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Wednesday, Oct 21 2026 UPDATED 9:45 AM

Full Issue

CMS' Authority To Kick Providers Out Of Medicare And Medicaid May Cost Hospitals

Hospitals could be saddled with higher administrative and legal costs as CMS expands its fraud oversight authority without clearly detailing how providers could challenge any decisions, Modern Healthcare reported.

Hospitals will likely spend more to protect themselves from the Centers for Medicare and Medicaid Services鈥� expanded powers to kick them out of government health programs, which would be ruinous for many providers. Under a notice issued last week that immediately went into effect, CMS can remove healthcare organizations from these programs on its own authority. Previously, the Health and Human Services Department Office of Inspector General was the only agency with that power. (Kacik, 10/20)

Health tech developments 鈥�

The stakes are getting higher for technology vendors working with health plans, employers and health systems. These organizations are increasingly entering into performance-based contracts with digital health companies and zeroing in on return on investment and measurable outcomes. About 55% of health plans and 46% of health systems tie vendors鈥� payment to prespecified outcomes, according to a survey published in September by the Peterson Health Technology Institute. (Famakinwa, 10/20)

The United States spends nearly $6 trillion a year on healthcare, according to the Centers for Medicare and Medicaid Services, more than twice as much as any other wealthy nation. One strategy to reduce health costs is to require hospitals to publicly post their prices. The Trump administration and Wyoming lawmakers believe this will give consumers the option to shop around. Wyoming hospitals are required by law to do just that starting this July. (Galatas, 10/20)

A decade ago, having joint replacement often meant a three- to five-day hospital stay. Today, many patients have surgery and go home the same day. While ambulatory surgery centers have existed for over 50 years, medical advances now allow more orthopedic patients to have complex procedures as outpatients, too. (Tanner, 10/21)

In other health industry news 鈥�

The red-brick nursing home tucked off a busy road in Taunton used to be a rare jewel in a beleaguered industry, polished to a high sheen. Floors gleamed from daily scrubbing. Residents鈥� clothes came back fresh and neatly folded. Employees stayed for decades. In early 2020, the 100-bed home earned the federal government鈥檚 highest quality rating 鈥� five stars 鈥� and held it for more than two years. Then Eli Mirlis swept in from New Jersey and everything changed. (Lazar, Hagen and Nadolny, 10/20)

Minutes after an autistic 3-year-old lay her head on a Squishmallow stuffed toy and closed her eyes, Abigayle Hosking was ordered to take the makeshift pillow away and rouse the sleepy girl. The child was scheduled for four more hours of autism therapy at the Centria Healthcare clinic in Michigan where Hosking worked until last year. Hosking said she felt terrible. 鈥淭he younger kids, you know, I think they need a break,鈥� she said. (Wilde Mathews, Weaver and McGinty, 10/20)

On a heavily wooded tract near the intersection of U.S. 1 and N.C. 540 鈥� a 220-acre spot in southern Apex so void of infrastructure it shows up only as GPS coordinates on a map, the Duke Endowment announced a transformative $100 million grant Tuesday morning. The investment will help fund North Carolina Children鈥檚, a collaborative effort between UNC Health and Duke Health to create an independent standalone health care system that, if true to their vision, will turn the southwest Wake County property into a destination for pediatric care. (Blythe, 10/21)

Carilion Clinic broke ground Tuesday on a freestanding emergency department in Daleville that will also house specialty medical services. The new facility, adjacent to Carilion Clinic Family Medicine, will dedicate its first floor to emergency care and its second floor to general surgery, orthopedics, cardiology, OB-GYN and imaging services, Paul Davenport, senior vice president for ambulatory operations at Carilion, said at the groundbreaking. (Schabacker, 10/21)

Hackensack Meridian Health and Hunterdon Health, both based in New Jersey, have signed a definitive agreement to merge. As part of the agreement, Hackensack Meridian said it plans to invest $200 million into capital projects that support Hunterdon facilities and programs. Hackensack also pledged to fund the $30 million rollout of its Epic electronic health record at Hunterdon. (Hudson, 10/20)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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