84 581), were studied… By 2018, 71% of newly certified general internists practiced as hospitalists compared with only 8% practicing as outpatient-only physicians… [M]ore senior physicians increasingly see patients only in the outpatient setting.”
This study highlights one of the major reasons for the ever-growing crisis in availability of primary care physicians.

Today's News and Commentary

About Covid-19

 FDA authorizes a coronavirus booster shot for children as young as 5 “Federal regulators authorized a coronavirus booster shot Tuesday for school-age children, making a third shot of the Pfizer-BioNTech vaccine available to 5-to-11-year-olds as cases rise nationally.
The Food and Drug Administration cleared the booster for use at least five months after children are fully vaccinated with the two-shot primary series.”

US Set to Extend Covid-19 Public Health Emergency Past July “The US government will extend the Covid-19 public-health emergency past mid-July, continuing pandemic-era policies as the nearly 2 1/2-year outbreak drags on…
An HHS spokesperson said the public-health emergency remains in effect, and the department will continue to provide a 60-day notice to states before any possible termination or expiration.”

300,000 US COVID deaths could have been averted through vaccination, analysis finds “Although the national average indicated that approximately 50% of deaths were preventable, researchers said there were large differences among states -- ranging from 25% to 74% vaccine-preventable deaths.”

States Have Yet to Spend Hundreds of Millions of Federal Dollars to Tackle Covid Health Disparities “The Biden administration in March 2021 announced it was investing $2.25 billion to address covid health disparities, the largest federal funding initiative designed specifically to help underserved communities hardest hit by the virus.
Two months later, the Centers for Disease Control and Prevention awarded grants to every state health department and 58 large city and county health agencies. The money is intended to help limit the spread of covid-19 among those most at risk in rural areas and within racial and ethnic minority groups, as well as improve their health…
A year later — with covid having killed 1 million people in the U.S. since the start of the pandemic and hospitalizing millions more — little of the money has been used, according to a KHN review of about a dozen state and county agencies’ grants”

About health insurance

 Most Office-Based Physicians Accept New Patients, Including Patients With Medicare and Private Insurance The entire study is worth a read. Characteristics vary by specialty, geography, physician age and practice setting (such as group or solo practice). With that caveat, overall: “Across almost every dimension we examine, the share of physicians accepting new Medicare patients is similar to the share accepting new patients with private insurance, with the only exception being the share of obstetricians and gynecologists accepting new Medicare patients (93%) is somewhat lower than the share accepting new privately-insured patients (99%).”

Private Health Plans During 2020 Paid Hospitals 224 Percent of What Medicare Would Pay From RAND: “The analysis includes facility and professional claims for inpatient and outpatient services provided by both Medicare-certified short-stay hospitals and other facility types. For the first time, the analysis also includes more than 4,000 ambulatory surgical centers, which are free-standing facilities that perform outpatient surgical services.
Data sources include $78.8 billion in spending on hospital-based care and $2.0 billion in spending on care in ambulatory surgery centers…
The study found that the percentages remained relatively stable over the study period. Private insurers paid 222 percent of Medicare prices in 2018 and 235 percent in 2019. In 2020, relative prices for hospital facility–only services averaged 224 percent, while associated professional services such as physician fees averaged 163 percent of what Medicare would have paid for the same services.”

UNLESS CONGRESS ACTS, HEALTH CARE COSTS WILL SOON SKYROCKET FOR PEOPLE WHO BUY THEIR OWN INSURANCE “Overall, 10.3 million people in 33 states use healthcare.gov to buy their own insurance. The Centers for Medicare & Medicaid Services (CMS) has calculated what will happen if ARPA’s improvements to advance premium tax credits disappear in those states. On average, premiums will shoot up by 53%, jumping from $13.7 billion to $20.9 billion – a $7.3 billion hit to family budgets…”
See the chart for a state-by-state breakdown.

Fidelity Releases 2022 Retiree Health Care Cost Estimate: 65-Year-Old Couple Retiring Today Will Need an Average of $315,000 for Medical Expenses “Americans Will Need 7x More Than They Expect to Pay for Health Care Costs in Retirement.
Nearly Half of Health Savings Account (HSA) Owners Feel Prepared for Health Care Expenses in Retirement, Compared to just 27% of Those Without an HSA…
The 2022 estimate for single retirees is $150,000 for men and $165,000 for women. Fidelity’s estimate assumes both members of the couple are enrolled in traditional Medicare, which between Medicare Part A and Part B covers expenses such as hospital stays, doctor visits and services, physical therapy, lab tests and more, and in Medicare Part D…
This year’s estimate is up 5% from 2021 ($300,000) and has nearly doubled from its original $160,000 in 2002.”

Kemp OKs expanded Medicaid coverage for new moms, rejects coverage for HIV An illustration of the dichotomy in healthcare coverage in a Republican-run state: “Low-income moms will be eligible for a year of Medicaid coverage under a bill Gov. Brian Kemp just quietly signed into law.
But the governor caught advocates by surprise when he rejected language and funding in next year’s budget that would have started the process of expanding Medicaid eligibility to cover low-income Georgians living with HIV.”

Justices want solicitor general to weigh in on Medicare 'upcoding' ruling “The U.S. Supreme Court on Monday signaled continued interest in a whistleblower suit involving allegations of systemic exaggeration of Medicare patients’ ailments, asking Solicitor General Elizabeth Prelogar to weigh in on the level of detail required to plead fraud “with particularity” under the False Claims Act.”

Sanders reintroduces single-payer Medicare bill “Sen. Bernie Sanders and 14 other senators introduced the Medicare for All Act of 2022… to create a federally-administered single-payer healthcare system.
Under the bill, the program would be implemented over a four-year period.”
See the article for and copy of the Act for more details. When Congress won’t pass requested Covid-19 funding, is now the time to revisit this issue? It is a best an unneeded distraction.
And in a related article from the CBO: Budgetary Effects of a Policy That Would Lower the Age of Eligibility for Medicare to 60 “CBO and JCT [ Joint Committee on Taxation] that lowering the age of Medicare eligibility to 60 would increase federal budget deficits by $155 billion over the 2026–2031 period through the effects of that policy on federal revenues and mandatory spending.” Read the article and links for more details.

About hospitals and healthcare systems

HOSPITAL OVERUSE DURING COVID-How many older adults were put at risk for unnecessary procedures? From the Lown Institute, hospital-specific lists.
”KEY TAKEAWAYS

  • From March-December 2020, hospitals delivered more than 100,000 low-value procedures to Medicare beneficiaries; that’s one every four minutes on average.

  • Of the 100,000 procedures, 45,000 were unnecessary coronary stents and 30,000 were unnecessary back surgeries.

  • From June to December 2020, with no vaccines available to vulnerable older adults, hospitals delivered low-value services to Medicare patients at rates similar to 2019.

  • All of the hospitals on the US News Honor Roll ranking had rates of coronary stent overuse higher than the national average in 2020, and four had rates at least twice that.”

COVID-19 and Hospital Financial Viability in the US “The results of this cross-sectional study suggest that although hospitals experienced a sizeable reduction in operating margins in 2020, their overall profit margins remained similar to those in prior years, suggesting that the COVID-19 relief fund effectively offset the financial losses for hospitals during the COVID-19 pandemic. Government, rural, and smaller hospitals, which were supported by some targeted fund allocations, generated higher overall profit margins during 2020 than in prior years.”

 Advocate Aurora Health reports $253M net loss, 0.3% operating margin in Q1 2022 “The most recent quarter’s total revenue was a 9.1% increase over the prior year while expenses rose 11% year over year.
The increase in revenue was largely due to a 10.1% bump in patient service revenue, which the system attributed to increased outpatient (6.3%) and physician (6.7%) visits compared to the previous year’s opening quarter.
Total expenses, on the other hand, were dragged by a 13.4% year-over-year rise in salaries, wages and benefits expenses and an 8.4% increase in supplies, purchased services and other expenses.”

About pharma

 GlaxoSmithKline is no more: Meet the scaled down 'GSK'  “More than two decades ago, Glaxo Wellcome and SmithKline Beecham combined to become GlaxoSmithKline. But as the British Big Pharma looks to slim down its organization with its consumer demerger, its longstanding name is getting the same treatment.
Out with the GlaxoSmithKline moniker and in with the three-letter acronym: GSK. On Monday, the company made the three letters—which have regularly been used by journalists and in conversation to refer to the company—its official name.
This comes as the pharma is looking to spin out its consumer business, to be known as Haleon, which will be the largest London listing of a company in more than 10 years.”

24 states support federal government in 340B drugmaker lawsuit “A collection of 24 states is throwing its support to the federal government in a legal fight with several drugmakers over access to drugs discounted under the 340B program. 
The states and the District of Columbia announced in legal filings Monday that the drugmakers’ moves to cut off sales of 340B drugs to contract pharmacies are unlawful…
The states blasted the moves of six drugmakers—Sanofi, United Therapeutics, Eli Lilly, Novartis, Novo Nordisk and AstraZeneca—that started in 2020. The drugmakers cut off sales of 340B drugs to contract pharmacies, which are third parties that dispense drugs on behalf of the 340B-covered entities.”

About the public’s health

 America’s Health Rankings From the United Health Foundation, this report presents the healthiest and least health states for seniors. At the top is Utah and at the bottom (by far) is Mississippi.
”The America’s Health Rankings model… includes four drivers, or determinants of health: social and economic factors, physical environment, clinical care and behaviors, all of which influence the fifth model category, health outcomes.”
Look here for an executive summary.

