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Walgreens last week settled a class action lawsuit with patients who received fraudulent Theranos blood tests, in today's bite-sized hospital and health industry news from Illinois, Maryland, and Minnesota/Pennsylvania.
- Illinois: Walgreens last week settled a class action lawsuit with patients who received fraudulent Theranos blood tests for $44 million. According to Axios, the class action lawsuit dates back to 2016 after it was revealed that Theranos' tests could not work on a few drops of blood as claimed. In late 2022, Theranos founder Elizabeth Holmes received an 11-year prison sentence for defrauding investors in her blood testing company. In the settlement with Walgreens, patients in Arizona and California will receive double the cost of their original tests taken from fall 2013 to mid-2016, as well as a base payment of $10. Patients who received "tiny" blood draws at Walgreens Theranos Wellness Centers between November 2013 and March 2015 will also receive an additional payment of $700 to $1,000 for battery and medical battery claims. The new settlement supersedes a prior confidential agreement from May and will have to be approved by a judge before it goes into effect. (Rubin, Axios, 9/11)
- Maryland: CMS last week announced plans to launch a new state-based payment model aimed at improving population health. The Advancing All-Payer Health Equity Approaches and Development (AHEAD) Model will offer hospitals a fixed payment amount each year to improve chronic disease and behavioral health management through primary care providers, increase care coordination, and connect patients to social services to address different needs. The new model builds on best practices from the Maryland Total Cost of Care model, the Pennsylvania Rural Health Model, and the Vermont All-Payer ACO Model. States that participate in the AHEAD model will receive up to $12 million during one of three start periods. The first application period opens in the fall, and CMS will evaluate these initial programs in January 2026. The model is expected to run through December 2034. "In our current healthcare system, fragmented care contributes to persistent, widening health disparities in underserved populations," said CMS Administrator Chiquita Brooks-LaSure. "The AHEAD Model is a critical step toward addressing disparities in both healthcare and health equity while improving overall population health." (AHA News, 9/5; Kacik, Modern Healthcare, 9/5)
- Minnesota/Pennsylvania: In 2021, Geisinger partnered with Current Health, a subsidiary of Best Buy, to launch ConnectedCare365, a program designed to help patients access chronic care management tools in their home. So far, the program has enrolled over 1,100 patients and resulted in an almost 20% improvement in care plan adherence. Using Best Buy's "Greek Squad" format, Geisinger is able to easily keep in touch with patients through remote monitoring equipment and help with any technical issues. Following the success of this program, the organizations recently announced plans to expand their partnership. "Our work with Best Buy Health allows us to better cross the threshold into patients' homes and, through the Geek Squad, enable them to use RPM [remote patient monitoring] technology," said Karen Murphy, Geisinger's EVP, chief innovation officer, and founder of the organization's Steele Institute for Health Innovation. "The data shows the impact on the patient – they are getting the technology faster, adhering to their care plan better and having fewer technical issues. And they’re giving their experience high marks afterwards." (Wicklund, HealthLeaders, 9/12)
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