News Briefs
States, D.C., File Lawsuit to Block Trump's HHS Restructuring
A coalition of 20 attorneys general is suing to block what they say is the Trump administration's "dangerous dismantling" of the federal health agency, adding that recent actions endanger programs, including Medicaid. Led by New York Attorney General Letitia James, the attorneys general filed a lawsuit in the U.S. District Court of Rhode Island, asserting that the dismantling of the U.S. Department of Health and Human Services is unconstitutional.
(Source: McKnight's Senior Living, 2025-05-07)
READ MORE >
Tariffs Could Impact Medical Device Industry, Experts Say
The U.S. Commerce Department's Section 232 investigation into semiconductor imports could create substantial new costs for the medtech sector if it brings additional tariffs, especially for medical devices that are chip-intensive or produced at a large scale, according to experts who spoke with MedTech Dive. Tariffs on semiconductors could raise input costs for medical device manufacturers, yet companies may not be able to pass those costs on to customers immediately, said Scott Almassy, consulting firm PwC's U.S. semiconductor leader.
(Source: Medtech Dive, 2025-05-06)
READ MORE >
Executive Order Seeks to Link Cost of Drugs to Prices Abroad
The Trump administration is resurrecting a controversial policy that aims to tamp down some pharmaceutical costs in the U.S. by linking them to prices paid abroad, delivering another jolt to an industry it has already targeted for tariffs. In an executive order, President Donald Trump directed the HHS and agencies governing international trade to pursue this approach, known as "most favored nation" for its resemblance to certain types of trade deals.
(Source: Healthcare Dive, 2025-05-12)
READ MORE >
Lawmakers Seek to Cut Tax That Boosts Hospitals' Medicaid Dollars
Every state except Alaska uses at least one provider tax to boost its federal Medicaid dollars. But Republicans who control Congress are looking for potential cuts in the nearly $900 billion Medicaid program to help fund an extension of President Donald Trump's tax cuts -- and have sought to portray provider taxes as malicious, sometimes even deriding them as "money laundering." Lawmakers say they may curtail or eliminate provider taxes as part of legislation to enact Trump's domestic agenda.
(Source: KFF Health News, 2025-05-08)
READ MORE >
Hospitals Outsourcing Minor Surgeries Amid Workforce Shortages
Health systems are taking a step toward the hospital of the future by outsourcing minor surgeries. As hospitals struggle with workforce shortages and look to reduce costs and their patient census, leadership is looking for alternatives to expensive and resource-intense hospital care, with the idea of saving the hospital for those who need acute care services and will spend several days there.
(Source: HealthLeaders Media, 2025-05-08)
READ MORE >
Committee Proposes Delaying Nursing Home Staffing Mandate 10 Years
A congressional committee has proposed delaying further implementation of the nursing home staffing mandate for 10 years as part of a major budget reconciliation bill. That provision of the bill would represent a big win for nursing home providers.
(Source: McKnight's Long-Term Care News, 2025-05-12)
READ MORE >
FDA Says All Centers Will Fully Implement AI Internally by June
The U.S. Food and Drug Administration said all its centers will deploy artificial intelligence internally immediately, with full integration on June 30, following the completion of a new generative AI pilot for scientific reviewers. Once the FDA receives an application for the potential approval of a drug, it has six to 10 months to make a decision, and the generative AI tools allow FDA scientists and subject-matter experts to spend less time on tedious, repetitive tasks that often slow down the review process, the regulator said.
(Source: Reuters, 2025-05-08)
READ MORE >
Physicians' Use of AI Could Increase Liability Risk, Study Says
Artificial intelligence was supposed to ease the burden on physicians -- not add to it, but without proper legal protections and support structures, it may be doing just that, according to a new peer-reviewed brief published in JAMA Health Forum. The study, authored by researchers at Johns Hopkins University and the University of Texas at Austin, argues that assistive AI -- although designed to help physicians diagnose, manage, and treat patients -- could actually increase liability risk and emotional strain on clinicians.
(Source: Medical Economics, 2025-05-06)
READ MORE >
Lawmakers Introduce Health Tech Investment Act
U.S. Sens. Mike Rounds, R-S.D., and Martin Heinrich, D-N.M., have introduced legislation aimed at improving health outcomes for Medicare patients by encouraging the use of cutting-edge, artificial intelligence-enabled medical devices. The Health Tech Investment Act would establish a consistent and predictable Medicare payment pathway for these technologies, providing patients with earlier and more accurate diagnoses, the senators say.
(Source: HME News, 2025-05-06)
READ MORE >
HSCC Urges Action in Warning of Healthcare Cybersecurity Threats
The Health Sector Coordinating Council (HSCC) Cybersecurity Working Group highlighted the significant cybersecurity challenges facing America's resource-constrained healthcare providers. A recent report noted that these challenges stem from a limited workforce and expertise, outdated systems, and inadequate funding.
(Source: Industrial Cyber, 2025-05-12)
READ MORE >
Senators Reintroduce PDT Act to Expand Software-Based Treatments
Sens. Shelley Moore Capito, R-W.Va., and Jeanne Shaheen, D-N.H., reintroduced the Access to Prescription Digital Therapeutics (PDT) Act to expand access to software-based treatments. Advocates will bring new economic data from Germany to make the case to Congress, Centers for Medicare & Medicaid Services Director Mehmet Oz, M.D., and Department of Health and Human Services Secretary Robert F. Kennedy Jr. to create pathways for coverage of the technologies.
(Source: FierceHealthcare, 2025-05-09)
READ MORE >
