Health Care Deals Slide in April 2017
April usually doesn’t feel like February, at least, weather-wise. As far as healthcare mergers and acquisitions go, however, deal volume in April 2017 (103 deals) feels a lot like February’s deal volume (102). The chart below shows the clear winners and losers in April 2017. Deal volume was down 29% compared with the previous month (March, 145 deals), and slid 12% compared with the year before (April 2016, 141 deals). Healthcare services deal volume accounted for just 50% of April’s preliminary total. The services sectors typically account for higher percentages than the technology sectors (although that trend is reversed when it comes to dollar volume). The services side... Read More »Evergreen Health Goes For-Profit
Evergreen Health is living up to its name. Uncertainty in the Managed Care sector has weighed heavily on investors in 2017, with just six deals announced in the first four months. The blocked mega-mergers, coupled with the uncertain replacement of the Affordable Care Act (ACA), has created an unfriendly environment for deal making. And now, the latest deal in this sector may signal the demise of the health care co-ops established under the ACA. On May 2, not-for-profit Evergreen Health announced that it was being acquired by a group of investors in Maryland, which included JARS Health Investments, Anne Arundel Health System and LifeBridge Health, for an undisclosed price. The deal was... Read More »Managed Care Deals Slide, Then Settle
Mergers and acquisitions in the Managed Care sector had a good run back in 2015. Since then, it’s been slow going for deal makers. Following a hot streak of transactions in 2015, M&A activity didn’t just trail off in 2016, deal volume cratered—down 52%, to 21 transactions. The recent high of 43 deals announced in 2015 has been revised downward, and will be again by the end of the year. The mega-deals of 2015, announced between Aetna (NYSE: AET) and Humana (NYSE: HUM) at $37 billion, and Anthem (NYSE: ATHM) and Cigna (NYSE: CI) at $54.2 billion, have been blocked on antitrust grounds by two federal judges. In February 2017, Aetna and Humana called off... Read More »The MACRA Effect Keeps Building
Last year, the Centers for Medicare and Medicaid Services asked for comments and then rolled out the final rules on the implementation of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). Many industry observers predicted the rules would drive the majority of independent physician practices “right into the arms” of a local hospital, health system or other entity. Those predictions appear to be true. As of mid-March 2017, 46 acquisitions of physician practices have been announced, a 105% increase from the same period a year ago. Only one of the deals disclosed a price, Optum’s (NYSE: UNH) $3.3 billion acquisition of Surgical Care Affiliates Inc. (NASDAQ:... Read More »Arizona Behavioral Health Company Grows
Behavioral health care deals dried up in February, but the action is picking up again. On March 2nd, 2017, not-for-profit Community Partners Inc., a parent company of behavioral healthcare service providers in Arizona, acquired Tucson-based Assurance Health & Wellness, for an undisclosed amount. Assurance Health, a division of Sinfonia HealthCare Corporation, serves approximately 7,000 clients in a clinic that combines primary care with behavioral health treatment. Fletcher McCusker, CEO of Sinfonia, cited financial pressures as a reason for the combination. The combined company will operate as a not-for-profit entity, and will be one of the largest providers of mental health services... Read More »Schedule a demo
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