RFK Jr. adviser Calley Means and Kennedy’s son Finn attended the Enhanced Games, the pro-doping athletic competition and biohacking extravaganza that took place over the weekend in Las Vegas, according to The Washington Post. Send news tips and personal bests to John.Wilkerson@statnews.com or John_Wilkerson.07 on Signal.
Ripple effects
For weeks, Republicans have been preoccupied with an immigration funding bill that they’re pushing through Congress, without support from Democrats. I’ve no
RFK Jr. adviser Calley Means and Kennedy’s son Finn attended the Enhanced Games, the pro-doping athletic competition and biohacking extravaganza that took place over the weekend in Las Vegas, according to The Washington Post. Send news tips and personal bests to John.Wilkerson@statnews.com or John_Wilkerson.07 on Signal.
Ripple effects
For weeks, Republicans have been preoccupied with an immigration funding bill that they’re pushing through Congress, without support from Democrats. I’ve not been writing about that bill because it doesn’t include health care policies. But it’s now becoming relevant to health care, albeit indirectly.
Early last week, Republicans were expected to pass that budget reconciliation bill without much friction. By the end of the week, Senate Republicans adjourned for a week-long recess without voting on it due to an impasse over a new $1.8 billion settlement fund for Trump’s allies. They’d also butted heads with the president over his demands for $1 billion for a White House complex and ballroom.
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Hello, diligent HCI readers! I hope everyone enjoyed their Memorial Day weekends. We’ve got a lot of numbers in today’s edition. Get out your abacus. And tell me if you want more or less math in here: bob.herman@statnews.com.
$775 billion
Centers for Medicare and Medicaid Services
Republicans’ recent tax law targets supplemental Medicaid funds that have increasingly propped up hospitals.
This is the online version of STAT’s weekly email newsletter Health Care Inc. Sign up here.
Hello, diligent HCI readers! I hope everyone enjoyed their Memorial Day weekends. We’ve got a lot of numbers in today’s edition. Get out your abacus. And tell me if you want more or less math in here: bob.herman@statnews.com.
$775 billion
Centers for Medicare and Medicaid Services
Republicans’ recent tax law targets supplemental Medicaid funds that have increasingly propped up hospitals. The cuts are expected to be even bigger than originally forecast, which almost assuredly will provoke an opposition campaign from hospitals.
WASHINGTON — President Donald Trump had another medical exam on Tuesday, putting his health under renewed public scrutiny as he has worked to dismiss concerns over his age and stamina.
The 79-year-old president spent more than three hours at Walter Reed National Military Medical Center for what the White House described as preventive medical and dental checkups. It was Trump’s fourth publicly disclosed medical exam since he returned to office for a second term, and it comes as he tries to pro
The 79-year-old president spent more than three hours at Walter Reed National Military Medical Center for what the White House described as preventive medical and dental checkups. It was Trump’s fourth publicly disclosed medical exam since he returned to office for a second term, and it comes as he tries to project strength ahead of midterm elections that will test his sway with voters.
WASHINGTON — People in the food world didn’t know what to expect when the Trump administration appointed a little-known Florida attorney as the FDA’s top food official in 2025.
They knew Kyle Diamantas worked at Jones Day representing food, beverage, and tobacco-industry clients. They saw the picture of him and Donald Trump Jr. holding giant, dead wild turkeys after a hunt. He had no experience in public health, in medicine or science, or in government.
The credentials didn’t scream quali
WASHINGTON — People in the food world didn’t know what to expect when the Trump administration appointed a little-known Florida attorney as the FDA’s top food official in 2025.
They knew Kyle Diamantas worked at Jones Day representing food, beverage, and tobacco-industry clients. They saw the picture of him and Donald Trump Jr. holding giant, dead wild turkeys after a hunt. He had no experience in public health, in medicine or science, or in government.
The credentials didn’t scream qualified. And Diamantas was stepping into a center rocked by DOGE layoffs and a defiant resignation by former leader Jim Jones.
Hospitals and other providers are bracing for an end to the extra money they’ve gotten for treating Medicaid patients, one of the many cuts contained in Republicans’ sweeping 2025 tax law.
But the Trump administration disclosed this week that it plans to take the cuts to state directed payments even further, setting up what’s likely to be a showdown with provider groups.
