1 00:00:00,000 --> 00:00:02,080 This is Naomi Diaz with the Becker's Digital 2 00:00:02,080 --> 00:00:04,960 Health Podcast. Here's your daily industry news briefing 3 00:00:04,960 --> 00:00:06,740 for today, February 3rd. 4 00:00:07,200 --> 00:00:07,700 First, 5 00:00:08,000 --> 00:00:11,039 Veradigm, a health care data and technology provider, 6 00:00:11,039 --> 00:00:12,500 formerly known as Allscripts, 7 00:00:13,054 --> 00:00:15,775 has concluded its month long strategic review without 8 00:00:15,775 --> 00:00:18,894 securing a sale or major transaction, the company 9 00:00:18,894 --> 00:00:20,114 said January 30th. 10 00:00:20,894 --> 00:00:23,535 Despite engaging with more than 30 potential buyers 11 00:00:23,535 --> 00:00:26,710 and receiving 5 nonbinding offers, the company did 12 00:00:26,710 --> 00:00:29,589 not receive any final proposals and has decided 13 00:00:29,589 --> 00:00:30,969 to move forward independently 14 00:00:31,350 --> 00:00:33,369 according to a press release from the company. 15 00:00:33,989 --> 00:00:36,090 The review, which began in May 2024, 16 00:00:36,789 --> 00:00:40,405 explored various options to maximize shareholder value, including 17 00:00:40,405 --> 00:00:41,704 a potential acquisition. 18 00:00:42,325 --> 00:00:45,204 Veradigm's board of directors, alongside financial and legal 19 00:00:45,204 --> 00:00:45,704 advisers, 20 00:00:46,164 --> 00:00:49,704 evaluated bids from strategic partners and financial sponsors, 21 00:00:50,100 --> 00:00:52,840 but ultimately determined that continuing as an independent 22 00:00:53,060 --> 00:00:55,159 entity was the best path forward. 23 00:00:56,500 --> 00:00:57,000 2nd, 24 00:00:57,539 --> 00:00:59,780 the total number of large health care data 25 00:00:59,780 --> 00:01:02,039 breaches was down slightly in 2024, 26 00:01:02,804 --> 00:01:06,185 according to HHS data reported by HIPAA Journal. 27 00:01:06,805 --> 00:01:07,784 Health care organizations 28 00:01:08,084 --> 00:01:09,064 reported 725 29 00:01:09,765 --> 00:01:12,405 data breaches affecting 500 or more people to 30 00:01:12,405 --> 00:01:12,905 HHS's 31 00:01:13,364 --> 00:01:16,460 office of civil rights last year compared to 32 00:01:17,240 --> 00:01:18,299 747 in 2023 33 00:01:18,600 --> 00:01:20,780 per the per the January 30th story. 34 00:01:21,480 --> 00:01:24,040 However, the total number of individuals affected by 35 00:01:24,040 --> 00:01:26,040 health care data breaches was way up in 36 00:01:26,040 --> 00:01:26,540 2024, 37 00:01:27,079 --> 00:01:29,480 driven by the industry's largest ever hack, the 38 00:01:29,480 --> 00:01:31,555 February ransomware attack on change change health care 39 00:01:31,555 --> 00:01:34,594 that compromised the information of an estimated a 40 00:01:34,594 --> 00:01:35,094 190,000,000 41 00:01:35,474 --> 00:01:35,974 people. 42 00:01:36,515 --> 00:01:38,915 And the HHS data could change as data 43 00:01:38,915 --> 00:01:40,775 breach reporting is often delayed. 44 00:01:41,234 --> 00:01:42,754 Here are the number of health care data 45 00:01:42,754 --> 00:01:45,394 breaches affecting 500 or more individuals over the 46 00:01:45,394 --> 00:01:46,320 past 5 years. 47 00:01:46,939 --> 00:01:47,439 2024, 48 00:01:47,900 --> 00:01:48,400 725, 49 00:01:48,859 --> 00:01:49,359 2023, 50 00:01:49,820 --> 00:01:50,320 747, 51 00:01:50,859 --> 00:01:51,359 2022, 52 00:01:51,740 --> 00:01:52,240 720, 53 00:01:52,780 --> 00:01:54,079 20 21, 715, 54 00:01:54,380 --> 00:01:55,920 and 2020 at 663. 55 00:01:58,219 --> 00:01:58,575 3rd, 56 00:01:59,134 --> 00:02:01,134 Dallas based Stewart Healthcare is at the center 57 00:02:01,134 --> 00:02:03,234 of a growing dispute with its former Massachusetts 58 00:02:03,534 --> 00:02:05,935 hospitals that's as it demands higher fees for 59 00:02:05,935 --> 00:02:09,134 critical EHR and billing services, the Boston Globe 60 00:02:09,134 --> 00:02:10,514 reported January 31st. 61 00:02:11,389 --> 00:02:14,270 The conflict arises as Boston Medical Center, Lawrence 62 00:02:14,270 --> 00:02:17,550 General Hospital, Brown University, new owners of 6 63 00:02:17,550 --> 00:02:20,830 hospitals previously operated by Steward, scrambled to maintain 64 00:02:20,830 --> 00:02:23,889 maintain essential EHR and technology services. 