New York Considers Expanding 340B Protections in State Budget — Without Transparency Requirements
What’s happening: The New York State Senate has included new language related to the 340B program in its proposed state budget, moving the policy through closed-door budget negotiations rather than the normal legislative process. Supporters argue the policy helps hospitals continue to access discounted medicines, but the proposal does not appear to include requirements ensuring those savings reach patients directly.
Why it matters: State-level 340B policy action is accelerating across the country, reflecting growing legislative interest in both protecting and scrutinizing the program. For health systems operating in New York and other states where similar legislation is under consideration, new state-level rules, particularly those that add reporting requirements or restrict contract pharmacy access, could add compliance burdens even as federal litigation over the program remains unresolved. How these state actions intersect with federal oversight will be a key issue to monitor throughout 2026.
MedPAC Releases March 2026 Report with Hospital Payment Recommendations
What’s happening: The Medicare Payment Advisory Commission released its March 2026 Report to Congress, which evaluates the adequacy of Medicare fee-for-service payment systems and makes recommendations for how payments should be updated for 2027. The report covers acute care hospitals, physicians and other health professionals, outpatient dialysis facilities, skilled nursing facilities, home health agencies, inpatient rehabilitation facilities, and hospice providers. Among the finalized recommendations, MedPAC called for Congress to update the Medicare base payment rates for general acute-care hospitals by the amount specified in current law for 2027, while recommending payment reductions for skilled nursing facilities, home health agencies, and inpatient rehabilitation facilities.
Why it matters: According to MedPAC data, Medicare has not fully covered the cost of serving Medicare patients since 2002, with the program paying on average 82 cents for each dollar hospitals spend providing care to Medicare beneficiaries. MedPAC projects that hospitals’ fee-for-service Medicare margins will remain at negative 10% in 2026, after four straight years of negative double-digit margins. These recommendations will shape Congressional and CMS payment discussions for 2027 at a time when health systems are already facing significant financial stress.
Pro-Iran Hackers Hit Medical Device Giant Stryker in Cyberattack
What’s happening: A major cyberattack crippled the global networks of Stryker, one of the world’s largest medical device companies, with an Iran-linked hacking group claiming responsibility and warning it marks the beginning of a new phase in cyber warfare. Handala, a hacking group with documented ties to Tehran, said it carried out the attack in retaliation for a deadly strike on a school in the southern Iranian city of Minab. Stryker confirmed it was experiencing a “global network disruption” to its Microsoft environment, stating it found no indication of ransomware or malware and believed the incident was contained. Hospitals began evaluating whether to disconnect Stryker equipment from their systems, and federal agencies including HHS were working to assess any potential impact on patient care.
Why it matters: A wiper-style attack on a company like Stryker is dangerous because it targets operational continuity rather than just data theft. In the healthcare ecosystem, outages affecting device manufacturers or support systems can ripple across hospitals, supply chains, and patient care environments. Maryland’s Institute for Emergency Medical Services notified hospitals that Stryker’s Lifenet electrocardiogram transmission system was non-functional across most of the state, offering an early example of how vendor-level cyberattacks can directly disrupt clinical workflows. For health systems that depend on Stryker’s broad portfolio, from surgical robotics and orthopedic implants to hospital beds and monitoring equipment this incident underscores the urgent need to assess third-party vendor cyber risk and have backup protocols in place when connected medical technology goes offline.
KFF Poll: Public Worry Over Prescription Drug Costs Hits All-Time High
What’s happening: A new KFF Health Tracking Poll finds that 59% of the public is at least somewhat worried about affording prescription drugs for themselves and their families, the largest share since KFF first polled on this question in 2018. About seven in ten say there is not as much government regulation as there should be when it comes to limiting drug prices, a view held broadly across party lines. About four in ten U.S. adults say they have not taken their medication as prescribed in the past year due to costs, including skipping doses, not filling prescriptions, or substituting over-the-counter alternatives; a significant increase from three years ago. Despite the February launch of TrumpRx, only 7% of prescription drug users say they have visited the site to shop for or compare prices, and a majority of the public doubts the administration’s policies will lower their costs.
Why it matters: Rising patient cost burdens translate directly into downstream challenges for health systems including medication non-adherence, delayed care, and increased utilization of emergency and urgent care services. Purchases through TrumpRx don’t contribute to patients’ annual deductibles or out-of-pocket maximums, creating a hidden cost dynamic that could result in higher total healthcare spending over the course of a year, with implications for how hospitals and health systems counsel patients on drug purchasing options. As drug affordability climbs as a top public and political concern heading into the 2026 midterms, health systems should expect continued pressure on formulary design, financial assistance programs, and patient education around cost-saving options.