Humana Adds Physicians in Florida

Humana Adds Physicians in Florida

by | Apr 12, 2018 5:52 pm | Managed Care, Physician Medical Groups

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 were revealed by The Wall Street Journal in April 2018. While those talks are ongoing, Humana is honing its Medicare and Medicare Advantage services with the recent acquisition of Family Physicians Group based in Orlando, Florida. Financial terms were not disclosed, but it’s a safe bet they were... Read More »
Cigna Bids $67 Billion to Stay in the Race

Cigna Bids $67 Billion to Stay in the Race

by | Mar 9, 2018 4:17 pm | Managed Care, Physician Medical Groups, Private Equity

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 word “disruption” became the top-ranked meme in U.S. healthcare. We’ll grant that CVS’s move into managed care signals a change in business-as-usual. But Optum’s deal for DaVita’s medical group didn’t break new ground. Optum has long been known as a voracious acquirer of physician... Read More »
The Physician Medical Group Market Ramps Up

The Physician Medical Group Market Ramps Up

by | Jan 15, 2018 12:38 pm | Physician Medical Groups, Private Equity

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 in the first two weeks. The real record was set in 1998, at 264 deals, but that was a very different time and market. Then, publicly traded management companies were building nationwide platforms of physicians. The market collapsed in 1999, and most of those transactions were unwound and the deal makers vowed, “Never again.” Welcome to 2018.... Read More »
The Physician Medical Group Market Ramps Up

DaVita Dumps Its Doc Group for $4.9 Billion

by | Dec 8, 2017 9:37 pm | Physician Medical Groups, Private Equity

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%

by | Dec 8, 2017 7:50 pm | Healthcare Market Updates

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 »