Biden signs law banning infant sleep products blamed for 200 deaths “President Joe Biden on Monday signed into law legislation that prohibits the manufacture and sale of crib bumpers or inclined sleepers blamed for more than 200 infant deaths”

FDA comes to agreement with baby formula factory to resume production “Abbott Nutrition, the maker of Similac and other popular baby formulas, said Monday it has come to an agreement with the Food and Drug Administration to fix safety issues at a Sturgis, Mich., factory that has been shuttered for more than three months, contributing to a nationwide formula shortage.
The agreement represents a first step toward resolving a problem that has sent parents scrambling from store to store to find sustenance for their infants. But questions remain about what precisely the FDA will require of Abbott and the Sturgis facility operations before reopening is approved.”
And in a related story: Nestlé is flying baby formula into America as shortage continues

About healthcare IT

 At 10.8% CAGR, Healthcare Information System Market Size to hit USD 579.56 Billion in 2028, Says Brandessence Market Research “The Global Healthcare Information System Market size was Valued at USD 282.70 Billion in 2021…
Services segments will be accounting for the biggest share in the market as there is a lack of knowledge with regard to the IT applications in the professionals of healthcare.”

AI recognition of patient race in medical imaging: a modelling study Fascinating!
”In our study, we show that standard AI deep learning models can be trained to predict race from medical images with high performance across multiple imaging modalities, which was sustained under external validation conditions (x-ray imaging [area under the receiver operating characteristics curve (AUC) range 0·91–0·99], CT chest imaging [0·87–0·96], and mammography [0·81]). We also showed that this detection is not due to proxies or imaging-related surrogate covariates for race (eg, performance of possible confounders: body-mass index [AUC 0·55], disease distribution [0·61], and breast density [0·61]). Finally, we provide evidence to show that the ability of AI deep learning models persisted over all anatomical regions and frequency spectrums of the images, suggesting the efforts to control this behaviour when it is undesirable will be challenging and demand further study.”

About health technology

 FDA Authorizes First DTC Covid-19, Flu, RSV Combination Test “The FDA said it has authorized Labcorp’s combination Covid-19, flu, and RSV test for direct-to-consumer use, the first such test to be accessible without a prescription.”

Today's News and Commentary

About healthcare quality

RaDonda Vaught gets 3 years probation for fatal medication error “RaDonda Vaught, a former nurse convicted of a fatal medication error, was sentenced to three years of supervised probation May 13. She received a deferred sentence, meaning charges could be wiped from her record pending successful completion of probation. 
Ms. Vaught, 38, was convicted of criminally negligent homicide and abuse of an impaired adult for a fatal medication error she made in December 2017 after overriding an electronic medical cabinet as a nurse at Vanderbilt University Medical Center in Nashville, Tenn. The error, in which  vecuronium, a powerful paralyzer, was administered instead of the sedative Versed, led to the death of 75-year-old Charlene Murphey. Ms. Vaught faced up to eight years in prison. 
Davidson County criminal court Judge Jennifer Smith said the court in its sentencing considered Ms. Vaught's offense was not motivated by any intent to violate the law, and that she will ‘never again be in a position to repeat this fatal error.’
’She has been stripped of her nursing license and started a new livelihood outside of healthcare,’ Ms. Smith said.”

About Covid-19

FDA rejects antidepressant seen as possible Covid-19 treatment “The Food and Drug Administration declined Monday to authorize a 30-year-old generic antidepressant as a treatment for Covid-19, dealing a major blow to a small group of doctors who have organized around the pill for months, arguing that it could provide a cheap and accessible way to prevent hospitalizations and death both in the U.S. and around the world.
In an unusual two-page summary — the FDA does not generally disclose the reasoning behind rejections — regulators said that the doctors failed to provide adequate evidence of effectiveness of the drug, called fluvoxamine.”

‘A magnet for rip-off artists’: Fraud siphoned billions from pandemic unemployment benefits “The exact scope of the fraud targeting federal aid initiatives is unknown, even two years later. With unemployment benefits, however, the theft could be significant. Testifying at a little-noticed congressional hearing this spring, a top watchdog for the Labor Department estimated there could have been “at least” $163 billion in unemployment-related “overpayments,” a projection that includes wrongly paid sums as well as “significant” benefits obtained by malicious actors.
So far, the United States has recaptured just over $4 billion of that, according to state workforce data furnished by the Labor Department this March.”

 COVID-19 hospitalizations up in 43 states “Hospitalizations are up 24 percent nationwide over the last 14 days, with a daily average of 21,547 people hospitalized with COVID-19 as of May 16.”

About health insurance

 Investor Alert: Bronstein, Gewirtz & Grossman, LLC Notifies Oscar Health, Inc. (OSCR) Investors of Class Action and Encourages Shareholders to Contact the Firm “Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Oscar Health, Inc…and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Oscar Class A common stock pursuant and/or traceable to the registration statement and prospectus… issued in connection with the Company's March 2021 initial public offering ("IPO" or the "Offering")…
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1933.
The Complaint alleges that the Registration Statement was materially false and misleading and omitted to state: (1) that Oscar was experiencing growing COVID-19 testing and treatment costs; (2) that Oscar was experiencing growing net COVID costs; (3) that Oscar would be negatively impacted by an unfavorable prior year Risk Adjustment Data Validation (RADV) result relating to 2019 and 2020; (4) that Oscar was on track to be negatively impacted by significant SEP membership growth; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.”

Humana’s CenterWell Senior Primary Care and Welsh, Carson, Anderson & Stowe Announce Second Joint Venture to Develop and Operate Value-Based Primary Care Clinics for Medicare Patients “Humana Inc.’s CenterWell Senior Primary Care and Welsh, Carson, Anderson & Stowe (“WCAS”) have established a second joint venture (‘JV’) to further expand access to value-based primary care clinics for Medicare patients. The new JV will deploy up to $1.2 billion of committed capital to develop approximately 100 new senior-focused, payer-agnostic primary care clinics between 2023 and 2025 and operate them to profitability. This JV between Humana’s CenterWell Senior Primary Care and WCAS follows an earlier JV that is currently deploying up to $800 million of capital to open 67 clinics by early 2023 and support their ongoing operations.
WCAS, a healthcare and technology-focused investment firm, will have majority ownership of the JV, while Humana will own a minority stake. All de novo clinics developed through the Humana-WCAS joint ventures will be managed and operated under Humana’s CenterWell Senior Primary Care brand.”

About hospitals and healthcare systems

CommonSpirit posts $591M quarterly operating loss “CommonSpirit Health, a 142-hospital system based in Chicago, reported an operating loss for the three months ended March 31, according to financial documents released May 13.”

Providence's operating loss hits $510M in Q1 “Citing inflation and labor cost pressures, Renton, Wash.-based Providence recorded an operating loss of $510.16 million in the first quarter of 2022, according to financial documents released May 13. In the same quarter one year prior, Providence posted an operating loss of $221.91 million.”

About pharma

 Lilly bags FDA approval for dual-targeted type 2 diabetes drug Mounjaro “The FDA on Friday cleared Eli Lilly's once-weekly dual GIP and GLP-1 receptor agonist Mounjaro (tirzepatide) to improve glucose control in adults with type 2 diabetes…
Mounjaro is also being evaluated as a potential weight-loss treatment in the Phase III SURMOUNT development programme in overweight and obese individuals across six clinical trials. Eli Lilly recently reported results from SURMOUNT-1 showing that the drug helped patients without type 2 diabetes lose up to 22.5% of their body weight. Readouts from the SURMOUNT-2, SURMOUNT-3 and SURMOUNT-4 studies are due in 2023.
Eli Lilly has so far not yet submitted a filing for Mounjaro as a weight-loss treatment.”

About the public’s health

 Texas Court Allows Abuse Inquiries of Parents of Transgender Children “The Texas Supreme Court ruled on Friday that investigations of parents with transgender children for possible child abuse could continue, after an emergency appeal by state officials including Gov. Greg Abbott. The ruling reversed lower-court decisions that had temporarily halted the inquiries statewide.” 
And in a related story: Alabama’s Transgender Youth Can Use Medicine to Transition, Judge Rules
”A federal judge temporarily halted part of a new law that prevents doctors from prescribing puberty blockers and hormone therapies to transgender youth. He upheld a ban on sex-altering operations.”

About healthcare IT

AI May Be More Prone to Errors in Image-Based Diagnoses Than Clinicians “Researchers have found that deep neural networks (DNNs) make mistakes in image-based medical diagnoses that humans are less likely to make, and they hypothesize that these mistakes may indicate that clinicians and artificial intelligence (AI) use different features for analysis when looking at medical images.
According to a study published in Scientific Reports, DNNs can fail when performing image-based medical diagnosis tasks because their predictions can be unrelated to the underlying pathology of the condition they are designed to diagnose. For example, an AI skin classifier learns to associate surgical skin markings with malignant melanoma, increasing the classifier’s false positive rate by 40 percent, according to the researchers.”

About health technology

 Medtronic completes Intersect ENT acquisition “Medtronic announced that it completed its previously announced $1.1 billion acquisition of Intersect ENT…for $28.25 per share in an all-cash transaction.
As a result of the transaction, Medtronic acquires Intersect ENT’s Propel and Sinuva drug-eluting sinus implant product lines and technology, intellectual property and the company’s Menlo Park facility. Intersect ENT’s employees also will join Medtronic, according to a news release.
Medtronic said that former Intersect ENT brand Fiagon was divested simultaneously at close [per FTC requirement], with its Cube and VenSure products not included in the acquisition.”

Shortage of Contrast Media for CT Imaging Affecting Hospitals and Health Systems “The Food and Drug Administration (FDA) continues to report shortages of GE Healthcare’s iohexol and iodixanol intravenous contrast media products for computed tomography imaging. In an April 19 letter to customers, GE Healthcare said it was rationing orders for its iohexol products after a COVID-19 lockdown temporarily shut down its production facility for iodinated contrast media in Shanghai, China…
GE Healthcare said it expects product supply availability to improve the week of May 23, but until then a 20% allocation level has been established.”

Limaca's Precision-GI Endoscopic Biopsy Device Designated a Breakthrough Device “The device, which is deployed through an instrument channel in an endoscope, features a motorized, rotational cutting needle for taking biopsies of tumors.”

