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A state-run family planning program that Iowa lawmakers established last year to cut funding for Planned Parenthood and other abortion providers has seen a marked decline in patients and participating health care providers, which critics say shows it's not working as promised by its Republican backers. Iowa Department of Human Services data obtained by The Associated Press through a public records request show that just over 5,300 people were enrolled in the program as of March 1, compared to roughly 8,200 when it launched July 1. (5/3)

A pair of bills intended to shore up funding for the state’s Division for Children, Youth and Families and mental health services passed the House Thursday – but only after significant reductions from what the Senate had originally approved. Senate Bills 592 and 590 will go back to the Senate after voice votes in the House. The first, SB 592, would add more than 30 new positions to DCYF, which has been shaken by a pair of high-profile deaths of children under its watch. The bill contains more than $4 million intended to help restore services, reduce workloads and prevent future child fatalities. (DeWitt, 5/3)

Sacramento lawyer G. Ford Gilbert, the recently indicted founder of the national diabetes network Trina Health, hitched his clinic’s expansion plans to a big national name in organized medicine and health policy: Dr. Jack Lewin. The nation has a limited supply of healthcare dollars to spend on drugs and services, which is why the government and health plans require scientific evidence of patient benefit. This is especially important for the 30.3 million people in the U.S. with diabetes, whose medical costs in 2012 totaled $245 billion. Lewin was CEO of the California Medical Association for more than 11 years, CEO of the American College of Cardiology for more than five years and president and CEO of the Cardiovascular Research Foundation for four years. He chairs the board of the National Coalition on Health Care in Washington, D.C. (Clark, 5/3)

Two partners at the hedge fund Deerfield Management and two others were found guilty on Thursday of charges stemming from what prosecutors have described as an insider trading scheme based on leaks from within a federal healthcare agency. Rob Olan and Ted Huber, partners at Deerfield Management who are on leave, were convicted of counts including wire fraud, securities fraud and conversion of government property, as was David Blaszczak, founder of political consulting firm Precipio Health Strategies. (Pierson, 5/3)

Medicare, which has been issuing new cards this spring, does not call the public and ask for personal or private information. The state attorney general’s office on Thursday warned consumers to be aware of scams related to the new cards. Scams can be perpetuated by phone, email or text, the office said. (Nicholson, 5/3)

Former President George H.W. Bush expressed optimism about his recovery on Thursday, saying as soon as he’s cleared to leave the hospital “I’m outta here.” Bush has remained at Houston Methodist Hospital for nearly two weeks with an infection. The hospital announced Thursday it named one of its atriums after Bush and his late wife, Barbara. (Samuels, 5/3)

Executive Commissioner Charles Smith is out as head of the embattled Texas Health and Human Services Commission after a slew of contracting errors have come to light at the mega state agency. Smith, an appointee of Gov. Greg Abbott, announced Thursday he would retire at the end of the month after nearly 30 years of service. ...The move marks a major shake-up at the agency rocked by audits and findings that the contracts sought by HHSC were riddled with errors, miscalculated scores grading vendors and a failure to check references for a company trying to do more than $10 million in business with the state. (Zelinski, 5/3)

Georgia improved by one spot, reaching No. 40 in an annual ranking of states’ health systems, released Thursday. The state’s ranking in the Commonwealth Fund report is similar to the results on other national scorecards in health care. (Miller, 5/3)

A U.S. District Court judge refused to disqualify himself from an ongoing prison health-care lawsuit despite an Arizona Department of Corrections allegation that he is biased. ...[David] Duncan is considering whether to find the department in contempt of court for that "continuing failure" and whether to assess fines against the department for non-compliance that could add up to millions of dollars. (Kiefer, 5/3)

California health regulators have allowed poor care to proliferate at nursing homes around the state, and the number of incidents that could cause serious injury or death has increased significantly in recent years, according to a stinging state audit released this week. The state auditor singled out the California Department of Public Health for particular criticism, saying it had not performed necessary inspections or issued timely citations for substandard care. The audit also found that the department’s nursing home licensing decisions were inconsistent and lacking in transparency. (Gorman, 5/3)

After years of serving LGBTQ communities and people affected by HIV on their own, the Minnesota AIDS Project and Rainbow Health Initiative have merged to create a new nonprofit: JustUs Health. The merged organization will work to achieve “health equity for diverse gender, sexual and cultural communities,” according to a statement by the nonprofit. JustUs has also opened a new behavioral health clinic at 1000 W. University Ave. in St. Paul. Before the merger, neither organization had a behavioral health clinic. (Chavey, 5/3)

State social services czar Charles Smith, a longtime aide to Gov. Greg Abbott, is retiring from state government — the latest to leave the sprawling Health and Human Services Commission under duress over contracting problems. Smith announced Thursday that he would step down as executive commissioner of the Health and Human Services Commission on May 31.  He took over the agency amid one contracting scandal at the commission and is leaving as another is brewing. (Garrett, 5/3)