Healthcare Policy News

EHR Costs Drain VA Budget, FDA Approval for ALS Treatment

VA officials are dealing with the downstream effects of their EHR program that is sucking up funding otherwise used for essential services, and the FDA reversed its earlier decision, approving a new ALS treatment.

VA, EHR, VA Oracle-Cerner EHR, FDA, FDA Approval ALS Drug

Source: Getty Images

By Hayden Schmidt

*This article has been updated to clarify the FDA's decision on Relyvrio*

- This week, the Department of Veterans Affairs (VA) continues to struggle with its EHR implementation as the Oracle-Cerner system draws funding from already thin budgets.

Meanwhile, the FDA made a unique decision last Thursday, clarifying an earlier vote based on data from a Phase II clinical trial that found some improvement in patients using Amylyx Pharmaceutical’s ALS treatment.

VA EHR Budget Shortfall

The VA is struggling with budget shortfalls after implementing its new EHR system at several of its northwestern health systems. VA officials said that the budget issues resulting from EHR implementation would not result in service cuts at any facilities, but in an interview with The Spokesman-Review, VA press secretary Terrence Hayes said that the EHR system is “not equipped” to conduct billing and has caused a significant reduction in overall collections at the four locations where it was deployed. READ MORE.

Magellan Health $1.43 Million Settlement

Magellan Health has reached a $1.43 million settlement with patients and partners whose information was exposed in a 2019 phishing attack. Plaintiffs in the suit alleged that Magellan failed to alert victims of the exposure in a timely manner, leaving protected information, including Social Security numbers, member IDs, and other sensitive data in the lurch for months after initial indications of a breach. Magellan is offering members of the class action lawsuit up to $2,500 for out-of-pocket expenses related to the breach. READ MORE.

Healthcare Cybersecurity Act Shown AHA Support

A bill introduced by United States Representatives Jason Crow (D-CO) and Brian Fitzpatrick (R-PA) was praised by the American Hospital Association in a letter from its Executive Vice President, Stacey Hughes. The recently introduced legislation calls for additional resources and training to improve the state of healthcare cybersecurity in the US.

“We appreciate that the bill calls for an analysis of cybersecurity risks to the HPH sector with a focus on impacts to rural hospitals, vulnerabilities of medical devices, and cybersecurity workforce shortages, among other important issues,” the AHA letter stated. READ MORE.

FDA Approves ALS Treatment

After initially balking on Amylyx Pharmaceutical’s ALS drug Relyvrio, the FDA issued approval last week. The decision to approve the treatment was based on data from a Phase II clinical trial that showed a slower rate of decline in daily functioning for patients taking the drug. The FDA Advisory Committee elucidated its earlier decision after Amylyx provided additional data on Relyvrio.

“Today’s FDA approval of Relyvrio is an exciting milestone for the ALS community and is a major step toward achieving our mission to one day end the suffering caused by neurodegenerative diseases,” said Joshua Cohen and Justin Klee, Co-CEOs of Amylyx, in the company’s press release. READ MORE.

White House Strategy to End Hunger in US

The White House’s National Strategy on Hunger, Nutrition, and Health, released last week, introduced five pillars to address the social determinants of health contributing to diet-related diseases and illnesses. Pillar two of the five-pronged approach will encourage Congress to create medically tailored meals for the Medicare and Medicaid patient population while expanding access to nutrition counseling for beneficiaries. READ MORE.

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