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RWJBarnabas Health sued an insurance carrier for allegedly refusing to cover the West Orange, N.J.-based system’s pandemic-related losses, according to NJ.com.
The health system is suing Zurich American Insurance Co. for breach of contract, alleging the company refused to honor its obligations under a $2.5 billion “Zurich Edge Healthcare Policy.”
The health system, which treats 3 million patients annually, claims Zurich’s policy should cover losses caused by illnesses like COVID-19. The lawsuit, filed March 19, alleges Zurich failed to acknowledge COVID-19 caused property damage after employees and patients died from the virus in its facilities, according to Law360.
“Zurich has known, or should have known, for decades that its policy could be called upon to pay up to its full limits — here $2.5 billion dollars — to RWJBarnabas for losses associated with viruses and pandemics,” the lawsuit states.
Ridgewood, N.J.-based Valley Health System is also suing Zurich, alleging the insurance company wrongfully denied covering its losses tied to the pandemic under a $550 million policy, according to Law360.
A Zurich spokesperson declined to comment on RWJBarnabas’ lawsuit, telling NJ.com that it is not the company’s practice to comment on pending litigation.
In Virginia, Carilion Clinic filed a similar lawsuit against its insurance provider, American Guarantee and Liability Insurance Co., on March 18. The Roanoke, Va.-based system says it lost more than $150 million because of the pandemic, and the insurance company allegedly refused to provide coverage or properly investigate its losses.
“To cushion the impact of the coronavirus and COVID-19, Carilion Clinic turned to its property insurer, AGLIC, to whom Carilion Clinic had paid nearly $1 million in premiums in exchange for $1.3 billion in property damage and time element (also known as business interruption) coverage effective June 1, 2019 to June 1, 2020,” the lawsuit states. “AGLIC, however, declined to fulfill its obligations to Carilion Clinic under the policy.”
Carilion is seeking damages for breach of contract and a judgment declaring the scope of American Guarantee’s obligation to cover the losses under the policy.
Read the full NJ.com article here.
Read the full Law360 article here.





Experts take pro-vaccine message to right-wing skeptics

Top public health experts and officials are developing new strategies to reach out to the conservatives most skeptical of or hesitant about receiving a coronavirus vaccine.
The efforts are targeting supporters of former President Trump, who have emerged as the most significant hurdle to widespread vaccination.
The officials and experts are making appearances on Fox News and Newsmax and taking part on panels with prominent conservative politicians to reach out to vaccine skeptics on the right.
And the public health experts are not taking an antagonistic approach either. They say many conservatives have legitimate questions about COVID-19 vaccinations that are worth listening to and answering.
“These are folks who really feel disrespected. They feel that COVID and the vaccines and the response has been politicized and weaponized, in their words,” said Tom Frieden, the former director of the Centers for Disease Control and Prevention under President Obama. “They feel deeply alienated from the government.”
Up to now, the main problem with increasing vaccinations has been one of supply and demand, but administration officials expect that to change shortly.
“We are approaching the point where we will have a sufficient supply of vaccines for everybody in the United States to have the chance to get immunized by the end of May,” Francis Collins, director of the National Institutes of Health (NIH), said in an interview with The Hill on Wednesday.
At that point, convincing skeptical conservatives to get a shot could mean the difference between the U.S. achieving herd immunity and resuming normal life or variants of COVID-19 getting second and third winds, leading to new lockdowns or restrictions on life.
As Collins puts it, “the hesitancy will begin to become the defining factor on whether we reach herd immunity or not.”
“I think that means this has to be the moment where we really pull into this conversation all of the trustworthy voices,” he added.
A recent CBS poll found a third of Republicans said they would not be vaccinated, compared to 10 percent of Democrats. A “PBS NewsHour” poll showed similar results: Nearly half of U.S. men who identify as Republicans said they have no plans to get vaccinated.
The underlying mistrust comes after a year in which Trump and his allies played down the severity of a virus that has killed more than half a million Americans already.
Circumstances have conspired to allow that skepticism to grow: The coronavirus arrived later in more rural, conservative enclaves than it did in liberal metropolitan areas like Seattle, New York and Detroit, giving some the sense that they had been locked out of the economy to protect against a virus that was not yet present in their community.
Julie Morita, executive vice president of the Robert Wood Johnson Foundation, who advised the Biden transition team on COVID-19 issues, said she has been surprised to see how political vaccine hesitancy has become.
