The auction for Riordan, Lewis & Haden‘s portfolio company, Avella Specialty Pharmacy, was well under way back in February, according to industry sources. UnitedHealth Group‘s (NYSE: UNH) Optum was reported to be in the lead, and then things went dark. It wasn’t until UnitedHealth Group’s third quarter earnings report was published on October 16 that […]
Humana (NYSE: HUM) hasn’t made a lot of waves in the Physician Medical Group sector. Its larger managed care rival, UnitedHealth Group’s Optum (NYSE: UNH), spent approximately $8.2 billion on two large physician practice acquisitions in 2017 alone. There’s also the distraction of acquisition talks with one of the world’s largest retailers, Walmart (NYSE: WMT), which […]
Cigna (NYSE: CI) is buying Express Scripts Holdings (NYSE: ESRX) for $67 billion, including debt. Some company was going to buy it, we just weren’t sure who. The deal follows the announcement of the $77 billion CVS Health/Aetna (NYSE: CVS/AET) deal and the $4.9 billion Optum/DaVita Medical Group (NYSE: UNH/DVA) hook-up in December 2017. That’s when the […]
The Physician Medical Group (PMG) space is consolidating at a torrid pace, and the pace won’t slacken in 2018. Last year, deals for physician practices hit a record in the 21st century with 166 transactions, up 27% over the previous year’s 131 transactions. The momentum is indeed continuing into 2018, with eight more acquisitions announced […]
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.
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 […]
Investors have flocked to the “Other Services” sector this year, as its ancillary nature keeps the companies that comprise it largely outside the purview of reimbursement regulations and other stroke-of-the-pen sectors.
Drug companies and managed care organizations are working to keep prices from rising precipitously. Then there’s Pfizer.
The Physician Medical Group sector started off the year strong and hasn’t lost any momentum as physician groups continue seeking scale to survive. As of May 26, 2017, 77 deals have been announced. The largest disclosed deal was Optum’s (NYSE: UNH) $3.3 billion acquisition of Surgical Care Affiliates, Inc. (NASDAQ: SCAI) in January.
The MACRA effect is heating up, as independent physician practices agree to be acquired by hospitals, managed care companies and even private equity firms.