Humana Adds Physicians in Florida
Humana (NYSE: HUM) hasn’t made a lot of waves in the Physician Medical Group sector. Its larger managed care rival, UnitedHealth Group’s Optum (NYSE: UNH), spent approximately $8.2 billion on two large physician practice acquisitions in 2017 alone. There’s also the distraction of acquisition talks with one of the world’s largest retailers, Walmart (NYSE: WMT), which were revealed by The Wall Street Journal in April 2018. While those talks are ongoing, Humana is honing its Medicare and Medicare Advantage services with the recent acquisition of Family Physicians Group based in Orlando, Florida. Financial terms were not disclosed, but it’s a safe bet they were... Read More »
Cigna Bids $67 Billion to Stay in the Race
Cigna (NYSE: CI) is buying Express Scripts Holdings (NYSE: ESRX) for $67 billion, including debt. Some company was going to buy it, we just weren’t sure who. The deal follows the announcement of the $77 billion CVS Health/Aetna (NYSE: CVS/AET) deal and the $4.9 billion Optum/DaVita Medical Group (NYSE: UNH/DVA) hook-up in December 2017. That’s when the word “disruption” became the top-ranked meme in U.S. healthcare. We’ll grant that CVS’s move into managed care signals a change in business-as-usual. But Optum’s deal for DaVita’s medical group didn’t break new ground. Optum has long been known as a voracious acquirer of physician... Read More »
Managed Care Sector Had a Big Q4:17
The fourth quarter of 2017 will be remembered for some time to come, thanks to the game-changing deal announced between pharmacy/retailer CVS Health and Aetna, one of the largest managed care companies in the country. That was only one deal, of course, and there were actually 10 transactions announced in Q4:17. Fourth quarter deal volume represents a 38% share of the 26 deals announced in the previous 12 months, and a 150% increase over the same quarter in 2016. Source: HealthCareMandA.com, January 2018 Two of the 10 deals disclosed prices in the fourth quarter, for nearly $80.6 billion, the highest ever recorded in this sector, or several others. The total represents 95% of the $84.7... Read More »2017 Biggest Healthcare Deals by Sector
2017 was another big year for billion-dollar healthcare transactions. Among the deals that disclosed prices, 44 topped the billion-dollar mark, for a total of approximately $263.1 billion. Although that number seems high, there were 50 billion-dollar deals announced in 2015, although those totaled a slightly lower $240.1 billion. 2016 posted lower totals for both the number of billion-dollar deals (39) and combined prices ($194.1 billion). Of course the biggest healthcare deal in 2017 was the $77 billion acquisition of Aetna Inc. (NYSE: AET) by CVS Health (NYSE: CVS). But there were many more sizable transactions across the sectors, as the chart below illustrates. See how many you remember... Read More »
New Buyers Move in to Home Health & Hospice
The Home Health & Hospice sector is poised for big deals in 2018. As the healthcare industry shifts inexorably toward value-based reimbursement models, this sector has become the “go-to” care protocol to help drive down costs and to keep patients out of institutions. However, the pressures that existed in 2017 are still present in 2018, and even amplified now. Mark Kulik, managing director at The Braff Group, recently gave us his view of the market. Not only will the rate of M&A activity accelerate, new buyers will enter the market. “Ten years ago, people stayed in their lane. Today, we’re going out to a wider range of buyers, such as long-term care and... Read More »Schedule a demo
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