In the past, Morita said, public health officials have focused on race and ethnicity. “We didn’t really look at politics or political affiliation,” she said.
Morita said her message remains the same, but that she has had to focus on where to deliver it. She recently co-wrote a Fox News op-ed answering some of the common questions about the available COVID-19 vaccines and urging people to get the shots when they’re available.
“Whether you’re a community of color, or whether you’re a conservative, these are the questions that people ask and want to have the answers to before they get vaccinated,” Morita said. “I don’t feel like that’s a shifted message as much as maybe we’re just able to get it into a more conservative news outlet.”
Convincing a group of people who did not vote for the president presents a challenge to a Democratic administration. So President Biden has been outsourcing the message.
Appearing on Hugh Hewitt’s radio show this week, Anthony Fauci, the director of the National Institute for Allergy and Infectious Diseases, said he doesn’t shy away from conservative outlets that may not be friendly.
“I say yes to a wide variety of requests. I’ve been on Fox multiple times, so I don’t shy away from that, no,” Fauci said.
Health officials are increasingly convinced that successful messaging is not going to come from politicians or government officials but from doctors, clergy and trusted community leaders.
Last month, Frieden participated in focus groups with vaccine-hesitant Republican voters led by veteran GOP pollster Frank Luntz.
The groups, first reported by The Washington Post, showed vaccine-hesitant conservatives were not swayed by Republican politicians like House Minority Leader Kevin McCarthy (Calif.) or former New Jersey Gov. Chris Christie — or even by Trump himself.
Instead, Frieden said, the message that moved the hesitant to the accepting hit closer to home: Their doctors took the vaccine when it was offered.
“You listen to the audience, you understand where they are and you address their concerns. And that’s the same thing we have to do for Trump voters who are reluctant to get vaccinated or African Americans or Latinx or vegans who don’t want to get vaccinated,” Frieden said.
Morita said she thinks the same efforts and resources that go into convincing communities of color should also be directed at conservatives.
“High-level government officials espousing the importance of vaccines and sharing their experiences with it is really important but it’s not sufficient,” Morita said.
Support for Trump and a distrust of the government is not the only reason conservatives might be reluctant to accept the vaccine. Many are concerned about how quickly the vaccines were developed.
Still others object on religious grounds, which is where Collins, the NIH director, comes in.
A devout Christian who is open about his faith, Collins has become an ambassador to the faith community. He spends hours a day talking to faith leaders, assuring them of the vaccine’s soundness and science.
Collins told The Hill he frames the decision to get vaccinated in religious terms.
“Is this a love your neighbor moment? Yes, it is,” Collins said. “And whatever faith you are, the Golden Rule seems to apply, and the Golden Rule would say, for your neighbor or for your family, for your neighbors down the street who may be vulnerable, this is something you can do for them.”

Uber’s main thrust in the healthcare sector is non-emergency medical transportation, and it has netted some 1,500 partners, including major health systems and payers, since launching in the space three years ago.
But the San Francisco-based company is also hoping the crowded but lucrative at-home prescription drug delivery market will be profitable, following mounting losses last year as the coronavirus pandemic pummeled ride-hailing companies.
Growth in Uber’s delivery business has outpaced plummeting ridesharing revenue during COVID-19. In fourth quarter earnings released February, Uber’s gross bookings in its mobility business were down 50% year over year, while gross bookings in its delivery segment were up 130%.
This latest deal suggests Uber is doubling down on delivery, banking that demand for at-home drug delivery remains high beyond COVID-19.
ScriptDrop integrates with a pharmacy’s software system to provide same-day shipping medication delivery options, and also has a consumer-facing portal for drop-offs. As of today, Uber is integrated with ScriptDrop via an application programming interface, and will become the default option for select pharmacies depending on location and driver availability, the companies said.
ScriptDrop doesn’t share the exact number of U.S. pharmacies working with its platform, but a spokesperson told Healthcare Dive they partner with thousands. ScriptDrop clients include prominent pharmacies like Albertsons, Kmart and Safeway; pharmacy systems such as PDX and a number of courier companies, health systems and insurers.
The partnership is operational in 37 states as of today, including California, Florida, New York and Texas. Uber and ScriptDrop have additional plans for near-term expansion, in some cases in new states in the next couple of weeks, the spokesperson said.
