{"id":9865,"date":"2023-10-10T08:20:20","date_gmt":"2023-10-10T08:20:20","guid":{"rendered":"https:\/\/distilinfo.com\/healthplan\/?p=9865"},"modified":"2023-10-10T08:20:20","modified_gmt":"2023-10-10T08:20:20","slug":"notable-healthcare-ma-activity-in-august","status":"publish","type":"post","link":"https:\/\/distilinfo.com\/healthplan\/notable-healthcare-ma-activity-in-august\/","title":{"rendered":"Notable Healthcare M&A Activity in August"},"content":{"rendered":"

August was a bustling month in healthcare mergers and acquisitions. Notable provider moves included Froedtert Health and ThedaCare’s $5 billion merger progress, Walmart’s potential majority stake in ChenMed, and UF Health’s acquisition of Flagler Health+. In the payer realm, UnitedHealth Group’s Amedisys deal gained shareholder approval, but Elevance Health and Blue Cross and Blue Shield of Louisiana paused their $2.5 billion merger. On the tech front, NextGen Healthcare agreed to an $18 billion PE buyout, Virgin Pulse and HealthComp planned a merger worth $3 billion, and Babylon Health sold assets to eMed Healthcare. Numerous other deals and affiliations marked the dynamic landscape.<\/p><\/blockquote>\n

In the ever-evolving landscape of healthcare, mergers and acquisitions continue to shape the industry as providers, healthcare firms, and payers seek growth and competitive advantages. Below is an overview of recent healthcare deals, spanning announcements, completions, rumors, and cancellations in August.<\/p>\n

Providers:<\/em><\/p>\n

1. Froedtert Health and ThedaCare:<\/em> These Wisconsin-based non-profit organizations have taken a significant step toward merging their 18 hospitals in a nearly $5 billion deal. The merger is awaiting regulatory approval and other prerequisites, with a target closing date set for the beginning of the new year.<\/p>\n

2. LCMC Health and Tulane University Hospitals:<\/em> Despite facing opposition from the Federal Trade Commission, LCMC Health’s $150 million acquisition of three Tulane University hospitals from HCA Healthcare has been reaffirmed by a U.S. district judge. The New Orleans-based healthcare system is proceeding with the integration, with the possibility of a federal regulator appeal still looming.<\/p>\n

3. Walmart and ChenMed:<\/em> Walmart is reportedly exploring the acquisition of a majority stake in primary care clinic operator ChenMed, valuing the 125-clinic company at several billion dollars.<\/p>\n

4. Cano Health and CenterWell:<\/em> Cano Health, a tech-enabled primary care provider, is divesting its senior-focused clinics to Humana’s CenterWell in Texas and Nevada in a $66.7 million deal. Financial challenges prompted this move.<\/p>\n

5. Sutter Health and Sansum Clinic:<\/em> Sutter Health has confirmed its plans to integrate Sansum Clinic, which operates 36 outpatient care locations across California\u2019s central coast region. The integration process begins on October 2, with terms undisclosed.<\/p>\n

6. UF Health and Flagler Health+:<\/em> UF Health has successfully acquired Flagler Health+, expanding its healthcare presence with three acute care hospitals and rebranding Flagler Hospital under UF Health\u2019s name.<\/p>\n

7. Tamarack Health:<\/em> Two Wisconsin community hospitals, Memorial Medical Center and Hayward Area Memorial Hospital & Water\u2019s Edge, have merged to form Tamarack Health, a two-hospital, 60-bed system.<\/p>\n

8. Pipeline Health and White Rock Medical Center:<\/em> Pipeline Health has reached an agreement to sell White Rock Medical Center in Dallas to Heights Healthcare of Texas. This move follows months of unsustainable financial losses.<\/p>\n

9. Billings Clinic and Logan Health:<\/em> In Montana and Wyoming, Billings Clinic and Logan Health have merged, creating a combined system operating 1,000 hospital beds and employing 9,000 people.<\/p>\n

10. HCA Healthcare and Catholic Medical Center:<\/em> HCA Healthcare is in exclusive negotiations to acquire a Catholic Medical Center in New Hampshire. Both parties view this partnership as a successful model based on HCA\u2019s prior Catholic healthcare acquisitions.<\/p>\n

