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MetroHealth CEO announces retirement plans

Dr. Akram Boutros has announced his plans to retire as president and CEO of The MetroHealth System in Cleveland, Ohio. His retirement will be effective December 31, 2022.

Boutros has been CEO of MetroHealth for more than eight years. Since taking over as CEO, MetroHealth’s revenue has nearly doubled, rising from $785 million to more than $1.5 billion. Since 2013, the health system has opened two hospitals, three emergency departments, 10 community health centers and other facilities.

The system’s workforce has risen from 6,200 to 8,000. In 2019, he instituted a minimum wage of $15 per hour.

“I fell in love with MetroHealth the first time I visited, and it has been the privilege of a lifetime to be its CEO,” Boutros said in a statement. “I never imagined that we would have accomplished so much so quickly. Over the past 8½ years, The MetroHealth System has emerged as a national leader, renowned for its focus on the community, and distinguished for its financial strength.”

Providence names new leader in Northern California

Laureen Driscoll has been named regional chief executive of Providence’s Northern California division, effective Jan. 17.

In her new role, Driscoll will lead a region with six hospitals: Santa Rosa Memoria Hospital, Petaluma Valley Hospital, Healdsburg Hospital, Queen of the Valley Medical Center in Napa, and St. Joseph Hospital and Redwood Memorial Hospital, both in Humboldt County. Her selection was announced Nov. 29.

Driscoll currently serves as president of Tacoma General and Allenmore Hospitals and is the West Pierce and Kitsap market leader for MultiCare Health System in Tacoma, Wash. Previously, Driscoll was president of MultiCare Deaconess Hospital in Spokane, Wash.

“I have dedicated my career to caring for people in need and the pursuit of health care excellence,” Driscoll said in a news release. “I’m excited to continue my professional journey at Providence, where community-centered care is supported by a broad and deep collection of outstanding health care services.”

Fox Chase Cancer Center CEO stepping down

Richard Fisher has stepped down from his role as president and CEO of the Fox Chase Cancer Center in Philadelphia. The move was announced Nov. 24.

Fisher was named president and CEO of Fox Chase in 2013. He’s also relinquishing his roles as Fox’s Cancer Center Director and Senior Associate Dean for Cancer Programs at the Lewis Katz School of Medicine at Temple University. Fox Chase is part of the Temple University Health System.

“Richard I. Fisher has led the Center through a dynamic nine-year period,” Michael Young, president and CEO of Temple University Health System and Temple University Hospital, said in a statement.

Robert G. Uzzo, chair of surgery for Fox Chase, has been appointed interim CEO of American Oncologic Hospital, while a national search for a permanent CEO is conducted.

David Wiest, PhD, has been appointed as the Scientific Director of The Research Institute of Fox Chase Cancer Center, effective Dec. 1.

Scott Raynes will become the new CEO of the Southeast Georgia Health System in January 2022.

He succeeds Michael Scherneck, who has been CEO for the last five years. Scherneck, who has spent 18 years at Southeast Georgia, is retiring. The selection of Raynes was announced Nov. 29.

“Southeast Georgia Health System is an excellent organization that is positioned to meet the growing health care needs of the community. I am honored to be selected to lead the Health System and look forward to working with the excellent medical staff and team members to build on its long-standing legacy,” Raynes said in a statement.

Raynes has served as president of Baptist Hospitals, Inc. and executive vice president of Baptist Healthcare Corp in Pensacola, Florida, since 2013, overseeing the operations of the organization’s five hospitals.

He also previously served as president and CEO at NorthCrest Medical Center/NorthCrest Health System in Springfield, Tenn., and as president and CEO at Preston Memorial Hospital in Kingwood, W. Va.

Altru names CEO for new hospital in North Dakota

Luke Lawrimore has been named CEO of the future Altru Rehabilitation Hospital in Grand Forks, N.D.

The 40-bed rehabilitation hospital, a joint venture between Altru and Encompass Health, is slated to open in June 2022. Lawrimore’s appointment was announced Nov. 15.

Lawrimore has served in multiple leadership roles at Encompass Health since 2015. For the past three years, he has held leadership posts at Encompass Health of Dothan, including rotations of director of therapy operations, interim director of case management, and hospital administrator. He also previously served as therapy team leader and supervisor at Encompass Health of North Alabama.

