7 recent payer M&A updates

From the merging of two payers to multibillion-dollar acquisitions, these are seven M&A updates involving payers reported by Becker's since Nov. 17:

  • CVS Health is in talks with Oak Street Health, which runs primary care centers for Medicare recipients, about a possible acquisition that would value the company at more than $10 billion, Bloomberg reported Jan. 9. 

  • VillageMD, which is majority owned by Walgreens Boots Alliance, completed its acquisition of Summit Health-CityMD Jan. 3. Evernorth, the health services portfolio of Cigna, inked a minority stake in the new group.

  • BCBS Michigan subsidiary AF Group completed its purchase of Southfield, Mich.-based AmeriTrust Group for an undisclosed amount on Jan. 3. AF purchased the company from Chinese conglomerate Fosun.

  • United Health Group's acquisition of home-health firm LHC Group will now likely be finalized in the first quarter of 2023, according to an LHC filing with the SEC. The agreement was extended until March 28. Optum agreed to buy Lafayette, La.-based LHC in early 2022 for $5.4 billion.

  • SCAN Group and CareOregon said Dec. 14 they plan to combine under the name HealthRight Group, pending regulatory approval. The new combined nonprofit will serve 800,000 members in Medicare and Medicaid managed care and have combined revenues of $6.8 billion.

  • Centene finalized its divestiture of PBM MagellanRx to Prime Therapeutics, the company said Dec. 5. The payer said the sales of MagellanRx and specialty pharmacy PantherRx Rare were worth $2.8 billion combined. Prime Therapeutics is owned by 19 BCBS companies. Centene is also selling Magellan Specialty Health to healthcare administration company Evolent Health in a deal worth up to $750 million. 

  • Centene said Nov. 17 it completed the sale of its Spanish and central European businesses to Vivalto Santé, a French private hospital group. 


Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Top 40 articles from the past 6 months