Embattled CEO Of Steward Health Care Is Stepping Down
Ralph de la Torre will resign Tuesday. Other health industry news is on layoffs at Beth Israel Lahey Health and Brightline, the spread of ransomware attacks, and more.
Dr. Ralph de la Torre, a former heart surgeon who built and became the face of Steward Health Care and its network of neglected hospitals, is stepping down from the company Tuesday and will no longer serve as board chairman and chief executive, the company said in a statement to the Globe Saturday. ... A Steward spokesperson did not say on Saturday if de la Torre will remain a major shareholder in the company he helped found in Boston in 2010. (Arsenault and Bartlett, 9/28)
With an election fast approaching and a consequential healthcare package forming in Congress, hospitals are finding themselves in the unusual position of playing defense. Just a few years ago, Congress was acting aggressively to shore up health system finances and hailing hospital workers as heroes combating the COVID-19 pandemic. Now, while lawmakers still praise their local hospitals, they are increasingly advancing bills that would cost health systems money, demand greater transparency and restrict operations. (McAuliff, 9/27)
More health industry developments 鈥
Beth Israel Lahey Health, the organization behind more than a dozen New England hospitals, said Friday that hospitals across its system were laying off an unspecified number of workers. A spokesperson for the system declined to say which facilities were losing jobs, nor the type of roles they were cutting. (Gerber, 9/27)
Pediatric mental health startup Brightline is restructuring its business, shrinking its geographic footprint and laying off a portion of its employees. The company confirmed the layoffs in an email but declined to disclose how many people or what percentage of its employees were affected. Co-founder and CEO Naomi Allen wrote in a blog post the company is pivoting from a virtual-only care model to a hybrid approach with plans to open in-person clinics.聽(Perna, 9/27)
Nurses at Corewell Health鈥檚 eight Southeast Michigan hospitals filed paperwork Friday to unionize under the International Brotherhood of Teamsters. The union gathered at least 50% of required signature cards from the roughly 8,000 nurses at Corewell鈥檚 hospitals in Grosse Pointe, Troy, Dearborn, Farmington Hills, Taylor, Trenton, Wayne and Royal Oak and delivered them to the National Labor Relations Board.聽(Walsh, 9/27)
WeightWatchers is shaking up its leadership. WW International announced Friday that CEO Sima Sistani would leave her role effective immediately. Tara Comonte, a WeightWatchers board member and former Shake Shack executive, was made interim chief executive. (Philips, 9/28)
CommonSpirit Health blamed challenges with payers 鈥 namely claim denials and reimbursement delays聽鈥 for an increase in聽expenses that offset the system's financial gains in fiscal 2024. The health system on Thursday reported an operating loss of $875 million due to a 7% increase in expenses during the fiscal year that ended June 30. In a news release, CommonSpirit said it will take a 鈥渇irm stance鈥 in contract negotiations with health plans to make sure payers absorb a share of inflation and providers are fully paid for the care they deliver. (Devereaux, 9/27)
On health data and cyberattacks 鈥
The number of healthcare providers affected by ransomware attacks is steadily growing.聽More than two-thirds of healthcare providers reported a ransomware attack in the past year compared with 60% in 2023, according to a survey released Thursday from cybersecurity company Sophos. In 2021, only 34% of providers said they were affected by an attack. (Turner, 9/27)
Epic Systems is pushing back against Particle Health. Particle Health, a startup that helps providers and health technology companies aggregate and share data, filed a suit Monday alleging the electronic health record giant is using its market power to prevent the development products that would compete with Epic's聽payer platform. Particle also alleges Epic used its influence to obtain a favorable ruling from Carequality, the national interoperability framework used by more than 50,000 healthcare organizations. (Perna, 9/27)
23andMe is not doing well. Its stock is on the verge of being delisted. It shut down its in-house drug-development unit last month, only the latest in several rounds of layoffs. Last week, the entire board of directors quit, save for Anne Wojcicki, a co-founder and the company鈥檚 CEO. Amid this downward spiral, Wojcicki has said she鈥檒l consider selling 23andMe鈥攚hich means the DNA of 23andMe鈥檚 15 million customers would be up for sale, too. 23andMe鈥檚 trove of genetic data might be its most valuable asset. (Brown, 9/27)