“We are thrilled to welcome Luke to Grand Forks to lead the team who will expand our rehabilitative care,” Janice Hamscher, chief nursing officer at Altru, said in a news release.

Articles

The longtime leader of Fox Chase Cancer Center has stepped down, while Southeast Georgia Health System names a new chief executive.

MED MOVES: MetroHealth CEO plans to retire, Providence names new Northern California executive, and more

Congress avoided a federal government shutdown late Thursday, but hospitals and healthcare organizations fear the loss of billions of dollars in federal aid if lawmakers don’t act soon.

In the nick of time, Congress passed a short-term spending bill late Thursday to prevent a partial shutdown of the federal government. Lawmakers agreed on a measure that funds federal programs through Feb. 18. President Joe Biden signed the bill Friday, a day before the shutdown would have occurred.

However, lawmakers haven’t addressed looming cuts to Medicare that could cost hospitals and providers billions, according to the Association of American Medical Colleges and other healthcare advocates.

Leonard Marquez, the AAMC’s senior director of government relations and legislative advocacy, said it’s not just about the impact on hospitals and their finances.

If the looming cuts aren’t averted, Marquez said, “What does it mean for access to care? What does it mean for patients?”

The prospect of cuts provide another headache for hospitals that have struggled throughout the COVID-19 pandemic and have dealt with unpredictable costs. For hospitals, this is the worst possible time for a loss in federal aid, healthcare advocates said.

Advocates for healthcare organizations are urging Congress to eliminate the 4% statutory cut from the “pay-as-you-go” provision and are calling on Congress to extend the moratorium on the 2% Medicare payment sequester. They also want to maintain a 3.75% increase in Medicare physician payments in 2022.

Sequestration is the automatic reduction of government spending spelled out in federal law. It’s generally a tool to promote compromises on spending. Under the law, spending cuts go into effect if lawmakers can’t broker an agreement.

The sequester moratorium is slated to expire Dec. 31. If those cuts aren’t stopped, hospitals and healthcare systems could see a $4.7 billion reduction in Medicare fee-for-service payments in 2022, advocates say.

The “pay-as-you-go” rule refers to a 2010 federal law that says spending bills can’t add to the budget deficit over a 5- or 10-year period. Under “PAYGO,” as it’s dubbed, a spending increase is supposed to be offset by a reduction elsewhere.

A PAYGO sequester has never been triggered before. But if Congress doesn’t act to block it, hospitals would lose $9.4 billion in Medicare payments in 2022. (Earlier, this year, the American Hospital Association produced a 

AAMC’s teaching hospitals would lose $2.2 billion if the PAYGO sequester isn’t blocked, the group said.

Marquez said he’s “cautiously optimistic” that lawmakers will act and prevent the cuts. But he and other healthcare advocates are wary that Congress hasn’t acted already. After all, Congress barely averted a government shutdown with a temporary spending measure.

“We’re concerned that Congress has not yet addressed these cuts,” Marquez said. “We continue to hear that lawmakers on both sides of the aisle are working to address this, they want to address these cuts.”

Rick Pollack, president and CEO of the American Hospital Association, said he wasn’t pleased Congress didn’t address the pending cuts amidst the COVID-19 pandemic, particularly with the emergence of the Omicron variant.

“Now is not the time to impose additional financial hardship,” Pollack said in a statement. “It would be an outrage to not protect the very caregivers who are fighting this relentless virus every day. Congress and the Administration must now act quickly to remove the uncertainty these cuts are creating in order to stop this potential threat to the patients and communities we serve.”

This week, the AHA and a host of other healthcare organizations crafted a 

 urging congressional leaders for relief before the end of the year.

While Marquez said he thinks Congress will avert the cuts, he said it’s not clear if lawmakers will do so by Dec. 31. 

If the cuts go into effect at the end of the year, Congress can still move retroactively to address them early in the new year. But Marquez said healthcare providers need certainty on federal funding and would prefer a remedy sooner than later.

“The further you go into January, the more problematic it becomes,” he said. “It’s one of the key reasons it’s important to get it done before the end of the year.”