11. HCA Healthcare and Terre Haute Regional Hospital:<\/em> HCA Healthcare is selling Terre Haute Regional Hospital in Indiana, including its related businesses, physician clinic operations, and outpatient services, to Union Health. The financial terms remain undisclosed.<\/p>\n

12. UMass Memorial Health and Milford Regional Medical Center:<\/em> UMass Memorial Health is exploring a potential affiliation with Milford Regional Medical Center and Milford Regional Physician Group to address financial challenges and enhance collaboration.<\/p>\n

Payers:<\/em><\/p>\n

1. UnitedHealth Group and Amedisys:<\/em> Shareholders have approved UnitedHealth Group’s $3.3 billion all-cash acquisition of home health company Amedisys, pending federal regulatory review, which was extended in August.<\/p>\n

2. Elevance Health and Blue Cross and Blue Shield of Louisiana:<\/em> The $2.5 billion merger between Elevance Health and Blue Cross and Blue Shield of Louisiana is on hold as state regulators express concerns about its impact on local competition. Despite political and regulatory pressures, the parties remain committed to the deal.<\/p>\n

3. Molina Healthcare and My Choice Wisconsin:<\/em> Molina Healthcare has completed its acquisition of My Choice Wisconsin, a Medicaid-managed care organization, for approximately $150 million, strengthening its regional presence.<\/p>\n

Tech:<\/em><\/p>\n

1. NextGen Healthcare:<\/em> The ambulatory technology company has agreed to be acquired by private equity firm Thoma Bravo in a $23.95 per share cash deal, valuing NextGen at $18 billion, including debt. The transaction is expected to close later this year.<\/p>\n

2. Virgin Pulse and HealthComp:<\/em> Employee wellness and engagement company Virgin Pulse plans to merge with benefits and analytics platform HealthComp in a deal valued at approximately $3 billion, subject to regulatory approvals and other conditions.<\/p>\n

3. Babylon Health and eMed Healthcare:<\/em> As part of its bankruptcy process, Babylon Health is selling most of its assets to eMed Healthcare’s U.K. subsidiary, including technology-driven preventive healthcare services that serve 700,000 patients.<\/p>\n

4. Tendo and MDsave:<\/em> Patient engagement software vendor Tendo is set to acquire healthcare marketplace operator MDsave for $150 million, with the deal expected to close in October.<\/p>\n

5. Avel eCare and Fident Health:<\/em> Clinician-to-clinician telehealth services provider Avel eCare has acquired virtual hospitalist provider Fident Health to expand its network and services.<\/p>\n

6. Aspirion and Infinia ML:<\/em> Revenue cycle management company Aspirion has acquired AI firm Infinia ML to advance its investments in intelligent automation for provider clients, with Infinia ML serving as Aspirion\u2019s R&D engine.<\/p>\n

7. Tangelo and Diet ID:<\/em> Food-as-medicine platform Tangelo has acquired the digital dietary evaluation platform Diet ID, with no service interruptions expected for existing partners and customers.<\/p>\n

8. American Telemedicine Association and Executives for Health Innovation:<\/em> The American Telemedicine Association has taken over the assets and membership of Executives for Health Innovation following the latter group’s decision to wind down after a 22-year run.<\/p>\n

9. ERPHealth and Manifesto:<\/em> Behavioral health outcomes tracking software company ERPHealth has acquired peer-support and coaching app Manifesto, with financial terms undisclosed.<\/p>\n

This roundup provides an overview of the dynamic landscape of healthcare mergers and acquisitions in August, highlighting the ongoing transformations within the industry.<\/p>\n","protected":false},"excerpt":{"rendered":"

August was a bustling month in healthcare mergers and acquisitions. Notable provider moves included Froedtert Health and ThedaCare’s $5 billion… Continue Reading <\/i><\/a><\/p>\n","protected":false},"author":1,"featured_media":9866,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-9865","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-distilinfo-originals","8":"entry"},"_links":{"self":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/9865"}],"collection":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/comments?post=9865"}],"version-history":[{"count":1,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/9865\/revisions"}],"predecessor-version":[{"id":9867,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/9865\/revisions\/9867"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/media\/9866"}],"wp:attachment":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/media?parent=9865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/categories?post=9865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/tags?post=9865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}