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UnitedHealth makes money, not meetings, after the Change cyberattack

April 17, 2024
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Morning Rounds Writer and Podcast Producer

Good morning! We've got two stories for you on UnitedHealth by my colleagues Tara Bannow and Brittany Trang that pair together like fine wine and cheese. Be sure to read both stories on the latest news after the cyberattack on Change, a UnitedHealth subsidiary. 

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health care

UnitedHealth is making money, not meetings after the Change cyberattack

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Hospitals and medical groups say they're still reeling from the effects of the February cyberattack on Change, a UnitedHealth Group subsidiary. But the massive company at the center of the debacle has so far emerged unscathed, with executives on Tuesday praising its strength and resilience. 

UnitedHealth made almost $8 billion on operations in the first three months of 2024 — roughly the same as the prior-year period. Ultimately, the company said it'll take an up to $1.6 billion hit from the cyberattack this year, just a drop in the bucket out of an expected $400 billion in revenue. 

STAT's Tara Bannow has more on the earnings and the larger debate around UnitedHealth's control over so much of the U.S. health care industry. 

But while UnitedHealth's finances are still in solid shape, the company is facing tough questions from lawmakers, Brittany Trang tells us. Lawmakers had numerous questions for UnitedHealth during the first federal hearing focused on the Change cyberattack yesterday: Did the company meet Health and Human Services' cybersecurity performance goals? Could UnitedHealth have financially supported physician practices that were struggling as a result of the outage, instead of buying them? And why was it taking so long to get systems back online?

There were no answers to any of these questions, though, as UnitedHealth did not send a representative to the meeting. Read more from Brittany on how the hearing played out and what's next for lawmakers.


public health

How can clinics better engage formerly incarcerated people with HIV?

Anyone who has read Nick Florko's heartbreaking series The Death Sentence knows how hard it can be for people in prison to receive treatment for viruses or other conditions. And it often doesn't get easier when people are released. 

In a new study to be presented at the European Society of Clinical Microbiology and Infectious Diseases Global Congress later this month, a team of researchers in Chicago tried to contact formerly incarcerated patients with HIV who had been lost to care. In a network of five neighborhood HIV clinics, there were 33 formerly incarcerated patients who had been lost to care and were eligible to be re-engaged. Only one patient was reached and returned to care. The authors say that better case management, access to health insurance, and treatment for addiction and mental illness can help improve these numbers. The presentation at the Global Congress will be based on the study summary, which has been peer reviewed by a selection committee but has not yet been submitted for publication. 


policy

After decades of advocacy, a new rule will protect miners from a dangerous mineral

For 50 years, advocates have been asking the U.S. government to implement stricter limits on the amount of silica that miners are exposed to after a 1974 report laid out the risks. Crystalline silica is one of the most common minerals on Earth, found in sand, stone, and soil. It is also a carcinogen, and overexposure can cause chronic, debilitating lung issues, increase the risk of tuberculosis, and lead to lung cancer.

But finally, there has been some progress. A new rule from announced yesterday by a government agency aims to limit permissible exposure to crystalline silica in a miner's eight-hour shift. "These kinds of regulations are low-hanging fruits to save lives," said pulmonologist Bobby Mahajan. "This should have been taken care of decades ago." 

Read more from STAT's Annalisa Merelli on the new rule, when it will go into effect, and its expected benefits.



closer look

Opinion: The gift of practicing medicine at a predominantly Black institution

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Adobe

In early 2020, emergency medicine physician Uché Blackstock wrote a viral essay for STAT about why Black doctors like her were leaving academic medical institutions (the short answer: racism). A few weeks ago, medical student David Velasquez wrote about his own personal experience with both the promise and the pitfalls of diversity and inclusion efforts in hospitals.

For people who think a lot about racial disparities in health care, narratives like these can feel frustratingly familiar. But in a new First Opinion, nephrologist Vanessa Grubbs focuses on the positive, explaining why she loves practicing at her predominantly Black institution.

"You have a big voice, Dr. Grubbs," the clinic manager told her once. "No," he clarified after seeing her flinch. "That's a good thing." Read more from Grubbs on what it looks like when a clinician has the freedom to be her authentic self at work with colleagues and patients.


Telehealth

Unfinished business at Teladoc after CEO's departure

Millions of Americans have come to rely on Teladoc to virtually attend to routine health care needs, thanks to the unprecedented public health lockdowns during the height of the Covid-19 pandemic. The company's revenues skyrocketed to over $2 billion in 2021 and stocks crested at nearly $300 per share. But just as quickly as its stock went up, it crashed as growth and profits from virtual care didn't live up to pandemic-fueled hype. 

In January, Teladoc CEO Jason Gorevic dismissed a growing chorus of naysayers and expressed confidence in his company's trajectory. Barely three months later, Teledoc announced that the charismatic executive  will be leaving the company. Mario Aguilar and Mohana Ravindranath spoke with analysts and officials who worked with Gorevic, who said the departure follows a series of missed financial projections, a precipitous decline in Teladoc's stock price, and an uninspired vision for its future. Read more on the company's missteps and Gorevic's complicated legacy. 


mental health

More young people are having major depressive episodes. Fewer are receiving care.

Young people ages 12-17 are experiencing more major depressive episodes than ever before, and the gap between those who access medical care afterward and those who don't is widening, according to analysis by the nonprofit United Hospital Fund in a report published yesterday.

In 2010, more than 8,000 adolescents per 100,000 experienced an episode. By 2021, that number more than doubled to almost 20,000. But in any given year, less than 40% of those youths received care, and the rate of young people not receiving care rose by 8% from year to year. Without care, people can go on to develop problems with alcohol use, smoking, or conditions like high blood pressure in adulthood. There's also a financial cost, as these episodes can collectively lead to up to $185 billion in lifetime medical costs, per the report. 

Despite the disheartening findings, I'm reminded of a 2022 First Opinion by psychiatrist Steven C. Schlozman about how we can't become hopeless about the magnitude of mental health issues young people face. When patients, clinicians, and families lose hope, "it becomes, in and of itself, a kind of nihilistic contagion," he said. "A spirit of optimism is more essential than ever."


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What we're reading

  • Biden administration announces new partnership with 50 countries to stifle future pandemics, STAT

  • Conservative justices stir trouble for Republican politicians on abortion, KFF Health News
  • Kids can't wait any longer for social media safety, STAT
  • One scientist neglected his grant reports. Now U.S. agencies are withholding grants for an entire university, The Chronicle of Higher Education

Thanks for reading! More tomorrow,


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