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At issue, STAT explains, is the multibillion-dollar question of whether the National Institutes of Health violated federal law when it announced a plan to slash support for research overhead. Stat: Billions At Stake As Appeals Court Hears NIH Indirect Cost Arguments Federal appeals court judges’ questions and comments during a hearing Wednesday suggested they may be skeptical of some of the Trump administration’s central arguments in a lawsuit challenging its proposed changes to research overhead payments. (Wosen, 11/5) More health industry news from the Trump administration — Axios: Trump's New Rebate Program Is Causing Concern For Hospitals And Clinics Nonprofit hospitals and health clinics are alarmed about a change that's coming to federal drug purchasing discounts next year. They'll have to pay up front and then get rebates — rather than direct price cuts — in a pilot with eight pharmaceutical companies. The new system, greenlit by the Trump administration, is a win for drugmakers, and it could be a big hassle for providers. (Goldman, 11/6) KFF Health News: White House Calls This 9/11-Era Fund ‘Wasteful.’ Red And Blue States Rely On It President Donald Trump’s push to eliminate a federal disaster preparedness program threatens a fund used by state health systems from Republican-led Texas to the Democratic stronghold of California. The Hospital Preparedness Program was created more than two decades ago in response to the Sept. 11, 2001, terrorist attacks on New York City’s World Trade Center and the Pentagon, and the deadly anthrax attacks that began days later. The fund has provided nearly $2.2 billion to states, territories, major cities, and other entities over the past 17 years to ready health care systems for the next pandemic, cyberattack, or mass-casualty event. (Thompson, 11/6) In other updates — Modern Healthcare: Healthcare M&A In 2025 Lag Behind 2024 Totals It’s not shaping up to be a banner year for healthcare mergers and acquisitions. The number of deals that closed during the first three quarters of the year totaled 1,015, a 17.5% drop compared with 1,230 recorded during the same period in 2024, based on data from Modern Healthcare’s Mergers & Acquisitions dashboard. Deal-making this year has been affected by uncertainties about policy, regulation and the economy, according to Baker Donelson, KPMG and Ziegler, which provided the data. (Broderick, 11/5) The Baltimore Sun: Randallstown Nursing Home To Pay $200,000 For Infractions The Maryland Attorney General’s Office reached a $200,000 settlement with Patapsco Healthcare in Randallstown after investigators found that residents at the nursing home received substandard care that violated state law. (Karpovich, 11/5) Fierce Healthcare: Carrum Health Expands Substance Use Disorder Treatment Model Carrum Health launched a substance use disorder treatment program for employers a year ago and has now expanded it to include cannabis, cocaine and methamphetamine as employer demand surges. (Landi, 11/5) This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
