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. 

Business Handshake

Elevance to acquire Kroger’s specialty pharmacy biz

Kroger’s specialty pharmacy helped patients with rheumatoid arthritis, growth hormone deficiencies, multiple sclerosis and bleeding disorders. The company says in-store retail pharmacies would not be included in the transaction. 

March 20, 2024
Hypertension patients measured their blood pressure less frequently during the early months of the COVID-19 pandemic, according to new research published in Hypertension. In addition, when those patients did measure their blood pressure, the readings were less healthy than they had been before the pandemic.

Siemens to close Fast Track Diagnostics by end of year

Fast Track Diagnostics produced Siemens’s SARS-CoV-2 Assay test kits early in the Covid-19 pandemic, but a decline in testing demand from the peak of the pandemic led to the decision to shutter the unit.

March 20, 2024
physician money payments dollars

Doctors form new coalition focused on reducing private equity’s role in cardiology, other healthcare specialties

More than 5,000 U.S. physicians joined forces to launch the new group. They say they are focused on limiting private equity's involvement and influence in healthcare. 

March 18, 2024
private equity corporatization business consolidation

Most physicians think private equity is bad for healthcare

Just 10.5% of U.S. physicians said they view private equity ownership in healthcare in a positive light. 

March 13, 2024

Elevance closes on Paragon acquisition

While details of financial terms were not disclosed by the companies, a report from Axios pegged the deal at “well north of $1 billion.”

March 12, 2024
money business cash flow dollar. Kingsway Financial Services, a Chicago-based holding company with subsidiaries in several industries, has acquired New Jersey-based Digital Diagnostics Imaging (DDI) for $11 million. The transaction was funded with $5.4 million in cash and $5.6 million in debt financing.

Single private equity firms have majority control of dozens of specialty markets: study

Researchers remark that their findings “raise concerns about competition and call for closer scrutiny by the Federal Trade Commission, state regulators and policy makers.”

March 7, 2024
Healthcare M&A, mergers and acquisitions business deal.

Tenet sells 2 hospitals for $550M

Dallas-based Tenet Healthcare has announced it’s selling two of its San Luis Obispo County hospitals to Adventist Health.

February 29, 2024
healthcare money economics dollar stethoscope acquire merger

CHS could divest $1B in 2024

Tennessee-based Community Health Systems (CHS) signaled it will continue to downsize after announcing a loss of $133 million for 2023 in its earnings call last week.

February 27, 2024

Around the web

Half a year after President Biden officially directed federal agencies in the executive branch’s bailiwick to “seize the promise and manage the risks” of AI, the White House has posted a status report.

U.S. physicians often receive payments from medical device manufacturers and pharmaceutical companies. New research in JAMA found a connection between receiving such payments and using specific devices—should the industry be concerned? 

Five of the largest U.S. medical societies focused on cardiovascular health are one step closer to seeing their paradigm-shifting proposal become a reality.

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