Daily Briefing

Around the nation: Rite Aid files for bankruptcy


Rite Aid on Sunday filed for Chapter 11 bankruptcy and has appointed Jeffrey Stein, founder of Stein Advisors, as its new CEO to lead the pharmacy chain's restructuring, in today's bite-sized hospital and health industry news from California, Maryland, and New Jersey.

  • California: Gov. Gavin Newsom (D) on Friday signed into law a bill that will raise the minimum wage for healthcare workers in the state to $25 per hour over the next decade, a move that comes after Newsom signed a bill into law last month that raised the minimum wage for fast food workers to $20 per hour. "Californians saw the courage and commitment of healthcare workers during the pandemic, and now that same fearlessness and commitment for patients is responsible for a historic investment in the workers who make our healthcare system strong and accessible to all," said Tia Orr, executive director of the Service Employees International Union California. (Beam, Associated Press, 10/13)
  • Maryland: CMS on Thursday announced that monthly Medicare premiums covering physician and outpatient care will rise nearly 6% next year. According to CMS, the standard monthly premium for traditional Medicare Part B coverage will rise from $164.90 this year to $174.70 in 2024, while the annual deductible for all Part B enrollees will increase from $226 this year to $240 next year. (Goldman, Axios, 10/13)
  • New Jersey: Rite Aid on Sunday filed for Chapter 11 bankruptcy and has appointed Jeffrey Stein, founder of Stein Advisors, as its new CEO to lead the pharmacy chain's restructuring. In a statement, Rite Aid said it has reach an "agreement in principle with key creditors on the terms of financial restructuring plan" and that it has received a "commitment for $3.45 billion in new financing to support business operations." Currently, Rite Aid operates more than 2,100 stores across 17 states — many of which will close. Neil Saunders, managing director of GlobalData, said Rite Aid's move is unsurprising. "It was always a matter of when, not if, Rite Aid would file for bankruptcy," he said. "The company has been deep in the red for the past six years, notching up combined net losses of $2.9 billion." (Holman/Hirsch, New York Times, 10/15; Nassauer/Gladstone, Wall Street Journal, 10/15; Tyko, Axios, 10/15)

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