Hospital Mergers Point to the Future of Health Systems

Hard on the heels of the merger announcement between Dignity Health and Catholic Health Initiatives  came the news that Ascension Health and Providence St. Joseph Health were in their own talks to merge. The Dignity/CHI deal will create a 139-hospital system spanning 28 states, with revenue of more than $28 billion. If the Ascension/Providence merger […]

 

 

DaVita Dumps Its Doc Group for $4.9 Billion

Kidney care specialist DaVita (NYSE: DVA) made good on its statement that it was exploring strategic alternatives for its DaVita Medical Group (DMG). It found a buyer in UnitedHealth Group’s (NYSE: UNH) Optum, which agreed to pay $4.9 billion for DMG, the highest publicly announced price it has paid for a physician group.

 

Emergency room Hospital M&A
Emergency room Hospital M&A

Dignity Health and CHI Make It Official

Dignity Health and Catholic Health Initiatives, two major not-for-profit health systems, signed a letter of intent to explore a merger in October 2016, and finally tied the knot in December. Although Catholic Health is the larger of the two, with 101 hospitals, its financial picture isn’t a rosy as its partner’s. Dignity Health, based in […]

 

Stat of the week graph
Stat of the week graph

Stat of the Week: November Deal Volume -30%

Perhaps it was the anticipation of the Thanksgiving holiday, or the holiday itself, that caused the sudden slump in deal volume. Too much turkey, too little focus on finishing up those transactions? Or we could blame the Republicans’ mad dash to pass their tax “reform” legislation before the end of the year. Both houses of […]

CVS, Aetna Lead a Potential Big-Deal Parade

The fourth quarter, and the month of December in particular, are usually busy times for mergers and acquisitions, and often when big deals are announced. With one month to go in Q4:17, the pace may be picking up. Deal volume through December 1 stood at 231 transactions (-39% to last year’s 379), and $19.6 billion […]

It’s When, Not If, for Bundled Payments

If you think the Bundled Payment Care Improvement(BPCI) initiative is a thing of the past, think again. Even though the Centers for Medicare and Medicaid Services (CMS) issued a final rule cancelling the episode payment models, that method of reimbursement is embedded in the healthcare system. That’s the strong opinion of a panel of industry […]

Stat of the week graph
Stat of the week graph

Stat of the Week: ‘Other Services’ Drops 19% in Q3:17

Investors have flocked to the “Other Services” sector this year, as its ancillary nature keeps the companies that comprise it largely outside the purview of reimbursement regulations and other stroke-of-the-pen sectors.

Deal of the Week: Melinta/The Medicines Co.’s Antibiotics

As part of a previously announced restructuring plan, The Medicines Company (NASDAQ: MDCO) is selling its infectious disease business unit in order to double-down on its promising drug candidate, inclisiran. The drug is currently in Phase 3 development, and completion is expected in the second half of 2019. That’s a long way away, and MDCO […]