Drugmakers Test New 340B Model, FTC Targets Healthcare Noncompetes, Private Equity Feasts On RCM Chaos

Hey all,

Happy hump day! The business of healthcare often thrives on complexity, control, and structural inefficiency rather than patient well-being. Whether its drugmakers reshaping 340B discounts, employers wielding noncompetes to restrict physician mobility, or private equity consolidating revenue cycle management firms, the pattern is clear: systems meant to lower costs or improve care are being bent to serve market power. I am cautiously optimistic that reforms will shift value back to patients rather than further entrenching intermediaries.

Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(Endpoints News) 340B Rebate Model Pilot Program

All eligible drugmakers, including Novartis, Bristol Myers Squibb, Johnson & Johnson, and AstraZeneca, have submitted plans to participate in the federal government’s pilot program testing a rebate model for certain 340B drug discounts. The initiative could reshape the decades-old 340B program by shifting discounts from upfront to rebate-based, a change drugmakers argue will improve oversight, reduce duplicate discounts under the Inflation Reduction Act, and curb program abuse. The pilot begins Jan. 1 with select drugs from the first round of Medicare negotiations, with potential expansion under review. Full Article

(Healthcare Dive) FTC Warns Healthcare Companies About Noncompetes

The Federal Trade Commission has urged large healthcare employers and staffing firms to review their contracts for overly broad or anticompetitive noncompete clauses, signaling that enforcement against such agreements remains a top priority. This marks a shift from the Biden administration’s attempted nationwide ban to a more targeted approach, with regulators focusing on industries like healthcare where noncompetes are widespread and may inflate costs, suppress wages, and restrict physician mobility. But hey, apparently it makes perfect sense that my local Harlem pediatrician, who lived and served her own community, had to uproot to Brooklyn just because her noncompete said she couldn’t switch from one Harlem practice to another—great way to keep care local, right? Full Article

(LinkedIn – Christopher Deacon) Revenue Cycle Management Consolidation

Healthcare benefits consultant Chris Deacon highlightsthe rapid growth and private equity consolidation in revenue cycle management (RCM). Profitability in this sector relies on the dysfunction and opacity of the U.S. healthcare payment system. With insurers deploying AI to increase denials and hospitals outsourcing more back-office operations, RCM firms thrive on complexity rather than solving it—creating a cycle where friction, dependency, and investor returns are prioritized over transparency and affordability. Full Article