A study suggests that the vast majority of hackers targeting healthcare IT systems are searching for financial information, not snooping for personal health data or targeting individuals. "The vast majority of attackers seek information from which they can directly or indirectly profit," reads the 2012 Verizon Data Breach Investigations Report.
Sick and disabled Americans who rely on Medicare may gain new access to care with the proposed settlement of a lawsuit that challenged the government's practice of denying some coverage to patients whose condition was not improving. Medicare is required by law to cover healthcare services that are "reasonable and necessary for the diagnosis or treatment of illness or injury." But the 47-year-old program does not cover what is called custodial care, including much nursing home care. Under the terms of the settlement Medicare would not deny skilled nursing care and various forms of therapy for beneficiaries, regardless of their prognosis.
McKesson Corp. agreed to acquire PSS World Medical Inc. for about $1.62 billion to expand in medical supplies and services. The offer by McKesson is 34% more than PSS World's closing share price yesterday. The deal includes the assumption of about $480 million of PSS World's debt, bringing its total value to $2.1 billion. McKesson will acquire PSS World's distribution of medical products and gain the company's $2.1 billion in annual sales.
Aetna Inc said it was able to hold down costs by directing more of its plans to US medical providers that focus on efficient care. Aetna said that next year it will shift even more of its commercial and Medicare business to groups known as accountable care organizations, which are offered incentives to improve the quality of care while lowering costs. The shift should help it weather government efforts to rein in reimbursement for Medicare and the Medicaid program for the poor, as well as expected fees and taxes on the industry down the road.
Healthcare companies sitting on piles of cash may start doing more deals next year as they seek products that can bolster sales. Pharmaceutical companies in particular, which have led the industry in deals over the last 12 months, are ready to divert their focus from cutting costs to making agreements that can help build product lines.
The Kaiser Family Foundation surveyed all states on their Medicaid spending this year. The biggest takeaway might surprise you: Medicaid spending hit a "near-record low" in 2012, with similar trends expected in 2013. Some of the spending slowdown has to do with states reducing how much they pay doctors, which could make providers less likely to accept new patients. The good news on Medicaid is that spending is becoming less of a budget burden. The bad news is how states are getting there.