ALSO NOTED: Medical identity theft growing problem; Tenet leaving Philly market; and much more...

> Indonesian health authorities say there is no evidence that bird flu is spreading on the island of Sumatra, after reports of a cluster of cases last week. Article (WSJ sub. req.)

> In Massachusetts, Tufts and BCBS of Mass. reported first quarter operating losses yesterday. Both ended up in the black thanks to investment income. Article

> Trend: Medical identity theft is on the verge of hitting epidemic proportions, a new report by a privacy group warns. Article

> There's speculation that Tenet may be preparing to exit the Philadelphia market. Article

> Despite the fact that diabetes is gaining ground, health officials are facing funding cut for treating the disease. Article

> Healthways and Medco Health announce that they will team up in a ten year alliance to develop disease management and risk assessment programs together. Article

> GE Healthcare expects to more than double compact ultrasound sales this year. The company announces the introduction of four new models this week. Article

> Gov. Arnold Schwarzenegger's proposed budget for 2006 increases healthcare funding by $400 million. Article

> And Finally... Now this is ironic: The Pentagon is warning that people who signed up online for a Department of Defense-sponsored conference on preventing healthcare fraud may have become victims of crime themselves. Hackers broke into a database containing the information last month. Article

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