Today's News and Commentary

About Covid-19

 'Unthinkable tragedy': U.S. COVID-19 death toll surpasses 1 million  The headline, unfortunately, speaks for itself.

 U.S. will share COVID-19 vaccine technology, Biden tells global summit “The United States will share technologies used to make COVID-19 vaccines through the World Health Organization and is working to expand rapid testing and antiviral treatments for hard-to-reach populations, President Joe Biden said on Thursday.
Speaking at the second global COVID-19 summit, Biden called on Congress to provide additional funds so that the U.S. may contribute more to the global pandemic response.”

COVID-19:FDA Took Steps to Help Make Tests Available; Policy for Future Public Health Emergencies Needed “GAO was asked to review FDA's oversight of tests for COVID-19. This report examines, among other things, 1) the actions FDA took to help make COVID-19 tests available for use, 2) the number of tests FDA authorized and those for which it exercised enforcement discretion, and 3) FDA's monitoring of these tests after they were available for use…
[The GAO recommends that the] Commissioner of FDA should develop a policy for the use of enforcement discretion regarding unauthorized tests in future public health emergencies. This policy should include the conditions under which FDA would begin and end the use of such discretion.”

About health insurance

 Medicare Spending on Prescription Drugs Far Outpaces Development Costs “The AARP report also cited 2021 data from the U.S. House of Representatives Committee on Oversight and Reform, which found that from 2016 to 2020, the 14 leading drug companies spent $577 billion on stock buybacks and dividends—$56 billion more than they spent on R&D over the same period. The $2.6 billion average cost of development, Purvis said, is an industry-generated estimate and other researchers have challenged that figure as too high.”

About hospitals and healthcare systems

Top teaching hospitals by net patient revenue FYI

Concordance of Hospital Ranks and Category Ratings Using the Current Technical Specification of US Hospital Star Ratings and Reasonable Alternative Specifications “In this cross-sectional study of data on 3339 US hospitals, on average half were assigned a different star rating when using reasonable alternatives to the current methods. Different changes to the technical specification had differential outcomes, but even minor changes in specification could lead to substantial reclassification between adjacent performance categories.”

 Adverse Events in Hospitals: A Quarter of Medicare Patients Experienced Harm in October 2018  Released a few days ago from the HHS OIG. While the full report is worth reading, the following are some key findings:
”Twenty-five percent of Medicare patients experienced patient harm during their hospital stays in October 2018. Patient harm includes adverse events and temporary harm events.
Twelve percent of patients experienced adverse events, which are events that led to longer hospital stays, permanent harm, life-saving intervention, or death. In addition to the patients who experienced adverse events, 13 percent of patients experienced temporary harm events, which required intervention but did not cause lasting harm, prolong hospital stays, or require life-sustaining measures. Temporary harm events were sometimes serious and could have caused further harm if providers had not promptly treated patients.

  • Categories of Harm Events. The most common type of harm event was related to medication (43 percent), such as patients experiencing delirium or other changes in mental status. The remaining events related to patient care (23 percent), such as pressure injuries; to procedures and surgeries (22 percent), such as intraoperative hypotension; and to infections (11 percent), such as hospital-acquired respiratory infections.”

Recommendations are also offered.

U.S. Not-for-Profit Hospitals and Health Systems Face Mounting Operating Stress (Pandemic, Labor and Inflation Pressures to Persist Through 2022 and Beyond) “The entire burden of any business interruption and negative margin impact due to coronavirus is now borne fully by providers. NFP healthcare is a low-margin sector, and Fitch Ratings expects operating margins will weaken in 2022. Lower margins are still currently offset by strong balance sheets, which have provided a generous cushion over the last two years of operating uncertainty. Pressures are anticipated to be within the expected range of volatility for the sector, and we do not foresee any significant deterioration of rated healthcare providers’ financial positions at this time. Our sector outlook remains neutral; however, another omicron-like surge this fall/winter may see this cushion materially eroded, and signal the beginning of downward rating momentum across the sector.”
The study was probably done before the recent stock market “correction,” so the statement about strong balance sheets may no longer be quite so accurate.

About pharma

 Three UK pharma companies go broke, costing 1,000 employees their jobs: reports “Three large U.K. pharmaceutical companies are in financial trouble and are shutting down, costing about 1,000 employees their jobs, according to local reports.
Testerworld, Doncaster Pharmaceuticals Group and Eclipse Generics are all part of the Converse Pharma Group, a U.K. group of companies founded in 2013 that focuses on wholesale distribution. The companies have entered into administration, a program to either rescue a company or wind down its operations, according to several reports in England.” 

New Japan-originated ALS treatment option available to patients in the U.S.―FDA approval of RADICAVA ORS for the treatment of ALS “Mitsubishi Tanabe Pharma Corporation…a member of the Mitsubishi Chemical Holdings Group, announced that the U.S. Food and Drug Administration (FDA) has approved RADICAVA ORS® (edaravone) for the treatment of amyotrophic lateral sclerosis (ALS) on May 12, 2022.”

About the public’s health

 The baby formula shortage has turned political A really good review of this problem from the Washington Post.

Estimating the Burden of Influenza-like Illness on Daily Activity at the Population Scale Using Commercial Wearable SensorsQuestion  How can the true burden of influenza-like illnesses (ILIs) be estimated given that most cases of ILIs are mild and go undocumented?
Findings  This cohort study of 15 122 adults who reported ILI symptoms and had data from wearable sensors at symptom onset found an overall reduction in mobility equivalent to 15% of the active US population becoming completely immobilized for 1 day. More than 60% of this reduction occurred among persons who had sought no medical care.
Meaning  This study suggests that the burden of ILIs is much greater than had previously been understood.”

About healthcare IT

 Interoperability Workgroup Report  From the Health Innovation Alliance:

“Six areas of focus were identified:

  • Data That Works for Patients and Providers at the Point of Care

  • Leverage State of the Art Medical Devices to Improve Patient Care

  • Clear Protections from HIPAA Penalties for Patient Information Requests

  • Inform Medical Research and Innovation with Better Information

  • Social Determinants of Health, and

  • Improve Public Health Data Collection and Reporting” 

The report makes 21 recommendations covering these categories and also assigns responsibility for their implementation and monitoring, e.g., Congress, FDA, ONC, and CMS.

IoT in Healthcare Market “The global IoT in healthcare market is projected to reach US$ 181.4 Billion in 2022, anticipated to grow at a CAGR of 18.0%, reaching US$ 952.3 Billion by 2032. The market is slated to document a Y-o-Y growth rate of 20.7% from 2021-2022, increasing from the previously registered value of US$ 150.3 Billion.”

Legacy Devicemakers Must Still Support Cybersecurity, IMDRF Says “Manufacturers of legacy devices that were not designed with cybersecurity in mind must tell customers during the procurement process when they will stop providing cybersecurity support, the International Medical Device Regulators Forum (IMDRF) advises in a just-published draft document.”

About healthcare personnel

 Michigan grants full practice authority for CRNAs “Michigan is the 20th state to allow certified registered nurse anesthetists to practice without physician supervision after Gov. Gretchen Whitmer signed a bill into law granting full practice authority for those providers…”

About health technology

Paige nets European OK for AI to spot prostate cancer biomarkers Usually biomarker identification requires special tissue stains or genetic analysis. This AI technology can pick up 4 prostate cancer biomarkers using the usual tissue stains.

 FDA clears BD’s newest molecular diagnostics machine and its first test, a three-in-one STI screener “The medtech giant recently landed the FDA’s clearance for the third component in its Cor diagnostics platform, it announced this week, and has already begun the launch of the new BD Cor MX instrument throughout the U.S.
The MX system joins the previously cleared PX and GX instruments on the Cor platform…
Alongside the launch of the MX component, BD was also given the green light to roll out the instrument’s first assay: a three-in-one test that simultaneously looks for the most common non-viral sexually transmitted infections at once, including chlamydia, gonorrhea and trichomoniasis.”

GE Healthcare aims to bring prenatal ultrasound to the home, with investment in smartphone-scanner developer “GE Healthcare and the handheld ultrasound developer Pulsenmore aim to give expectant parents the opportunity to chart their pregnancies at home and perform the scans themselves.
Pulsenmore’s device docks with a smartphone, allowing women to conduct their own exams and potentially skip an in-person doctor’s visit. The user can be guided online through a telehealth service or offline by following the steps in an app.
The Israeli startup aims to offer fast clinical feedback for periodic fetal ultrasound scans, and GE Healthcare is now supporting the company through an equity investment worth up to $50 million—to help the medtech enter what it describes as a rapidly expanding market of homecare and telemedicine services.”

Researchers uncover the brain's link to SIDS, setting up potential infant screening test “Researchers in Australia have uncovered the first chemical biomarker tied to sudden infant death syndrome, widely known as SIDS, which could help lead to a test that can screen for babies at risk for the tragic condition…
’An apparently healthy baby going to sleep and not waking up is every parent’s nightmare, and until now, there was absolutely no way of knowing which infant would succumb. But that’s not the case anymore,’ said lead researcher Carmel Harrington, M.D., an honorary fellow at The Children's Hospital at Westmead in Sydney, who lost her own child to SIDS 29 years ago.
Her team identified the nervous system enzyme butyrylcholinesterase as a strong marker of risk. Dubbed BChE for short, the chemical plays an active role in the brain’s ability to wake up the body from sleep in response to difficulty breathing or another stimulus.”
See this site for the original research article.

About healthcare finance

Trends in Real Estate Investment Trust Ownership of US Health Care Properties “In 2021, REITs owned 197 (3%) of all hospitals and 1870 (12%) of all skilled nursing facilities. Real estate investment trust hospital acquisitions have increased during the past 15 years until the COVID-19 pandemic, during which acquisitions were minimal. In a multivariate logistic analysis, some of the characteristics most strongly associated with REIT ownership were for-profit status (odds ratio, 25.05; 95% CI, 14.69-42.70; P < .001) and urban status (odds ratio, 6.8; 95% CI, 1.61-28.67; P = .01)."

