Anthem Adds Beacon Health Options to its Behavioral Offerings
Even without a price disclosed, this is one of the biggest deals we’ll probably see in the Behavioral Health Care sector this year. Bain Capital Private Equity and Diamond Castle Holdings are selling Beacon Health Options, the largest independently held behavioral health organization in the country. The buyer is managed care giant Anthem, Inc. (NYSE: ANTM). Beacon currently serves more than 36 million individuals across all 50 states, includign nearly 3 million individuals under comprehensive risk-based behavioral programs. Its service lines incldue clinical mental health and substance use disorder management, a comprehensive employee assistance program, work/life support, specialty... Read More »
WVU Health Adds The Health Plan to its Roster
Hospitals and health systems typically buy outpatient services such as urgent care and ambulatory surgery centers to raise their market presence. West Virginia University Health System (WVU Health), a not-for-profit system based in Morgantown, West Virginia, instead has merged with The Health Plan, a community-based not-for-profit health maintenance organization that offers Medicare Advantage, Medicaid, Point-of-Service and Preferred Provider Organization plans. Based in Wheeling, it has licenses in West Virginia’s 55 counties, as well as a 36-county area in Ohio. WVU Health is the state’s largest health system with nine hospitals in the state and one in Oakland, Maryland. It... Read More »
Centene Acquires WellCare Health Plans
The sleepy Managed Care sector woke up to a big deal last week. Centene Corporation (NYSE: CNC) announced it will acquired WellCare Health Plans (NYSE: WCG) for approximately $17.4 billion. M&A among managed care companies has been dormant since 2015. That’s when, in June, the U.S. Supreme Court upheld the tax subsidies provided as part of the Affordable Care Act. Forty-four deals were announced that year, not including the two mega-mergers between Aetna (NYSE: AET) and Humana (NYSE: HUM) for $37 billion and between Anthem (NYSE: ANTM) and Cigna (NYSE: CI) for $54 billion. Since the U.S. Department of Justice (DOJ) successfully challenged those mergers in 2017, they’ve... Read More »
Cambia Health Combines (Not Merges) with BCBS of North Carolina
Managed care deals have fallen off the radar recently. In all of 2018, we saw just 25 announcements, down 51% from the year before. The marketplace is certainly undergoing significant changes, as CVS Health (NYSE: CVS) moves ahead with its new subsidiary, Aetna, to create Health Hubs within its retail stores. That combination took Aetna off the acquisition trail. Likewise, Cigna’s (NYSE: CI) acquisition of pharmacy benefits manager Express Scripts in 2017 took that managed care company out of the market for the moment. Now comes the unusual combination of Blue Cross Blue Shield of North Carolina (BCBCNC), based in Durham, and Cambia Health Solutions out in Portland, Oregon. Blue... Read More »
Centene Corp. Buys QualChoice
Centene Corporation (NYSE: CNC) is on the move. Just days after announcing its 89% stake in a Madrid hospital, the insurer came back with a deal to buy QualChoice Health Insurance from Catholic Health Initiatives (CHI), one of the largest not-for-profit hospital systems in the United States. The deal isn’t officially announced but has been acknowledged by both companies. It was reported in the Arkansas Democrat-Gazette and other local newspapers on January 4 based on interviews with QualChoice CEO Randall Crow and a Centene spokesman. Both said the companies have entered into a definitive agreement on the sale and are waiting for approval from Arkansas Insurance Commissioner Allen... Read More »Schedule a demo
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