65 00:02:24,555 --> 00:02:27,135 These services cover patient information for radiology, 66 00:02:27,514 --> 00:02:29,294 laboratory, pathology, microbiology, 67 00:02:29,835 --> 00:02:31,135 and pharmacy operations. 68 00:02:32,074 --> 00:02:34,555 In response to Steward's demands, the hospitals have 69 00:02:34,555 --> 00:02:36,794 filed motions in Baker's Seat Court urging Steward 70 00:02:36,794 --> 00:02:38,574 to uphold existing contracts. 71 00:02:39,310 --> 00:02:41,629 The hospital stated an illegal joint filing, quote, 72 00:02:41,629 --> 00:02:43,629 if Steward were to cut off services, patient 73 00:02:43,629 --> 00:02:45,489 lives will be at risk, end quote. 74 00:02:46,030 --> 00:02:46,769 The organizations 75 00:02:47,069 --> 00:02:50,430 emphasize that emphasize that safe and effective operations 76 00:02:50,430 --> 00:02:52,669 depend on the continuity of EHR and revenue 77 00:02:52,669 --> 00:02:55,205 cycle management, both of which would be severely 78 00:02:55,205 --> 00:02:57,064 impacted if services were discontinued. 79 00:02:58,004 --> 00:03:00,324 Despite the increase in financial burden, Stewart has 80 00:03:00,324 --> 00:03:02,645 not provided a clear justification for the higher 81 00:03:02,645 --> 00:03:04,025 fees in court documents 82 00:03:04,324 --> 00:03:06,104 and declined to comment to the publication. 83 00:03:06,719 --> 00:03:08,639 The hospitals maintained that they are being charged 84 00:03:08,639 --> 00:03:10,319 more for the same level of service with 85 00:03:10,319 --> 00:03:12,979 invoices revealing substantial hikes in monthly payments. 86 00:03:13,280 --> 00:03:16,580 For instance, Boston Medical's fees rose by 1,500,000, 87 00:03:17,199 --> 00:03:17,939 Brown University 88 00:03:18,479 --> 00:03:19,620 Health by 1,100,000, 89 00:03:20,555 --> 00:03:22,735 and Lawrence General's by nearly 500,000, 90 00:03:23,115 --> 00:03:25,615 each representing more than a 30% increase. 91 00:03:26,235 --> 00:03:28,235 State officials have been briefed on the dispute, 92 00:03:28,235 --> 00:03:30,395 but have no plans to provide additional financial 93 00:03:30,395 --> 00:03:31,375 assistance to Steward. 94 00:03:31,754 --> 00:03:34,395 Massachusetts secretary of health and human services, Kate 95 00:03:34,395 --> 00:03:37,330 Wells, criticized the company's actions stating, quote, Stuart 96 00:03:37,330 --> 00:03:38,930 has been a very bad actor for a 97 00:03:38,930 --> 00:03:40,449 very long time, and this is the latest 98 00:03:40,449 --> 00:03:41,810 move by them to try to get more 99 00:03:41,810 --> 00:03:43,830 money from their failed operations in Massachusetts, 100 00:03:44,129 --> 00:03:44,629 unquote. 101 00:03:45,409 --> 00:03:47,569 Hospital leaders remain hopeful that the court will 102 00:03:47,569 --> 00:03:48,069 intervene. 103 00:03:48,425 --> 00:03:50,985 John Fernandez, CEO of Brown University Health, called 104 00:03:50,985 --> 00:03:52,525 Stewart's actions, quote, unbelievable, 105 00:03:53,465 --> 00:03:53,965 unconscionable, 106 00:03:54,344 --> 00:03:56,745 and ridiculous, end quote, but reassure the public 107 00:03:56,745 --> 00:03:58,525 that patient care remains top priority. 108 00:03:59,384 --> 00:04:01,944 Meanwhile, Stewart's leadership has undergone a recent stake 109 00:04:01,944 --> 00:04:04,000 up with CEO Mark Rich stepping down and 110 00:04:04,000 --> 00:04:06,259 John Castellano of consulting firm AlixPartners 111 00:04:06,879 --> 00:04:09,379 assuming the role of chief restructuring officer. 112 00:04:09,680 --> 00:04:11,840 The company no longer operates any hospitals in 113 00:04:11,840 --> 00:04:14,560 Massachusetts, yet its financial struggles to continue to 114 00:04:14,560 --> 00:04:16,579 have ripple effects on the institutions 115 00:04:16,959 --> 00:04:18,419 it previously owned. 116 00:04:19,345 --> 00:04:21,024 If you would like the latest health IT 117 00:04:21,024 --> 00:04:22,865 and digital health industry news delivered to your 118 00:04:22,865 --> 00:04:25,105 inbox every morning, subscribe to the Becker's CIO 119 00:04:25,105 --> 00:04:27,264 and health IT review enewsletter through our website 120 00:04:27,264 --> 00:04:27,925 at ww.beccarshospitalreview.com.