Uber first launched consumer-facing prescription delivery in several U.S. cities through the Uber Eats app, in the partnership with NimbleRx. That’s grown from a pilot in Seattle and Dallas to cities including New York, Miami, Austin and Houston, with more metro areas to come, according to Uber.
Prescription drug delivery companies have reported skyrocketing utilization during COVID-19. Columbus, Ohio-based ScriptDrop has said delivery volume jumped 363% from February to April last year, while revenue tripled between October 2019 and October 2020. The startup announced a $15 million funding round in October to drive growth, bringing its total funding to $27 million since launching in 2017.
Partially as a result of COVID-19 tailwinds, the prescription tech sector, which includes e-prescription vendors like NimbleRx and ScriptDrop, is expected to grow at a compound annual growth rate of 16%, the quickest of the enterprise health and wellness segments, according to a February report from Pitchbook.
Despite consumer demand for at-home prescription delivery, it’s a crowded market. Most major pharmacies, including CVS Health and Walgreens, have hustled to build out their delivery networks in the past few years, facing potential disruption from outside entrants, notably Amazon.
But there’s ample room for competition: The U.S. prescription drug market accounted for $335 billion in health spending in 2018 and sees some 3.8 billion prescriptions filled each year.

About 800 nurses at a Tenet hospital are on the third week of a strike that’s shaping up to be one of the longest among healthcare workers in recent years.
At the hospital chain’s St. Vincent Hospital in Worcester, Massachusetts, nurses represented by the Massachusetts Nurses Association have been on strike since March 8 following a breakdown in negotiations over a new contract they’ve been bargaining for since November 2019.
Nurses have been active on the labor organization front in wake of the COVID-19 pandemic, and share a common issue at stake — staffing levels, and more specifically the nurse to patient ratio.
At St. Vincent, unionized nurses say their staffing has been worsened by the pandemic, affecting their ability to adequately care for patients. They point to hundreds of unsafe staffing reports filed by nurses over the past year, and the departure of more than 100 St. Vincent nurses over the past 10 months.
The hospital rejects those claims, and said only two citations have been issued by the Massachusetts Department of Public Health since 2019, according to a release.
The changes MNA is asking for are “excessive,” St. Vincent Hospital CEO Carolyn Jackson contended in an interview with Healthcare Dive, and the hospital cannot agree to the “aggressive” levels the union is proposing.
The two sides haven’t met again since the strike began, and do not have a timeline to get back to the table.
Right now, St. Vincent operates on staffing guidelines brokered after its nurses waged a 49-day strike over their first union contract in 2000. Under those terms, one nurse in its medical surgical units can be assigned to either four or five patients.
The terms proposed by MNA stipulate that one nurse in those units would be assigned to four patients at a maximum. MNA is also asking for a five-nurse critical care float pool, and for the hospital to double its emergency department staff from 71 employees to 157, Jackson said.
California is currently the only state with mandated ratios of one nurse to five patients in medical surgical units.
“It has been our request for them to remove some of those unreasonable, or preferably all of those unreasonable staffing requests, and come back to the table and really work on getting a reasonable deal done,” Jackson said.
During the first week of the strike, the hospital paid over $5 million to hire replacement nurses, according to a release. When asked directly about how much the hospital has spent so far, Jackson declined to answer.
“It is definitely an added expense to the hospital, and that is challenging,” she said.
The strike in 2000 ended when both parties reached a deal brokered by former Sen. Ted Kennedy, D-Mass., that resulted in provisions to limit mandatory overtime and the staffing guidelines currently in place.
But this time it seems “there is no point at which anybody’s going to step in and settle this for the two parties,” Paul Clark, professor and director of Penn State’s school of labor and employment relations said.
The union has garnered support from Massachusetts lawmakers including Sen. Elizabeth Warren, Rep. James McGovern and former Rep. Joe Kennedy, who visited the picket line on March 12, along with state Attorney General Maura Healey, who visited Wednesday.
The Worcester City Council also approved a resolution in support of the striking nurses at St. Vincent on March 16.
But those moves wield little power to break the strike, although the political pressure could hurt the hospital.
“The increased cost is, perhaps, public opinion beginning to coalesce behind the union,” Clark said.
Strikes have costs for both sides, as nurses on the picket line have gone without pay for almost three weeks now.
“Until the cost becomes too great to one or the other sides, they’re going to continue down this road,” Clark said.