What’s in it for Evernorth? Cigna’s health services arm invests $2.5B in VillageMD-Summit

The deal could have major ramifications for Evernorth’s push to value-based care in the commercial sector, according to Cigna executives and analysts.

By Rebecca Pifer • Nov. 9, 2022

Oak Street Health brings in record revenue in Q3

The value-based primary care chain’s capitated revenue, which makes up the large majority of its topline, would have been slightly higher, but included a small hit from matters related to the Medicare direct contracting program.

By Rebecca Pifer • Nov. 8, 2022

Walgreens-backed VillageMD buys Summit Health for $9B

Cigna’s health services division Evernorth is also taking a stake in the deal, and will become a minority owner in VillageMD.

By Rebecca Pifer • Nov. 7, 2022

Hospitals expected to end year with negative margins, Kaufman Hall says

Nine straight months of negative margins could lead to “one of the worst financial years for hospitals” in 2022, according to a new report.

By Sydney Halleman • Nov. 4, 2022

Half of hospitals spend just 1.4% of expenses on charity care, KFF finds

The new analysis found wide variations in charity care. At 8% of hospitals, it made up 0.1% or less of operating expenses.

By Rebecca Pifer • Nov. 4, 2022

Cigna faces questions about M&A strategy amid ‘arms race’ for deals

One analyst asked whether not pursuing deals will pose a disadvantage in future years. CEO David Cordani said he is open to M&A but does not think acquisitions are a “silver bullet.”

By Samantha Liss • Nov. 3, 2022

Capitated revenue now makes up outsized share of One Medical’s net revenue

One year after its Iora acquisition, revenue from capitated contracts represents half of One Medical’s net revenue even though the provider’s at-risk members comprise just 5% of total membership.

By Rebecca Pifer • Nov. 3, 2022

CVS agrees to pay $5B to resolve opioid-related lawsuits

Walgreens and Walmart also have reportedly reached deals. If they become final, it could end much of the yearslong litigation over the pharmacy companies’ role in the opioid epidemic.

By Rebecca Pifer • Nov. 2, 2022

CMS to ease Medicare ACOs into risk models in bid to boost participation

Beginning in January 2024, ACOs that don’t have experience with performance-based risk will be able to stay in a one-sided risk arrangement for up to seven years before transitioning to two-sided risk.

By Shannon Muchmore • Nov. 2, 2022

Humana expects Medicare Advantage enrollment to grow almost 9% in 2023

Executives said better benefits are attracting more members. For certain plans, Humana members have an allowance for healthy foods, over the counter items, transportation, health supplies, rent and utilities.

By Samantha Liss • Nov. 2, 2022

Healthcare lobbying rose 70% over past two decades

U.S. healthcare lobbying expenditures totaled almost $714 million in 2020, compared to $358 million in 2000, according to new research.

By Rebecca Pifer • Oct. 31, 2022

Teladoc shares on upswing as it sets up for ‘achievable’ growth

The vendor lowered its fourth-quarter and full-year outlooks on Wednesday. But industry watchers cheered Teladoc for setting up obtainable Q4 growth coming out of pandemic highs.

By Rebecca Pifer • Oct. 27, 2022

Molina’s contract wins will have ‘profound impact’ on company, CEO says

The string of Medicaid contracts amount to $5.8 billion in additional annual premium revenue, according to CEO Joe Zubretsky.

By Samantha Liss • Oct. 27, 2022

Low admissions lead to $42M net loss for CHS, despite lower contract labor spend

Falling admissions, Hurricane Ian and an unfavorable payer mix contributed to the net loss, outpacing an effort by CHS to reduce contract labor expenses in the third quarter.

By Sydney Halleman • Oct. 27, 2022

UHS focusing on lowering premium pay, filling staff roles as it faces inflationary pressure

CFO Steve Filton said that, while he doesn’t believe premium pay will return to pre-pandemic levels in the foreseeable future, a lull in COVID-19 cases could give UHS an opportunity to reduce costs as demand for contract labor drops.

By Shannon Muchmore • Oct. 26, 2022

After pandemic highs, digital health funding slouches to early 2019 levels

Global digital health funding of $4.6 billion fell 36% from the second quarter to the third quarter this year, according to a new report from CB Insights.

By Rebecca Pifer • Oct. 25, 2022

Cigna’s Express Scripts wins Centene’s $35B prescription drug contract

The PBM contract is one of the largest to change hands recently, one analyst said. Centene will drop CVS Caremark in 2024.

By Samantha Liss • Oct. 25, 2022

HCA shares fall after COVID-19 admissions decline in Q3

A spike in COVID-19 cases due to the delta variant in 2021 contributed to the operator’s decline in Q3 admissions.

By Sydney Halleman • Oct. 21, 2022

Tenet’s net income tumbled in Q3

Tenet lowered its full-year guidance as labor costs were up slightly — a reversal for the operator that has seen declines in recent quarters unlike its for-profit peers.

By Hailey Mensik • Oct. 21, 2022

Providers are doubling down on software investments, report finds

About 45% of providers increased their software investments over the past year, while only 10% decelerated spending, according to a new report from KLAS and Bain.

By Rebecca Pifer • Oct. 20, 2022

Hospital volumes under pressure as labor crisis persists, Kaufman Hall says

Patient volumes are falling in orthopedics, cardiology and neurosurgery from a year ago. Only oncology volumes are up, hospital executives surveyed by Kaufman Hall said.

By Susan Kelly • Oct. 19, 2022

UnitedHealth raises 2022 earnings outlook following Q3 beat

Management said they expect Change Healthcare to be accretive to earnings starting in 2023, not in 2022 as previously expected.

By Rebecca Pifer • Oct. 14, 2022

Walgreens thinks healthcare division will achieve profitability by 2024

Despite a net loss in the fourth quarter, the Deerfield, Illinois-based pharmacy chain beat analyst expectations for both earnings and revenue.

By Rebecca Pifer • Oct. 13, 2022

Wasteful administrative costs tied to high US health spending

A Health Affairs research brief identified at least half of nonclinical health expenditures as excessive.

By Susan Kelly • Oct. 11, 2022

How tight nursing home capacity is bottlenecking hospital operations

Large hospital operators reported increasing lengths of stay and difficulties discharging patients in the first half of 2022. The answer to why lies in a perennially stressed post-acute care chassis driven to the brink by COVID-19.

By Rebecca Pifer • Oct. 4, 2022