Tufts Health and Harvard Pilgrim Plan to Merge
The Boston area has seen a lot of hospital merger and acquisition activity in recent years, some of it successful, some not. Now two not-for-profit health plans are merging, chasing the same goal of scaling up and reducing costs through streamlining administrative processes. Tufts Health Plan and Harvard Pilgrim Health Care, both based in the Boston metropolitan area, announced their merger on August 14. The new organization, which will have a new name, will be one of the largest not-for-profit health services organizations in the Northeast, serving nearly 2.4 million members in Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island. Tufts Health Plan offers managed care... Read More »
Centene Acquires WellCare Health Plans
The sleepy Managed Care sector woke up to a big deal last week. Centene Corporation (NYSE: CNC) announced it will acquired WellCare Health Plans (NYSE: WCG) for approximately $17.4 billion. M&A among managed care companies has been dormant since 2015. That’s when, in June, the U.S. Supreme Court upheld the tax subsidies provided as part of the Affordable Care Act. Forty-four deals were announced that year, not including the two mega-mergers between Aetna (NYSE: AET) and Humana (NYSE: HUM) for $37 billion and between Anthem (NYSE: ANTM) and Cigna (NYSE: CI) for $54 billion. Since the U.S. Department of Justice (DOJ) successfully challenged those mergers in 2017, they’ve... Read More »
Cambia Health Combines (Not Merges) with BCBS of North Carolina
Managed care deals have fallen off the radar recently. In all of 2018, we saw just 25 announcements, down 51% from the year before. The marketplace is certainly undergoing significant changes, as CVS Health (NYSE: CVS) moves ahead with its new subsidiary, Aetna, to create Health Hubs within its retail stores. That combination took Aetna off the acquisition trail. Likewise, Cigna’s (NYSE: CI) acquisition of pharmacy benefits manager Express Scripts in 2017 took that managed care company out of the market for the moment. Now comes the unusual combination of Blue Cross Blue Shield of North Carolina (BCBCNC), based in Durham, and Cambia Health Solutions out in Portland, Oregon. Blue... Read More »
Other Services Diversify, but CRO and Outpatient Care still lead
In 2017, our annual Health Care Services Acquisition Report, the Other Services sector featured six particularly active subsectors. Last year we had 13. Other Services includes areas such as specialty pharmacy, urgent care and ambulatory surgery centers and medical staffing companies. All are experiencing significant changes. In 2017 we reported 153 deals in Other Services, compared with 179 in 2018. A new notable field includes deals involving medical transportation services. There were a total of 10 deals in this category. Perhaps the most significant transaction was Beekman Investment Partners III, LP’s purchase of REVA, Inc., the largest global fixed-wing air medical platform in... Read More »Schedule a demo
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