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Around the nation: Gilead Sciences to pay $200M+ to settle kickback allegations


Gilead Sciences has agreed to pay $202 million to settle allegations of paying doctors kickbacks in exchange for prescribing the company's HIV treatments, in today's bite-sized hospital and health industry news from California, New York, and Rhode Island. 

  • California: Gilead Sciences has agreed to pay $202 million to settle allegations that it paid kickbacks to doctors in exchange for prescribing several of the company's HIV treatments. Between 2011 and 2017, Gilead hosted over 17,300 speaker programs, including 9,500 dinners, that were supposed to be educational. According to federal authorities, the dinners were held at "wholly inappropriate" venues, including expensive restaurants, and more than 80 doctors attended five or more HIV dinner programs on the same topic within a six-month period. In a statement, Gilead said it reached the settlement agreement to avoid costs and distractions that could be brought by potential litigation. However, the company also argued that its speaker programs "served to educate healthcare professionals about the appropriate use and benefits of these important medicines" and "are important for healthcare providers and patients to have the necessary information to make the best decisions for their care." (Silverman, STAT+ [subscription required], 4/29)
  • New York: Teladoc Health has acquired UpLift, a company that provides virtual mental health therapy, psychiatry, and medication-management services. Kyle Talcott, founder and CEO of UpLift, will continue to lead the business under Teladoc ownership. According to Teladoc, the acquisition will help expand access to mental health services, bolster its BetterHelp network of health plan relationships, and add to the company's integrated virtual care services. "We believe joining forces with UpLift will help us advance [our] mission – especially for those seeking to use their coverage benefits – while also driving topline revenue growth that will help sustain and expand our impact over time," said Fernando Madeira, president of BetterHelp. (Fox, Healthcare IT News, 5/1)
  • Rhode Island: CVS will remove its Aetna health plans from the Affordable Care Act's (ACA) individual marketplaces in 2026. Previously, Aetna pulled back significantly from the ACA marketplaces in 2017 after losing over $300 million the year before. It fully exited the ACA market in 2018 before returning in 2022. According to CVS, it expects to lose up to $400 million in its ACA plans this year. "There is not a near- or long-term pathway for Aetna to materially improve its position in this product," said CVS CEO David Joyner. With Aetna's exit, 1 million enrollees in 17 states will have to find new health coverage for next year. (Herman, STAT+ [subscription required], 5/1)

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