Centene Corp. Buys QualChoice
Centene Corporation (NYSE: CNC) is on the move. Just days after announcing its 89% stake in a Madrid hospital, the insurer came back with a deal to buy QualChoice Health Insurance from Catholic Health Initiatives (CHI), one of the largest not-for-profit hospital systems in the United States. The deal isn’t officially announced but has been acknowledged by both companies. It was reported in the Arkansas Democrat-Gazette and other local newspapers on January 4 based on interviews with QualChoice CEO Randall Crow and a Centene spokesman. Both said the companies have entered into a definitive agreement on the sale and are waiting for approval from Arkansas Insurance Commissioner Allen... Read More »
Physician Practices Find Many Buyers
The first quarter of 2018 is nearly over (one week left to go), and the Physician Medical Group sector is still in acquisition mode. Last year, the first quarter saw a record 59 deals announced for physician groups. This year’s Q1 total won’t challenge that, but the 30 deals reported so far show interest isn’t waning for buyers or sellers. We’ve written extensively about private equity groups building platforms of specialty practices, particularly dermatology, anesthesia and ophthalmology. But publicly traded entities are still in the hunt. In the first three weeks of March 2018, 13 deals for physician practices were announced, although none disclosed financial... Read More »
Deal of the Week: Centene/Fidelis Care
Centene Corporation (NYSE: CNC), the self-declared leader in government-sponsored healthcare in the U.S., has taken over another state. As larger rivals like Anthem (NYSE: ANTM) and UnitedHealth Group (NYSE: UNH) quit the individual health insurance exchanges around the country, Centene has marched in. In its first major deal since July 2015, Centene is now tops in New York State, thanks to its $3.75 billion deal for not-for-profit Fidelis Care. Fidelis Care provides health insurance coverage through Qualified Health Plans, Child Health Plus, Essential Plan, and Medicaid, available through the New York State of Health Marketplace, as well as through the Medicare Advantage, Dual Advantage,... Read More »Managed Care Deals Dry Up
Now that the mega-mergers of 2015 have been squashed, deal activity in the Managed Care sector could use a shot in the arm. Through mid-July 2017, only 10 deals have been announced in this sector, on par with 2016’s total of 20 deals. At this rate, it’s unlikely that the sector will reach its 2015 peak of 43 deals. Although 2015 was not a record year, it was the second highest of the century, behind 2000’s total of 47 deals. The Big Four health insurers have ceded the playing field to the smaller players, and financial buyers are stepping in. In 2015, managed care companies accounted for 72% of the 43 deals announced that year and financial buyers only accounted for 5%. Molina... Read More »Schedule a demo
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