March 7, 2023
Providers | Tea Leaves
  • A collection of nine hospital groups wrote to congressional leadership Monday calling for action to stave off $8 billion in cuts to Medicaid disproportionate share hospital (DSH) payments that could start October 1. While Congress has traditionally delayed the cuts, Republicans and Democrats have been sparring lately on whether the GOP aims to cut Medicaid. The American Hospital Association, which was one of the nine groups that signed on to the letter, told Fierce Healthcare that delaying the DSH cuts has been “supported in a bipartisan manner through multiple Congresses, and we are hopeful that this will be the case again this year. (Article here)
  • New reports suggest that 2023 will be a year of upheaval and market transformation for hospitals bouncing back from a financially distressing 2022 amid several post-pandemic headwinds. With costs up, liquidity down, and bond covenants potentially in jeopardy, the industry should expect upticks in merger and acquisition activity, “non-traditional partnerships,” further divergence between value-based care and fee-for-service entities, and plenty of public health emergency administrative headaches on the horizon for health systems. Macroeconomic factors such as inflation, high labor expenses, volatile markets, supply chain snarls, and other issues will “exert their influence in ways not previously seen,” according to partners at McDermott Will & Emery. (Article here)
  • Walmart Health is eyeing more Medicare Advantage business as it prepares to nearly double the footprint of its in-store clinics. The big retailer says it plans to add 28 additional health clinics — which offer primary care, behavioral health services, vision checks and dental care within select Walmart stores — in 2024. The new clinics are planned for Walmart Supercenters in Dallas, Houston, Phoenix, and Kansas City, Missouri. (Article here)