Category Archives: M&A Activity

Consolidation Trend Continues: CHS to Acquire HMA

Community Health Systems, Inc. (NYSE: CYH) (“CHS”) and Health Management Associates, Inc. (NYSE: HMA) (“HMA”) announced today that they have entered into a definitive merger agreement pursuant to which CHS will acquire HMA for approximately $7.6 billion, including the assumption of approximately $3.7 billion of indebtedness. When completed, CHS would own or operate approximately 206 hospitals in 29 states with a total bed count of over 31,000. Located in the Nashville, Tennessee, CHA, Inc. is one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country. Through [...]

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Obamacare-Driven Consolidation Frenzy Continues… Still a Sellers Market

“In the last 10 years, we’ve acquired one hospital and built four,” Tenet president and CEO Trevor Fetter said. After yesterday’s announcement of Tenet’s $4.3 billion deal for Nashville-based Vanguard Health Systems, including $2.5 billion of its debt, Fetter signaled that Tenet’s strategy on building hospitals is changing. “This is a turning point for our company,” Fetter said in an interview. “You should expect us to be much more active in acquisitions going forward.” Tenet’s proposed acquisition of Vanguard Health Solutions values the hospital network at $21 a share, or roughly $1.8 billion, and comes at a 70% premium to [...]

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“Concierge Medicine” — Will the Government Leave ‘Well Enough’ Alone?

The rapid pace of consolidation among providers is old news. It’s been going on for years, with the biggest systems getting even bigger. How well justified are these deals?  It’s generally one of two stories: The acquired system is failing so the choices regulators have when reviewing a proposed transaction are limited and/or the deal sought between the parties cites the benefits each believes their merger will bring to the communities they serve. After all, given the efficiencies to be gained by integrating supply chains, business processes and clinical practice, everyone should win –right? But it rarely works out that [...]

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Partners Health, South Shore and UPMC Making News

The Massachusetts Health Policy Commission (HPC) is an independent state agency that was established in 2012 through the state’s new landmark health care cost containment law. The focus of the commission is to improve the quality of patient care in Massachusetts while reducing costs “through increased transparency, efficiency and innovation.” Although this particular commission claims that it has no power to approve or deny a proposed hospital merger –like the one sought by Boston’s South Shore and Partners Health— it does have the power to hold them up, pending completion of its formal review process. Of course, if the commission’s [...]

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MHA Acquired by Roper Industries

Managed Health Care Associates, Inc. (“MHA”), a diversified health care services and technology company focused on alternate site providers has been acquired by Roper Industries. MHA provides expertise in Group Purchasing, Managed Care and Payer Contracting, Reimbursement Management, Specialty Pharmacy Solutions, Pharmaceutical Data Analytics, Clinical Pharmacy Software and Legislative Advocacy. Roper Industries is also a well-diversified company and is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices.  Among other things, Roper provides engineered products and solutions for global niche markets, including software information networks, medical, water, energy, and transportation. Going forward, the MHA will be [...]

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Big Pharma Preparing for a Pipeline Shopping Spree, Says GlobalData

Despite a recent fall in deal volume and overall value,  some of the pharmaceutical industry’s major players are about to splash out in an effort to restock depleted drug pipelines, says an analyst with research and consulting firm GlobalData. In a new report, Adam Dion, analyst with GlobalData, states that industry leaders such as Pfizer, Merck, GSK and AstraZeneca are paying the price for failing to adequately prepare for the effects of the patent cliff. This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry [...]

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MedAssets Partners with SAP/Ariba –The eCommerce Competitive Landscape Just Changed

MedAssets, Inc. (NASDAQ: MDAS) today announced a multi-year strategic partnership with Ariba (recently purchased by SAP) that significantly expands MedAssets’ industry-leading supply chain management and outsourced procurement capabilities. The goal of the partnership is to offer healthcare providers and suppliers the industry’s most comprehensive electronic commerce platform, including requisition to purchase order (PO) transmission, shipment notification, invoice transmission and reconciliation workflow automation, expense posting, supplier payment and early-pay discount solutions. More from the Press Release: Through this partnership, healthcare providers will be able to conduct fully automated e-commerce with the nearly one million companies connected to the Ariba® Network through [...]

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The Medical Innovation Playbook –Heard of it?

A little more than 80% of all providers in the U.S. are non-profits. However, 100% of the largest and most successful ones also have well-established for-profit business interests. Whether through arms length arrangements or wholly owned and integrated business entities, the largest IDNs have restructured, renamed and realigned themselves to take ever-increasing advantage of their for-profit side, as success in this realm provides a wonderful type of insurance coverage –a nice “balance.” According to its website, “the Medical Innovation Playbook details the diverse and rapidly evolving technology commercialization programs of America’s top medical centers. It is the first comprehensive effort [...]

