Hello Academy IQ Members! 

Week of October 20th, 2024 

This week’s newsletter is 2,027 words or an 8.5-minute read.  

Welcome to the Executive Edge. Here we offer solution companies insights on issues facing health system executives today - all based on our extensive executive and health system intelligence. Use these insights to spark conversations, demonstrate your knowledge of industry trends, and position your company as a valuable partner to health systems. 

Keep the feedback coming – tell us how you like this new format! Find us at AcademyIQ@hmacademy.com

Olivia and the Academy IQ Team 

This edition of The Executive Edge includes:

  1. IV Shortage Heightens Health System Supply Chain Stress: Hurricane Helene caused flooding that led to a temporary shutdown of Baxter International’s North Carolina facility, which supplies nearly 60% of the U.S. market for IV fluids. This has exacerbated an ongoing nationwide shortage, with 86% of health providers already affected. Although Baxter has resumed some shipments, full production isn't expected until year-end, prompting hospitals to take conservation measures and cancel elective procedures. Industry leaders are calling for urgent government intervention, including invoking the Defense Production Act, to alleviate the strain on health systems.

  2. How Health Systems Are Using AI to Transform Patient Communication: Health systems are increasingly integrating AI tools to enhance patient communication, focusing on improving clinical efficiency. For example, Epic’s "In Basket Art" automates documentation and manages inboxes, currently used by ~15,000 clinicians. While these tools ease administrative burdens, healthcare leaders carefully evaluate their impact on patient care, scalability, and workflow integration.

  3. Duke Patients May Lose In-Network Care Amid UnitedHealthcare Contract Negotiations: Duke University Health System and UnitedHealthcare are in ongoing contract negotiations, with Duke’s hospitals and physicians potentially going out of network by November 1st. Duke claims UHC’s high claim denial rate, which they allege is 40% higher than other national carriers, and payment delays are key issues. This follows similar UHC disputes with other health systems, including HCA Healthcare and Mount Sinai, underscoring growing tensions between providers and payers over reimbursement rates.