CVS and Aetna Make It Final
Fifty-one weeks after pharmacy retail giant CVS Health (NYSE: CVS) announced its intent to acquire managed care giant Aetna (NYSE: AET), the deal that shook the healthcare industry closed. And now the fun begins. When first announced on December 3, 2017, the deal had many industry players scratching their heads. What does a pharmacy chain with 9,700 pharmacy locations and 1,100 MinuteClinic walk-in clinics, not to mention a major pharmacy benefits manager (Caremark), need with a health insurance company? The answer, as CVS CEO Larry Merlo explained over and over again, is the desire to bring a new model of health care to the masses, by expanding services offerings at its pharmacies so... Read More »
Optum Adds Seattle’s Polyclinic to Its Doctor Roster
UnitedHealth Group’s (NYSE: UNH) Optum division is a key growth driver for the managed care giant, and M&A is a primary reason. During an investor day meeting in New York on November 27, UNH CEO David Wichmann mentioned the company’s acquisition of The Polyclinic, a 240-doctor group in and around Seattle, Washington. Of course Mr. Wichmann didn’t disclose a price. The 101-year-old practice began looking for a partner after developing a strategic plan that proved too costly even for a group of 240 physicians with 14 locations. The deal with Optum will allow it retain control as a physician-led practice and it will continue to operate under its brand name. The practice... Read More »
Aetna Sells Medicare Part D Biz to WellCare
Even before federal and state officials made the demand, Aetna Inc. (NYSE: AET) agreed to divest its standalone Medicare Part D business to WellCare Health Plans (NYSE: WCG) for an undisclosed price. The deal was struck to help deflect objections to Aetna’s takeover by CVS Health (NYSE: CVS), which was announced on December 3, 2017. The $77 billion price for that deal consists of $69 billion in cash and stock, and Aetna’s debt of approximately $8 billion. This transaction with WellCare is subject to the completion of that deal, which CVS expects will close in the early part of the fourth quarter of 2018. Aetna’s standalone Medicare Part D business includes more than 2.2... Read More »
Evolent Health Acquires New Century
Managed care company Evolent Health (NYSE: EVH) made its first acquisition in two years with the purchase of privately held New Century Health for up to $217 million. New Century, previously owned by NCIS Holdings, Inc., is a specialty care management company focused primarily on cancer and cardiac care. It manages approximately 462,000 Medicare Advantage (MA) lives under performance-based arrangements and provides administrative services to several partner organizations. The price is based on 3.1 million shares of EVH Class B common stock and $120 million at closing, as well as an earn-out of up to $20 million tied to future new business activity. Just for fun, that works out to only $470... Read More »
UnitedHealth Doubles Down
UnitedHealth Group is not taking much time off this summer, in what continues to be one of the most active healthcare M&A years on record. It recently announced the acquisition of Peoples Health, a Medicare Advantage plan based in Metairie, Louisiana, that has 63,000 members. Included in the acquisition were four clinics plus Capital City Medical Group, a seven-physician medical group that practices near Baton Rouge and New Orleans. It also looks like UnitedHealth will be buying specialty pharmacy company Genoa Health from PE firm Advent International. Genoa Health has approximately 400 full-service pharmacies which are generally located within community mental health centers. The... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
