News Briefs
Judge Rules Against Administration's HHS Reorg, Reductions
California District Judge Susan Illston has granted a preliminary injunction against the Trump administration's recent reductions in force across federal agencies, including the Department of Health and Human Services. "Agencies may not conduct large-scale reorganizations and reductions in force in blatant disregard of Congress’s mandates, and a President may not initiate large-scale executive branch reorganization without partnering with Congress," Illston said in her ruling.
(Source: FierceHealthcare, 2025-05-23)
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Federal Judge Bans HHS from $11B Public Health Funding Cuts
For the second time, a federal judge in Rhode Island has barred the Department of Health and Human Services from cutting $11 billion in public health funding to states. In the ruling, Judge Mary S. McElroy for the District of Rhode Island, issued a temporary injunction in favor of the 23 states and the District of Columbia that brought the lawsuit against HHS Secretary Robert F. Kennedy, Jr.
(Source: Healthcare Finance News, 2025-05-20)
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Administration Seeks Feedback to Improve Drug Price Transparency
The Trump administration is seeking feedback on how to improve price transparency for prescription drugs. The departments of Labor, the Treasury, and Health and Human Services jointly issued a request for information that is looking for public comment on requirements around drug price disclosures, including existing data elements.
(Source: FierceHealthcare, 2025-05-22)
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AHA Concerned Tariffs Will Cause Drug and Other Supply Shortages
The American Hospital Association has expressed concern about drug and other shortages that may occur as a result of tariffs newly implemented by the Trump administration on items such as pharmaceuticals, medical devices, and personal protective equipment. Other low-margin, high-use medical goods come from international sources, the AHA said, such as syringes, needles, and blood pressure cuffs.
(Source: Healthcare Finance News, 2025-05-20)
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Drug Firms Must Match 'Most Favored Nation' Model or Face Fines
The U.S. Department of Health and Human Services said it is "taking immediate steps" to implement a recent Executive Order by President Donald Trump that is set to overhaul the pricing framework of prescription medicines in the country. Based on a "most favored nation" pricing model, Trump's policy requires drugmakers to match the lowest prices they offer in comparable countries, and if companies do not adhere to this, they could face regulatory action.
(Source: Pharmaceutical Technology, 2025-05-20)
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Senior Living Occupancy Thriving, But Challenges Await
Senior living occupancy momentum is tracking with 2024 projections from the inaugural NIC SHARK report and even is outperforming other major commercial real estate sectors for the first time in almost two decades, according to the National Investment Center for Seniors Housing & Care. But labor constraints, immigration policy, and tariffs are "creating friction" that will shape development, staffing, and investment decisions in the senior living and care industry going forward, according to a blog post from NIC Senior Principal Omar Zahraoui.
(Source: McKnight's Senior Living, 2025-05-23)
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Home-Based Care Companies Taking Keen Interest in Hospice Sector
Hospice has emerged as a growth engine for publicly traded home-based care companies, several of which are on the hunt for acquisitions. Hospice has buoyed growth for several companies as they battle home health-related headwinds, including reimbursement pressures.
(Source: Hospice News, 2025-05-23)
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Leading Nonprofit Providers Saw Declining Operating Margins
The nation's leading nonprofit healthcare providers struggled financially during the quarter ended March 31. Most of the major systems, including Kaiser Permanente, Mass General Brigham, Cleveland Clinic, Mayo Clinic, Ascension, and Providence, recorded operating margins that were flat or lower than this time last year, despite growing patient volumes.
(Source: Healthcare Dive, 2025-05-22)
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Budget Bill Would Restrict Borrowing for Medical School Loans
A little-discussed provision on student loan policies in President Trump's massive budget bill would restrict borrowing for medical school and possibly exacerbate the country's physician shortage. The GOP-led reconciliation bill moving through Congress would eliminate a federal loan program for graduate students called Grad PLUS.
(Source: Axios, 2025-05-21)
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Telehealth Could Account for Up to 30% of Appointments by 2026
Telehealth may soon account for nearly one-third of all medical appointments in the U.S., according to a forecast by healthcare IT firm ScienceSoft. That trajectory, however, hinges on something far less predictable: Washington.
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Medical School Accrediting Org Drops Diversity Measurement
Citing state crackdowns on diversity, equity, and inclusion, the organization that accredits medical schools has dropped diversity as a measure of the quality of medical education. The Liaison Committee on Medical Education voted to eliminate diversity programs and partnerships as criteria when it grades the performance of medical schools that confer "MD" degrees to students.
(Source: USA Today, 2025-05-24)
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