Health Authority Newsletter – June 2022 #5 | Arnall Golden Gregory LLP

Securities

• High Court Rules for HHS in Hospital Health Insurance Payment Disputes
• Volume of healthcare services transactions down 9% in the first quarter
• CMS’s Proposed Payment Rule Could Impact M&A Activity
• AHA urges lawmakers to change proposed IPPS payment rule
• Lawmakers introduce rural hospital support law
• Hospital CEO departures up 81% YoY, report says
• Hospitals subject to patient safety rules that are not evidence-based
• Growing adoption of APIs in healthcare increases cybersecurity risks
• Telehealth does not lead to increased healthcare utilization, study finds
• Nursing homes face financial challenges and staffing shortages
• Researchers propose a new reimbursement system for palliative care

News in brief

High Court rules for HHS in hospital health insurance payment dispute

The Supreme Court ruled that Medicare’s safety net provider payment system was legal, dealing a blow to hospitals that have faced cuts in their payments. The court ruled 5 to 4 that the Department of Health and Human Services followed the correct procedures when it drafted a 2004 rule on the calculation of disproportionate equity payments to safety net hospitals.

(Source: FierceHealthcare, 2022-06-26)

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Healthcare services transaction volume down 9% in the first quarter

Healthcare deals were down at the start of 2022 compared to the same period in 2021, but some sectors are showing strength despite inflation and supply chain issues, according to a PwC report. In healthcare services, deal volume was down 9% between the fourth quarter of 2021 and the first quarter of this year, but volume is high when comparing the last 12 months ending May 15 to the period of the previous year.

(Source: Medical Economics, 2022-06-24)

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CMS’s Proposed Payment Rule Could Impact M&A Activity

With the uncertainty surrounding the new payment rule proposed by the US Centers for Medicare & Medicaid Services, buyers and sellers in the M&A industry will proceed with caution. Home health insiders told Home Health Care News that while the proposed rule will certainly create a pause in overall activity, it shouldn’t be viewed as a doomsday scenario.

(Source: Home Health Care News, 2022-06-26)

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AHA urges lawmakers to change proposed IPPS payment rule

The American Hospital Association is turning to lawmakers to pressure the Biden administration to change proposed “woefully inadequate” payment rates for next year. The AHA sent a letter to congressional leaders regarding the proposed Prospective Inpatient Payment Systems Rule, which sets inpatient rates for next year.

(Source: FierceHealthcare, 2022-06-27)

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Lawmakers introduce rural hospital support law

U.S. Sen. John Kennedy, R-Louisiana, is co-sponsoring the bipartisan Rural Hospital Support Act to extend rural hospital assistance that is set to expire in October. The legislation, introduced by U.S. Senators Chuck Grassley, R-Iowa, and Bob Casey, D-Pennsylvania, would help keep struggling rural hospitals from closing by extending and modernizing essential federal programs that keep them financially stable.

(Source: New Orleans City Business, 2022-06-23)

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Hospital CEO departures up 81% year-on-year, report says

In May, 11 hospital CEOs retired or left their current positions for new positions, bringing the total to 47 hospital CEOs who left their positions until the end of May 2022. These are an 81% increase from May 2021, which saw 26 hospital CEOs. to go out.

(Source: HealthLeaders Media, 2022-06-23)

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Hospitals subject to patient safety rules that are not evidence-based

If healthcare facilities, such as hospitals and nursing homes, fail to follow patient safety rules set by the Joint Commission – the independent organization responsible for accrediting healthcare facilities – they can lose their accreditation and , therefore, losing patients and millions of dollars. funding each year. But what if these rules are not backed by evidence? A new study from Northwestern Medicine has found that of the new rules issued over a one-year period by the TJC, many did not appear to be supported by published evidence.

(Source: Northwest Medicine, 2022-06-24)

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Growing adoption of APIs in healthcare increases cybersecurity risks

Application programming interface (API) adoption is steadily increasing in the healthcare industry, but APIs are not without cybersecurity risks. In fact, Gartner predicted that API attacks will become the most common attack vector by 2022.

(Source: HealthIT Security, 2022-06-23)

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Telehealth does not lead to increased healthcare utilization, study finds

A popular criticism of telehealth is that people will use it more than they should, resulting in unnecessary medical appointments and expense. But researchers at the University of Michigan say that’s not true in the Medicare market. An analysis of Medicare data through 2021 finds that while virtual visits have increased significantly as a result of the pandemic, with about a third of traditional Medicare members having participated in at least one telehealth visit in the past year, these figures are not excessive.

(Source: HealthLeaders Media, 2022-06-27)

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Nursing homes face financial challenges and staffing shortages

A recent survey by the American Health Care Association found that more than half of nursing homes in the United States are operating at a financial loss. Many others are struggling to find staff.

(Source: NBC 5 News, 2022-06-24)

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Researchers propose a new reimbursement system for palliative care

A group of researchers have modified a proposed reimbursement system for palliative care that they believe would improve access for patients and make the service more lucrative for providers. The American Academy of Hospice and Palliative Medicine in 2017 proposed that the US Department of Health and Human Services consider the Critical Illness Patient and Caregiver Support Model, and now researchers have developed a new version. designed to meet the same objectives while addressing the concerns of the agency, called PACSSI-Flexible.

(Source: Hospice News, 2022-06-24)

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AGG News

It’s a Heartbreak: FDA’s OPDP Releases Untitled Letter for Illegal Promotion of Cholesterol Drug

“It’s heartache, nothing but heartache.” Yes, the opening lyrics to Bonnie Tyler’s 1977 hit, but also what the FDA’s Office of Prescription Drug Promotion might have felt when it issued an untitled letter to a pharmaceutical company to illegally promoting his cholesterol-lowering prescription product.

For more information, please click here.

HHS Extends ARP Spending Deadline to March 31, 2025 for HCBS Medicaid Beneficiaries

On June 3, 2022, the U.S. Department of Health and Human Services, through the Centers for Medicare & Medicaid Services, announced that states now have until March 31, 2025 to use funds made available by the American Rescue Plan Act to improve community services for Medicaid enrollees who need long-term services/supports.

For more information, please click here.

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