Managed Care Deals, 2006 to 2015
The managed care sector surged back to life in 2015, with deal volume growing 104%, to 45 transactions. Enrollment for health insurance continued to climb, albeit slowly, through the federal and state healthcare exchanges, which made managed Medicare and Medicaid companies appealing targets. The big moment came in late June, when the U.S. Supreme Court handed down its decision in King v. Burwell, upholding the use of subsidies to people who enrolled in healthcare coverage through the federal exchange, Healthcare.gov. Almost immediately, Centene Corp. (NYSE: CNC) announced its intention to buy Health Net for $6.8 billion. That deal was soon dwarfed by Aetna’s (NYSE: AET) proposed buyout of... Read More »Fairview Health Buys Second Health Plan
Fairview Health Services is building out its managed care platform. In January, the Minneapolis-based nonprofit, integrated health system announced the acquisition of PreferredOne, which serves more than 1,500 employers and 285,000 members in Minnesota. The company saw dramatic growth in the first year of MNsure, the state’s health insurance exchange, but was forced to drop out after $139 million in financial losses. In April. Fairview signed a letter of intent to acquire UCare., an independent, not-for-profit health paln providing health care and administrative services to members throughout Minnesota. UCare will become a wholly-owned subsidiary of Fairview, and will join... Read More »Leap Day Boosts February Deal Volume
It’s Leap Year, which means February was a day longer in 2016. This year, that extra day marked the announcement of seven healthcare transactions, which raised the month’s total to a healthy 113 deals. The services sectors were more active than usual, and accounted for 65% of the total. Usually, the services side makes up about 55% to 60%. Dollar volume was healthy, too, at $27.7 billion. But given the records set in 2015, February’s dollar total ended up 35% below the same month a year ago. The deals may be getting smaller, but they’re still being made. Read More »WellCare Begins Its Planned Buying Spree
WellCare Health Plans CEO Ken Burdick plans to double the company’s revenue between 2017 and 2021, beginning with mergers and acquisitions. On February 22, WellCare (NYSE: WCG) made a start on those plans, announcing its acquisition of certain assets of Advicare Corporation, a managed care organization that provides Medicaid benefits in South Carolina. As of February 1, 2016, it served approximately 32,500 Medicaid members in the state. Financial terms were not disclosed. WellCare Health Plans provides managed care services for Medicare and Medicaid. As of December 31, 2015, it serves approximately 3.8 million members nationwide. The February 19 announcement by the Centers for... Read More »Wipro Ltd. Executes on Its Growth Strategy
Acquiring, servicing and retaining customers is now a critical part of the health insurance business. That’s why global IT and business services company Wipro Limited (NYSE: WIT) agreed to pay $460 million for HealthPlan Services, a portfolio company of Water Street Healthcare Partners. HealthPlan Services offers a fully integrated business-process-as- a-service (BPaaS) solution to health insurance companies in the individual, group and ancillary markets. HealthPlan Services provides U.S. payers with a diversified portfolio of health insurance products delivered through its proprietary technology platform. It connects its payer clients to more than 40 public exchanges and more than... Read More »Schedule a demo
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