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 »June 2016 M&A Results Show Strength
Uncertainty is the hobgoblin of the merger and acquisition markets, and the month of June was a high point (or low point, depending on your perspective) for anxiety in global financial markets. Still, the healthcare deals kept rolling in. Our preliminary total for June 2016 stands at 115 transactions, exactly equal with the same month a year ago. Compared with May’s total of 141 deals, though, June’s total does look as if someone is applying the brakes. It takes 12 months to make a year, though, and one month’s results do not create a trend. The digital health sector turned in the strongest gain compared with June 2015, when only two deals were announced. This June, 22 deals were announced... Read More »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 »Schedule a demo
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