Health care profits explode

Illustration of a red cross and a pill bottle in a pile of money.
Illustration: Sarah Grillo/Axios

The health care industry continued to rake in record-level profits in the second quarter, with its year-over-year earnings increasing by 23%, according to an Axios analysis of 160 companies.

The bottom line: Pharmaceutical firms and hospitals, in particular, are reaping some of the largest rewards even amid the sustained public furor over drug prices and surprise medical bills.

Judge quashes rule that cut hospital clinic payments

A doctor examines a patient in a medical clinic room.
A doctor examines a patient in clinic. Photo: Jeff Gritchen/Digital First Media/Orange County Register via Getty Images

A federal judge on Tuesday threw out a regulation that slashed Medicare payments for routine checkups in doctors' clinics that are owned by hospitals. Modern Healthcare first reported the decision.

Why it matters: This is a major victory for hospitals, which sued the Trump administration over the rule. The cuts affected less than 1% of all Medicare outpatient spending, but proponents argued the "site-neutral" policy is needed to help prevent providers from treating patients in higher-cost settings.