In the first half of 2023, the health insurance industry witnessed significant merger and acquisition activity. Notable deals included CVS Health’s acquisitions of Signify Health and Oak Street Health, UnitedHealth Group’s purchase of LHC Group, Optum’s acquisition of Crystal Run Healthcare, Elevance Health’s takeover of BioPlus, Sentara Healthcare’s acquisition of AvMed, and AF Group’s purchase of AmeriTrust Group. These transactions reflect strategic growth and expansion within the sector.
In the first half of 2023, the health insurance industry witnessed significant merger and acquisition activity, with eight notable deals being concluded since January 1. These transactions reflect the ongoing growth and strategic moves of key players within the sector. Here are the details:
1. CVS Health: In March, CVS Health completed its acquisition of Signify Health for $8 billion. Additionally, in May, CVS Health finalized its $10.6 billion purchase of Oak Street Health, a primary care company based in Chicago.
2. UnitedHealth Group: February saw UnitedHealth Group’s acquisition of LHC Group, a home health firm, for $5.4 billion. Subsequently, in April, LHC Group further expanded its operations by acquiring Summit Home Care, a Delaware-based home health company.
3. Optum: Optum, in February, acquired Crystal Run Healthcare, a multispecialty physician group with over 400 providers across 30+ locations situated in Middletown, N.Y.
4. Elevance Health: In February, Elevance Health successfully closed its acquisition of BioPlus, a specialty pharmacy.
5. Sentara Healthcare: Norfolk, Va.-based Sentara Healthcare concluded its acquisition of AvMed, a nonprofit health plan headquartered in Miami. AvMed offers individual and group commercial plans as well as Medicare Advantage coverage, serving more than 200,000 members.
6. AF Group: AF Group, a subsidiary of BCBS Michigan, completed the purchase of AmeriTrust Group, located in Southfield, Mich., on January 3. The financial details of this transaction were not disclosed.
These mergers and acquisitions showcase the dynamic landscape of the health insurance industry and the strategic efforts of these companies to expand their reach and capabilities in various healthcare sectors.