Today's News and Commentary

About Covid-19

Moderna completes FDA submission for use of COVID shot in adolescents, kids “Moderna Inc has made all necessary submissions required by the U.S. Food & Drug Administration for emergency use authorization of its COVID-19 vaccine in adolescents and children, it said on Wednesday.
 The company is seeking approval for the use of its vaccines in three distinct age groups – adolescents aged 12 to 17 years, children aged six to 11 and those between six years and six months.” 
And in a related story: Evaluation of mRNA-1273 Covid-19 Vaccine [Moderna] in Children 6 to 11 Years of Age” Estimated vaccine efficacy was 88.0% (95% CI, 70.0 to 95.8) against Covid-19 occurring 14 days or more after the first injection, at a time when B.1.617.2 (delta) was the dominant circulating variant…
Two 50-μg doses of the mRNA-1273 vaccine were found to be safe and effective in inducing immune responses and preventing Covid-19 in children 6 to 11 years of age; these responses were noninferior to those in young adults.”

FDA approves Olumiant for certain adults hospitalized with COVID-19 “The FDA has approved a new indication for Olumiant as a treatment for adults hospitalized with COVID-19 who require supplemental oxygen, noninvasive or invasive mechanical ventilation, or extracorporeal membrane oxygenation.
The Janus kinase inhibitor Olumiant (baricitinib; Eli Lilly & Co.) is the first immunomodulatory treatment to be approved by the FDA for COVID-19, according to the agency.”

About health insurance

Better Quality, Lower Costs When Providers and Health Plans Share Financial Risk “Consistent with prior years, the results released for 2020 show that better care and lower costs typically result when plans and providers share in the financial risk through a capitation arrangement compared to fee-for-service models. This analysis is based on data from 11 health plans, representing 7.9 million commercial lives cared for under health maintenance organization (HMO), preferred provider organization (PPO), and exclusive provider organization (EPO) products, both fully insured and self-insured.”

About pharma

 Bristol Myers provides Bridge over troubled water with $905M deal to enter SHP2 race “Bristol Myers Squibb came to the rescue of a beleaguered BridgeBio today, striking a $905 million biobuck deal to secure a rival to oncology candidates in development at Merck, Novartis, Roche, Sanofi and more…
SHP2 has emerged as a hot cancer target as drug developers have sought to maximize the efficacy of KRAS inhibitors. With some research suggesting SHP2 inhibition diminishes the cycling of KRAS between two states, the mechanism could help to unlock the full power of therapies such as Amgen’s Lumakras and Mirati Therapeutics’ adagrasib.”

Lundbeck Q1 sales up as Brintellix, Rexulti, Abilify post double-digit gains Headline results for the first quarter:

  • Revenue: DKK 4.4 billion ($625 million), up 2%

  • Profit: DKK 412 million ($59 million), versus DKK 631 million ($90 million) in the prior year”

About the public’s health

Primary Care Appointment Completion Rates and Telemedicine Utilization Among Black and Non-Black Patients from 2019 to 2020 “Racial differences in appointment completion rates narrowed significantly in 2020 even as the mix of disease conditions began to mirror patterns observed in 2019.” 

About healthcare personnel

 Nurse.com 2022 Nurse Salary Research Report  “A few sobering statistics:

+ The vacancy rate for registered nurses was almost 10% in 2020, almost a full point higher than the prior year. Over a third of hospitals reported a vacancy rate higher than 10%.3

+ Nurse turnover rates are increasing, standing at about 22% in 2021, compared to 18% in 2019.4

+ It takes an average of three months to recruit a qualified nurse to fill a vacancy, a period that is expected to increase in the wake of the disruptions caused by COVID-19.3

The AONL survey found that 90% of nurse leaders anticipate post-pandemic staffing shortages,2 and hospital CEOs rank personnel shortages as their top concern…
Key Takeaways

1. Nursing salaries are up for most groups
 The median RN salary reported by survey respondents was $78,000. This was a substantial increase over the median RN salary of $73,000 reported in our 2020 report…

2. The pandemic has had a profound impact on whether nurses want to stay in the profession and under what terms.
Our survey found that 29% of survey respondents were considering leaving nursing. This percentage, which includes nurses across all licensures, is substantially higher than the 11% who indicated they were consid- ering leaving in our 2020 survey…
3. The gender pay gap for RNs widened.
One factor may be that male nurses are more likely to negotiate their salary.
The current survey shows the median salary for a male RN as $14,000 higher than the median salary for a female RN. This gap was $7,297 in our 2020 survey”

Many more stats in this report.

Assessing the lingering impact of COVID-19 on the nursing workforce In a related study from McKinsey: “By 2025, we estimate the United States may have a gap of between 200,000 to 450,000 nurses available for direct patient care, equating to a 10 to 20 percent gap. To meet this demand, the United States would need to more than double the number of new graduates entering and staying in the nursing workforce every year for the next three years straight.”

About health technology

 FDA Approves Fujirebio Diagnostics’ Lumipulse G ß-Amyloid Ratio Test for Alzheimer’s “The FDA has approved Fujirebio Diagnostics’ in vitro diagnostic test for early detection of amyloid plaques associated with Alzheimer’s disease.
The Lumipulse test, which is the first of its kind to be approved by the agency, is intended for patients age 55 and up who have symptoms of cognitive impairment and are being evaluated for Alzheimer’s disease and other causes of cognitive decline.” 

Today's News and Commentary

About Covid-19

 ICER panel finds Paxlovid evidence 'more persuasive' than for Lagevrio “The Institute for Clinical and Economic Review (ICER) on Tuesday said its appraisal committee voted by a margin of 11-2 that currently available evidence is ‘not adequate’ to show Merck & Co.'s oral COVID-19 drug Lagevrio (molnupiravir) offers a net health benefit over symptomatic care alone. By contrast… ICER said all 13 appraisal committee members agreed that current evidence is adequate to demonstrate a net health benefit when Paxlovid is compared to symptomatic care alone…”

16 national healthcare organizations urge HHS to continue public health emergency ”The American Hospital Association and 15 other national healthcare organizations are calling on HHS to maintain the COVID-19 public health emergency.
In a May 10 letter to HHS Secretary Xavier Becerra, the organizations cited the continued risk from COVID-19 variants, as well as rising case rates in the U.S.”

About health insurance

 Oscar Health leaves two states due to regulatory and commercial issues “Oscar Health will leave Colorado and Arkansas in pursuit of profitability, company executives said during their first-quarter earnings report…
The announcement comes as the insurance company continues to aim for its insurance division to be profitable by next year.
In the first quarter, Oscar Health reported a net loss of $77.3 million, down from $88.1 million in the same period last year. The company more than doubled its annual revenue to $972.7 million.”

Clover Health gears up for another $300M capital raise “The announcement that Clover Health is seeking outside investment comes after the startup posted a $578.8 million loss last year. In 2021, the company lost over $4,500 per member, the most among commercial public insurance companies…
During the first quarter, Clover Health spent all premiums received by members on medical expenses, with a medical loss ratio reaching 100.”

Calif. Health Care Workers Convicted In $18.5M Billing Scheme “A California jury has convicted three health care workers for their roles in an $18. 5 million scheme to defraud the state's Medicaid program by seeking reimbursement for bogus drug counseling for middle and high schoolers, the U. S. Department of Justice announced.”

About hospitals and healthcare systems

 Advocate Aurora to merge with North Carolina hospital chain in blockbuster deal, relocate HQ “Chicago’s largest health care provider Advocate Aurora Health has agreed to merge with a Charlotte-based hospital chain in a deal that will create the fifth-largest hospital chain by revenue in the country and, in the process, relocate Advocate Aurora’s headquarters to Charlotte, N.C…
The combined entity would be named Advocate Health but each provider will continue to be known by their current names in their respective markets. Wake Forest University School of Medicine in Winston-Salem, N.C., will be Advocate Health’s affiliated academic institution.”

AdventHealth posts $417.7M loss in Q1 “Although revenue was up, so were AdventHealth's expenses. In the first quarter of 2022, AdventHealth saw its expenses grow to $3.72 billion, up from $3.23 billion recorded in the same period in 2021…
’The increased expense is primarily a result of elevated premium and contract labor costs and wage inflation resulting from workforce shortages,’ AdventHealth stated in its financial report. ‘The system continues to implement workforce stabilization plans to reduce turnover and temporary labor utilization.’”

The Financial Effects of Hospital Workforce Dislocation: A Fact Base A special report from KaufmanHall:
”Following are some of our key findings:

◾  Nationally, hospital labor expenses increased by more than one-third from pre-pandemic levels

◾  The largest increases were in the South and West, while the highest expense levels consistently were in the West and Northeast/Mid-Atlantic

◾  Contract labor as a percentage of total labor expenses increased more than five times the rate from pre- pandemic levels

◾  As of March 2022, the median wage rate for contract nurses had risen to more than three times that of employed nurses

◾  In the first three months of 2022, hospitals saw dramatic declines in YTD operating margin in a perfect storm of expense, volume, and revenue pressures attributable largely to the effects of COVID”

About pharma

 Takeda swings to loss in fourth quarter “Takeda explained that the loss in the quarter was partly due to higher cost of sales and R&D expenses, while the year-earlier figure was boosted by gains from the sale of its consumer-healthcare business. In the three-month period, cost of sales rose 21.7% to JPY 308.4 billion ($2.4 billion), with R&D expenses climbing 26.8% to JPY 143.6 billion ($1.1 billion).
Revenue: JPY 873.3 billion ($6.7 billion), up 13.4%
Loss: JPY 11.4 billion ($88 million), versus profit of JPY 197.1 billion ($1.5 billion) in the prior year”
Product details are also mentioned.