While much concern is focused on extending the moratorium on sequester cuts, Marquez said the AAMC and other groups are anxious to see Congress continue the increase in Medicare Physician Fee Schedule payments. Doctors caring for Medicare patients would take a hit if there’s a reduction, he said.

“We’re very concerned about the Physician Fee Schedule cut,” Marquez said.

Looking ahead, healthcare advocates have said they hope Congress can move on a federal budget for a 2022 fiscal year sooner than later. Some legislative proposals would offer 

substantial spending increases for healthcare and medical research

 in 2022. The 2022 fiscal year ends in September.

With mid-term elections looming in 2022, lawmakers could opt for more short-term measures that would keep federal agencies funded at current levels. Healthcare groups are urging lawmakers to approve spending measures that would offer more aid to the National Institutes of Health, public health programs and academic medical centers.

“We want Congress to finish the fiscal year 2022 appropriations as quickly as possible,” Marquez said.

With the COVID-19 pandemic, hospitals can’t afford the looming cuts, advocates say. The reductions could come at the end of the year if lawmakers don’t act. 

Congress averted a government shutdown, but hospitals face billions in cuts

It would take most Americans years to save up enough money for even one year of assisted living, and the costs vary widely across the nation, a recent study illustrates.

Nationwide, the average rent at an assisted living community is $4,057 per month, according to a study from 

. The analysis also looked at the most expensive states for assisted living, as well as the least expensive.

New Jersey stands as the most expensive place for assisted living, with an average monthly cost of $5,893 per month. That’s almost twice as much as Georgia, the least expensive state, with an average monthly cost of $3,045.

Given those rates, it’s easy to see how the costs could be daunting for many families. In New Jersey, a year in assisted living would cost more than $70,000. Even in the least expensive states, a year in assisted living would cost over $36,000. At the average monthly cost nationwide, a year would approach $50,000.

In assisted living facilities, residents are typically provided meals and assistance with personal care, but still typically retain a sense of independence with their own individual rooms or apartments. They may get assistance or reminders on medication but wouldn’t get the skilled care offered in nursing homes.

Based on current savings rates, the typical American would need to save for 9.5 years to pay for one year in assisted living, according to Seniorly. In New Mexico, residents would have to save for 13 years to cover the costs of a year in assisted living, the highest in the country.

One takeaway: Save as much for retirement as possible.

Due to the COVID-19 pandemic, assisted living occupancy has dropped, but there are signs of a rebound.

In the third quarter of 2021, occupancy rose to 76.9%, up from a low of 75.4% in the first quarter, according to the 

National Investment Center for Seniors Housing & Care (NIC)

. However, assisted living occupancy remains below the pre-pandemic rate of 85%.

To compile the most and least expensive rates, Seniorly examined move-in data from 40,000 senior communities over the first half of 2021.

Here’s a rundown of the 10 most expensive states for assisted living, followed by the 10 least expensive.

The costs of assisted living vary significantly across the country. Even in the less expensive states, most Americans would need to save for a long time to cover the costs of a year in assisted living. 

What are the most expensive states for assisted living? 

Continuing its strategy of investing in areas of rapid growth, HCA Healthcare has announced plans to build three new hospitals in Florida. 

With the new hospitals, HCA Healthcare continues to expand its presence in the Sunshine State. In November, HCA opened the $360 million HCA Florida University Hospital in Davie. Over the past three years, HCA has invested $3 billion in Florida, the company said in a news release.

HCA plans to build a 90-bed acute care hospital in Gainesville, a 60-bed facility near The Villages and a 100-bed acute care hospital in Fort Myers. The company said it plans to begin construction next year. HCA announced the planned new hospitals Nov. 30.

The healthcare network already boasts a strong presence in Florida. HCA is operating 47 hospitals in the state and its network includes 400 affiliated sites. But now the hospital aims to continue its expansion, said Sam Hazen, CEO of HCA Healthcare.

“Florida continues to experience rapid population growth, and the addition of these new hospitals will help HCA Florida Healthcare meet the increasing need for acute care services in these areas,” Hazen said in a news release. “We are excited to expand our presence in the state and enhance our ability to care for patients.”

In the 2020 Census data released earlier this year, Florida's population rose to 21.5 million, an increase of 14.6% over the past decade. 

