• California: Last month, the University of California San Diego Health eliminated around 230 positions, or around 1.5% of its workforce, due to growing financial and regulatory issues. "The decision was made solely in response to mounting financial pressures caused by federal impacts to healthcare, regulatory uncertainty, and rising costs of providing care combined with reimbursement rates from Medicare, Medicaid and insurers that fail to keep pace with the true cost of care," the health system said. UC San Diego Health also emphasized that it is not the only health system making workforce changes, noting that "reductions in personnel are being experienced by health systems across the nation." Employees who are affected by the layoffs will be able to receive all the university benefits they are entitled to under HR policies, including transitional career support services. (DeSilva, Modern Healthcare, 6/24; Vogel, Healthcare Dive, 6/26)
• Maryland: According to a new report from CMS' Office of the Actuary, U.S. healthcare spending is expected to increase to $8.6 trillion, or around 20% of the country's gross domestic product, by 2033. According to CMS actuaries, national health expenditures will increase by an average of 5.8% a year between 2024 and 2033, outpacing the average 4.3% for economic growth. Over the last few years, there has been a significant increase in healthcare spending, largely due to the COVID-19 pandemic. Healthcare spending increased by 6.4% in 2022, 7.5% in 2023, and 8.2% last year, reaching $5.3 trillion. The figure for 2024 is still preliminary, and CMS will publish its final calculations at the end of the year. Recent policy changes, which CMS did not account for in the report, could also impact healthcare spending in the future. For example, the One Big Beautiful Bill Act includes around $1 trillion in healthcare cuts and could lead to millions of people becoming uninsured. (Early, Modern Healthcare, 6/25)
• Rhode Island: CVS Health has been ordered to pay the federal government at least $95 million after a court ruled that the company's pharmacy benefit manager CVS Caremark overcharged Medicare for generic drugs. The case involves a whistleblower lawsuit that originated in 2014 and was sealed until 2018. In the lawsuit, Sarah Behnke, a former CVS executive, alleged Caremark inflated the costs of Medicare Part D drugs to offset higher costs in the company's other businesses. According to Behnke, Caremark overbilled Medicare by $1.5 billion in 2014 alone. Although the court ruled against CVS about overcharging Medicare, it did not rule on any claims that the company knowingly concealed its behavior. "We are pleased that the ruling was in our favor as to the issues of falsity for CVS Pharmacy and CVS Health Corporation's liability, and disappointed the court found against Caremark on other issue," CVS said. (Tepper, Modern Healthcare, 6/26)

The healthcare industry is undergoing a monumental site-of-care shift, representing a $50 billion opportunity. Discover how site-of-care shifts are impacting high-revenue procedures and explore strategies that will help your organization secure a competitive advantage.