Tuesday Tidbits

David Ermer–AHRQ, Congress, FDA, Generative AI, Medical / Rx research, Medicare, OPM, U.S. Healthcare, Uncategorized–
Photo by Patrick Fore on Unsplash

From Washington, DC

  • Chief Healthcare Executive lets us know,
    • Telehealth advocates have said this year represents the Super Bowl for virtual healthcare, and the game is about at halftime.
    • On the upside, telehealth leaders remain confident that Congress will approve legislation that would allow health systems and providers to continue offering virtual care and hospital-at-home programs.
    • But lawmakers may not act until late in the fourth quarter [in other words, the expected lame duck session following the November’s national election].
  • Roll Call informs us,
    • “The Supreme Court will decide a dispute about hospital reimbursement rates under Medicare, with hundreds of hospitals arguing the government had shorted them for treating low-income patients.
    • More than 200 hospitals in more than 30 states, led by Advocate Christ Medical Center in Illinois, have asked the justices to overturn a lower court ruling that allows the Department of Health and Human Services to reimburse a lower rate for treating a high proportion of low-income patients. The dispute, which the hospitals said could affect more than $4 billion in federal funds, hinges on how to determine which patients count toward that reimbursement rate and follows a 2022 Supreme Court decision over the same program.
    • The justices announced Monday that they would decide the case, which means oral arguments and a decision would come in the next term that starts in October.
  • Federal News Network tells us,
    • “The Chief Human Capital Officers (CHCO) Council has a new face taking the lead to collaborate on human capital initiatives and strategies across government.”
    • “Colleen Heller-Stein, formerly deputy CHCO at the Treasury Department, has stepped in as executive director of the CHCO Council, Federal News Network has learned. The senior-level position within the Office of Personnel Management leads agency CHCOs and other human capital leaders to innovate on best practices for managing the recruitment and retention of the federal workforce.
    • “Heller-Stein is the first career federal executive to serve in the CHCO Council leadership role. She took over the position a few weeks ago from Latonia Page, who had been working as acting executive director of the CHCO Council since September 2023. Prior to Page’s time on the job, Margot Conrad — currently deputy chief of staff at OPM — served as the council’s executive director for about two and a half years.”‘

From the public health and medical research front,

  • KFF expresses concern about the general unavailability of bird flu tests.
    • “A recent rule that gives the FDA more oversight of lab-developed tests may bog down authorization. In a statement to KFF Health News, the FDA said that, for now, it may allow tests to proceed without a full approval process. The CDC did not respond to requests for comment.”
    • “But the American Clinical Laboratory Association has asked the FDA and the CDC for clarity on the new rule. “It’s slowing things down because it’s adding to the confusion about what is allowable,” said Susan Van Meter, president of the diagnostic laboratory trade group.
    • “Labcorp, Quest Diagnostics, and other major testing companies are in the best position to manage a surge in testing demand because they can process hundreds per day, rather than dozens. But that would require adapting testing processes for their specialized equipment, a process that consumes time and money, said Matthew Binnicker, director of clinical virology at the Mayo Clinic.
    • “There’s only been a handful of H5N1 cases in humans the last few years,” he said, “so it’s hard for them to invest millions when we don’t know the future.”
  • The Wall Street Journal offers guidance on how people can improve the deathbed experiences of loved ones.
  • Beckers Hospital Review points out,
    • “Baltimore-based Johns Hopkins School of Nursing is addressing community needs by taking primary care door to door, NPR reported June 11.
    • “The Neighborhood Nursing pilot program consists of a team of nurses and community health workers that make weekly visits to three apartment buildings in Johnston Square, a predominantly Black disadvantaged neighborhood. The visits are free to patients and are not dependent on health status, income or what type of insurance, if any, they have. Visits are done in people’s homes, senior centers, lobbies, libraries and anywhere else people can be found. 
    • “In the time it has run, Neighborhood Nursing has successfully helped patients receive care and has expedited physicians’ appointments as needed. However, the greatest challenge is funding.”
  • Per Healio,
    • “From 2010 to 2021, most high and moderate risk factors for preeclampsia increased in the U.S.
    • “Multifetal gestation and nulliparity were the only preeclampsia risk factors to decrease during this period.”
  • Per BioPharma Dive,
    • “Pharmaceutical companies employ many different strategies when building their cancer drug pipelines, but one recent commonality among them is a belief in the future of targeted therapies known as antibody-drug conjugates.
    • “Many of the leading cancer drugmakers have at least one or two antibody-drug conjugates, or ADCs, in development. Others, such as Pfizer, Johnson & Johnson and Merck & Co., have used buyouts or partnerships to build an ADC portfolio.
    • “One of the best-selling ADCs on the market is AstraZeneca and Daiichi Sankyo’s Enhertu, which brought in combined sales of $2.5 billion in 2023, almost double the year before. The two companies formed a $7 billion alliance around Enhertu in 2019 and since then, the drug has secured multiple approvals and changed the way some breast cancers are treated.
    • “Over that time, AstraZeneca has made ADCs a more substantial part of its overall pipeline alongside radiopharmaceuticals and immunotherapies, giving the company many potential combinations to work with, said Carlos Doti, vice president and head of medical affairs for its U.S. oncology division.”

