1. Record patient numbers push community health centers to a breaking point

Community health centers, vital to the US healthcare safety net, face increasing staffing shortages as service demand grows. In 2023, these clinics served 31 million patients nationwide—the highest number in the program’s 60-year history. 

Despite their efforts to keep up, the strain is becoming unsustainable. A recent survey from the Commonwealth Fund shows significant workforce gaps: 70% of health centers report a shortage of nurses, and nearly half face shortages in nurse practitioners, physician assistants, and other advanced practice providers.

These challenges come as patient numbers have risen by 2.7 million since 2020. While Congress has extended some funding, there is a pressing need for more substantial federal support to address workforce shortages and sustain essential care.

(Axios, August 8, 2024)

2. Telehealth struggles amid major program shutdowns and declining usage

UnitedHealth Group recently shut down its Optum Virtual Care program, and Walmart has closed its Walmart Health Virtual Care. Teladoc also reported a substantial net loss of $838 million in Q2, mainly due to an impairment charge of $800 million for its BetterHelp platform. 

Despite these challenges, industry experts like Kyle Zebley of the American Telemedicine Association believe telehealth is here to stay. Telehealth usage surged during the pandemic, with physician adoption jumping from 15% in 2019 to 87% in 2021. However, usage has since declined, with quarterly visits dropping from their 2020 peak. While some argue telehealth should complement, not replace, in-person care, the industry now faces financial pressures, economic shifts, and the potential expiration of pandemic-era telehealth rules. 

(Healthcare Brew, August 14, 2024)

3. States turn to unmatched medical grads to ease rural physician shortages

Several states have passed laws allowing medical school graduates who haven’t been matched into a residency program to work under a licensed physician’s supervision as a “bridge physician.” These programs give graduates valuable hands-on experience while they wait for the next residency cycle. 

Missouri led the way in 2014 with its “assistant physician” designation, and other states like Alabama, Arizona, and Tennessee have followed with similar roles, each using different titles. Alabama recently rolled out its Bridge Year Graduate Physician Program, which lets graduates practice under a physician’s supervision for up to two years. 

Even with a record number of applicants in the 2024 Main Residency Match and a near 5% increase from the previous year, the number of unfilled positions dropped, further amplifying the ongoing challenges in expanding the physician workforce.

(Becker’s Hospital Review, August 15, 2024)

4. Medicare rules tighten as physicians are held accountable for information blocking

Physicians and healthcare professionals in specific Medicare programs can now be held accountable for information blocking, which is limiting access to or exchanging electronic health information. 

As of July 31, a new rule allows the Department of Health and Human Services Office of the Inspector General (OIG) to investigate these practices. The OIG will focus on cases where information blocking could harm patients, disrupt care, or lead to financial losses. To avoid these penalties, healthcare providers should review and update policies for accessing and sharing electronic health information, train staff on compliance requirements, and improve record-keeping processes. Additionally, the AMA advises consulting legal counsel to prepare for potential OIG investigations. 

(American Medical Association, August 16, 2024)

5. New privacy technologies could streamline data sharing in healthcare

Efficient data flow is essential in healthcare, but privacy and security requirements often make it challenging to share sensitive patient information. In direct care, where providers need access to patient data from different facilities, outdated, manual processes can cause delays, potentially affecting patient outcomes. 

Strict data-sharing rules can hinder progress in indirect care, such as research to improve treatments and early disease detection. Privacy-enhancing technologies (PETs) could be a promising solution to this data flow problem by enabling secure, scalable data sharing and protecting a patient’s privacy. These technologies allow quicker access to essential patient data, which benefits direct patient care and research efforts. 

(Medical Economics, August 16, 2024)

6. Judge blocks FTC’s noncompete ban just before nationwide rollout

A Texas federal judge blocked the Federal Trade Commission’s rule banning noncompete agreements two weeks before it was set to take effect nationwide. US District Judge Ada Brown ruled that the FTC overstepped its authority and described the ban as “arbitrary and capricious.” 

While the FTC argued that the ban would boost wages and promote economic freedom, employer groups, including the American Hospital Association, raised concerns about the potential disruption it could cause in the healthcare industry. The ruling has sparked mixed reactions: the US Chamber of Commerce hailed it as a victory against government overreach, while the FTC is considering an appeal.

Legal experts believe the issue could eventually reach the US Supreme Court, potentially leaving noncompete agreements governed by state laws and urging employers to review their agreements.

(Fierce Healthcare, August 21, 2024)

7. Physician independence at risk amid hospital closures and growing corporate control

The independent healthcare market is shrinking as consolidation speeds up, reimbursements drop, and inflation rises. Rising hospital closures have left physicians scrambling to find new positions, further fueling job insecurity. More practices are being acquired by corporations and health systems, now controlling 59% of practices. This shift has driven more doctors into employed settings as they seek better leverage in payer negotiations amid declining reimbursement rates.

The rising influence of private equity is also reshaping the industry, often prioritizing profits over patient care and straining the physician-patient relationship. Physicians joining hospital systems worry about losing autonomy as administrative layers expand and frontline workers face more pressure. These changes raise concerns about the future of physician independence and the impact on patient care.

(Becker’s Physician Leadership, August 22, 2024)