Diplomat Pharmacy, under Pressure, Merges with OptumRx

Diplomat Pharmacy, under Pressure, Merges with OptumRx

In early November, Diplomat Pharmacy, Inc. (NYSE: DPLO) revealed some troubling news. The company reported a net loss of $177.3 million in its third-quarter earnings report, its third in a row, and issued a “going concern” warning. Shares dropped 50% (from $6.20 to $3.10) that morning. Brian Griffin, chairman and CEO of Diplomat, cited industry headwinds pressuring its prescription benefits management (PBM) business, and its failure to renew network participation in their specialty pharmacy network. Diplomat’s PBM segment generated $82 million in Q3:19, compared to $170 million in the same quarter last year. Diplomat Pharmacy’s efforts to expand in the PBM sector... Read More »

UNH & Optum Expand Their Digital Health Portfolio

Optum, a UnitedHealth Group (NYSE: UNH) company, has acquired another digital health company. The target is Vivify Health, whose mobile, cloud-based platform offers remote care management services such as personalized care plans and biometric data monitoring. The deal was first reported by CNBC. Vivify’s program uses health devices ranging from a wireless weight scale to portable blood pressure cuffs. Remote patient monitoring (RPM) systems offer a great deal of value for providers and payers. They help physicians and doctors stay up to date on a patient’s health without any hospital visits or trips, an they offer an opportunity to take preventative measures if a... Read More »
Healthcare Payment Firm Bought for $3.2 Billion

Healthcare Payment Firm Bought for $3.2 Billion

As the healthcare market evolves, so does the need to manage the payment flows between managed care companies, providers and patients. That rising demand surely played a role in UnitedHealth Group, Inc.’s (NYSE: UNH) acquisition of Equian LLC, an end-to-end healthcare payment firm.  UnitedHealth paid approximately $3.2 billion, according to The Wall Street Journal, citing sources familiar with the matter. Equian manages over $500 billion in claims data annually through its platform, assisting clients by avoiding, identifying, pricing, analyzing clinical codes, and ultimately recovering inaccurate transactions in healthcare, workers compensation, and property and casualty markets. If... Read More »
DaVita and Optum Make It over the Finish Line

DaVita and Optum Make It over the Finish Line

It’s been a long road for DaVita Inc. (NYSE: DVA) and Optum (NYSE: UNH), but the deal is finally done. On June 19, 2019, the Federal Trade Commission approved Optum’s acquisition of DaVita Medical Group, a $4.9 billion deal when it was announced on December 6, 2017. A year later, the final price was renegotiated down to $4.34 billion. At the time of the initial announcement, Optum agreed to pay cash for the medical group and its network of nearly 300 medical clinics, 35 urgent care centers and six outpatient surgery centers. It operated and managed physician networks in California, Colorado, Florida, Nevada, New Mexico, Pennsylvania and Washington and served approximately 1.7... Read More »
FastMed Plus NextCare Equals Urgent Care Giant

FastMed Plus NextCare Equals Urgent Care Giant

Consolidation continues in the urgent care services sector, as consumers and healthcare provider organizations look for lower-cost services outside hospital walls. One of the largest deals in this area in 2018 is FastMed Urgent Care’s acquisition of NextCare Holdings Inc., a portfolio company of Alcentra Capital Corp. since 2016. FastMed, the business name for Urgent Care Holdings of America, LLC, is backed by Abry Partners and BlueMountain Capital Management. The company owns and operates 110 clinics in Arizona, North Carolina and Texas. NextCare operates 141  facilities in Arizona, Colorado, Kansas, Missouri, New Mexico, North Carolina, Oklahoma, Texas, Virginia and Wyoming. The... Read More »