Healthcare mergers and acquisitions are not in short supply as providers, payers, health technology companies, retailers and other industry players look to expand their businesses and gain a competitive advantage. Here's a rundown of new deals revealed, closed, rumored or canceled during November.
Providers
Sanford Health and Fairview Health Services unveiled plans to merge and create a 58-hospital giant that will serve rural and urban patients across the Midwest. The nonprofits said they expect the deal to close sometime next year pending due diligence and regulatory approvals. Under the current proposal, the organizations based in South Dakota and Minnesota would each retain their own regional presence, leadership and regional boards, but would operate as a single integrated system under the Sanford Health brand.
VillageMD announced plans to spend $8.9 billion Top health, the parent company of the emergency clinic chain CityMD. The deal is funded in part by investments from VillageMD's majority owner, Walgreens Boots Alliance, as well as Cigna's Evernorth healthcare unit, which will become a minority owner. Together, VillageMD and Summit Health will operate more than 680 provider locations in 26 markets while employing 20,000 people.
Bellin Health and Gundersen Health System closed the “merger of equals” of their 11 hospitals in late November. The new organization is based in dual Wisconsin headquarters, but is expanding into Upper Michigan, southeastern Minnesota and northeastern Iowa. It employs more than 14,000 people and has more than $2.4 billion in annual revenue.
Butler Health System and Excela Health entered into a definitive agreement on the five-hospital merger discussed earlier this year. The deal will create a system that will generate more than $1 billion in revenue and employ 7,300 people. Pending approvals from state and federal regulators, the Pennsylvania systems expect to close their deal by the end of the year.
UnityPoint Health has signed an agreement to deliver three Illinois hospitals and related care facilities to nearby Carle Health. The integrated network includes more than 850 general practitioners and employs nearly 5,000 people. The systems deal is set to close on April 1 pending regulatory approvals, although other financial terms were not disclosed.
Pipeline Health System has received approval from the U.S. Bankruptcy Court to sell two of its Chicago hospitals—Weiss Memorial Hospital and West Suburban Medical Center—to Resilience Healthcare and Ramco Healthcare Holdings. Resilience took over operations of the centers Dec. 3.
Hill Country Memorial HospitalThe company's board voted unanimously to join Methodist Healthcare, marking the Texas system's ninth hospital. The new addition has approximately 600 employees and 226 medical staff and a total of 15 locations. The deal is set to close in early 2023.
Payers
UnitedHealth Group Health Change The takeover may be closed, but federal regulators have not given up their opposition to the deal. The Justice Department issued a notice of appeal, saying it would take the case to the D.C. District Court and adding New York and Minnesota to the legal challenge. UnitedHealth Group said the claim is “without merit” in a statement to Fierce Healthcare.
Elevance Health (formerly Anthem) has entered into an agreement with CarepathRx to collect BioPlus, which offers a range of specialty pharmacy options for patients with chronic conditions including cancer, multiple sclerosis, autoimmune diseases and hepatitis C. BioPlus will be folded into Elevance's pharmacy benefit management division, IngenioRx, and will help payer meet better the whole person special drug needs of its members. The deal is expected to close in the first half of 2023.
Centene agreed to sell Magellan Specialty Health to Evolent Health, which provides utilization management tools to insurers. Centene expects to raise a total of $750 million from its deal, which will include a multi-year partnership that will allow the state-owned insurer to expand and leverage its work with Magellan Specialty.
CareMaxa provider of technology-enabled value-based care aimed at seniors, has completed an acquisition Steward Health SystemMedicare's value-based care business. Announced over the summer, the deal expands CareMax's network to approximately 2,000 providers and more than 200,000 senior value-based care patients, among other expansions.
Blue Cross and Blue Shield of Minnesota is selling its home health subsidiary Livio Health to Lifespark. The Minnesota-based healthcare company will integrate all of Livio's operations and employees into its current offerings. Financial terms were not disclosed, although BCBSM's parent company has secured a minority stake in Lifespark through an additional cash investment.
Tech
Amwell is reported to be in talks to potentially acquire an online therapy company Speech space for $200 million, according to a late November report by the Israeli business publication Calcalist. The latter went public through a SPAC merger last year in a deal that valued the company at $1.4 billion. Neither company has commented on the rumours.
Wheel has bought GoodRxback-end virtual care technology in a $19.5 million cash deal. The all-in-one virtual care platform will take and integrate GoodRx Care's clinician-centric electronic medical record system, clinical management tools and patient experience software. Wheel expects its deal to accelerate growth in new markets while expanding its ongoing partnership with the drug discount app through a multi-year agreement. GoodRx still owns the GoodRx Care consumer website and mobile app and will continue to provide its consumers with access to telehealth services using Wheel's technology and staffing service.
SonderMinda digital mental health provider, has acquired a mental health monitoring and support platform Whole brain for an unknown amount. It plans to integrate Total Brain's offering into its own therapy platform so therapists and patients can better understand thought patterns, triggers and the effectiveness of treatment plans. It also plans to use data collected through Total Brain to better inform patient-provider matches.
CNSIhealth information technology manufacturer, and Kepro, a provider of technology-enabled care management, quality assurance and clinical evaluation services, has revealed plans to merge. The new company will focus on helping government-funded health care providers and payers expand access, improve care and reduce costs through its combined offerings. The deal is expected to close in 2022 and will be followed by a rebrand in early 2023.
