Healthcare Dealmakers — Jefferson Health, LVHN's $14B merger; Cigna's M&A shuffle and more

2024-01-03

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Healthcare Dealmakers — Jefferson Health, LVHN's $14B merger; Cigna's M&A shuffle and more

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来源: FierceHealthcare

Healthcare mergers and acquisitions are in no short supply as providers, retailers, health tech companies and other industry players look to expand their businesses and gain a competitive edge.

Healthcare mergers and acquisitions are in no short supply as providers, health tech companies, retailers and other industry players look to expand their businesses and gain a competitive edge. Here’s a roundup of new deals that were revealed, closed, rumored or called off during the month of December.

PROVIDER

Jefferson Health and Lehigh Valley Health Network signed a non-binding letter of intent to merge and form a $14 billion nonprofit health system. The deal targets a 2024 close and would create a 62,000-employee organization with 30 hospitals and over 700 care sites in Pennsylvania and New Jersey. Of note, the integrated care delivery system would be supported by Thomas Jefferson University and Jefferson’s nonprofit health plan.

Froedtert Health and ThedaCare confirmed that their $5.5 billion combination had moved past customary closing conditions, such as regulatory review. As of Jan. 1, the merger has closed.

Children’s Hospital of Orange County and Rady Children’s Hospital-San Diego unveiled plans to merge under the new banner of Rady Children’s Health. The deal, which would create one of the West Coast’s largest providers of pediatric care, is subject to regulatory review and targets a 2024 close.

John Muir Health and Tenet Healthcare called off the buyout of Tenet’s 51% stake in San Ramon Regional Medical Center in the wake of the Federal Trade Commission’s objections filed in November. The $142.5 million deal would have eliminated the nonprofit’s primary competition for inpatient general acute care in the region, the regulator said. John Muir said it was “disappointed” in the objection but that the “significant money and time required” to fight the regulator would be better spent elsewhere.

Community Health Systems closed a deal to sell three Florida hospitals to Tampa General Hospital. The transaction totaled $280 million in cash and $14 million of estimated working capital and other purchase price adjustments.

Vandalia Health acquired the three-hospital Davis Health System in a deal the former said has made it the second-largest nonprofit integrated system in West Virginia.

UCHealth picked up the two-hospital system Parkview Health to bring its total to 14 hospitals. The Colorado system plans to invest almost $200 million into the two hospitals over the next decade and assist with staffing.

Baptist Health acquired Drew Memorial Health System, an Arkansas organization that includes a 60-bed hospital, two clinics and home health services.

HCA Houston Healthcare, part of the larger HCA Healthcare, bought 11 freestanding emergency departments from SignatureCare Emergency Center, bringing its total in the Houston area to 26. Financial terms were not disclosed.

UC San Diego Health completed its $200 million purchase of Alvarado Hospital Medical Center from Prime Healthcare. The 302-bed center has been renamed UC San Diego Health East Campus Medical Center.

Lifepoint Health and Ascension Saint Thomas formed a joint venture in Northern Middle Tennessee to split ownership of Highpoint Health System.

PAYER

Cigna and Humana’s potential $140 billion merger crumbled due to concerns from investors and no common ground on key financial terms, per reports. In its wake, rumors have swirled that Cigna is accepting bids for its $3 billion-plus Medicare Advantage business, with Health Care Service Corp. and Elevance Health named as potential buyers.

Elevance Health and Blue Cross and Blue Shield of Louisiana’s sidelined merger came back from the dead when the latter filed an updated application seeking to reorganize as a for-profit, which would pave the way for a purchase. The $2.5 billion pickup was put on hold amid regulatory scrutiny a couple of months prior.

UnitedHealth Group filed a notice with the Securities and Exchange Commission disclosing a sale of its Brazilian health insurance business, Amil, to entrepreneur José Seripieri Filho. The deal, which reportedly involved a roughly $515.2 million bid, is expected to close in the first half of 2024 pending regulatory approvals.

Bright Health Group’s sale of its Medicare Advantage plans to Molina Healthcare cleared regulatory hurdles, which cleared the way for a Jan. 1 close. Earlier in the month, Molina had lowered the purchase price for the business to about $500 million, of which $100 million had been siphoned into an escrow account.

TECH

KKR & Co., a private equity firm, is reported to be exploring a deal to buy a 50% stake in Cotiviti. The healthcare analytics company is owned by Verscend Technology, which is owned by Veritas Capital. Such a deal would value Cotiviti between $10 billion and $11 billion.

R1 RCM, which makes patient experience and financial performance technology for providers, entered a definitive agreement to acquire Providence’s revenue cycle management technology spinout Acclara. The agreement outlines a $675 million cash agreement with warrants to purchase 12.2 million shares of R1 stock, as well as a 10-year agreement between Acclara and its former parent health system for comprehensive revenue cycle services.

Guidehealth, a value-based care enablement startup, has purchased the managed service organization and value-based care service division of Arcadia, a health tech company that offers a data analytics platform for providers and payers. Terms of the deal were not disclosed.

ConcertAI, a real-world evidence and AI company, acquired the American Society of Clinical Oncology subsidiary CancerlinQ to grow its oncology data capabilities.

CoachCare, a remote patient monitoring and virtual health company, purchased fellow remote patient monitoring company Verustat. Terms of the acquisition, CoachCare’s fourth in 12 months, were not disclosed.

TREND Health Partners, a healthcare payment technology company, acquired AI clinical review platform Advent Health Partners for an undisclosed sum.