• Illinois: Abbott Laboratories has agreed to acquire medical testing company Exact Sciences in a deal worth roughly $21 billion — making it the company's largest deal in almost a decade. According to the companies, the acquisition would help expand access to Exact's early diagnostic tests. Some of Exact's products include Cologuard, a stool-based colon cancer screening test, and Cancerguard, a liquid biopsy test that looks for signs of 50 different types of cancer. "Exact Sciences' innovation, its strong brand, and customer-focused execution are unrivaled in the cancer diagnostics space, and its presence and strengths are complementary to our own," said Abbott CEO Robert Ford. He added that the company is "excited to bring Exact Sciences' people and know-how into Abbott so that together, we can take on the global challenge of cancer." The acquisition is expected to close in the second quarter of 2026. (Davis/Nair, Bloomberg/Modern Healthcare, 11/19; Joseph, STAT+ [subscription required], 11/20)
• Maryland: CMS last week finalized the 2026 Home Health Prospective Payment System rule, which includes a payment cut, adjustments to the patient-driven groupings model (PDGM), and new policies to reduce administrative burden and fraud. In 2026, Medicare payments to home health agencies will decrease by $220 million, or 1.3%, compared to 2025. This -1.3% payment update reflects a 2.4% payment increase offset by several downward adjustments, though some are only temporary. CMS used 2024 utilization data to update the case-mix weights and low utilization payment adjustment thresholds for all 432 PDGM payments. To reduce fraud and abuse, CMS plans to expand retroactive revocation authority, deactivate billing privileges for dormant providers, and revoke privileges if beneficiaries report services weren't performed. The agency is also implementing stricter accreditation standards for durable medical equipment, prosthetic devices, prosthetics, orthotics and suppliers, and accrediting organizations. Accreditation is now required annually, and accrediting organizations must report more detailed data. (Condon, Becker's Hospital Review, 12/1)
• Maryland: The American Hospital Association (AHA), the Maine Hospital Association, and four safety-net health systems have filed a lawsuit against HRSA to block its new 340B Rebate Model Pilot Program, which is set to begin Jan. 1. Earlier this year, HRSA approved a new, one-year 340B drug rebate pilot program, which requires safety-net providers to pay upfront for drugs before applying for rebates instead of receiving discounts directly. Although the pharmaceutical industry has championed the program, several hospitals and other healthcare organizations have criticized it. In the lawsuits, the organizations said the program was hastily rolled out and would add "hundreds of millions of dollars' worth of annual costs" for providers due to increased administrative burdens. They also suggested that HRSA "ignored" public comments on the program submitted by over 1,100 stakeholders, including requests to delay the program's implementation since hospitals were only given a few months to prepare. "When making such a major change, with such far-reaching consequences for patients and hospitals, it is important that the government follow the basic administrative rules of the road. Unfortunately, it did not do so here," said AHA president and CEO Rick Pollack. (Muoio, Fierce Healthcare, 12/1; Condon, Becker's Hospital Review, 12/1)

The 340B drug discount program is facing pushback. Find out how provider organizations that depend on 340B savings for financial sustainability can prepare for potential changes to the program.