The Department of Veterans Affairs is calling on Congress to address a $12 billion budget shortfall by the end of the year, to ensure it can keep providing health care to a record number of veterans.
A unanimous U.S. Senate approved a resolution Wednesday intended to hold Steward Health Care CEO Ralph de la Torre in criminal contempt for failing to testify before a Senate panel. Members of a Senate committee looking into the bankruptcy of Steward Health Care adopted the resolution last week after de la Torre refused to attend a committee hearing last week despite being issued a subpoena. The resolution was sent to the full Senate for consideration. Sen. Bernie Sanders, I-VT, and chair of the Senate HELP Committee, said de la Torre's decision to defy the subpoena gave the committee little choice but to seek contempt charges. The criminal contempt resolution refers the matter to the U.S. attorney for the District of Columbia to criminally prosecute de la Torre for failing to comply with the subpoena.
Novo Nordisk's top executive faced a Senate grilling on Tuesday over the high prices of the company's weight loss drug Wegovy and diabetes treatment Ozempic, as demand for both injections soars in the U.S. Novo Nordisk CEO Lars Fruergaard Jørgensen did not explicitly promise lawmakers at a Senate Health, Education, Labor and Pensions Committee hearing in Washington, D.C., that he would slash prices for the two drugs. But Jørgensen said he wants to work with them on policy solutions that will address the "structural issues" that drive up prescription drug costs. He also committed to sitting down with pharmacy benefit managers – middlemen who negotiate drug rebates with manufacturers on behalf of insurers – to "collaborate on anything that helps patients get access and affordability." That pledge came after Sen. Bernie Sanders, I-VT, who chairs the Senate panel, said he received commitments in writing from all of the major PBMs that they would not limit coverage of Wegovy and Ozempic if Novo Nordisk reduced their list prices.
Baystate Health, which runs Baystate Medical Center in Springfield and bills itself as the largest healthcare organization in Western Massachusetts, announced a leadership shake-up on Tuesday and said more changes are to come. The announcement came as the organization, which serves the Pioneer Valley and surrounding areas, tries to stanch the financial bleeding that has plagued many hospitals in recent years. Peter D. Banko, who became the new CEO of the system in June, said in a note to staff that three senior vice presidents will be leaving the organization effective Oct. 23. They are Kevin Conway, chief information and digital officer; Kristin Morales-Lemieux, chief human resources officer; and Doug Salvador, chief quality officer. Banko thanked them for their work and gave no explanation for why they are departing.
Sen. Bernie Sanders (I-VT) is set to question Novo Nordisk CEO Lars Jorgensen on Tuesday over the drugmaker's prices for its popular weight-loss and diabetes medicines that can cost Americans more than $1,000 a month. Sanders is expected to challenge the CEO during a hearing of the Senate HELP Committee, which he chairs, on why the company charges American payors more for the lifesaving drugs than any other country. Ozempic and Wegovy carry U.S list prices of $935.77 and $1,349.02 respectively for a month's supply, which Sanders has previously argued is far higher than the respective $59 and $92 price tags they carry in some European countries. Jorgensen says 99% of U.S. commercial insurance plans now cover Ozempic and around half cover Wegovy. More than 80% of U.S. patients with insurance coverage for the drugs pay less than $25 for a month's supply and 90% pay less than $50.
PROVIDENCE – Lifespan, Rhode Island's largest employer and health system, has laid off a fifth of its executives in a move to reduce overhead and streamline operations, according to CEO John Fernandez. "Lifespan implemented a strategic restructure focused on creating a one-system, one-team approach, designed to reduce executive overhead and streamline operations," Fernandez said in a statement. Fernandez added that the layoffs will save Lifespan $6 million in fiscal 2025, allowing the health system to "allocate more resources directly to patient care and support areas." The C-suite sweep comes as Lifespan – which owns five hospitals in the state – is undergoing a rebranding agreement with Brown University to become "Brown University Health." The health system is also in the process of purchasing two hospitals in Massachusetts from Steward Health Care, which filed for bankruptcy in May, for $175 million.