HCA has been expanding westward as well. In September, HCA Healthcare acquired five Utah hospitals from Steward Health Care. Those hospitals joined HCA Healthcare’s Mountain Division, which includes 11 hospitals in Utah, Idaho and Alaska. 

At the time, Hazen noted Utah is one of the nation's fastest growing states. In the 2020 Census, Utah emerged as the state with the fastest growth with an 18% rise in its population, now at nearly 3.3 million. The company seems to be targeting its expansion in parts of the country that are seeing the most rapid growth.

HCA Healthcare has sold five hospitals in Georgia this year, pulling out of the northern Georgia market altogether. When it pulled out of northern Georgia, HCA said the move would create more financial flexibility to invest in the system's core markets.

On Thursday, HCA Healthcare also announced it will donate $1.5 million to Florida A&M University’s School of Allied Health Sciences. The donation is aimed at helping students pursue management careers in healthcare. Earlier this year, HCA said it would donate $10 million over three years to Historically Black Colleges and Universities and Hispanic Serving Institutions, with the goal of improving diversity in the healthcare field.

Based in Nashville, Tenn., HCA operates 183 hospitals and more than 2,000 ambulatory sites across the U.S. and in the United Kingdom. 

The system continues to expand its presence in the Sunshine State. HCA opened a new hospital in Florida last month.

HCA Healthcare plans to build three new hospitals in Florida

The federal government is trying to send the message that “cyber safety is patient safety.”

To that end, the U.S. Department of Health and Human Services launched a new website offering healthcare providers resources to bolster their cybersecurity defenses. The website was developed by a task force consisting of representatives of industry and the federal government.

The website is for the 405(d) Aligning Health Care Industry Security Approaches Program. The site offers products, videos and educational tools to help promote good cybersecurity practices. The health department announced Wednesday that the site is up and running.

“The new 405(d) Program website is a step forward for HHS to help build cybersecurity resiliency across the Healthcare and Public Health Sector,” Christopher Bollerer, HHS Acting Chief Information Security Officer.

Hospitals and healthcare organizations have become tempting targets for hackers. Hospitals have been hit with ransomware attacks and other intrusions which have affected patient care and cost healthcare systems time and money. 

The average cost of a data breach in the healthcare sector surpassed $7 million in 2020, according to the health department.

In 2021, healthcare organizations reported hundreds of cybersecurity incidents to the federal government.

Erik Decker, a co-leader of the industry task group working with the government, predicted the website will become an essential resource for healthcare organizations aiming to protect patients and their facilities.

“This website is the first of its kind! It’s a unique space where the healthcare industry can access vetted cybersecurity practices specific to the HPH sector on a federal government website,” Decker said in a statement.

Last month, the government offered another resource to the private sector: a 

catalog of known vulnerabilities for cyberattacks

 of attackers backed by the Iranian government targeting critical infrastructure, including the healthcare industry. In June, the attackers gained access to networks in a children’s hospital in the U.S.

Most hospitals have encountered some kind of cybersecurity threats, according to a Healthcare Information and Management Systems Society (HIMSS) survey in 2020.

The survey found 70% of cybersecurity professionals reported serious security incidents within the previous year. Of those incidents, 20% involved ransomware or malware.

Most of those surveyed (61%) indicated the cyberattack disrupted nonemergency clinical care, but more than a quarter (28%) reported a disruption of emergency services. About 1 in 5 (17%) of the respondents said some elective surgeries had to be canceled.

Officials said the new site, which went live Wednesday, should become a valuable resource for healthcare providers. 

HHS launches new website to boost cybersecurity protections in healthcare

COVID-19 cases with the Omicron variant have now been found in multiple states, according to media reports.

The first confirmed case of the Omicron variant was found in California, the U.S. Centers for Disease Control and Prevention said Wednesday. 

Five cases have been confirmed in New York City, the Associated Press reported Friday.

On Friday, a case was confirmed in Philadelphia, Pa., according to the city's health department. Cases have also been found in Minnesota Colorado, and Hawaii, the Associated Press reported. The Minnesota resident had recently been in New York City for an anime convention, according to the AP and other media reports. 