Cerebral changes online ads in the midst of overprescribing allegations The saga continues…”Telehealth startup Cerebral adjusted its marketing and advertising strategies to reflect the suspension of controlled substance prescriptions for new patients after allegations of overprescribing by providers surfaced…
Cerebral said it will update the language on its advertisements, review its existing promotional efforts and form a committee — composed of clinical and brand team members — to review paid social media ads. 
According to a social media tracking firm PranifyRx, the company posted 110 Facebook ads and 220 Instagram ads on May 9.”

AbbVie unit, Teva poised to pay $5 billion to resolve opioid suits ”Teva Pharmaceutical Industries Ltd. and Allergan Plc are willing to pay more than $5 billion combined to resolve more than 3,500 lawsuits filed against them over highly addictive opioid painkillers, according to three people familiar with settlement talks….
While Teva and Allergan indicated a willingness to settle, no formal offer has been made or finalized, and talks are continuing, according to the people.”

Israel sues Teva for $100m Copaxone royalties “The State of Israel today filed a lawsuit in the Lod District Court for $100 million against Teva Pharmaceutical Industries Ltd. claiming that the company violated the statre's rights by not paying royalties for multiple sclerosis treatment Copaxone.
Copaxone was developed by the Weizmann Institute of Science in Rehovot, while its marketing rights belong to Teva. Initially Teva marketed the drug in daily doses but close to the expiration of the patent of the active ingredient, the company filed a patent request for a longer interval dosage. The state clams that the longer interval dosage was developed by breakthrough research by Weizmann institute researchers who are neurologists at government hospitals, and therefore rights for the research belong to the state.”

About the public’s health

 U.S. surpasses record 100,000 overdose deaths in 2021 “More Americans died from drug overdoses in 2021 than any previous year, a grim milestone in an epidemic that has now claimed 1 million lives in the 21st century, according to federal data released Wednesday.
 More than 100,000 Americans died of drug overdoses in 2021, up 15 percent from the previous year, according to figures released Wednesday by the National Center for Health Statistics. The soberingtally reflects challenges exacerbated by the pandemic: lost access to treatment, social isolation and a more potent drug supply.”

Vital Signs: Changes in Firearm Homicide and Suicide Rates — United States, 2019–2020 From the CDC: “The firearm homicide rate in 2020 was the highest recorded since 1994 (1). However, the increase in firearm homicides was not equally distributed. Young persons, males, and Black persons consistently have the highest firearm homicide rates, and these groups experienced the largest increases in 2020. These increases represent the widening of long-standing disparities in firearm homicide rates. For example, the firearm homicide rate among Black males aged 10–24 years was 20.6 times as high as the rate among White males of the same age in 2019, and this ratio increased to 21.6 in 2020. Although the overall firearm suicide rate remained relatively unchanged between 2019 and 2020, young persons and some racial/ethnic minority groups experienced increases in firearm suicide. Notably, the largest increase occurred among AI/AN persons, resulting in this group having the highest firearm suicide rate as of 2020…
The findings of this study do not support causal inferences, and reasons for increasing rates and widening inequities are unclear and potentially complex.”

Screening for Chronic Obstructive Pulmonary DiseaseUS Preventive Services Task Force Reaffirmation Recommendation Statement “The USPSTF recommends against screening for COPD in asymptomatic adults. (D recommendation)”

The unhealthiest county in each US state | 2022 And The healthiest county in each US state | 2022 Both FYI

Fertility Rates: Declined for Younger Women, Increased for Older Women “The analysis, which looked at Census Bureau and National Center for Health Statistics data, shows fertility rates of women ages 20-24 declined by 43%, while those of women ages 35-39 increased by 67% during the roughly 30-year period.”

About healthcare IT

 HHS doles out $16.3M in telehealth funding for Title X family planning program “The Department of Health and Human Services (HHS) doled out $16.3 million in new grant funding to help support an expansion of telehealth for Title X family planning clinics…
The funding, passed as part of the American Rescue Plan Act, will go toward 31 stakeholders that will help improve telehealth capacity across family planning clinics in 26 states, HHS said in a release. The funding will run for a 12-month period and is part of a larger goal by the Biden administration to improve maternal health and the family planning safety net.”

Consumer telehealth and wellness brand Hims & Hers ups 2022 revenue outlook driven by strong Q1 growth “Business is booming for consumer telehealth and wellness brand Hims & Hers as the company charted 94% revenue growth in the first quarter, surpassing $100 million during one quarter for the first time…”
After more rosy reporting, 10 paragraphs later the article notes:
”But the digital health company is still not profitable and reported a net loss of $16 million for the first quarter of 2022 compared to a loss of $51 million for the same period a year ago…
For 2022, the company also maintains its projection of adjusted EBITDA for the year in the range of a loss $30 million to a loss of $20 million.”

HHS IDs 5 most prolific cybergangs targeting healthcare FYI 

About health technology

 Mirvie’s Preeclampsia Test Designated an FDA Breakthrough Device “The test is based on the company’s RNA screening platform, which is designed to predict the risk of complications by revealing the underlying biology of each pregnancy.
Preliminary research showed that the Mirvie RNA platform can identify 75 percent of women who go on to develop preeclampsia, months before symptoms occur, the company said.”

FTC orders Medtronic to sell off Intersect ENT subsidiary in antitrust review “Staying true to its pledge to crack down on potentially anticompetitive megamergers in the healthcare industry, the U.S. Federal Trade Commission has ordered Medtronic and Intersect ENT to adjust the terms of their acquisition deal before finally tying it off.
According to this week’s order (PDF), while Medtronic is now cleared to proceed with its purchase of Intersect, it must sell off Fiagon, the latter's subsidiary, within 10 days of closing the acquisition.”

Today's News and Commentary

About Covid-19

 COVID vaccine makers shift focus to boosters “COVID-19 vaccine makers are shifting gears and planning for a smaller, more competitive booster shot market after delivering as many doses as fast as they could over the last 18 months.
Executives at the biggest COVID vaccine makers including Pfizer Inc and Moderna Inc said they believe most people who wanted to get vaccinated against COVID have already done so - more than 5 billion people worldwide.
In the coming year, most COVID vaccinations will be booster shots, or first inoculations for children, which are still gaining regulatory approvals around the world, they said.” 

About health insurance

Unwinding the PHE: What We Can Learn From Pre-Pandemic Enrollment Patterns “The Families First Coronavirus Response Act (FFCRA), passed during the coronavirus pandemic, includes a Medicaid continuous enrollment requirement that prohibits states from disenrolling people from Medicaid in exchange for additional federal funds. The continuous enrollment requirement has prevented coverage loss and churn (moving off and then back on to coverage) among enrollees during pandemic and, along with other factors, has contributed to the substantial enrollment growth in Medicaid. From February 2020 to January 2022, total Medicaid/CHIP enrollment has increased by 15.7 million enrollees (22.1%). The continuous enrollment requirement will last until the end of the month in which with national public health emergency (PHE) ends. Currently, the PHE is in effect through mid-July 2022 and, at this time, it is expected that the continuous enrollment requirement will end August 1, 2022. The Biden administration has said it will give states 60 days’ notice before the PHE ends, and so if state are not notified by mid-May, the PHE will likely be extended further.”

Anthem closes acquisition of Integra Managed Care “Anthem has closed its acquisition of New York-based Integra Managed Care.
The insurer announced plans to acquire Integra, a long-term care plan, in November. The plan will bring more than 40,000 Medicaid members into the Anthem fold and offers coverage to assist with managing long-term care needs and disabilities in the home.”

Top 100 counties with the highest rate of uninsured residents All but 2 of the top 25 are in Texas.

About hospitals and healthcare systems

 Leapfrog Group: Patients report worse hospital experiences during COVID-19 pandemic, raising safety concerns “Leapfrog’s twice-annual reports assess more than 30 patient safety measures and component measures compiled from the Centers for Medicare & Medicaid Services (CMS) and Leapfrog’s hospital surveys between July 2018 and March 2021. The most recent release assigns letter grades to nearly 3,000 U.S. general hospitals and is the second collection of scores to incorporate safety and experience data from the COVID-19 pandemic…
 The group found statistically significant declines between the survey periods in the average percentage of hospital patients who gave the most favorable responses for nine of the 10 HCAHPS measures.
The greatest decline was seen among patients’ experiences with hospital staff responsiveness (a 3.7 percentage point decrease), followed by communication about medicines (a 2.9 point decrease), and cleanliness of the hospital (a 2.9 point decrease).”
Check this site to search by hospital.

About pharma

 GoodRx stock tumbles as 2022 revenue expected to take a hit from grocery chain prescription dispute “GoodRx expects its 2022 revenue to take a hit due to recent actions by one grocery store chain that represents a sizable chunk of its grocery prescription business.
The digital healthcare platform, best known for providing prescription drug discounts, disclosed Monday that it is unlikely to achieve its full-year guidance after a grocery chain stopped accepting discounts for certain drugs. In its fourth-quarter earnings call back in February, executives said they projected revenue to grow 23% in 2022, on top of full-year revenue of $745 million in 2021.
Shares were down 31% in after-hours trading.
The company did not disclose the name of the grocery chain.”

Pfizer to buy Biohaven for $11.6 billion ”Pfizer agreed to acquire Biohaven Pharmaceuticals for $148.50 per share in cash, or approximately $11.6 billion, to gain full control of the drugmaker, the companies announced Tuesday. Last year, Pfizer paid $350 million to take a 2.6% stake in Biohaven as part of a deal for certain rights to the migraine therapies Nurtec ODT (rimegepant) and zavegepant.”
The deal is expected to close early in 2023.

