IHA Daily Briefing: September 15

IHA Comments on Medicare Physician Fee Schedule Proposed Rule

On Friday, IHA submitted comments on the calendar year (CY) 2026 Medicare Physician Fee Schedule (PFS) proposed rule. The comments expressed appreciation for the Centers for Medicare & Medicaid Services' (CMS) efforts in developing the proposed rule, particularly provisions creating a positive payment update for physicians for the first time in six years; the extension of certain telehealth-related waivers enacted during the COVID-19 public health emergency; and the continued commitment to expansion and integration of behavioral healthcare services.

However, IHA shared strong concern that the proposed efficiency adjustment to work relative value units (RVU) and changes to practice expense (PE) methodology to decrease facility PE RVUs will inappropriately disadvantage hospital-based practitioners, who are simultaneously facing instability from significant Medicaid cuts under H.R. 1 in the coming years. As more practitioners are choosing corporate or hospital employment due to the financial risk of independent practice, the efficiency adjustment and PE RVU proposals would further exacerbate this financial insecurity. The result would disincentivize physician practice when healthcare providers are actively seeking to fill existing service gaps and attract individuals to the workforce. We urged CMS to only pursue RVU methodologies that do not unnecessarily disadvantage hospital-based physicians.

Staff contact: Lia Daniels

IHA Comments on CY26 OPPS Proposed Rule
Today, IHA submitted comments to the Centers for Medicare & Medicaid Services (CMS) on the calendar year (CY) 2026 Outpatient Prospective Payment System (OPPS) proposed rule. IHA strongly urged CMS to reexamine several proposals in the rule, and instead finalize policies and payment updates that better reflect the economic and logistical realities hospitals currently face. The comment letter focused on problematic proposals including site-neutral payments for drug administration services at excepted off-campus hospital outpatient departments; burdensome changes to hospital price transparency requirements; and the elimination of the inpatient only list. IHA expects CMS to finalize the CY 2026 OPPS rule in November. Estimated financial impact reports will be posted in the IHA C-Suite following the finalization of the rule.

Staff contact: Cassie Yarbrough

FTC Noncompete Warning to Healthcare Employers, Staffing Companies
On Sept. 10, the Federal Trade Commission (FTC) sent letters to several large healthcare employers and staffing firms urging them to conduct a comprehensive review of their employment agreements-including any noncompetes or other restrictive agreements-to ensure they are appropriately tailored and comply with the law.

"Enforcement against unreasonable noncompete agreements remains a top priority for the [FTC]," said agency officials. "We strongly encourage all employers-not just those receiving letters today-to review their contracts closely, to ensure that any restrictions on employee mobility are in full compliance with the law."

The letters followed the FTC's decision last week to withdraw from its defense of the Biden-Harris administration's nationwide noncompete ban, which the courts had enjoined on constitutional grounds. In statements announcing the Commission's withdrawal in this case, FTC Chairman Andrew Ferguson made it clear that the FTC would stay vigilant "enforcing the antitrust laws aggressively against noncompete agreements." Of particular concern for the FTC seems to be noncompete restrictions that could unreasonably limit healthcare professionals' employment options and thereby limit patients' choices over who provides their medical care-including, critically, in rural areas where medical services are already stretched thin, the letters state.

Even though the nationwide noncompete ban has been withdrawn, the FTC has been, and continues to, target overbroad noncompetes through enforcement actions under Section 5 of the FTC Act. The FTC's issuance of these letter follows several recent FTC actions to protect workers from noncompete agreements, including, as previously reported by IHA, the launch of a public inquiry to gather input to inform possible future enforcement actions. In addition, the FTC also created a Joint Labor Task Force in February 2025, which has been directed to prioritize prosecution of anticompetitive labor-market practices, including overbroad noncompetes and other restrictive covenants.

These moves signal that the FTC has put employers - especially healthcare employers - on notice that their enforcement practices will continue and that broad, overly restrictive noncompetes are at risk.

Hospitals are encouraged to consult with their legal counsel and review your noncompetes, nonsolicits, and other restrictive covenants to ensure their scope, duration, and geographical limitations are appropriately tailored.

IHA will continue to monitor FTC actions and provide updates to the membership.

Staff contacts: Karen Harris, General Counsel, and Allan Abinoja, Assistant General Counsel

Gov. Pritzker Issues EO to Protect Immunization Access for Illinoisans
On Friday, Gov. JB Pritzker signed Executive Order (EO) 2025-04 launching a statewide effort to protect vaccine access during the fall respiratory virus season. The EO establishes the Statewide Vaccine Access Initiative, led by the Illinois Dept. of Public Health (IDPH) in partnership with multiple state agencies to ensure Illinoisans' access to vaccines. It also directs IDPH Director Dr. Sameer Vohra to issue a Standing Order to allow eligible providers in pharmacy and other appropriate clinical settings to administer vaccines recommended by IDPH after consultation with its expert Immunization Advisory Committee. The Governor's press statement said the EO ensures that Illinoisans will be able to receive the immunizations they need during the anticipated rise in seasonal respiratory illnesses later this fall. The EO was issued in response to action by the U.S. Dept. of Health and Human Services that recently restricted COVID-19 vaccine access to those 65 or older or who have high-risk medical conditions.

FDA Launches Adverse Event Reporting Dashboard for Cosmetic Products
The Food and Drug Administration (FDA) has announced the launch of the FDA Adverse Event Reporting System (FAERS) Public Dashboard for Cosmetic Products, an interactive tool designed to facilitate the public's ability to query real-time adverse event data on cosmetic products. The platform allows users to download report listings or data sets, with reports being updated daily to include the most recent submissions. The launch on Friday follows the agency's recent announcement on real-time reporting of adverse event and medication errors data for drugs and therapeutic biologics.