DaVita Dumps Its Doc Group for $4.9 Billion

DaVita Dumps Its Doc Group for $4.9 Billion

Kidney care specialist DaVita (NYSE: DVA) made good on its statement that it was exploring strategic alternatives for its DaVita Medical Group (DMG). It found a buyer in UnitedHealth Group’s (NYSE: UNH) Optum, which agreed to pay $4.9 billion for DMG, the highest publicly announced price it has paid for a physician group. In January, Optum announced its take-out of Surgical Care Affiliates, Inc. (NASDAQ: SCAI) for $3.2 billion. The company partners with health plans, medical groups and health systems to develop and optimize surgical centers. At the time of the announcement, it operated 205 surgical facilities, including ambulatory surgery centers and surgical hospitals, in partnership with... Read More »
Stat of the Week: November Deal Volume -30%

Stat of the Week: November Deal Volume -30%

Perhaps it was the anticipation of the Thanksgiving holiday, or the holiday itself, that caused the sudden slump in deal volume. Too much turkey, too little focus on finishing up those transactions? Or we could blame the Republicans’ mad dash to pass their tax “reform” legislation before the end of the year. Both houses of Congress have passed separate versions of the bill, and are presently reconciling those into one, for a final vote. How that will look at the other end of the sausage machine is anyone’s guess, but once the bill is passed, we may see the floodgates open on pent-up demand in the more global sectors, such as Medical Devices and Pharmaceuticals. This is preliminary data, of... Read More »
CVS, Aetna Lead a Potential Big-Deal Parade

CVS, Aetna Lead a Potential Big-Deal Parade

The fourth quarter, and the month of December in particular, are usually busy times for mergers and acquisitions, and often when big deals are announced. With one month to go in Q4:17, the pace may be picking up. Deal volume through December 1 stood at 231 transactions (-39% to last year’s 379), and $19.6 billion (-49% vs. $38.6 billion in Q4:16). But late on December 3, CVS Health (NYSE: CVS) and managed care giant Aetna (NYSE: AET) announced their $69 billion merger. More mega-deals are in the offing. Possibly. The CVS/Aetna deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and... Read More »
MEDNAX Adds More Radiologists

MEDNAX Adds More Radiologists

MEDNAX (NYSE: MD) inked its seventh acquisition of the year in a deal that expands its radiology presence into the southeastern United States. On August 23, the company announced its acquisition of Radiology Associates of South Florida (RASF) in Miami. RASF provides diagnostic radiology, interventional radiology and vascular surgery services at Baptist Health South Florida, the largest healthcare system in South Florida, inclusive of seven hospitals and more than 50 outpatient facilities, and performs approximately 1 million studies per year. Terms were not disclosed. The group’s more than 70 physicians are highly subspecialized, including cardiovascular imaging, neuroradiology, body... Read More »
Envision Rebrands Its Physician Services, and the Company

Envision Rebrands Its Physician Services, and the Company

Envision Healthcare (NYSE: EVHC) officially merged with AmSurg Corp. (NYSE: AMSG) in December 2016. The $2.35 billion merger disappointed EVHC investors who were looking for a buyout by a larger company. But if they stick with EVHC, they may see some more trades soon. Envision Healthcare discussed its Q4:16 and full 2016 results on February 28, 2017. In the announcement, the now-combined company disclosed it was seeking to spin off either its medical transportation company, AMR, or its ambulatory surgery center division. Those are its smaller divisions, now that the merger is complete. The rebranded Envision Physicians Services accounted for 63% of the combined companies’ revenue of... Read More »