Thursday report

From Washington, DC
- The Wall Street Journal reports
- “House Republicans narrowly passed a $9.4 billion rescissions package that includes cuts to foreign aid as well as the entity that funds National Public Radio and the Public Broadcasting Service.
- “The vote was 214-212, after some last-minute arm-twisting by GOP leaders convinced two Republicans to switch their votes to yes from no. All Democrats were opposed. The package now heads to the Senate, where it could face more scrutiny from Republicans.”
- Beckers Payer Issues tells us,
- “Proposed changes to Medicare Advantage are unlikely to be included in a final budget deal, The Hill reported June 11.
- “Senators had floated adding provisions of the No UPCODE Act, which targets overpayments in the program, to the massive federal budget bill.
- “Sen. Kevin Cramer, R-N.D., who first raised the idea of targeting MA savings in the bill, told The Hill the final legislation is unlikely to touch Medicare.”
- STAT News informs us,
- The Trump administration is pushing pharmaceutical companies to begin negotiations to bring their drug prices in line with what other countries pay — usually far less than Americans.
- “Under President Trump’s direction, HHS is demanding that pharmaceutical companies end their obstruction and come to the table—just as they already do with nearly every other economically comparable nation—to negotiate fair, transparent pricing for Americans,” an agency spokesperson said in a statement to STAT, adding that the companies were “prevent[ing] progress of lowering prices for the American people.”
- “The spokesperson did not immediately clarify how companies were preventing that progress. The administration’s statement comes after pharmaceutical executives said they were expecting more details about the kinds of drugs that would be up for negotiations and the price targets for them.
- ‘It also comes after a number of drug companies have met with the administration. At least three firms said this week that talks have not yet gotten into the details of pricing, instead mostly consisting of exchanging high-level ideas about the pharmaceutical market.”
- The International Foundation of Employee Benefit Plans points out
- Per MedTech Dive,
- “Medtronic has recalled ventilators and asked customers to stop using the devices because of a fault linked to two serious injuries and one death, the company said Wednesday.
- “Affected Newport HT70 and HT70 Plus ventilators can shut down during use or fail to effectively sound the shutdown alert alarm. The company also recalled certain related Newport service parts. There have been 63 medical device reports about the problem.
- ‘The Food and Drug Administration said in a Class 1 recall database entry about the fault this week that 4,842 affected ventilators are in commerce worldwide.”
From the judicial front,
- Bloomberg Law reports,
- A trio of air ambulance providers lost [Dropbox link] an appeals court bid to overturn a decision in two surprise medical bill disputes, narrowing the legal path for physicians to challenge alleged malfeasance from health insurers in court.
- The consolidated case revolves around two conflicting provisions of the No Surprises Act, which requires doctors and insurers to settle unexpected out-of-network bills via arbitration rather than balance billing the patient.
- The US Court of Appeals for the Fifth Circuit’s decision accompanies a separate ruling also issued [Dropbox link] Thursday in which the same panel of judges upheld a lower court’s decision, similarly, asserting that surprise billing arbitration disputes may not be addressed through litigation.
- The Fifth Circuit sided against air ambulance companies Guardian Flight LLC, Reach Air Medical Services LLC, and Calstar Air Medical Services LLC in the consolidated case challenging Aetna Health Inc., Kaiser Foundation Health Plan Inc., and arbitrator Medical Evaluators of Texas ASO LLC over what the providers said were misrepresentations during the arbitration process.
- Judges Stuart Kyle Duncan, a Donald Trump appointee, Jerry E. Smith, a Ronald Reagan appointee, and Edith Brown Clement, a George H. W. Bush appointee, also reversed the lower court’s ruling in determining that MET was protected from litigation under the No Surprises Act.
From the public health and medical research front,
- CBS News reports,
- “Check your medicine cabinet — Zicam nasal swabs and Orajel baby teething swabs are being recalled due to potential microbial contamination, according to federal health officials.
- “In an alert from the U.S. Food and Drug Administration, Church & Dwight Co., Inc., the brands’ manufacturer, voluntarily issued the recall after the potential contamination was discovered, which was identified as fungi in the cotton swab components of the products.
- “The recalled products include all lots of Zicam Cold Remedy Nasal Swabs (with UPC 732216301205), all lots of Zicam Nasal AllClear Swabs (UPC 732216301656) and all lots of Orajel Baby Teething Swabs (UPC 310310400002). All other Zicam and Orajel products are not affected by this recall, the FDA said.
- “Consumers with any recalled products should stop using them immediately, the FDA advised.”
- Health Imaging notes,
- “New MRI data suggest that patients who weathered severe cases of COVID-19 may sustain long-lasting heart damage.
