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Gist Weekly: July 17, 2026

KauffmanBrief
7 min readJul 17, 2026
Strategy partnerships and innovation
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In the News

What happened in healthcare recently—and what we think about it.

  1. Cyclosporiasis sweeps the nation. Cyclosporiasis, a foodborne illness caused by a parasitic infection, has been linked to more than 1,600 confirmed cases and potentially more than 5,100 unconfirmed cases, according to an announcement from the Centers for Disease Control and Prevention (CDC). Cases have been identified in 34 states, with a multi-state outbreak in Michigan, Ohio, West Virginia, and Kentucky. The outbreaks appear to be linked with a clear source identified as of Thursday. Patients diagnosed with cyclosporiasis experience extreme gastrointestinal distress that may last a month or longer. One out of every 11 lab-confirmed cases has been hospitalized to date. The CDC further notes that the parasite is unlikely to be killed by routine disinfection and that no EPA-registered cleaning product effective against it exists.
    • The Gist: Outbreaks may worsen before they get better. Experts believe the outbreak is substantially underreported because many cases go undiagnosed. Yet case counts appear to be record-breaking. The largest previously recorded incidence of Cyclosporiasis—a 2023 raspberry-related outbreak—resulted in 1,500 cases. The case count to date also far exceeds last year's approximately 250 cases, stressing hospitals and healthcare safety nets across the country. Virtually every point of care—from physician offices to urgent cares and hospitals—is likely to bear the brunt of the outbreak with increased patient volume and greater need for sanitation protocols, contact tracing, and laboratory testing.
  2. Rural adults receive fewer screenings. Less than half of adults in rural communities have had a routine medical visit or cancer screening in the past year, according to a recent survey by the Prevent Cancer Foundation. The broader survey of U.S. adults found that half of all respondents expressed concerns and confusion about the cost of medical screenings. Nearly 15% of respondents also expressed concerns about the costs of follow-up appointments and lost wages. The news comes as the American Association for Cancer Research’s latest progress report finds that declines in cancer death rates have been slower among rural residents than those living in urban areas.
    • The Gist: Screenings remain an integral part of preventive care. In rural communities, delayed and missed screenings mean delayed medical care. While cost appears to be an important factor, the survey also revealed additional insights about rural residents’ healthcare concerns—including uncertainty about insurance coverage, increased skepticism about healthcare compared to urban communities, and an interest in home and self-testing to mitigate access, travel, technology, and cost concerns. The findings are more revealing than they first appear; they suggest rural health's next big bet must be transformative, and it must focus on the problems that matter most to rural patients.
  3. Barriers to wearable data integration. Most physicians do not routinely integrate patient-generated wearable data into clinical practice, according to a recent American Medical Association survey of physicians internationally. While 86% of U.S. physicians reported reviewing wearable data in some capacity, only 6% currently incorporate it into clinical workflows. The gap is not driven by lack of interest. More than three-quarters of U.S. physicians believe wearable data offers a clinical advantage for patient care, while 82% use wearables themselves. Physicians cited structural barriers including limited clinical validation, concerns about data accuracy and liability, lack of reimbursement, inadequate workflow, and electronic health record (EHR) integration as the primary obstacles to broader adoption.
    • The Gist: Patients and physicians appear remarkably aligned in their enthusiasm for wearable technology. More than half of adults now use at least one wearable device, and physicians appear to be strong proponents of its clinical potential. Yet adoption has outpaced integration. While wearable data could be especially valuable in specialties such as cardiology and endocrinology, the path from adoption to routine clinical practice is complex. Health systems will need to navigate a complex web of interoperability, clinical evidence standards, reimbursement, liability, and regulatory requirements before patient-generated data becomes part of clinical workflows. Organizations that successfully bridge that gap may be better positioned to reap its full potential to engage patients in their care, monitor health status, and improve patient outcomes.

And—what we’re following.

  • Smoke from over 800 wildfires burning in Canada and Minnesota engulfed more than 20 states Thursday, pushing air quality to twice the hazardous threshold in some major cities. The smoke is contributing to an uptick in emergency department visits and hospitalizations as air quality is expected to worsen through Saturday.

Plus—what we’ve been reading.

  1. A lucrative loophole. Published last month in The New York Times, this investigation examines how some out-of-network surgical assistants are using the No Surprises Act's arbitration process to secure payments up to 25 times higher than the surgeons they assist. Originally designed to protect patients from surprise medical bills, the law's Independent Dispute Resolution Process has unintentionally incentivized out-of-network providers to pursue arbitration rather than negotiate in-network reimbursement. The report documents cases in which arbitration awards exceeded $200,000 for routine surgical assistance, fueling concerns among employers, health plans, and policymakers as the arbitration system continues to expand in ways Congress did not anticipate. Only 17,000 claims for arbitration were originally estimated to be submitted annually, compared to the six million cases filed since 2022, including 1.4 million filed in the first half of this year.
    • The Gist: The investigation highlights an unintended consequence of well-intentioned healthcare policy. While patients are largely protected from surprise bills, arbitration incentives are increasing systemic costs. For hospitals and health systems, out-of-network arbitration could make physician alignment, contracting, and compensation conversations more tenuous, with implications for network stability, affordability, and long-term value-based care.

Graphic of the Week

A key insight illustrated in infographic form.

Q2 2026 M&A: Momentum continues after late 2025 rebound

M&A activity in Q2 continued last quarter's momentum, ranking among the highest levels of Q2 hospital M&A since 2019, according to Kaufman Hall’s latest M&A quarterly activity report. Hospitals and health systems were involved in 18 announced M&A transactions in the second quarter of 2026, with a growing wave of large partnerships.

Q2 2026 M&A: Momentum continues after late 2025 rebound

This Week at Kaufman Hall

What our experts are saying about key issues in healthcare.

Data from the latest National Hospital Flash Report show traditional hospital care delivery is fundamentally reshaping hospital strategy, driving changes in resource allocation, purchased services, and the evolution of care delivery across health systems.

As organizations continue to expand outpatient and ambulatory care, leaders are adapting operations and financial strategies to meet changing patient needs.

On Our Podcast

The Gist Healthcare Podcast—all the headlines in healthcare policy, business and more, in 10 minutes or less every other weekday morning.

Healthcare affordability is expected to play a significant role in the 2026 midterm elections. This Monday, Modern Healthcare politics and policy reporter Michael McAuliff joins Gist Healthcare Podcast host J. Carlisle Larsen to discuss how candidates are framing issues like Medicaid and Medicare for All—and what the election could mean for healthcare policy.

In the meantime, you can subscribe on Apple, Spotify, Google, or wherever podcasts are available.

Thanks for reading! Please stay tuned for next week and check out our Gist Weekly archive for past editions. We also have all our recent Graphics of the Week available here.

Best regards,
The Gist Weekly team at Kaufman Hall, a Vizient company