Mark Cuban Cost Plus Drug Co. has initiated a significant partnership with Community Health Systems (CHS), becoming the wholesale drug distributor for CHS's 71 affiliated hospitals. This partnership marks the first large-scale health system adoption of Cost Plus Drugs' wholesale services, which offer generic medications at manufacturing cost plus a 15% markup. The deal involves the initial supply of 12 generic therapies, addressing various medical conditions. By leveraging its direct relationships with top generic manufacturers, the partnership aims to reduce drug costs and improve supply chain resilience. CHS expects substantial cost savings and greater input into medication availability and pricing, aligning with Cost Plus Drugs' mission to make healthcare more affordable.

All 71 CHS hospitals to use Mark Cuban's drug wholesale services beckershospitalreview.com

Recent ransomware attacks on Change Healthcare and Ascension have highlighted the healthcare sector's vulnerability to cyber threats, underlining the industry's longstanding issues with data breaches. Healthcare organizations frequently face high costs associated with breaches, with the average cost peaking at $10.93 million in 2023. Although cyber insurance can offset some losses, underwriters now require more stringent cybersecurity measures, making policies complex and sometimes unaffordable for smaller entities. Despite a competitive insurance market, future rate increases are anticipated due to a rise in claims and the unique risks posed by the healthcare sector's critical data and operational uptime requirements.

Ransomware is ravaging healthcare orgs—and making it harder for them to get insurance Healthcare Brew

The recent ransomware attack on Change Healthcare revealed significant vulnerabilities within the healthcare industry's cybersecurity measures. This attack disrupted hospital operations nationwide, affecting approximately one-third of Americans and underscoring the habitual cycle of initial panic followed by a swift return to complacency. Dr. Jeffrey Tully and Dr. Christian Dameff from the UCSD Center for Healthcare Cybersecurity highlighted the catastrophic impact on patient outcomes, with adjacent hospitals experiencing worse patient outcomes during such attacks. The historical pattern shows a shift from mere data theft to actual denial of care, prompting regulatory bodies like the FDA to strengthen cybersecurity guidelines. There's a need for a sustained, proactive approach involving continuous risk assessment, advanced technologies, rigorous staff training, and public advocacy to ensure data protection and healthcare delivery integrity.

Council Post: Why Things Can’t Go Back To Normal After The Change Healthcare Attack Forbes

Snowflake Inc., a U.S.-based cloud storage provider for numerous global organizations, recently experienced a significant hack affecting hundreds of its customers, including major clients like Ticketmaster and Santander. Cybercriminals accessed accounts using stolen login credentials and subsequently leaked passwords online. The breach underlines the inadequacy of relying solely on passwords for security. Consequently, Snowflake is advocating for multi-factor authentication (MFA) to enhance account protection. The increasing prevalence of data breaches and phishing attacks highlights the need to move towards passwordless authentication systems, such as passkeys, which are more secure and user-friendly.

The Snowflake breach tells us that passwords aren't enough TechRadar