Kroger Gobbles Up ModernHEALTH

by | Jul 21, 2016 3:57 pm | Other Services, Private Equity

Specialty pharmacy deals are usually few and far between. But this year, we’ve seen six deals announced in the first seven months. The most recent is from Kroger Co. (NYSE: KR), the giant food and consumer goods retailer. Kroger acquired Modern HC Holdings, the parent company of ModernHEALTH, and plans to merge it with its own specialty pharmacy subsidiary, Axium Pharmacy Holdings. Financial terms were not disclosed. Specialty pharmacy ModernHEALTH has been a portfolio company of Altamont Capital Partners since July 2012, and has grown considerably with Altamont’s help. As Modern Healthcare, the company served customers with complex pharmaceutical therapies, including HIV,... Read More »

Ambulance Companies Speed Up Consolidation

by | Jul 19, 2016 4:23 pm | Other Services, Private Equity

2015 was a big year for medical transportation companies to combine, as six transactions were throughout the year. Halfway through 2016, three more deals have been announced. The most recent involves two Texas companies. Allegiance Mobile Health in Georgetown, Texas serves a population of more than 15 million around the state. In July it acquired San Antonio-based Gemini Ambulance Service, which provides local medical transportation services. In June, Air Medical Group Holdings, a portfolio company of KKR & Co., paid an undisclosed amount for California Shock Trauma Air Rescue (CALSTAR), which operated as a not-for-profit organization at the time. CALSTAR served the entire state of... Read More »

Schryver Nabs Another Lab

by | Jul 1, 2016 8:00 am | Laboratories, MRI & Dialysis, Private Equity

If it’s true that 70% or more of medical decisions are made based on diagnostic testing results, then one can assume that the Laboratory, MRI & Dialysis sector is at the crossroads where fee-for-service and value-based reimbursements meet. Although this sector isn’t the largest in transaction volume and dollars spent relative to other markets, mergers and acquisition activity has picked up in 2016, as these lines of business adjust to changes in technology. Since 2014, there have been 104 acquisitions, and $21.8 billion (of disclosed prices) spent in the Laboratory, MRI & Dialysis sector (33 in 2014; 52 in 2015; and 19 as of June 30, 2016). The largest players buying up laboratory... Read More »

Digital Health Deals Strike New Heights

by | Jun 24, 2016 5:45 pm | eHealth, Private Equity

The digital health sector is on fire in the first half of 2016. Through June 24 we’ve recorded 82 transactions with a business-to-business eHealth company as the target. Sixteen of those were announced in June alone. (We don’t cover consumer-facing health apps or social media platforms.) In the first half of 2015, just 60 deals were announced in this sector. The final tally was 123 eHealth deals for all of 2015, a new record. It’s no stretch of the imagination to think this sector could set another record for 2016. The eHealth market of today includes electronic health records, revenue cycle management and data analytics, various mobile health start-ups from patient... Read More »

MEDNAX’ MedData Adds RCM Company

by | Jun 16, 2016 8:25 am | eHealth, Physician Medical Groups, Private Equity

MedData, Inc. made its second acquisition this year. The MEDNAX (NYSE: MD) subsidiary agreed to pay $400 million for revenue cycle management (RCM) company Cardon Outreach LLC, a portfolio company of Serent Capital.  Cardon Outreach provides specialized eligibility assistance, accounts receivable recovery services, third-party liability and other services. Cardon Outreach works with more than 800 hospitals and other healthcare facilities in 46 states. The acquisition is expected to be accretive to GAAP earnings. MEDNAX anticipates the acquisition will add an initial $0.06 in annualized diluted earnings per share and $0.14 in annualized adjusted earnings per share. Cain Brothers is... Read More »

MedAssets-Precyse Adds Equation

by | May 31, 2016 8:28 pm | eHealth, Private Equity

Pamplona Capital Management is building out its healthcare data services. In November 2015, the firm spent $2.7 billion to acquire publicly traded MedAssets, Inc., which served four out of every five hospitals in the United States with technology-enabled financial products and services. Once it spun off the Spend and Clinical Resource Management segment to VHA-UHC Alliance (now called Vizient), MedAssets’ Revenue Cycle Management segment with Precyse, another portfolio company, to offer end-to-end RCM and HIM solutions. Now MedAssets-Precyse, as it’s known, is adding Equation, a Utah-based financial and clinical healthcare analytics and consulting company. Now that... Read More »