Putting the Sackler Families on the Board: Dealing With the Opioid and Antidote Epidemics
The deals call for most of the funds to be used in the fight against the opiate crisis through a number of initiatives, such as expanding treatment and support programs for people with addiction, and providing overdose antidotes.
Together, the developments amount to what could be the last round of huge settlements after years of litigation over the drug industry’s role in an overdose crisis that has been linked to more than 500,000 deaths in the U.S. over the past two decades.
“We are pleased to resolve these longstanding claims and putting them behind us is in the best interest of all parties, as well as our customers, colleagues and shareholders,” Thomas Moriarty, CVS chief policy officer and general counsel, said in a statement. “We are committed to working with states, municipalities and tribes, and will continue our own important initiatives to help reduce the illegitimate use of prescription opioids.”
The companies noted they have have launched educational programs and installed safe disposal units for drugs in stores and police departments, among other measures designed to reduce misuse of opioids.
“For the millions of lives lost or devastated by the addiction epidemic, every player in the addiction industry is held accountable,” said Connecticut Attorney General William Tong. “The companies that helped to create and fuel this crisis must commit to changing their businesses practices, and to providing the resources needed for treatment, prevention and recovery.”
Opioid deaths have more than tripled in the last few years. There are a large number of deaths involving lab made Fentanyl, which is found throughout the US supply of illegal drugs.
The Sackler family have a proposal in which the company will be turned into a new entity with its profits used to battle the epidemic, with up to $6 billion in cash involved. That plan has been put on hold by a court.
Oak Street Health: A Case Study for a Private Part-C Medicare Part C Health Plan Under Biden’s Terms of Insurer Agreement
Pennsylvania, New York and California are all expected to get money from the settlement.
The company said Wednesday it will pay $10.6 billion to acquire Oak Street Health, which serves adults on Medicare Advantage. Oak Street has 160 health care clinics in 21 states.
Medicare Advantage, also known as Medicare Part C, is a type of Medicare health plan offered by a private company that contracts with Medicare. It enrolls nearly half of all Medicare beneficiaries.
A long time ago, the drugstore chain developed retail stores and MinuteClinics. It also became a pharmacy benefits’ manager. In 2018, CVS bought Aetna, making it one of the largest health insurers in the country. Although CVS has not been a primary care practice in the past with a network of doctors, the company has said it wants to move into the area.
The company is trying to keep up with their competitors. Sean Nicholson, Director of the Health Administration at Cornell University, said that in the future there is a possibility that CVS will offer an insurance plan for consumers in Oak Street’s network.
Nicholson said health insurers have become increasingly interested in purchasing primary care practices and employing physicians.
Health insurers have contracted with physicians instead of employing them. Insurers believe that having a good physician network will help them better control costs and quality of care.
Private Medicare plans usually have higher reimbursement rates than traditional Medicare, which is why the company wants to be a part of it. Biden’s administration announced a rule last week cracking down on private Medicare plans that overcharge the federal government.
Source: https://www.cnn.com/2023/02/09/business/cvs-oak-street-health/index.html
VillageMD vs. Walgreens: Management of a Lossy Apparatus of VillageMD and the Board of Directors for VillageMD
Walgreens took a majority stake in the company and attached doctors offices to hundreds of its stores as part of a deal with VillageMD. VillageMD bought Summit Health for $9 billion, which was backed by Walgreens.