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Allscripts Buys dbMotion and Jardogs –An ACO Service Strategy Revealed

Yesterday, Paul Black, Allscripts’ new CEO announced two deals:  Allscripts acquired privately held health solutions providers, dbMotion, Ltd. and Jardogs LLC. The dbMotion solution has some significant IP associated with it, supporting what is known as “semantic interoperability.” At the application level, it aggregates and harmonizes clinical content into a single clinical view, clarifying disparate codes and vocabularies used inside EHRs. In doing so, it forms a foundation for accountable care and population health management. The Jardogs FollowMyHealth solution enables “patient engagement,” allowing patients to actively monitor and optimize health status by participating in their own care, which is critical [...]

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This Year’s HIMSS Discussion Priorities –Ovum’s 2013 Take

This coming week, Ovum, an information and communication technologies (ICT) specialized research and consulting firm, will be at the HIMSS conference in New Orleans. Bill Clinton is speaking, as a major activity of the Clinton Foundation is fighting childhood obesity. “Treating and preventing obesity-related diseases requires a profound shift to patient-centric care,” says Charlotte Davies, lead analyst of Ovum’s Healthcare practice. “This is a major strategic shift, and it has become the guiding force of the HIMSS’ agenda. Achieving this requires action across the board; a much more strategic approach to IT and service design, changes in legislation; addressing the [...]

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Cardinal To Acquire AssuraMed, Direct-To-Home Distributor for $2.07B

Late last week, Cardinal Health announced plans to acquire privately held AssuraMed, another Ohio-based healthcare concern and leading provider of medical supplies to chronically ill patients in the home. The price? $2.07 billion. The acquisition will be financed with a combination of $1.3 billion in new senior unsecured notes and the remainder in cash. The deal is expected to close by early April this year. “AssuraMed is a natural extension of the Cardinal Health businesses and of our mission to be essential to care. The acquisition of this industry leader allows us to serve the growing number of Americans treated in [...]

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Cleveland Clinic/VHA Joint Venture Will Be Transformative

The Cleveland Clinic, a long time member of Premier, has left the roost. It has entered into a joint venture with VHA that the parties are saying, “will transform the traditional group purchasing approach into a strategic sourcing model.” The joint venture has been structured as a LLC. It is being organized to knock the lid off PPI costs –with a particular emphasis on implantables. The idea isn’t new. For example, SharedClarity is the result of a partnership that brought together UnitedHealthcare, Dignity Health, and 11 additional health systems. More than just aggregating demand to more competitively source PPI, they [...]

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2013: Five Top Healthcare Trends –An Entrepreneur’s Take

Healthcare Matters would like to welcome the following guest post from Melissa Thompson, CEO of Talk Session, an online counseling platform that will soon connect users with  professionals for on-demand, mobile therapy. Melissa offers her opinions on five trends that will dominate the healthcare front in 2013. We know where the analysts stand, so let’s consider an entrepreneur’s take.  Despite the regulatory difficulties, 2013 will surely be an exciting year for healthcare. We will see an increase in self-management and collaboration.  We will see an influx of innovation in mainstream health-related consumer products, data will be more readily available, and [...]

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Blues: Seeking Answers to Difficult Questions

Healthcare Matters would like to welcome the following guest post from David McCament, ISG’s Healthcare Vertical and Information Services Group Director. ISG is a research, consulting and managed service firm. In today’s dynamic healthcare environment, the regional Blues face uncertainty and a slew of difficult business challenges. First off, many still lag significantly in terms of operational efficiency and lack even basic levels of process and sourcing maturity. Many others face the additional task of rationalizing myriad administrative systems.  And among those who recognize the issues, many do not have the institutional knowledge or experience to make the appropriate changes [...]

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Apple Shares Dip Below $500… Time to Buy?

Apple shares fell as low as $483.80 during this morning’s session, with the stock trading at $484.10, a decline of $17.65, or 3.5 percent. For the second consecutive day, Apple faces the prospect of closing lower than $500. The company has been in a freefall since introducing the iPhone 5. Although Apple hit an all-time high of $705.07 the day the iPhone 5 launched, it’s been nothing but a long slide downward since then –down 28.8 percent through Monday’s session. The latest news that the company has cut back on component orders for the iPhone 5 is said to be [...]

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Baxter Acquires Gambro AB –Renal Supply Markets Further Consolidate

Baxter International announced today that it would buy privately held Swedish dialysis product company Gambro AB for about $4 billion ($2.8 billion in cash plus debt) to complement its kidney therapy portfolio. Baxter will finance the deal, which it valued at $26.5 billion Swedish kroner. Baxter reported cash reserves of $3.2 billion as of Sept. 30, and posted a $2.2 billion profit last year on revenue of $13.9 billion, so its pockets are plenty deep. The Gambro acquisition will round out Baxter’s renal business, which accounted for almost one-fifth of the company’s 2011 revenue of $13.89 billion. Gambro was founded [...]

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