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Israel-based Teva Pharmaceuticals, the largest generic drugmaker in the world, will be laying off 14,000 employees, a quarter of its workforce worldwide, including “significant” cuts to its 7,000 U.S. workers.

Providers represented by the American Medical Group Association (AMGA) expect more of their business to come from risk-based products in 2019, with government revenues moving from Medicare fee-for-service (FFS) towards Medicare Advantage and shared risk accounting for a greater share of revenue in commercial settings.

Millennial patients know less about their health benefits, are less likely to pay their medical bills in full and often don’t save for medical expenses, according to a survey published by TransUnion Healthcare.

St. Louis-based Ascension Health and Renton, Washington-based Providence St. Joseph Health are discussing a merger, according to the Wall Street Journal, which would create a massive nonprofit health system of 191 hospitals in 27 states.

More than a year after first announcing they were negotiating a merger, Dignity Health and Catholic Health Initiatives (CHI) have a definitive agreement to create a massive nonprofit health system based out of Chicago with more than $28 billion in combined revenue.

 

Recent Headlines

5 things to know about negotiating bundled payments

Bundled payment models have been more slowly adopted among commercial insurers compared to numerous government models pushed by CMS. For providers, commercial bundles can offer plenty of opportunities, according to Penny Noyes, president and CEO of Health Business Navigators, as long as practices, as she puts it, “think like a payer” in negotiations.

2017 hospital M&A activity outpacing 2016

The number of hospital mergers and acquisitions (M&A) has reached 87 through the end of the third quarter, according to an analysis from consulting firm Kaufman Hall, putting 2017 M&A activity in the sector on pace to surpass the 102 deals that were completed in 2016.

Hurricanes cost HCA $140M in Q3

The impact of hurricanes Harvey and Irma on hospitals owned by Nashville, Tennessee-based HCA Healthcare was spelled out in a preview of its third quarter earnings report, with the company saying it lost $140 million thanks to additional expenses and lost revenue at its facilities in Texas, Florida, Georgia and South Carolina.

Some 2018 MIPS bonuses may not be worth the investment

A bonus of up to 10 percent has been proposed for using an upgraded electronic health record (EHR) system for reporting in the Merit-based Incentive Payment System (MIPS) in 2018, but speakers at two recent industry conventions warned it’s likely not a worthwhile investment for providers.

Bundled payment cancellation by CMS draws calls for new Advanced APMs

When the previous administration at CMS finalized rules on mandatory bundled payment models for cardiac and orthopedic care late in 2016, 221 public comments were received. The cancellation of those same bundles, however, drew only 85 official comments as of Oct. 18.

Positive results for ACO models, but CMS doesn’t publicize results

Four accountable care organization (ACO) models generated more in gross savings in 2016, but unlike in previous years, CMS hasn’t publicly touted the results as it re-examines payment models created under the Centers for Medicare and Medicaid Innovation (CMMI).

DOJ drops Medicare Advantage fraud suit against UnitedHealth

The U.S. Department of Justice (DOJ) has abandoned a lawsuit against UnitedHealth over allegations the insurer submitted false claims in its Medicare Advantage plans, though a similar case remains active.

MGMA17: Pros and cons of selling a practice to private equity

Private investors are becoming increasingly active in healthcare acquisitions, which may maximize the purchase price when practices decide to sell, but there are downsides to these transactions compared to be absorbed into a hospital or health system.

Donations to U.S. nonprofit hospitals up 5% in 2016

Nonprofit hospitals and health systems in the U.S. raised more than $10.1 billion in fiscal year 2016, a 5 percent jump from the year before, while their Canadian counterparts saw their first increase in donations since 2013.

Q&A: What could a ‘new direction’ mean for CMMI’s payment reforms?

The new administration at CMS and HHS has signaled it wants to take a different path on value-based care models. Some have been clear actions, like ending mandatory bundled payment models in cardiac care. The next step may be more driven by stakeholders, as CMS recently released a request for information (RFI) asking what new models developed by the Centers for Medicare and Medicaid Innovation (CMMI) should look like.

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