- “Specifically, researchers have uncovered evidence indicating patients who have been hospitalized with the virus may develop long-term left ventricular systolic dysfunction and coronary microvascular dysfunction. These findings were detailed this week in JAMA Network Open, where experts revealed the damage was evident on imaging nearly one year after patients had recovered from their initial infection.
- “In long COVID, or postacute sequelae of SARS-CoV-2 infection (PASC), patients commonly experience cardiopulmonary symptoms, including dyspnea, palpitations, chest pain, and fatigue, which impair quality of life and functional capacity,” Jannike Nickander, MD, PhD, with the department of clinical physiology at Karolinska University Hospital, in Sweden, and colleagues noted. “The underlying pathophysiological mechanisms are not fully understood but may stem from myocardial injury sustained during acute COVID-19 due to hypoxia, systemic hyperinflammation, hypercoagulability, and direct viral invasion of endothelial cells and cardiomyocytes.”
- Fierce Healthcare relates,
- “Urine drug test (UDT) data can generate timely estimates of overdose deaths, a new study suggests.
- “The study, published in JAMA Network Open by specialty lab Millennium Health and The Ohio State University, aimed to determine whether UDT data could provide near real-time indications of overdose trends. Effective responses to the overdose crisis must be prompt, the study noted, which requires a timely evaluation of current trends. However, current publicly available data on fatal overdoses in the U.S. can lag by at least six months.
- “We were determined to close that gap,” Eric Dawson, vice president of clinical affairs at Millennium Health, told Fierce Healthcare. “We wanted to be able to tell people, here’s what’s happening today with overdoses—compared to here’s what you’re being told today happened six months ago.”
- The International Foundation of Employee Benefit Plans offers a new look at virtual care.
- “What’s next for virtual care? One area of focus is the further development of hybrid solutions that offer virtual-first care coupled with in-person clinics. Many vendors are also introducing their own health plan and/or TPA for a virtual-first solution. These can be offered alongside traditional health plans (e.g., not necessarily as a full replacement offering). Supplemental and/or coordinating carrier care management is also an avenue explored by new digital health startups offering virtual care. Another trend influencing virtual care is the development of artificial intelligence (AI) as a tool and the related ability to become more predictive and proactive around population health management and outreach. It will be important, however, for employers to track how these virtual offerings impact quality outcomes, engagement and positive user experience.
- “Overall, the opportunity is clear—Virtual care as a component of a broader health care system can provide convenient and efficient care while increasing access and lowering costs for employer populations. Integration with in-person care will always be important, but technological developments will pave the way to create a more seamless patient experience.”
From the U.S. healthcare business front,
- BioPharma Dive reports,
- “COVID vaccine maker BioNTech is buying rival CureVac, announcing Thursday an all-stock deal weeks before the two companies were due to face off in a German court over potentially billions of dollars worth of royalties related to intellectual property on messenger RNA drugs.
- “Per deal terms, each CureVac share will be exchanged for about $5.46 worth of BioNTech’s U.S.-listed shares, valuing the company at $1.25 billion. Upon the deal’s close, CureVac shareholders will own between 4% and 6% of BioNTech.
- “In the early days of the COVID-19 pandemic, BioNTech and CureVac were among the companies racing to develop the first coronavirus vaccines. BioNTech, however, partnered with Pfizer and won approval of the first COVID-19 shot, while CureVac’s program never made it to market. The two companies have since been embroiled in patent litigation.”
- Per Healthcare Dive,
- “Cigna unveiled a number of new digital tools on Thursday meant to improve customer experience with its health benefits portal, including a virtual assistant based on generative artificial intelligence.
- “The rollout — part of the insurer’s larger push to make it easier for members to access and afford the benefits they’re due — also includes a new tool to match patients to in-network providers.
- “Experts have raised concerns about rising adoption of AI in the healthcare sector due to the technology’s tendency to make mistakes. Cigna said its new features were developed with “rigorous” research and testing within an AI governance framework.”
- and
- “Mergers and acquisitions should play an “important role” in Teladoc’s future business strategy, the virtual care firm’s CEO said Wednesday.
- “We’re going to make investments not just for the short term, but things that we think are going to start to increase that [total addressable market], start to increase the scope and range of what we can do. And we think that’s the right place to deploy our capital,” CEO Chuck Divita said at the Goldman Sachs Global Healthcare Conference.
- “The telehealth company has already completed two acquisitions this year, scooping up preventive care firm Catapult Health in February and virtual mental health provider UpLift last month.”
- Beckers Hospital Review calls attention to “six hospital partnerships and proposed deals that were called off or unwound so far this year”