FHI's Week in Review

Volume V, Issue 14

April 2, 2018

Lawsuit claims CVS unintentionally revealed HIV status of 6,000 customers

Carma Hassan, via CNN on April 1, 2018, informs us CVS is being sued for revealing HIV status of 6,000 customers in Ohio. A direct-mail piece was poorly designed and allowed HIV status to be revealed without opening the envelope (it showed the status of participants in the state's HIV drug assistance program through the envelopes' glassine window).

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This is an important reminder that even something as seemingly innocuous as a direct mail campaign is fraught with risk if you are a U.S. healthcare provider.

Walmart reportedly in early-stage talks to buy Humana

Becker's Hospital Review summarizes a recent Wall Street Journal article in a March 30 post. Apparently Walmart is looking to acquire health insurer Humana or, at the very least, develop a closer partnership. Any arrangement would be subject to regulatory approval and, given the size and scope of the potential deal, there would be plenty of scrutiny.

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According to the post by Ayla Ellison, the talks between Walmart and Humana come amid a flurry of deals that could transform the business of managing healthcare, including CVS Health's proposed acquisition of Aetna for $69 billion and Cigna's proposed acquisition of Express Scripts for $54 billion.

Sink the Two Canoe Argument

Doctors have defended the status quo in healthcare based on the fear of straddling both fee-for-service and value-based payment models. Two physician executives at Virginia Mason Health Care System believe that strategy is no longer valid.

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In a March 27, 2018 NEJM Catalyst post, authors Gary Kaplan, MD and C. Craig Blackmore, MD eloquently describe the ethical, professional and business reasons for embracing value-based payments.

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