What’s Next for Managed Care?

by | Feb 24, 2017 8:38 pm | Managed Care, Physician Medical Groups, Private Equity | 0 comments

The managed care mega-deals of 2015 have blown up. Aetna (NYSE: AET) and Humana (NYSE: HUM) amicably terminated their $37 billion merger, following a federal judge’s order in January to block the deal on antitrust grounds. The $1 billion termination fee was in the works. A different federal judge blocked Anthem (NYSE: ANTM) and Cigna’s (NYSE: CI) $54.2 billion merger on similar grounds. Things turned ugly quickly, as Cigna declared the deal dead and sued Anthem for the $1.85 billion termination fee, and another $13 billion in damages on behalf of its shareholders. Anthem says it will go ahead with the merger. What do the Big Five health insurers do now that they’re... Read More »

Managed Care Deals Deflate in 2016

by | Dec 21, 2016 8:00 am | Managed Care | 0 comments

As the end of the year approaches, the Managed Care sector hasn’t changed its sluggish pace. Just 20 deals have been announced through mid-December, a 56% drop from 2015’s total of 45 transactions. Spending is another matter. As of this writing, nearly $1.7 billion has been committed to financing the 20 deals. There is no way to match last year’s outrageous total of $100.4 billion, courtesy of the two super-mega-deals from Aetna (NYSE: AET) and Anthem (NYSE: ANTM), made for Humana (NYSE: HUM, $37 billion) and Cigna (NYSE: CI, $54 billion), respectively. You’ve been living under a rock if you haven’t heard that the Justice Department challenged those mergers back in... Read More »

WellCare Health Adds Universal American for $800 Million

by | Nov 22, 2016 7:26 pm | Managed Care | 0 comments

WellCare Health Plan (NYSE: WCG) breathed a little life into the lethargic Managed Care sector, which has experienced a lull in M&A this year. WellCare provides government-sponsored managed care services, and its target, Universal American Corp. (NYSE: UAM), provides health insurance and managed care products and services to Medicare and Medicaid customers in the United States. The purchase price is $800 million, or $10.00 per share, representing a 34% premium to Universal American’s 60-day volume-weighted average closing stock price as of November 16, 2016, and includes the retirement of Universal American’s preferred shares and its convertible debt. WellCare expects the... Read More »

Molina Adds Aetna & Humana MA Assets

by | Aug 2, 2016 2:18 pm | Managed Care | 0 comments

Aetna (NYSE: AET) and Humana (NYSE: HUM) remain undaunted by the pending litigation from the U.S. Department of Justice, challenging their proposed $37 billion merger. The two companies announced they would sell certain Medicare Advantage (MA) assets to Molina Healthcare (NYSE: MOH) for a total estimated $117 million in cash for both transactions. The price is based on the estimated number of members in the plans involved in the transactions. Of course, this deal hinges on the successful completion of Aetna’s acquisition of Humana, CMS approvals and actions, and the customary closing conditions, including state and other regulatory approvals. If successful, Molina is expected to add... Read More »

WellCare Begins Its Planned Buying Spree

by | Feb 25, 2016 8:00 am | Managed Care | 0 comments

WellCare Health Plans CEO Ken Burdick plans to double the company’s revenue between 2017 and 2021, beginning with mergers and acquisitions. On February 22, WellCare (NYSE: WCG) made a start on those plans, announcing its acquisition of certain assets of Advicare Corporation, a managed care organization that provides Medicaid benefits in South Carolina. As of February 1, 2016, it served approximately 32,500 Medicaid members in the state. Financial terms were not disclosed. WellCare Health Plans provides managed care services for Medicare and Medicaid. As of December 31, 2015, it serves approximately 3.8 million members nationwide. The February 19 announcement by the Centers for... Read More »