From the U.S. healthcare business front,

  • Beckers Payer Issues notes,
    • “CMS must recalculate the Medicare Advantage star ratings for Anthem Blue Cross Blue Shield of Georgia, a federal judge ruled June 10. 
    • “The judge ruled partially in favor of Elevance Health, which sued to challenge CMS’ star ratings methodology in December. The insurer sought new ratings for several of its subsidiaries, but the judge ruled CMS needs to recalculate ratings only for BCBS of Georgia. 
    • “Elevance’s challenge focused on CMS’ use of the Tukey method, a change announced by CMS in a 2020 final rule and implemented in 2024 star ratings. The method removes extreme outliers from measure scores to prevent outliers from affecting all MA contracts, making it more difficult for plans to earn a high star rating. In 2022, a final star ratings rule from CMS did not mention the new change, which the agency added back in the 2023 rule, citing an inadvertent removal. 
    • “CMS also limits scoring changes to 5% annually. In the lawsuit, Elevance said CMS should have factored in those limits before adding the Tukey change back in 2023 versus the other way around.
    • “Randolph Moss, a judge for the U.S. District Court in Washington, D.C, ruled CMS violated the Administrative Procedure Act in applying the Tukey methodology. However, Mr. Moss ruled Elevance proved the Tukey method affected the star rating only for BCBS of Georgia and not the other plans for which it sought revised ratings.” 
  • This opinion and last week’s Scan Health opinion may wind up before the U.S. Court of Appeals for the D.C. Circuit.
  • Per Healthcare Dive,
    • “Just three days before bankrupt Steward Health Care was set to run out of funds, the health system said it’s struck a deal to capture $225 million of additional debtor-in-possession financing to keep its operations afloat during Chapter 11 proceedings.
    • “The funds come from Steward’s FILO lenders, which include private credit lenders Sound Point Capital and Brigade Agency Services, as well as Chamberlain Commercial Funding, according to a press release shared with Healthcare Dive. 
    • “Steward will present the deal — which the system says is sufficient to finance operations prior to its July asset sales — for approval in bankruptcy court later this week.”
  • According to BioPharma Dive,
    • “Approval of Eli Lilly’s experimental Alzheimer’s disease drug donanemab would help drive sales of Eisai and Biogen’s rival medicine Leqembi, analysts wrote after a Food and Drug Administration panel on Monday supported clearance of donanemab.
    • “A rising tide lifts all boats, in our view,” wrote Myles Minter, an analyst at William Blair, in a client note. Donanemab works similarly to Leqembi by eliminating from the brain a toxic protein called amyloid that scientists see as linked to Alzheimer’s progression.”
  • McKinsey & Co. discusses the ongoing digital transformation in healthcare.
  • The International Foundation of Employee Benefit Plans shares useful insights on the final rules amending the Fair Labor Standards Act that take effect on July 1.