The individual has recently returned from travel to South Africa, where the Omicron variant has been found in many new cases of the coronavirus. The individual has experienced mild symptoms and has been self-quarantining, the 

The individual, who was not identified, was fully vaccinated.

The Omicron variant of COVID-19 has emerged as a new threat in the pandemic because it appears to be transmitted very easily, health officials said. The World Health Organization classified it as a variant of concern Nov. 26. The U.S. followed with a similar designation on Nov. 30. 

More than two dozen countries have confirmed the Omicron variant, according to The New York Times. South African researchers first identified the variant in late November. 

Federal health officials have urged Americans to get vaccinated if they haven't already done so. Those who have been vaccinated should get booster shots as soon as possible, officials said.

The Delta variant remains the most dominant coronavirus strain in the U.S., the CDC said.

The WHO said it's not yet clear if the Omicron variant is more transmissible than other forms of the coronavirus, though the agency said new cases are rising in areas where the Omicron variant has been found. The WHO said there's no information yet to confirm if symptoms associated with the Omicron variant are different or more severe than other variants. 

Researchers are working to understand the effectiveness of current vaccines against Omicron. 

Earlier this week, Biden told Americans the Omicron variant is "a cause for concern, not a cause for panic." 

The Biden administration is looking at stricter COVID-19 testing requirements for those traveling to the United States, 

To date, there have been more than 48 million coronavirus cases reported in the United States and more than 780,000 deaths have been tied to COVID-19.

This story has been updated from an earlier version.

The first case was detected in California, the agency said Wednesday. The individual recently returned from South Africa, where the variant has been found in many new cases.

Omicron cases confirmed across U.S., CDC reports

President Joe Biden wanted to have healthcare workers fully vaccinated against COVID-19 by early January, but recent court rulings are posing setbacks to his administration’s plans.

Biden issued an order requiring all healthcare facilities taking Medicare and Medicaid funds to have their employees fully vaccinated by Jan. 4. The rule applies to 17 million workers at about 76,000 facilities. The Biden administration had also directed healthcare facilities to have workers get their first shot of a two-dose vaccine by Dec. 6.

Recent court rulings, including an order issued Tuesday, now raise new questions for healthcare facilities. Here’s a quick rundown on the rulings and their implications.

Q: What’s the most recent decision regarding the vaccine rule for healthcare workers?

 Tuesday blocking the Biden administration from moving forward with the vaccine mandate for healthcare workers. Judge Terry A. Doughty, of the U.S. District Court of the Western District of Louisiana, said the Centers for Medicare and Medicaid lack the authority to impose the vaccine mandate on healthcare workers. He said legislation should come from Congress.

“It is not clear that even an Act of Congress mandating a vaccine would be constitutional,” Doughty wrote. “Certainly, CMS does not have this authority.”

Q: Is the injunction in effect nationwide?

A: For all intents and purposes, yes. Fourteen states, led by Louisiana, filed a joint suit to block the mandate. Doughty said he considered limiting the scope of his injunction to those 14 states, but ultimately decided it should have a national scope.

“Although this Court considered limiting the injunction to the fourteen Plaintiff States, there are unvaccinated healthcare workers in other states who also need protection,” he wrote.

The ruling by Doughty doesn’t affect 10 states - Alaska, Arkansas, Iowa, Kansas, Missouri, New Hampshire, Nebraska, Wyoming, North Dakota and South Dakota. The reason? On Monday, a federal judge in Missouri issued a ruling blocking the vaccine requirement for healthcare workers in those states. 

Doughty was nominated by former President Donald Trump and unanimously confirmed by the U.S. Senate in 2018.

The Biden administration has said it expects its vaccine mandates to ultimately prevail against legal challenges, 

. In his ruling, Doughty acknowledged that he won’t have the final say on the vaccine mandate and the legal battles will continue.

“This matter will ultimately be decided by a higher court than this one,” wrote Doughty. “However, it is important to preserve the status quo in this case. The liberty interests of the unvaccinated requires nothing less.”

Expect the Biden administration to quickly appeal. The American Hospital Association also expects the Biden administration to petition a stay of the injunction, pending appeal.

Q: What about the federal government’s order requiring all employers with at least 100 workers to have their employees vaccinated or undergo regular testing for COVID-19?

