Economics

This channel highlights factors that impact hospital and healthcare economics and revenue. This includes news on healthcare policies, reimbursement, marketing, business plans, mergers and acquisitions, supply chain, salaries, staffing, and the implementation of a cost-effective environment for patients and providers.

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Report finds California hospitals could save $10 billion per year

California's hospitals could save $10 billion per year if they reduced excessive patient stays, the Los Angeles Times reports. David Axene, an actuary, analyzed data that hospitals filed last year with California's Office of Statewide Health Planning and Development.

Michigan health insurance companies sign letter of intent to merge

Two Michigan-based health insurance companies, Flint-based HealthPlus of Michigan and Detroit-based Health Alliance Plan (HAP), announced that they have reached an agreement and signed a letter of intent to merge. The two companies made headlines in October when a potential merge was first announced.

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HCA to settle class action lawsuit for $215M

HCA Holdings has reached a preliminary agreement to pay $215 million to settle a class action lawsuit filed by shareholders who alleged the company used false and misleading information to sell stock during its 2011 initial public offering (IPO).

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'Data is the big hope' for improving mental healthcare

BOSTON—One in four people experience poor mental health during their lifetime but half don’t even get as far as their primary care provider for treatment. Those figures drive Jen Hyatt, who founded Big White Wall and spoke about her experience at the Connected Health Symposium held by Partners HealthCare.

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Investment firm agrees to acquire MedAssets and divest one of its segments

Pamplona Capital Management agreed to acquire MedAssets for approximately $2.7 billion or $31.35 per share in cash, the companies announced on Nov. 2. Pending shareholder approval and other closing conditions, the deal is expected to close in the first quarter of 2016.

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IPC Healthcare’s EBITDA decreases in 3rd quarter

IPC Healthcare’s revenue for the third quarter of 2015 increased 8.9 percent to $184.8 million, although its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 20.6 percent to $14.3 million compared with the same period last year.

MedAssets to be Acquired by Pamplona Capital Management for $2.7 Billion

MedAssets, Inc. (NASDAQ:MDAS) and Pamplona Capital Management today announced that they have entered into a definitive agreement whereby Pamplona will acquire MedAssets for $31.35 per share in cash.

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EHR data fuels QI for neurology conditions

Rather than wait for EHR vendors to incorporate quality measures into their software, researchers from Evanston, Illinois-based NorthShore University HealthSystem created a quality improvement and practice-based initiative in neurology using their EHR. 

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Around the web

Cardiovascular Business
FDA says years-long tirzepatide shortage is resolved, will give limited leeway to compounders

The tirzepatide shortage that first began in 2022 has been resolved. Drug companies distributing compounded versions of the popular drug now have two to three more months to distribute their remaining supply.

AI in Healthcare
From Capitol Hill to a hospital near you? 5 federal recommendations for healthcare AI policy

The 24 members of the House Task Force on AI—12 reps from each party—have posted a 253-page report detailing their bipartisan vision for encouraging innovation while minimizing risks. 

Cardiovascular Business
Merck spends up to $2B to license new weight loss drug with potential heart benefits

Merck sent Hansoh Pharma, a Chinese biopharmaceutical company, an upfront payment of $112 million to license a new investigational GLP-1 receptor agonist. There could be many more payments to come if certain milestones are met.