Analysis paints gloomy picture for smaller biotechs “According to Jeffries analysts, the number of small- to mid-cap (SMID) biotechnology companies trading below cash has soared to 128, up from 45 last year… The latest figure, the highest ever seen in the industry, also accounts for a quarter of SMID biotech firms, and beats the previous record of 18% seen during the 2008 financial crisis.
Jeffries blames the current situation on negative clinical study readouts and record levels of clinical holds and FDA delays, particularly in the gene/cell editing space. They also pointed to the broader macro environment, in which generalist investors favour defensive, dividend-yielding large-cap biopharma companies…
Another recent analysis by Jeffries revealed that the top 20 biopharma firms now hold over $300 billion in cash – boosted in part by COVID-19 vaccine sales – enough to ‘basically buy the whole SMID-cap universe.’ Looking ahead, the analysts suggest that M&A activity in the second half of the year ‘may’ pick up if large-cap biopharma companies choose to open up their coffers, while the number of initial public offerings (IPOs) is expected to grow, albeit with more conservative valuations.”
These financial changes could cause a fundamental restructuring of the biotech industry- away from small firms that contract with larger ones, to “Big Biotech/Pharma.”

Inside the sales machine of the ‘kingpin’ of opioid makers A really good investigative reporting piece about Mallinckrodt Pharmaceuticals from The Washington Post.

About the public’s health

 Risk Factors Associated With Alzheimer Disease and Related Dementias by Sex and Race and Ethnicity in the US “In this cross-sectional study, the modifiable risk factors most prominently associated with ADRDs were midlife obesity, physical inactivity, and low education. The proportion of ADRD cases associated with modifiable risk factors was higher in men and in American Indian and Alaska Native individuals, Black individuals, and Hispanic individuals (any race) compared with Asian individuals and White individuals.” 

About healthcare IT

Amwell sees strong demand for telehealth visits in Q1, but losses deepen as it ramps up R&D “Telehealth giant Amwell saw telehealth visits grow to 1.8 million in the first quarter of 2022, up 16% compared to the tail end of 2021 and up about 11% from 1.6 million virtual care visits during the same time last year.
The total number of active providers using its virtual care platform grew to around 102,000 during the quarter, up 25% compared to 81,000 a year ago.
But the company reported greater adjusted EBITDA losses than the previous year, with a loss of $47 million, 80% deeper than its reported loss in the prior-year period. Amwell reported an adjusted EBITDA loss of $26 million in the first quarter of 2021.”

Joint Audit of the Department of Defense and the Department of Veterans Affairs Efforts to Achieve Electronic Health Record System Interoperability From the VA OIG: “The DoD and VA took action to achieve interoperability of patient health care information across DoD, VA, and external health care providers by acquiring Cerner Millennium, deploying the EHR system at 49 DoD facilities and one VA health care facility, and launching the Joint Health Information Exchange. However, the DoD did not:
• consistently migrate patient health care information from the legacy electronic health care systems into Cerner Millennium to create a single, complete patient EHR;
• develop interfaces from all medical devices to Cerner Millennium so that patient health care information will automatically upload to the system from those devices; or
• ensure that users were granted access to Cerner Millennium for only the information needed to perform their duties

Achieving interoperability between the DoD, VA, and external health care providers through the deployment of a single EHR system is critical because health care providers will have the ability to securely transfer and share health care information for the Nation’s 9.6 million DoD Armed Forces members, dependents, and retirees, and 9.21 million enrolled users. As the DoD and the VA continue to deploy Cerner Millennium, health care providers at those facilities should be confident that a patient’s EHR is accurate and complete regardless of where the point of care occurred.”
A more detailed analysis and recommendations are contained in the full document. 

About health technology

 FDA Warns Fresenius Hemodialysis Machines Could Deliver Toxic Compound “The FDA warned that silicone tubing in three models of Fresenius Medical Care’s hemodialysis machines could expose users to toxic compounds.”

Today's News and Commentary

About Covid-19

COVID DATA TRACKER WEEKLY REVIEW From the CDC: “As of May 5, 2022, there are 78 (2.42%) counties, districts, or territories with a high COVID-19 Community Level, 316 (9.81%) counties with a medium Community Level, and 2,826 (87.76%) counties with a low Community Level. This represents a slight (0.75 percentage points) increase in the number of high-level counties, a small (+1.86 percentage points) increase in the number of medium-level counties, and a corresponding (−2.61 percentage points) decrease in the number of low-level counties…
 As of May 4, 2022, the current 7-day moving average of daily new cases (64,781) increased 21.4% compared with the previous 7-day moving average (53,362).”
And in a related article: Coronavirus wave this fall could infect 100 million, administration warns “The Biden administration is warning the United States could see 100 million coronavirus infections and a potentially significant wave of deaths this fall and winter, driven by new omicron subvariants that have shown a remarkable ability to escape immunity.
The projection, made Friday by a senior administration official during a background briefing as the nation approaches a covid death toll of 1 million, is part of a broader push to boost the nation’s readiness and persuade lawmakers to appropriate billions of dollars to purchase a new tranche of vaccines, tests and therapeutics.”

 Moderna urges court to dismiss patent claims on COVID-19 shot “Moderna filed a motion to dismiss a lawsuit filed by two small biopharma companies seeking damages for violation of certain U.S. patents related to the company’s blockbuster COVID-19 shot, branded as Spikevax.
RNA therapeutics company Genevant Sciences and clinical-stage biotech Arbutus Biopharma filed the case in February, holding Moderna and an affiliate of the vaccine maker accountable for the infringement.”

Effect of oral nirmatrelvir on Long COVID symptoms: a case series NOTE: This article is a case series and not a controlled trial. It also has not been peer reviewed. Nevertheless, its potential importance is worth reporting. “We report three cases that demonstrate that variability in the timing of nirmatrelvir [ Paxlovid] may be associated with different outcomes and underscores the need for systematic study of antiviral therapy for this disease condition.”

About health insurance

Big payers ranked by Q1 revenues See the list of the “top 6” and click for individual details.
And in a related story (not one of the “top 6”):  Kaiser posts net loss of $961M in Q1 “Driven mainly by nonoperating losses, Oakland, Calif.-based Kaiser Permanente recorded a net loss of $961 million in the first quarter of 2022, down from a net income of $2 billion in the same quarter in 2021, according to financial data released May 6.”

About hospitals and healthcare systems

 Hospitals Look to Raise Treatment Costs as Nurses’ Salaries Increase “Some hospitals grappling with rising nurse salaries are seeking to raise prices by up to 15%, touching off contract fights with health insurers and businesses and threatening higher premiums.
HCA Healthcare Inc. and Universal Health Services Inc. are among the hospitals asking health plans to pay them more for care to offset mounting nurse costs.
Neither of the chains would specify the price increases they are requesting, but people familiar with negotiations say some hospitals are asking to increase their prices by 7.5% to 15%. 
The requests are more than the 4% to 6% price increases that hospitals typically seek, according to employers and insurers. The hospitals usually won an average 3% price increase in recent years, according to Altarum, a nonprofit that does healthcare research.”

About pharma

 Cerebral under federal investigation for possible violations of controlled substances law  See the last few posts on this blog for background. The story continues…”Mental health startup Cerebral said Saturday it is under investigation by the Department of Justice (DOJ) for ‘possible violations’ of the Controlled Substances Act.
Cerebral Medical Group received a grand jury subpoena from the U.S. Attorney’s Office for the Eastern District of New York on Friday evening, the company said in a statement. The Controlled Substances Act regulates the distribution of potentially addictive medicines like Adderall and Xanax.”

Walgreens Says Insurers Must Defend It In Opioid Cases “Walgreens has sued at least 25 insurance companies, including several units of AIG, Liberty Mutual and Great American Insurance, in Illinois state court, seeking a ruling they must defend and indemnify the pharmacy retailer in nationwide opioid litigation. Walgreens is facing more than 2,500 lawsuits claiming it illegally contributed to an oversupply of opioids that has caused a national addiction epidemic and is suing at least 25 insurance companies, saying they must defend and indemnify the pharmacy retailer in nationwide opioid litigation.”

About the public’s health

 E-Cigarette Use and Risk of Cardiovascular Disease: A Longitudinal Analysis of the PATH Study (2013–2019) “Dual use of cigarettes and e-cigarettes was associated with a significantly increased risk of CVD compared with nonuse. The cardiovascular risk of dual use did not differ from the risk among those exclusively smoking cigarettes. Other recent cross-sectional analyses have also reported no significant association between e-cigarette use and CVD out-comes.”

States prepare for summer launch of new 988 suicide prevention number “This summer, every state will be rolling out 988 as the new National Suicide Prevention Lifeline number to call for mental health crises -- similar to how people can call 911 for medical emergencies.
But in some states, questions remain around funding the transition, staffing call centers and having response teams ready.
The transition to 988 is ‘not optional,’ according to the US Department of Health and Human Services' Substance Abuse and Mental Health Services Administration.
No more than half of states have enacted or introduced legislation in preparation for 988's debut, scheduled for July 16, according to data from the National Academy for State Health Policy.”

About health technology

 FDA Clarifies “Refuse to Accept” Policy for 510(k) Submissions “Under the Medical Device User Fee and Modernization Act (MDUFA) and its successive amendments, the FDA must meet performance goals related to the agency’s review of medical device submissions, based on the timeliness of those reviews. The FDA’s Refuse to Accept (RTA) policy provides for an early review of all submissions in accordance with specific acceptance criteria and enables the agency to inform a submitting party whether it a submission is “administratively complete” within 15 days of its filing.
The FDA says that the guidance, titled ‘Refuse to Accept Policy for 510(k)s,’ is intended to ensure consistency in acceptance decisions made by the agency and to help submitters better understand the types of information needed by the FDA to conduct its review.”

Today's News and Commentary

About Covid-19

 FDA restricts J&J’s COVID-19 vaccine due to blood clot risk “The Food and Drug Administration said the shot should only be given to adults who cannot receive a different vaccine or specifically request J&J’s vaccine. U.S. authorities for months have recommended that Americans get Pfizer or Moderna shots instead of J&J’s vaccine.
FDA’s vaccine chief Dr. Peter Marks said the agency decided to restrict the vaccine after taking another look at the data on the risks of life-threatening blood clots and concluding that they are limited to J&J’s vaccine.”

