6 payer M&A updates

These are six recent updates around payer mergers and acquisitions reported by Becker's since Jan. 12:

Elevance Health acquired BioPlus, a specialty pharmacy subsidiary of CarepathRx, for an undisclosed amount Feb. 15. BioPlus will operate as part of its pharmacy benefit manager, CarelonRx.

CVS Health said Feb. 8 it will acquire primary care company Oak Street Health in an all-cash deal worth $10.6 billion. Chicago-based Oak Street manages a value-based primary care network with more than 160 clinics in 21 states that primarily focus on Medicare beneficiaries.

UnitedHealth Group's acquisition of home health firm LHC Group is not expected to be challenged by the FTC, Seeking Alpha reported Jan. 31. In March 2022, Optum agreed to buy Lafayette, La.-based LHC in a $5.4 billion deal.

Elevance Health said Jan. 23 it plans to acquire BCBS Louisiana for an undisclosed amount, adding 1.6 million members and $4.5 billion in revenue to the company.

Centene completed its divestiture of Magellan Specialty Health to healthcare administration company Evolent Health Jan. 23. Centene received $660 million in closing costs and will receive $150 million in cash and Evolent common stock in 2024 if certain performance metrics are achieved. 

Sentara Healthcare finalized its acquisition of nonprofit health plan AvMed Jan. 12. Miami-based AvMed provides individual and group commercial plans and Medicare Advantage to more than 200,000 members. The purchase increases Sentara's health plan membership to nearly 1.2 million.

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