Deal of the Week: Express Scripts Diversifies
Express Scripts (NASDAQ: ESRX) didn’t hedge its bets that online retail giant Amazon will enter the prescription drug delivery market. On October 10, the leading pharmacy benefit manager (PBM) acquired South Carolina-based eviCore healthcare from its current investors, including General Atlantic, TA Associates, and Ridgemont Equity Partners, for $3.6 billion. The deal follows rumors that Amazon is contemplating entering the prescription drug delivery market in an attempt to improve price transparency for consumers and reduce out-of-pocket costs. Last April, Express Scripts lost Anthem, Inc. (NYSE: ANTM) as a client, and with it, 18% of annual revenue. The threat of... Read More »
Deal of the Week: Centene/Fidelis Care
Centene Corporation (NYSE: CNC), the self-declared leader in government-sponsored healthcare in the U.S., has taken over another state. As larger rivals like Anthem (NYSE: ANTM) and UnitedHealth Group (NYSE: UNH) quit the individual health insurance exchanges around the country, Centene has marched in. In its first major deal since July 2015, Centene is now tops in New York State, thanks to its $3.75 billion deal for not-for-profit Fidelis Care. Fidelis Care provides health insurance coverage through Qualified Health Plans, Child Health Plus, Essential Plan, and Medicaid, available through the New York State of Health Marketplace, as well as through the Medicare Advantage, Dual Advantage,... Read More »
Mayo Clinic Sheds its Managed Care Segment
Two not-for-profit managed care companies are joining forces, bringing the year’s total to 13 deals in the sector. On August 17, 2017, Medica Health Plans, Inc., which provides health care coverage in the employer, individual, Medicaid and Medicare markets in Minnesota, Iowa, Kansas, Nebraska, North Dakota, South Dakota and Wisconsin, announced it was acquiring Mayo Clinic Health Solutions. Financial terms were not disclosed. The target, a division of Mayo Clinic, is a health benefits management company and licensed third party administrator that provides plan administration services and health care products to 260,000 members through 28 customers. Mayo Clinic stated the deal sets... Read More »
Evergreen Health’s For-Profit Bid Withers
The Managed Care sector went two steps forward, then one step back in July. Two deals were announced in the span of two days, and as the month neared a close, another deal was terminated, leaving this year’s total at a sluggish 10 deals. Back in May 2017, we reported on Evergreen Health’s journey to become a for-profit, provider-sponsored plan in Maryland. The company was birthed as an insurance co-op under the Affordable Care Act and has struggled to survive since. In October 2016, Evergreen put itself up for sale as a result of unprofitability and growing indebtedness to the Center for Medicare and Medicaid Services. Then, on May 2, a group of investors agreed to buy the company, which... Read More »Managed Care Deals Dry Up
Now that the mega-mergers of 2015 have been squashed, deal activity in the Managed Care sector could use a shot in the arm. Through mid-July 2017, only 10 deals have been announced in this sector, on par with 2016’s total of 20 deals. At this rate, it’s unlikely that the sector will reach its 2015 peak of 43 deals. Although 2015 was not a record year, it was the second highest of the century, behind 2000’s total of 47 deals. The Big Four health insurers have ceded the playing field to the smaller players, and financial buyers are stepping in. In 2015, managed care companies accounted for 72% of the 43 deals announced that year and financial buyers only accounted for 5%. Molina... Read More »Schedule a demo
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