About health insurance

 UnitedHealthcare rolls out new virtual physical therapy program  “UnitedHealthcare has partnered with Kaia Health on a new virtual physical therapy program.
The program aims to offer 24/7, on-demand exercise feedback to eligible members with musculoskeletal conditions, the health insurance giant said. Members who are recovering from surgery or an injury will be asked to complete an assessment of current issues and will be referred to the program based on that assessment.
Eligible members will then be able to download Kaia's app to access its physical therapy tools, which use artificial intelligence to support patients through physical therapy exercise and monitor progress.
The app tracks motion in real time to offer suggestions using the mobile phone's camera rather than a wearable device.”

About hospitals and healthcare systems

 Sutter Health sees $95M operational profit in Q1 2022, but drops to a $184M loss after poor investments “Sutter Health kicked off the year’s first quarter with higher year-over-year operating revenues and operating income, but ultimately recorded a $184 million loss for the period thanks to a troubled investment market, according to financial statements for the three months ended March 31.
The Sacramento-based nonprofit increased its first-quarter total operating revenues 3.7% year over year ($126 million) to nearly $3.6 billion.”
This finding is unusual; more frequently hospitals have negative operating margins which are made up by investment gains and charitable donations. Therefore, the recent market declines could significantly affect hospitals’ financial ability to operate.

One Medical's Q1 revenue doubles as primary care company expands into chronic care, behavioral health This article is, unfortunately, too typical of reporting on such companies.
It starts out saying: “Tech-enabled primary care provider One Medical saw its total membership count jump nearly 30% to 767,000 by the end of March, a nearly 30% increase year over year.
The company's top line doubled from a year ago, as One Medical brought in $254 million in revenue in the first quarter, up 109% from $121 million in the first quarter of 2021. The company's first-quarter revenue exceeded the high end of its guidance range by more than $4 million.”
After more rosy reportage, 16 paragraphs later, the article explains: “Yet the primary care provider deepened its losses in the first quarter, with a loss of $91 million, or a loss per share of 47 cents, compared to a loss of $39 million, or 29 cents a share a year ago. One Medical's earnings missed Wall Street estimates, with analysts expecting a loss per share of 46 cents.
Adjusted EBITDA came in at a loss of $29 million in the quarter, compared to a gain of $4 million a year ago.”

6 WAYS TO REDUCE FINANCIAL DISTRESS IN HEALTHCARE From BDO. Two statistics I found particularly disturbing:
—“42% of healthcare CFOs have defaulted on their bond or loan covenants in the past 12 months. Interestingly, 25% say they have not defaulted but are concerned they will default in the next year…
—84% of healthcare CFOs say supply chain disruption is a risk in 2022.”

About pharma

 After 2 years, Sanofi's drug ingredients spinoff takes flight “Two years and one pandemic after Sanofi unveiled plans to spin off its European drug ingredients business, EUROAPI has debuted on the Euronext exchange. Shares in the new active pharmaceutical ingredient (API) outfit rose more than 3% in early trading despite a wider market slump.
EUROAPI is touting its position as a ‘leading player’ on the API scene. Its launch comes as COVID-19 and, more recently, the war in Ukraine expose gaps in the world’s pharmaceutical supply chain. Many of the ingredients the pharmaceutical industry relies on are made in countries like China and India.”

Trends of Prescription Drug Manufacturer Rebates in Commercial Health Insurance Plans, 2015-2019 “Results of this economic evaluation show that from 2015 to 2019, the growth of prerebate prescription drug costs (used for patients’ cost sharing) outpaced the growth of postrebate drug costs for all 3 commercial plan types. The consistently negative association between prerebate drug cost PCL [per covered life] per year and Rebate% documented in this study might reflect the fact that many expensive drugs with little competition rarely offer large manufacturer rebates.”

About the public’s health

Age at Initiation of Lower Gastrointestinal Endoscopy and Colorectal Cancer Risk Among US Women “ In this cohort study of 111 801 US women, compared with no endoscopy, initiation of endoscopy before 50 years of age was associated with reduced risk of colorectal cancer and specifically colorectal cancer diagnosed before 55 years of age. Initiation of endoscopy from 45 to 49 years of age was associated with a greater reduction in the absolute risk of colorectal cancer through 60 years of age compared with initiation from 50 to 54 years of age…
These findings support guidelines recommending initiation of colorectal cancer screening before 50 years of age among women.”

About healthcare IT

 Hospital, payer, IT groups urge Congress to overturn ban on unique patient identifier “Dive Brief:

  • Members of the healthcare industry are once again pressuring Congress to remove what they say is a major pain point in their operations and in the delivery of patient care: the ban on a nationwide unique patient identifier.

  • Almost 120 health IT groups, EHR vendors, hospitals, physicians and health insurers sent letters on Wednesday to House and Senateappropriators urging them to remove decades-old rider language in a 2023 appropriations bill that prevents the HHS from spending federal dollars to create or adopt a UPI standard.”

Today's News and Commentary

About Covid-19

Nearly 15 million deaths related to covid-19, WHO estimates “The coronavirus pandemic led to nearly 15 million excess deathsworldwide, according to a new estimate by the World Health Organization, including people who died from covid-19 and others who died from indirect causes such as health care shortages as the virus surged and overwhelmed hospitals. The WHO defines excess deaths as ‘the difference between the number of deaths that have occurred and the number that would be expected in the absence of the pandemic based on data from earlier years.’
Most of the excess deaths during the first two years of the pandemic were concentrated in Southeast Asia, Europe, and the Americas, the WHO said in a news release. More than two-thirds occurred in just 10 countries.”
And in a related article: Covid's toll in the U.S. reaches a once unfathomable number: 1 million deaths “The U.S. on Wednesday surpassed 1 million Covid-19 deaths, according to data compiled by NBC News — a once unthinkable scale of loss even for the country with the world's highest recorded toll from the virus.
The number — equivalent to the population of San Jose, California, the 10th largest city in the U.S. — was reached at stunning speed: 27 months after the country confirmed its first case of the virus.”

Vaccines Effective Against New Omicron Subvariants, WHO Chief Says “‘It’s too soon to know whether these new sub-variants can cause more severe disease than other omicron sub-variants, but early data suggest vaccination remains protective against severe disease and death,’ Tedros Adhanom Ghebreyesus, said at a media briefing in Geneva Wednesday.”
And in a related article: Moderna targets autumn release for Omicron vaccine

COVID-19 Vaccination—Becoming Part of the New Normal From leaders at the FDA:
”…it is time to accept that the presence of SARS-CoV-2, the virus that causes COVID-19, is the new normal. It will likely circulate globally for the foreseeable future, taking its place alongside other common respiratory viruses such as influenza. And it likely will require similar annual consideration for vaccine composition updates in consultation with the US Food and Drug Administration (FDA) Vaccines and Related Biological Products Advisory Committee (VRBPAC)….
By summer, decisions will need to be made for the 2022-2023 season about who should be eligible for vaccination with additional boosters and regarding vaccine composition. Administering additional COVID-19 vaccine doses to appropriate individuals this fall around the time of the usual influenza vaccine campaign has the potential to protect susceptible individuals against hospitalization and death, and therefore will be a topic for FDA consideration”

1 in 5 Parents of Children Under 5 Intend to Get Them a COVID-19 Vaccine Right Away Once Eligible; Most Say Approval Delays Have Not Shaken Their Confidence in Vaccine’s Safety and Effectiveness From a KFF survey: “About a fifth (18%) of parents with children under age 5 say they intend to get their child vaccinated ‘right away’ once federal regulators authorize its use for their child’s age group… Another 38% say they would want to ‘wait and see’ how it works for other young children before getting their child vaccinated…
significant shares of these parents are reluctant, with 27% saying they will ‘definitely not’ get their child vaccinated and 11% saying they would do so ‘only if required’ for school or daycare.”
Also: “As COVID-19 cases have begun to rise nationally in recent weeks, a little more than a third (35%) of adults think there is a new wave of COVID-19 infections hitting the country. Most say either that there is not a new wave (50%) or that they aren’t sure if there is (14%).”

FDA rebukes Pfizer CEO's suggestion to take more Paxlovid if COVID-19 symptoms return “The FDA rebuked Pfizer CEO Albert Bourla’s proposed solution to reports that some patients experienced a relapse of COVID-19 symptoms after treatment with the company's antiviral Paxlovid.”

 The Impact of COVID-19 on the Rural Health Care Landscape “Before the COVID-19 pandemic began, hospital closures were increasing in rural communities across the nation: 116 rural hospitals closed between 2010 and 2019. Over the past two years, federal relief has helped stabilize facilities, and the pace of closures slowed. However, this assistance was temporary, and rural hospitals continue to struggle financially and to recruit and retain nurses and other health care employees…
[For example] out of 2,176 rural hospitals, 441 face three or more concurrent financial risk factors, putting them at risk of service reduction or closure…
[Recommendations:] TO PROVIDE IMMEDIATE STABILIZATION, CONGRESS OR THE SECRETARY OF HHS SHOULD:

  • Provide full relief to rural hospitals from Medicare sequestration pay- ment reductions until two years after the Public Health Emergency (PHE) ends.

  • Increase reimbursement for Medicare CAH [Critical Access Hospital]
    services by 3% starting in FY2023.

  • Re-establish the CAH “necessary provider” designation process.

  • Allow additional flexibility in CAH eligibility criteria.

  • Update the Medicare base payment rate for SCHs [Sole Community Hospitals]
    and MDHs [Medicare Dependent Hospitals]
    to ensure that reimbursement reflects current costs.

  • Make available capital infrastructure grants or loans that rural hospitals can use to modify services lines or improve structural or patient safety.”

