In the past 48 hours, the health care industry has seen notable developments. The S&P 500 Health Care sector index has risen 0.8% since Monday, outperforming the broader market. This comes as investors anticipate potential policy shifts following recent primary elections.
A major deal was announced yesterday, with Eli Lilly agreeing to acquire Mablink Bioscience for $1.2 billion, expanding its oncology pipeline. This follows Pfizer's $43 billion acquisition of Seagen last week, signaling continued consolidation in the biotech space.
On the regulatory front, the FDA granted breakthrough therapy designation to Moderna's mRNA vaccine candidate for respiratory syncytial virus (RSV) in older adults. The agency also approved Biogen's Alzheimer's drug Leqembi for broader use, potentially expanding access to millions of patients.
Emerging competitor Devoted Health raised $175 million in new funding to expand its tech-enabled Medicare Advantage plans. The company has grown rapidly, now serving over 100,000 members across eight states.
In response to ongoing staffing challenges, hospital chain HCA Healthcare announced plans to hire 10,000 nurses through expanded training programs over the next three years. Meanwhile, CVS Health launched a virtual primary care service available to employers nationwide, reflecting the continued growth of telehealth.
A survey released today by Deloitte found that 62% of consumers used digital health tools in the past year, up from 54% in 2022. However, concerns about data privacy remain, with 71% worried about how their health information is being used.
Compared to last month, hospital margins have improved slightly but remain below pre-pandemic levels. The median operating margin was 1.2% in February, up from 0.7% in January but well below the 3.5% average in 2019.
As the industry navigates ongoing workforce shortages, rising costs, and the transition to value-based care, leaders are focusing on operational efficiency, digital innovation, and strategic partnerships to drive growth and improve patient outcomes in an evolving landscape.