Digital Health Deals Sparked in 2016

Digital Health Deals Sparked in 2016

Virtually every aspect of the healthcare industry now relies on some form of technology or data to improve patient outcomes, reduce costs or readmissions, or to analyze masses of population health data in order to manage that population better. Even more pressing in 2017 is the need to secure all that data and technology. But that hasn’t slowed the pace of M&A one bit. Mergers and acquisitions in the digital health sector soared 23% in 2016, to 155 transactions, compared with 126 deals in 2015. Even more impressive, the sector posted its highest dollar volume ever, nearly $20.2 billion—a 226% increase versus 2015. However, a single mega-merger accounted for 64% of 2016’s dollar... Read More »

MEDNAX’ MedData Adds RCM Company

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 »