Evaluation of Trends in Alcohol Use Disorder [AUD] –Related Mortality in the US Before and During the COVID-19 Pandemic “In this cross-sectional study, we used data from 2012 to 2019 to project 2020 and 2021 mortality rates and found that AUD-related mortality rates increased among all ages and sexes during the pandemic. Younger persons, particularly those aged 25 to 44 years, had the steepest upward trend. The small proportion of COVID-19–related deaths suggests that excess deaths were more likely attributable to indirect effects of the pandemic such as stay-at-home policies and reduced medical and social resources for patients with AUD.”

About health insurance

Health Insurance Coverage: Early Release of Estimates From the National Health Interview Survey, 2021 Highlights from the National Center for Health Statistics, National Health Interview Survey, 2021:

  •   In 2021, among people of all ages, 9.2% were uninsured, 39.5% had public coverage, and 60.4% had private coverage at the time of interview…

  •   Adults aged 18–64 were the most likely to be uninsured (13.5%),f ollowed by children aged 0–17 years (4.1%) and adults aged 65 and over (0.6%).

  •   Adults aged 65 and over were the most likely to have public coverage (96.1%), followed by children aged 0–17 years (44.3%) and adults aged 18–64 (21.7%).

HHS' surprise-billing appeal on hold “HHS requested a hold on its appeal of a Texas federal court ruling that voided part of the arbitration process outlined under the No Surprises Act. 
HHS filed an appeal on the decision April 22 but later asked the court to hold its appeal until it releases the final surprise billing rule this summer. The court granted the hold to pause the legal challenge on May 3. 

Centene to sell Magellan, Pantherx pharmacy businesses for $2.8B “Centene has signed a definitive agreement to sell Magellan Rx and Pantherx Rare in two separate deals for a total of $2.8 billion.
Centene intends to use the proceeds to repurchase stock and the balance to reduce debt, according to a May 5 press release.
Magellan Rx focuses on specialty drug management, Medicaid administration and pharmacy benefits management. It will be sold to Eagan, Minn.-based Prime Therapeutics…
Pantherx is a specialty and rare drug pharmacy in Pittsburgh that Centene purchased in December 2020. The company is being sold to a group: the Vistria Group, General Atlantic, and Nautic Partners. The sale is subject to federal regulatory approvals and is expected to close in the next two to four months.”

 Cigna launching provider consult service for oncology care “The program, backed by the capabilities of the insurer's Evernorth subsidiary, allows community oncologists to connect with cancer subspecialty experts at centers designated by the National Cancer Institute (NCI). These connections will allow patients to benefit from the latest innovations in cancer care while also keeping their care close to home, Cigna said.
In a pilot, community oncologists had their treatment plans reviewed by experts at PinnacleHealth. In 40% of cases reviewed, patients were recommended alternative tests or treatment based on new advancements in research.”

About hospitals and healthcare systems

 Banner invests in Atlas Health Partners, plans to double ASC footprint “Phoenix-based Banner Health has invested in Atlas Healthcare Partners, a group that develops and manages ambulatory surgery centers with health systems and physicians.
Atlas and Banner entered a joint venture in 2018 to build and operate a network of ASCs in Arizona, Colorado and Wyoming, according to a May 3 news release. 
In the last three years, the venture grew the system's ASC footprint from eight to 26, increased volume by 155 percent and revenue by 475 percent. 
By the end of 2025, the Banner Atlas joint venture anticipates doubling in size and owning and operating more than 50 ASCs.”

Supply-Chain Snags Create Shortages Of Lifesaving Medical Supplies In U.S. “The U.S. healthcare system is facing supply shortages that dwarf the problems experienced in the early days of the Covid-19 pandemic, when needed personal protective equipment, like masks and gowns, was nearly impossible to come by. Back then, shortages might have been more urgent, but today’s problems include a much wider array of equipment. They can be traced to component scarcities, backlogged ports, transportation glitches and lockdowns in China to combat the spread of Covid-19…
The list of scarce items is long. It includes latex and vinyl examination gloves, surgical gowns, laboratory reagents, specimen-collection testing supplies, saline-flush syringes and dialysis-related products, according to the U.S. Food and Drug Administration.” 

CONTRACT PHARMACY RESTRICTIONS REPRESENT GROWING THREAT TO 340B HOSPITALS AND PATIENTS Highlights:
—”The estimated annualized impact of the restrictions on 340B hospitals has more than doubled since the end of 2021 to a median of $2.2 million for DSH/RRC/SCHs and $448,000 for CAHs. 
—More than three-quarters of hospitals report they likely will need to make cuts to programs and services if these restrictions become permanent.”

About pharma

 Moderna Revenue Triples on Soaring Covid-19 Vaccine Sales “The biotechnology company’s revenue topped $6 billion in the period ended March 31, beating analyst expectations and rising from $1.94 billion a year earlier, driven almost entirely by sales of its messenger RNA-based vaccine, branded as Spikevax.”

 Walgreens to pay $683M to settle Florida opioid suit “Walgreens has agreed to pay Florida $683 million to resolve all claims related to the ‘distribution and dispensing of prescription opioid medications.’
The suit alleged Walgreens dispensed more than 4.3 billion total opioid pills in Florida from May 2006 to June 2021 and that more than half of them showed indicators of fraud or addiction that the company should have noticed and addressed…”

Johnson & Johnson sues benefits company for allegedly overusing drug cost assistance program “Drug manufacturer Johnson & Johnson has filed a lawsuit against drug benefit company SaveOnSP for allegedly taking advantage of a J&J program that covers out-of-pocket costs for patients who use some of the more expensive prescription drugs…
In the civil lawsuit filed in federal court in New Jersey, J&J said it overpaid in copay assistance by at least $100 million due to the services provided by SaveOnSP. This, said J&J, is due to contract interference and deceptive trade practices by the company.”

About the public’s health

 2022 National Survey on LGBTQ Youth Mental Health Among the findings that indicate an urgent need for mental health interventions in this group:
—45% of LGBTQ youth seriously considered suicide in the past year 
—14% of LGBTQ youth attempted suicide in the past year
—73% of LGBTQ youth reported experiencing symptoms of anxiety
—58% of LGBTQ youth reported experiencing symptoms of depression

Subsequent primary cancer risk among five-year survivors of adolescent and young adult [AYA] cancers “AYA cancer survivors are almost twice as likely to die from a new primary cancer as the general population, highlighting the need for primary care clinicians to prioritize cancer prevention and targeted surveillance strategies in these individuals.”

Tobacco manufacturers agree to point-of-sale warning settlement “The Big Three U.S. tobacco manufacturers and the federal government have reached a settlement on “corrective statements” addressing the health risks of smoking and secondhand smoke to be displayed in retail outlets.
The settlement covers point-of-sale displays of tobacco products, including the placement and the number of corrective-statement signs.
The settlement could represent the next phase of rolling out corrective statements ordered by a federal judge in 2006.”
See the article for specifics of the agreement.

Sex and Race Differences in the Evaluation and Treatment of Young Adults Presenting to the Emergency Department With Chest Pain “Women and people of color with CP waited longer to be seen by physicians, independent of clinical features. Women were independently less likely to be admitted when presenting with CP. These differences could impact downstream treatment and outcomes.”

About healthcare IT

 Review of the Department of Health and Human Services' Compliance with the Federal Information Security Modernization Act of 2014 for Fiscal Year 2021  From the HHS OIG: “The Federal Information Security Modernization Act of 2014 (FISMA) requires Inspectors General to perform an annual independent evaluation of their agency's information security programs and practices to determine the effectiveness of those programs and practices. HHS OIG engaged Ernst & Young LLP (EY) to conduct this audit…
Overall, through the evaluation of FISMA metrics, it was determined that the HHS' information security program was 'Not Effective'. This determination was made based on HHS not meeting the 'Managed and Measurable' maturity level for the Identify, Protect, Detect, and Recover function areas as required by DHS guidance and the FY 2021 Inspector General FISMA Reporting Metrics. However, HHS continues to implement changes to strengthen the maturity of its enterprise-wide cybersecurity program.”
The report has some recommendations for improvement.

CDC Tracked Millions of Phones to See If Americans Followed COVID Lockdown Orders “The Centers for Disease Control and Prevention (CDC) bought access to location data harvested from tens of millions of phones in the United States to perform analysis of compliance with curfews, track patterns of people visiting K-12 schools, and specifically monitor the effectiveness of policy in the Navajo Nation, according to CDC documents obtained by Motherboard. The documents also show that although the CDC used COVID-19 as a reason to buy access to the data more quickly, it intended to use it for more-general CDC purposes.”

Mental health apps have terrible privacy protections, report finds “As a category, mental health apps have worse privacy protections for users than most other types of apps, according to a new analysis from researchers at Mozilla. Prayer apps also had poor privacy standards, the team found…
In the latest iteration of the guide, the team analyzed 32 mental health and prayer apps. Of those apps, 29 were given a “privacy not included” warning label, indicating that the team had concerns about how the app managed user data. The apps are designed for sensitive issues like mental health conditions, yet collect large amounts of personal data under vague privacy policies, the team said in the statement. Most apps also had poor security practices, letting users create accounts with weak passwords despite containing deeply personal information. 
The apps with the worst practices, according to Mozilla, are Better Help, Youper, Woebot, Better Stop Suicide, Pray.com, and Talkspace.”

The 10 largest data breaches ever reported in healthcare FYI

About healthcare personnel

 Affirmative Action Bans and Enrollment of Students From Underrepresented Racial and Ethnic Groups in U.S. Public Medical Schools “State affirmative action bans were associated with significant reductions in the percentage of students in U.S. public medical schools from underrepresented racial and ethnic groups.”

About health technology

 FDA clears Abbott test to spot 4 STIs at once amid soaring case rates “Abbott’s assay runs on its Alinity m molecular PCR platform. Using just one swab or urine sample, it simultaneously tests for several bacteria: Chlamydia trachomatis, Neisseria gonorrhoeae, Trichomonas vaginalis and Mycoplasma genitalium, which cause, respectively, chlamydia, gonorrhea, trichomoniasis and both urethritis and cervicitis.”