The Pandemic Traveling-Nurse Money Train Halts
The Wall Street Journal reports on the status of the traveling nurse industry. Separately, Modern Healthcare covers Medicare pay hikes for some health care sectors. Other industry news covers Cassava Sciences, antimicrobial resistance, approval for a drug to treat kids’ kidney disease, and more.
The Wall Street Journal:
Traveling-Nurse Bubble Bursts
It was the best of times, it was the worst of times…for nurses. Hospitals across the U.S. have had to dig deep to treat patients during the Covid-19 pandemic as some of the most lucrative parts of their business, elective surgeries, were constantly postponed. The flip side of that has been a bonanza for the companies that helped them keep staffing levels adequate as well as for the brave and flexible people who filled those positions. (Wainer, 7/27)
Modern Healthcare:
Rehab, Psychiatry And Hospice Get Medicare Pay Hikes
Inpatient rehabilitation facilities, inpatient psychiatric facilities and hospice providers will see a boost in Medicare payment next fiscal year. In regulations issued Wednesday, the Centers for Medicare and Medicaid Services finalized a 3.8% payment update for hospices, which amounts to an estimated $825 million increase from 2022. Inpatient rehabilitation providers will see an overall 3.2% update, about $275 million more, while inpatient psychiatric providers will get an overall 2.5% pay hike, according to an agency fact sheet. (Goldman, 7/27)
In other industry news —
Reuters:
Exclusive: Cassava Sciences Faces U.S. Criminal Probe Tied To Alzheimer’s Drug, Sources Say
The U.S. Justice Department has opened a criminal investigation into Cassava Sciences Inc (SAVA.O) involving whether the biotech company manipulated research results for its experimental Alzheimer’s drug, two people familiar with the inquiry said. (Taylor and Spector, 7/27)
CIDRAP:
Data-Sharing Initiative Aims To Help Fight Against Antibiotic Resistance
For all that is known about the rise of antimicrobial resistance (AMR), much remains unknown. But there’s hope that a new data-sharing effort launched in June could help unlock information that may mitigate the worst aspects of the “silent pandemic” of drug-resistant infections. (Dall, 7/27)
Reuters:
GSK Says U.S. FDA Approves Kidney Disease Drug For Children
GSK Plc said on Wednesday the U.S. Food and Drug Administration had cleared its kidney disease drug Benlysta for the treatment of children aged 5 to 17 years. The clearance makes Benlysta the first treatment approved by the U.S. regulator for children with lupus nephritis, a kind of kidney inflammation. (7/27)
Reuters:
Sanofi Lifts Profit Outlook As Dupixent Sales Surge 43%
In March the French group said peak annual sales of Dupixent, jointly developed with Regeneron (REGN.O), would be more than 13 billion euros, up from a previous target of more than 10 billion euros. Revenue from anti-inflammatory treatment Dupixent jumped 43.4% to 1.96 billion euros in the reported quarter, beating an analyst consensus of 1.86 billion euros, on prescriptions in dermatitis, asthma and certain nasal infections. (Burger, 7/28)
Modern Healthcare:
Teladoc Posts Nearly A $10B Loss In First Half Of 2022
Teladoc Health’s acquisition of Livongo continues to haunt its balance sheets as the Purchase, New York-based company posted significant losses in the first half of 2022. Teladoc said it posted a net loss of $3.1 billion in the second quarter of 2022 and a $9.7 billion loss for the first half of the year. The losses are primarily due to a non-cash goodwill impairment charge related to the Livongo acquisition that totaled $9.6 billion in the first half of 2022. (Turner, 7/27)
Bloomberg:
Humana Shares Fall As Medical Costs Overshadow Earnings Beat
Humana Inc. shares fell after higher medical expenses than Wall Street expected overshadowed positive earnings and a modest increase in the health insurer’s forecast for the year. The company’s medical-loss ratio, a closely watched measure of how much premium revenue is paid out for medical care, was 85.8%, higher than analysts’ forecast but in-line with the company’s expectations. Shares declined as much as 3.5% in New York trading Wednesday. (Tozzi, 7/27)
Stat:
IQVIA Lawyer Declines To Discuss Experian Relationship, But Pledges Privacy
IQVIA does not publicly discuss its work with Experian. But a STAT investigation uncovered internal documents showing IQVIA employees had raised concerns about the adequacy of privacy safeguards surrounding the data, which included records on more than 120 million people. (Ross, 7/28)
The Wall Street Journal:
Labcorp To Spin Off Clinical-Development Business
Laboratory Corp. of America Holdings plans to spin off its unit focused on clinical drug trials, according to people familiar with the matter, a move that will create a new stand-alone company in the fast-growing contract-research sector. (Lombardo, 7/28)
On the national mental health hotline, and nursing home debts —
KHN:
The US Mental Health Hotline Network Is Expanding, But Rural Areas Still Face Care Shortages
The National Suicide Prevention Lifeline’s 988 phone number, which launched July 16, was designed as a universal mental health support tool for callers at any time anywhere. But the U.S. is a patchwork of resources for crisis assistance, so what comes next isn’t universal. The level of support that 988 callers receive depends on their ZIP code. (Saint Louis, 7/28)
KHN:
Nursing Homes Are Suing The Friends And Family Of Residents To Collect Debts
Lucille Brooks was stunned when she picked up the phone before Christmas two years ago and learned a nursing home was suing her. “I thought this was crazy,” recalled Brooks, 74, a retiree who lives with her husband in a modest home in the Rochester suburbs. Brooks’ brother had been a resident of the nursing home. But she had no control over his money or authority to make decisions for him. She wondered how she could be on the hook for his nearly $8,000 bill. (Levey, 7/28)