A: Last month, a federal appeals court in Louisiana issued a 

 blocking that order. If the order mandating vaccinations or tests at private companies is ultimately upheld in court, it would cover 84 million workers. Several states and employers have joined forces in legal challenges to block the broader order covering private employers.

 have urged business groups to drop their opposition to the vaccine orders and to get their workers immunized. Some employers are imposing vaccine requirements. A Willis Towers Watson 

 issued Nov. 30 found 57% of employers said they require or plan to require workers to get COVID-19 vaccines.

Q: Do healthcare workers have a testing option under the Biden administration’s order?

A: No. That’s the key difference between the order affecting healthcare workers and the separate order affecting most private employers, which does include a testing option. Biden’s order covering healthcare workers offers no option to submit for coronavirus testing; they must be vaccinated.

Q: What is the vaccination rate of healthcare workers?

A: The majority of healthcare workers are vaccinated, but some workers have resisted getting the shots.

Last month, the American Journal of Infection Control published a 

 that found 70% of healthcare personnel were fully vaccinated as of Sept. 15. The study examined more than 3.3 million healthcare personnel in nearly 2,100 facilities. Since that study is only through mid-September, the vaccination rate likely has changed. Nationwide, 71% of all adults are fully vaccinated, according to 

Some hospital systems have implemented their own policies requiring their workers to be vaccinated. More than 2,500 hospitals - 40% of the nation's hospitals - have imposed a vaccine requirement, according to the White House. Some states, including California, New York, Rhode Island and Connecticut, have imposed their own regulations requiring healthcare employees to get vaccinated.

A: While some have argued the mandates will only hurt hospitals and nursing homes that are already struggling to keep workers, some evidence points to the success of vaccine mandates.

The Biden administration required federal employees to get vaccinated by late last month. More than 96% of federal workers have been vaccinated, the administration said. Agencies have been given latitude to convince their last holdouts to get the shots, 

A White House report of healthcare organizations, public agencies and private employers found that vaccine requirements led to increases in the vaccination rate of 20 percentage points. In their Nov. 18 

 urging support for vaccine requirements, healthcare groups and other health leaders pointed to the success of those mandates.

“We’ve seen over and over that employer vaccine mandates work to raise vaccination rates, and they don’t cause workforce shortages,” said Ezekiel Emanuel, vice provost for global initiatives at the University of Pennsylvania.

A federal judge issued a moratorium temporarily blocking the rule, which calls for all healthcare employees to be fully vaccinated in early January. But the legal battle isn't over.

Court decisions delay Biden's COVID-19 vaccine mandate for healthcare workers: Questions and answers

Virtual healthcare and the growth of mental health services loom as two of the top health trends in 2022, according to the Business Group on Health.

The Business Group, a non-profit organization, represents large employers’ views and perspectives on health policy issues. The organization identified six key trends for the coming year.

COVID-19 will remain a key driver on health issues but businesses will focus on several areas, said Ellen Kelsay, president and CEO of Business Group on Health.

“Each of these trends is critically important yet together underscore a collective urgency that requires prioritization,” Kelsay said in a statement. “To be sure, while COVID-19 still has an impact on almost every aspect of health and well-being, the upcoming year will be marked by large employers’ ongoing commitment to these critical areas.”

Here’s a rundown of the Business Group on Health’s projections for the new year.

Virtual health will remain an integral part of the healthcare landscape, particularly in managing chronic illnesses and offering more patients access to mental health services.

But virtual health will increasingly be integrated with in-person care, the Business Group projects. Patients will need help navigating in-person and virtual care options.

“In the future, the focus will shift to achieving optimal quality, appropriateness, experience and integration of virtual health with in-person delivery,” the group stated. 

Onsite clinics will rebound in 2023-24 to support workforce health, the Business Group predicted.

More people are accessing mental health services, partly due to the stress of the COVID-19 pandemic and also due to a reduced stigma in seeking help. Many are struggling with stress, burnout and substance abuse issues. Businesses will continue to work to provide mental health services and programs to support the emotional well-being of their workers.

Healthcare organizations and the federal government have been focused on improving health equity among minority groups and vulnerable populations. Likewise, employers are focused on health equity.

Large employers will be offering “inclusive and affordable health benefits and well-being programs.” Companies will also be seeking representative provider networks, the Business Group said. 

