Q3:16 Health Care M&A Results: Context Is Everything
Brace yourself. The third quarter results for health care mergers and acquisitions signal a hard tap on the brakes, both in deal volume and value. That’s compared with the robust second quarter, and the same quarter a year ago. Before we go any further, though, we must note that, compared with all previous third quarters stretching back to 2000, the third quarter of 2016 doesn’t look that bad. Some 369 transactions are now on the books for Q3:16, which ranks this quarter as the second-highest in deal volume for any previous third quarter. The top-ranked third quarter, coincidently, came a year ago, when Q3:15 racked up 411 transactions. So Q3:16’s deal volume slid 10% compared with the... Read More »WellCare Branches into Arizona with Care1st Buy
WellCare Health Plans, Inc. (NYSE: WCG) is moving into the Arizona Medicare and Medicaid markets. Care1st Health Plan, an affiliate of Blue Shield of California, agreed to sell its subsidiaries Care1st Health Plan Arizona, Inc. and ONECare by Care1st Health Plan of Arizona, Inc. (together, Care1st Arizona), managed care companies that provide Medicaid and Medicare benefits to approximately 114,ooo beneficiaries in Maricopa and Pima counties, Arizona’s largest geographic service areas. The $157.5 million purchase price is inclusive of statutory capital and subject to certain adjustments, and will be funded with available cash on hand. WellCare provides government-sponsored managed... Read More »Third Quarter 2016 Shows Signs of Slowing
Eight months into the year is a good time to take stock of the state of the healthcare M&A market. On the whole, volume and value look to be stronger than last year. The first eight months of 2016 show a combined total of 1,019 transactions, compared with 1,005 in the same period in 2015, a 1% difference. Five of the first eight months in 2016 have posted higher transaction totals than the same months in 2015. Deal values have to be examined more closely, owing to the mega-deals that can create huge month-to-month fluctuations. Total dollars spent in the first eight months of 2016 are approximately $196 billion. In the same period in 2015, spending reached nearly $338 billion, thanks... Read More »Molina Adds Aetna & Humana MA Assets
Aetna (NYSE: AET) and Humana (NYSE: HUM) remain undaunted by the pending litigation from the U.S. Department of Justice, challenging their proposed $37 billion merger. The two companies announced they would sell certain Medicare Advantage (MA) assets to Molina Healthcare (NYSE: MOH) for a total estimated $117 million in cash for both transactions. The price is based on the estimated number of members in the plans involved in the transactions. Of course, this deal hinges on the successful completion of Aetna’s acquisition of Humana, CMS approvals and actions, and the customary closing conditions, including state and other regulatory approvals. If successful, Molina is expected to add... Read More »Managed Care Mega-Deals Not Too Big to Fail
2015 is about to lose even more of its M&A luster, it seems. Some $91 billion is about to disappear from the record-setting spending on healthcare M&A, thanks to the potential unraveling of two managed care mega-mergers. Bloomberg is reporting that the U.S. Department of Justice plans to file lawsuits seeking to halt the mergers of Aetna (NYSE: AET) and Humana (NYSE: HUM) for $37 billion, and Anthem (NYSE: ANTM) with Cigna (NYSE: CI), for $54.2 billion. For healthcare M&A wonks, 2015 set new records in deal volume, with more than 1,500 deals, and deal value, at $397 billion. The dollar total would have been even higher, at $564 billion, if Pfizer (NYSE: PFE) hadn’t walked... Read More »Schedule a demo
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