Since 2024, some hospitals, doctors, nursing homes, and other types of providers have been reimbursed for Medicaid serv
Hospitals and other providers are bracing for an end to the extra money they’ve gotten for treating Medicaid patients, one of the many cuts contained in Republicans’ sweeping 2025 tax law.
But the Trump administration disclosed this week that it plans to take the cuts to state directed payments even further, setting up what’s likely to be a showdown with provider groups.
Since 2024, some hospitals, doctors, nursing homes, and other types of providers have been reimbursed for Medicaid services at much higher commercial rates, thanks to a Biden-era change. The One Big Beautiful Bill Act, passed in July, directs the Centers for Medicare and Medicaid Services to gradually trim those payments beginning in 2028 until they’re close to or on par with Medicare rates.
President Trump flew to Beijing, brought Jensen Huang along at the last minute, and left two days later, telling reporters that “something could happen” on chip exports. Nothing did. Not a single Nvidia H200 has shipped to China since Trump first authorised the sales in December 2025, and US Trade Representative Jamieson Greer told Bloomberg that semiconductor controls were not even on the bilateral agenda.
The summit theatre obscured a more interesting development underneath it. The H200 is
President Trump flew to Beijing, brought Jensen Huang along at the last minute, and left two days later, telling reporters that “something could happen” on chip exports. Nothing did. Not a single Nvidia H200 has shipped to China since Trump first authorised the sales in December 2025, and US Trade Representative Jamieson Greer told Bloomberg that semiconductor controls were not even on the bilateral agenda.
The summit theatre obscured a more interesting development underneath it. The H200 isn’t stuck because Washington won’t allow it. Washington already has allowed it. Roughly 10 Chinese firms, including Alibaba, Tencent, ByteDance, and JD.com, hold approved US export licences for up to 75,000 units each, with Lenovo and Foxconn authorised as distributors. The chips aren’t moving because Beijing won’t let its own companies take delivery.
Two frameworks, one deadlock
The mechanics of the stalemate are worth understanding clearly. US rules require that all H200 chips ordered by Chinese clients be used only in China. Beijing, meanwhile, has instructed Chinese tech companies to limit their use of Nvidia chips to overseas operations while supporting domestic manufacturing. The two requirements are mutually exclusive.
Chips cleared for export cannot legally be deployed where Beijing wants to deploy them, and Beijing won’t authorise the domestic use the US licences require, according to Implicator.
Commerce Secretary Howard Lutnick stated at a Senate hearing last month that Chinese firms are trying to keep their investment focused on domestic suppliers, including Huawei. Beijing’s State Council has also ordered a supply-chain security review aimed at cutting dependence on US semiconductors.
The policy contradiction is not accidental. That is the point.
What Huawei gained while diplomats talked
The days around the summit produced several data points that matter more for the long term than Trump’s parting comment. DeepSeek confirmed its latest model had been optimised to run on Huawei processors. Tencent’s chief strategy officer said Chinese GPU supply would increase progressively through 2026, and an Alibaba executive said its T-Head proprietary GPUs had achieved scaled mass production.
This follows the April launch of DeepSeek V4, which adapted the model for Huawei’s Ascend chips – the first major Chinese frontier model to do so in training, not just inference. What the summit week confirmed is that the shift is no longer experimental. It is now a supply-chain policy. Nvidia’s China revenue has fallen to roughly 5% in recent quarters, down from above 20% before export controls tightened. The company’s own guidance for the current quarter assumes zero revenue from China.
Huang’s last-minute inclusion in the delegation – Trump called him directly after seeing media coverage that he had not been invited – suggested urgency. The outcome suggested the limits of what CEO diplomacy can achieve when the obstruction is structural, not procedural.
The read for the AI industry
The stalemate matters beyond bilateral optics. Chinese AI platforms are now operating under a domestic mandate to build on Huawei’s compute stack. The question of which AI hardware architecture becomes dominant in the world’s second-largest AI market is being answered not by technical benchmarks but by government directive.
Beijing steering platforms toward Huawei Ascend chips rather than Nvidia H200S is not just a trade posture. It is a structural bet that the performance gap will close fast enough that being locked into the domestic stack is manageable. DeepSeek V4’s results suggest it may be right, at least for inference workloads.
Trump said something could happen. Greer said the decision is sovereign for China. Both are true, and neither changes the current position: the H200 deal is approved, licensed, and frozen, with Huawei filling the space it leaves behind.
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