Mergers & Acquisitions

The healthcare industry sees a lot of consolidation between both vendors and healthcare providers this channel tracks mergers and acquisitions between large healthcare systems, community hospitals, private practices, vendors and private equity investors. Health systems have been growing in size substantially in the past decade with mergers with smaller healthcare systems and hospitals. This is largely due to the need to be more efficient amid lower reimbursements and rising costs by building an economy of scale in a larger health system. On the vendor side, mergers have become a common way to reduce research and development costs by purchasing intellectual rights for new technologies, or to purchased companies with new technologies that already have regulatory market clearance. 

Walgreens in talks for private equity buyout, sources say

The struggling pharmacy chain is reportedly in talks for a sale to Sycamore Partners, a New York-based firm that specializes in consumer retail companies. 

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Cardinal Health scoops up two companies for $3.9B

Cardinal Health is buying Advanced Diabetes Supply Group and a majority stake in GI Alliance, expanding its broad patient services portfolio. 

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UnitedHealth defends $3.3B Amedisys acquisition

UnitedHealth subsidiary Optum is turning to the court of public opinion to defend the merger. 

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DOJ sues to block UnitedHealth’s $3.3B acquisition of home health giant

The DOJ met with UnitedHealth execs in an attempt to resolve antitrust concerns out of court, but those talks stalled, a report claims. 

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Private equity firm to buy Summa Health for $485M

HATco, part of General Catalyst, is set to purchase the Ohio-based health system, which currently has roughly $850 million in debt on its balance sheet. 

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Private equity firm to buy medical software company for $1.1B

Private equity investor Francisco Partners is purchasing AdvancedMD, a Utah-based EHR vendor that specializes in servicing small provider practices.

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Stewardship Health sale to private equity finalized for $245M

The physician group, once part of Steward Health Care, has been rebranded as Revere Medical.

Las Vegas

HLTH24 in Las Vegas: Highlighted news and announcements

The popular annual conference that brings in diverse healthcare professionals from all over the world is wrapping up. Here are some of the big announcements.

Around the web

The tirzepatide shortage that first began in 2022 has been resolved. Drug companies distributing compounded versions of the popular drug now have two to three more months to distribute their remaining supply.

The 24 members of the House Task Force on AI—12 reps from each party—have posted a 253-page report detailing their bipartisan vision for encouraging innovation while minimizing risks. 

Merck sent Hansoh Pharma, a Chinese biopharmaceutical company, an upfront payment of $112 million to license a new investigational GLP-1 receptor agonist. There could be many more payments to come if certain milestones are met.