Employers are going to be examining structural racism and implicit bias to reduce disparities in healthcare outcomes and improve the well-being of workers.

Employers are expecting higher health care costs, due to the pandemic and the possible long-term effects of COVID-19. In addition, some people have delayed treatment for other health conditions due to the pandemic and are likely to need care. Expect companies to be pressing for changes to address costs.

“The quickly evolving landscape could amplify these challenges if not effectively integrated into a holistic care delivery experience with a continued commitment to quality and value,” the group said.

As employees work in different ways, either at home or in hybrid programs, companies are going to need to revamp their programs to promote well-being.

Companies will “support psychological and workplace safety, remote or hybrid work, and leave-related impacts,” the Business Group said.

Employers will be more active in healthcare and workforce policy, the Business Group said. Companies will be pressing on healthcare cost containment, prescription drug prices, health equity, mental health, virtual health and COVID-19 relief programs.

The Business Group on Health offered its projections on key health and workplace issues in the coming year. 

Virtual health, mental health emerge as top trends to watch in 2022, forecast says

The U.S. Supreme Court heard arguments in a case with enormous financial implications for hospitals.

, centers on the federal government’s 340B drug discount program and the reduction of reimbursements for hospitals. Lawyers representing the hospital association and the federal government made their arguments before the justices in 

The hospital association said the government’s cuts to the program threaten the ability of healthcare systems to provide care to vulnerable communities. The government contends the change in reimbursements represents a better use of resources.

The justices focused much of their questioning on the scope of the law and the government’s authority to reduce reimbursements. But they also asked questions about the impact of the cuts on hospitals and their ability to serve patients.

In the 340B program, hospitals that treat low-income patients can buy some drugs at low costs and receive higher reimbursements. The program is intended to support hospitals treating patients in underserved areas. More than 2,000 hospitals now participate in the program.

In 2017, the U.S. Department of Health and Human Services reduced the reimbursement rates for certain outpatient drugs in the 340B program. The reimbursement rate was cut to 22.5% of the average sales price of the drugs. The government said the reduction was appropriate since hospitals were acquiring the drugs at much cheaper prices.

The policy change reduced reimbursements to 340B hospitals by an estimated $1.6 billion.

The American Hospital Association and supporting hospitals contend the government’s cuts were done improperly and illegally.

The hospitals argue the government needed to first conduct a study to change reimbursement rates for select hospitals, or the government had to set rates based on the average price of the drug. The hospitals argue the health department’s actions violated the Medicare statute.

Donald B. Verrilli, Jr., the attorney representing the American Hospital Association, told the justices the health department didn’t use the average cost of drugs but instead relied on an estimate of the acquisition price for 340B hospitals. The government doesn’t have the authority under the law to do that, he argued.

“Congress spoke directly to the question of when rates can be based on acquisition costs and varied by hospital groups, and that's when it conducts a cost study,” Verrilli said. “Congress surely did not delegate to HHS the authority to remove that statutory requirement.”

The government has argued the department has broad authority to readjust reimbursement rates as necessary.

Verrilli said the government went beyond the language of the Medicare statute. “This Court has said over and over again that agencies can't invoke purpose to go beyond the specific means that Congress prescribed,” he told the justices.

While much of the discussion was on the legal authority to change reimbursements, Verrilli’s final remarks focused on the impact on patient care. With the loss of $1.6 billion in reimbursements to 340B hospitals, Verrilli said, “You are reducing the care that they provide to underserved populations by that amount.”

After a lower court sided with the government, hospitals have been anxiously awaiting for the case to reach the Supreme Court.

A key issue in the case from a legal perspective is what kind of deference the court would grant the federal agency in its decision. The case centers around a 1984 ruling - Chevron v. Natural Resources Defense Council  - that found courts should typically defer to federal agencies in their interpretation of statutes.

Legal experts have said if the court goes against the Chevron ruling, it could have significant ramifications.

In court Tuesday, Justice Stephen Breyer said the court’s ruling “has implications well beyond this case.”

Healthcare systems have a great deal at stake in the highly awaited case. Hospitals say reduced payments in the 340B drug program threaten their ability to serve vulnerable communities.