Healthcare leaders in Minnesota are warning that withheld Medicaid funds will significantly impact the state’s ability to provide care.

The Centers for Medicare and Medicaid Services (CMS) sent Minnesota Deputy Commissioner and Medicaid Director John Connolly a letter on Feb. 25 saying the agency would withhold $259 million—about 7% of the state’s quarterly Medicaid budget, according to the state attorney general’s office—as part of the administration’s efforts to “crack down on fraud” in the federal insurance program.

The move comes after CMS said in January it would withhold $2 billion in annual Medicaid funding to the state over fraud concerns. The state appealed the decision shortly after, and as of publication, it has yet to take effect.

It also comes just two weeks after the Department of Homeland Security said it would end Operation Metro Surge, which was initiated, at least in part, due to fraud concerns in Minnesota safety-net programs. Thousands of agents from Immigration and Customs Enforcement had flooded the state.

CMS Administrator Mehmet Oz said the agency wouldn’t reimburse Minnesota for the $259 million until Gov. Tim Walz compiles a “comprehensive corrective action plan” to combat fraud, Minnesota Reformer reported.

And other states might soon encounter similar scenarios.—MA

Tariffs? For spring? Groundbreaking.

That’s right, there’s more tariff news to break down. This time, it’s due to the Supreme Court in addition to the White House.

On Feb. 20, the high court struck down the Trump administration’s sweeping tariffs executive orders, saying in a 6–3 vote that they went beyond the president’s permitted power. It was unclear in the ruling, however, if the supply chain would see refunds from the estimated $200 billion already collected.

In response, the administration put a baseline 10% tariff in place, which was later changed to 15% through July.

When tariffs were first announced last year, leaders expressed concerns over how they could impact potential mergers and acquisitions, drug costs, and imports. While industry experts told us they were initially relieved about this new ruling—as tariffs have led to increased costs that could be passed down to patients—ongoing market uncertainty has thrown the supply chain into another round of chaos.

Here’s how experts think they could disrupt healthcare.—CM

Welcome back to Signed and Scrubbed, a monthly roundup of hospital deals, developments, and bankruptcies.

This month, Healthcare Brew reported on how an upstate New York rural hospital is attempting to reopen as a behavioral health facility. While it’s not set to start care until spring, we have more provider-related announcements to keep you updated on.

Here’s your February 2026 roundup.

Enhabit. The home and hospice provider announced on Feb. 23 it has entered into a definitive agreement to be acquired by private equity firm Kinderhook Industries for approximately $1.1 billion. Enhabit has 249 home health locations and 117 hospice locations in 34 states, according to a release.

See the full list here.—CM

The pharmacy giant is launching virtual visits and cash-pay access to GLP-1 medications. Here’s how the move positions Walgreens against telehealth players like Ro and Hims & Hers in a booming market.

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