More Medicare Deals Close in May
In late April, the Social Security and Medicare Trustees released two reports on the financial state of their respective programs, and you’ve probably guessed, the outlook is grim. Without accounting for the adverse economic or health consequences of COVID-19, the organizations find Medicare Part A, which covers inpatient hospital care, skilled nursing facility, hospice, lab tests, surgery, and home health care, will face insolvency in six years. Considering COVID-19 is dealing heavy blows to healthcare services as a whole, it’s fair to say the pandemic is draining funds even faster. However, there is temporary relief for the market. The CARES Act passed by Congress promised... Read More »
Magellan Sells Complete Care to Molina
Easy come, easy go. Magellan Health, Inc. (NASDAQ: MGLN) is selling its Magellan Complete Care (MCC) business to Monlina Healthcare, Inc. (NYSE: MOH). The cash purchase price, according to Magellan, is $850 million. According to Molina, it is paying approximately $820 million, net of certain tax benefits. MCC, which had revenue of more than $2.7 billion in 2019 and approximately 155,000 members, manages full-service Medicaid and Medicare health plans including Magellan Complete Care in Arizona, Florida, and Virginia; Senior Whole Health in Massachusetts and New York; and TMG by Magellan in Wisconsin. It wasn’t that long ago (well, July 2017) that Magellan paid $400 million to buy... Read More »
Molina Healthcare Expands in Upstate New York
Molina Healthcare (NYSE: MOH) has been off the acquisitions circuit for some time, as management issues were being worked out. The insurer’s last completed deal was announced in April 2016, in fact. That transaction targeted Universal American’s (NYSE: UAM) Total Care Medicaid plan, a prepaid health services plan providing health care coverage to approximately 39,000 members under the Medicaid and Child Health Plus programs in the three upstate New York counties of Cortland, Onondaga and Tompkins. The sale netted Universal American $41.3 million. In mid-October, Molina broke its streak with the acquisition of certain Medicaid assets of YourCare Health Plan, Inc., a... 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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