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August 8, 2026

Takeaways from the most recent news in the technology and policies shaping healthcare.

Finance

24 Health Systems Are Dropping Medicare Advantage Plans in 2026

At least 24 health systems are severing ties with specific Medicare Advantage plans for 2026, continuing a trend Becker's Hospital Review has tracked since 2023. The common complaints are familiar: heavy prior authorization burdens, frequent care denials, and reimbursement that arrives slowly or falls short of traditional Medicare rates.

The stakes are rising because Medicare Advantage now covers more than half of the nation's older adults. When a system drops a plan, patients enrolled in that product can lose in-network access to their usual hospitals and physicians, forcing them to switch providers, switch plans, or pay out of network. That makes each termination more consequential than it would have been a few years ago.

The pattern reflects a broader standoff between providers and insurers over the economics of MA. Hospitals argue the administrative friction and payment delays no longer justify the volume. For payers and patients, the contraction signals that the once near-universal acceptance of MA plans can no longer be assumed heading into open enrollment.

More in Finance

Finance

CMS Finalizes 2.3% FY2027 Pay Bumps for Rehab, Hospices

CMS finalized fiscal 2027 payment rules giving inpatient rehabilitation facilities and hospices each a 2.3% payment increase.

Why it matters: Thin Medicare increases set the revenue baseline for rehab and hospice operators already squeezed by labor and supply costs.

Finance

Crystalys Raises $130M for Gout Drug Dotinurad

Crystalys Therapeutics raised $130 million to advance its URAT1 inhibitor dotinurad through pivotal gout trials.

Why it matters: Fresh capital and a $950M Sobi deal show pharma is finally targeting gout, a common condition with few effective treatment options.

Finance

Hospital Margins Slip 5% as Profitability Divide Widens

Hospital operating margins fell 5% nationally in early 2026, deepening a profitability divide between smaller hospitals and large nonprofit systems.

Why it matters: A widening margin gap determines which hospitals can invest, consolidate, or survive, reshaping access and competition across the industry.