This is Naomi Diaz with the Becker's Digital
Health Podcast. Here's your daily industry news briefing
for today, February 3rd.
First,
Veradigm, a health care data and technology provider,
formerly known as Allscripts,
has concluded its month long strategic review without
securing a sale or major transaction, the company
said January 30th.
Despite engaging with more than 30 potential buyers
and receiving 5 nonbinding offers, the company did
not receive any final proposals and has decided
to move forward independently
according to a press release from the company.
The review, which began in May 2024,
explored various options to maximize shareholder value, including
a potential acquisition.
Veradigm's board of directors, alongside financial and legal
advisers,
evaluated bids from strategic partners and financial sponsors,
but ultimately determined that continuing as an independent
entity was the best path forward.
2nd,
the total number of large health care data
breaches was down slightly in 2024,
according to HHS data reported by HIPAA Journal.
Health care organizations
reported 725
data breaches affecting 500 or more people to
HHS's
office of civil rights last year compared to
747 in 2023
per the per the January 30th story.
However, the total number of individuals affected by
health care data breaches was way up in
2024,
driven by the industry's largest ever hack, the
February ransomware attack on change change health care
that compromised the information of an estimated a
190,000,000
people.
And the HHS data could change as data
breach reporting is often delayed.
Here are the number of health care data
breaches affecting 500 or more individuals over the
past 5 years.
2024,
725,
2023,
747,
2022,
720,
20 21, 715,
and 2020 at 663.
3rd,
Dallas based Stewart Healthcare is at the center
of a growing dispute with its former Massachusetts
hospitals that's as it demands higher fees for
critical EHR and billing services, the Boston Globe
reported January 31st.
The conflict arises as Boston Medical Center, Lawrence
General Hospital, Brown University, new owners of 6
hospitals previously operated by Steward, scrambled to maintain
maintain essential EHR and technology services.
These services cover patient information for radiology,
laboratory, pathology, microbiology,
and pharmacy operations.
In response to Steward's demands, the hospitals have
filed motions in Baker's Seat Court urging Steward
to uphold existing contracts.
The hospital stated an illegal joint filing, quote,
if Steward were to cut off services, patient
lives will be at risk, end quote.
The organizations
emphasize that emphasize that safe and effective operations
depend on the continuity of EHR and revenue
cycle management, both of which would be severely
impacted if services were discontinued.
Despite the increase in financial burden, Stewart has
not provided a clear justification for the higher
fees in court documents
and declined to comment to the publication.
The hospitals maintained that they are being charged
more for the same level of service with
invoices revealing substantial hikes in monthly payments.
For instance, Boston Medical's fees rose by 1,500,000,
Brown University
Health by 1,100,000,
and Lawrence General's by nearly 500,000,
each representing more than a 30% increase.
State officials have been briefed on the dispute,
but have no plans to provide additional financial
assistance to Steward.
Massachusetts secretary of health and human services, Kate
Wells, criticized the company's actions stating, quote, Stuart
has been a very bad actor for a
very long time, and this is the latest
move by them to try to get more
money from their failed operations in Massachusetts,
unquote.
Hospital leaders remain hopeful that the court will
intervene.
John Fernandez, CEO of Brown University Health, called
Stewart's actions, quote, unbelievable,
unconscionable,
and ridiculous, end quote, but reassure the public
that patient care remains top priority.
Meanwhile, Stewart's leadership has undergone a recent stake
up with CEO Mark Rich stepping down and
John Castellano of consulting firm AlixPartners
assuming the role of chief restructuring officer.
The company no longer operates any hospitals in
Massachusetts, yet its financial struggles to continue to
have ripple effects on the institutions
it previously owned.
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