Stay in the know with Becker's Hospital Review's weekly news roundup of the nation's biggest healthcare news. Here's what you need to know this week.
1. Possible Ebola exposure in CDC lab
The Centers for Disease Control and Prevention is monitoring one lab technician for signs of Ebola after the technician accidentally handled live Ebola virus. According to the New York Times, a lab error on Monday led to the possible exposure. A high-security lab sent live Ebola samples — instead of samples of a killed virus — to another CDC lab that is not equipped to handle live Ebola. The mistake was discovered Tuesday. The technician who handled the sample will be monitored for signs of Ebola for 21 days. Other people who work at the second lab were examined for signs of exposure as well.
2. Obama administration to investigate insurer bias
The Obama administration will investigate health insurance companies' prescription drug coverage and other benefits after becoming aware of "discriminatory benefit designs" that discourage people with certain conditions from enrolling in health plans, according to the New York Times. The PPACA prohibits insurers from excluding applicants for coverage or charging higher premiums because of an individual's pre-existing condition or disability. The Obama administration said it would begin investigating discrimination allegations after advocates for people with HIV/AIDS and other illnesses complained of limited access to benefits. According to the NYT, CMS said it will focus on insurers in the federal marketplace.
3. FDA revises ban on blood donations from gay men
The U.S. Food and Drug Administration has determined the ban on blood donations from some gay and bisexual men is medically unnecessary, according to the Wall Street Journal. Per the revision, men who have not had sex with men in more than a year would be allowed to donate blood. A draft guidance still needs to be published, followed by a period for comments and edits before the change will be finalized sometime in 2015.
4. Northwestern Memorial reports stolen laptop, notifies 2,800 patients of data breach
Northwestern Memorial Healthcare is notifying 2,800 patients of a data breach after a laptop was stolen from an employee's car. The laptop was stolen Oct. 21 and the employee immediately contacted law enforcement who then began an investigation. The stolen laptop was password-protected but not encrypted, and it contained patient names, addresses, birth dates, health insurance information, billing codes, date of services, physician names, medical record numbers, diagnosis, treatment information and some Social Security numbers. No credit card or bank account information was stored on the computer. Additionally, the health system has "no knowledge" that the patient information has been used in any way.
5. Boston Children's to pay $40k to settle data breach
Boston Children's Hospital agreed to settle data breach allegations for $40,000 and to take steps to prevent security violations in the future, according to the Attorney General of Massachusetts. The data breach occurred after a BCH-issued laptop was stolen from a physician who was presenting at a conference in Buenos Aires in 2012. The physician had recently received an email from a colleague containing the protected health information of approximately 2,100 patients, 1,700 of which were under 18 years old. The $40,000 settlement includes a $30,000 civil penalty and a $10,000 payment to a fund overseen by the Attorney General's Office directed toward educational programs for protecting health and personal information.
6. CMS adds 89 new Medicare ACOs
On Monday CMS announced the addition of 89 new accountable care organizations to the Medicare Shared Savings Program, bringing the total of Medicare ACOs to 424. The 89 new ACOs will participate in the fifth performance period of the MSSP, which begins Jan. 1. The New Year will begin with 405 ACOs participating in the Medicare Shared Savings Program and another 19 participating in the Pioneer ACO Program, covering more than 7.8 million people. Learn more about the new MSSP ACOs here.
7. Director of the Center for Medicaid and CHIP Services to step down
The Director of CMS' Medicaid unit, Cindy Mann, announced she is stepping down next month, according to the Wall Street Journal. Since becoming the agency's Director of the Center for Medicaid and Children's Health Insurance Program Services five years ago, Ms. Mann has overseen the expansion of Medicaid in 27 states. Vikki Wachino, Ms. Mann's deputy, will take over as acting director until a permanent is found.
8. Medicare cuts payments to 721 hospitals for HACs
In fiscal year 2015, Medicare will reduce payments of 721 hospitals for being among the 25 percent of hospitals with the highest rates of hospital-acquired conditions. The HAC program, created under the Patient Protection and Affordable Care Act, is aimed at reducing preventable harm to patients by penalizing the 25 percent of hospitals with the highest rates of HACs. These facilities will have their payments reduced by 1 percent for all discharges occurring after Oct. 1, 2014. The penalties for the 721 hospitals total $373 million, according to Kaiser Health News. Some renowned hospitals were included on the list of those receiving penalties, including Cleveland Clinic and Geisinger Medical Center in Danville, Pa. There are also 143 major teaching hospitals receiving penalties, including Grady Memorial Hospital in Atlanta and Northwestern Memorial Hospital in Chicago, according to Kaiser Health News.
9. Highmark drops restrictions on CRC screening drugs
Highmark determined it will opt for Medicare's position and lift restrictions on colorectal cancer screening drugs, according to a recent Pittsburgh Business Times report. Highmark previously planned to restrict payment for propofol administration during colorectal cancer screening to high-risk patients. Several industry organizations banded together to fight this limitation, and Highmark rescinded the restriction. Medicare will waive deductibles and co-insurance for anesthesia during colorectal cancer screening beginning at the New Year, and Highmark plans to follow suit.
10. Updates on rumored Stryker acquisition of Smith & Nephew
On Dec. 23, Smith & Nephew stock jumped when anonymous reports emerged citing new details on Stryker's want for the company, according to a Barron's report. Rumor says Stryker would be willing to pay a 30 percent premium for Smith & Nephew. Also, Stryker will probably not pursue a tax-inversion strategy, due to recent political pressure. Smith & Nephew shares were up 10 percent this past Tuesday after the rumors surfaced, and Stryker shares were up 1.6 percent. If Stryker acquires Smith & Nephew, the combined company would have more negotiating power with insurance companies and hospitals, according to the report. While the transaction announcement is expected in the coming weeks, Stryker could still pull out.