Healthcare mergers and acquisitions are in no short supply as providers, health tech companies, payers and other industry players look to expand their businesses and gain a competitive edge. Here’s a roundup of new deals that were revealed, closed, rumored or called off during the month of August.
Providers
InterWell Health completed a three-way merger with Fresenius Health Partners and Cricket Health to create a value-based kidney care powerhouse valued at $2.4 billion. The deal, initially announced in March, combines InterWell’s network of more than 1,600 nephrologists, Fresenius’ kidney care contracting expertise and Cricket’s patient engagement platform. The combined company says it’s on track for $11 billion in costs under management by 2025.
Ochsner Health has wrapped up a planned merger that sees Rush Health Systems rebranded as Ochsner Rush Health. First announced in June 2021, the deal adds seven hospitals and more than 30 clinics in eastern Mississippi and western Alabama to Ochsner, already the largest health system in the Gulf South region. The deal comes with patient access expansions for those living in Rush’s communities as well as a $1.5 million commitment to increase the system’s minimum wage to $12 per hour, Ochsner said.
Walgreens Boots Alliance wrapped up its $330 million majority stake investment in post-acute and home healthcare company CareCentrix. The drugstore retail giant had announced the deal in October as part of a broader focus on consumer-centric and tech-enabled care. Walgreens now holds a 55% stake in the company at an $800 million valuation, with an option to raise that stake in the future.
RWJBarnabas Health sold off its outreach laboratory business and some related assets to Labcorp for an undisclosed sum. The two organizations will maintain a partnership for several lab tests and services, with Labcorp promising reduced out-of-pocket lab costs and enhanced service in rural markets.
Temple University Health System, Redeemer Health and the Philadelphia College of Osteopathic Medicine banded together for an agreement to purchase Chestnut Hill Hospital from Tower Health, according to The Philadelphia Inquirer. Temple will take the majority share with 60% ownership, while the other two nonprofits claim 20% each. The deal is expected to close before year-end. Other terms were not disclosed or reported.
Northwest Specialty Hospital in Idaho was acquired by Hammes Partners, an investment management firm that focuses on the U.S. healthcare real estate market, for $67.5 million.
ChristianaCare Health System and Prospect Medical Holdings called off negotiations surrounding the purchase of four-hospital Pennsylvania health system Crozer Health. The organizations had signed a letter of intent to explore a deal back in February with no terms discussed at the time.
Payers
Humana announced it will acquire Wisconsin managed care plan Inclusa in a bid to bulk up its Medicaid services. The organization offers long-term care coverage and supports 16,600 older adults and adults with disabilities participating in Wisconsin’s Family Care program. Terms of the deal were not disclosed.
Humana also announced this month that it has wrapped up a previously announced transaction to divest its majority interest in certain Kindred at Home divisions to private investment firm Clayton, Dubilier & Rice. Those hospice and personal care segments have now been restructured into a new standalone company. Other terms of the deal were not disclosed.
Health Care Service Corporation signed a definitive agreement to acquire third-party benefits administrator Trustmark Health Benefits from Trustco Holdings for an undisclosed sum. The deal would bulk up HCSC’s ability to provide customizable, flexible benefit solutions to a broader swath of customers. Trustmark Health Benefits will continue to support its existing employer clients and members upon the deal's close, which is expected later this year pending regulatory approval.
Tech
Signify Health's shares skyrocketed over reports that major names like Amazon, UnitedHealth Group and Option Care Health are eyeing up the home health tech and services provider. Signify is reportedly expecting bids to land around Labor Day valuing the company north of $8 billion. CVS Health was also reported earlier in the month to be in the running to take over Signify Health.
Akili Interactive, the maker of video-game-like prescription digital therapeutics for children with ADHD, went public via a reverse merger with special purpose acquisition company Social Capital Suvretta Holdings Corp. I. Akili raised more than $163 million from the deal prior to transaction expenses and advisory fees. Akili said the funds along with cash on hand (but excluding revenues from its lead product) should be enough to fund operations for at least two years.
Syntellis Performance Solutions, a provider of healthcare performance management software, data and intelligence offerings, acquired healthcare market intelligence and data analytics firm Stratasan. Terms of the deal, first announced in July, were not disclosed. Syntellis said it plans to incorporate the Stratasan team and platform into its suite of products and “create the industry’s most robust set of tools designed to help providers and other healthcare organizations strategically determine where, when and how to grow.”
Zelis, a healthcare payments company, unveiled plans to acquire reimbursement and claims pricing, administration and processing solutions provider Payer Compass for an undisclosed sum. Zelis said it would integrate Payer Compass into its existing offerings to help its insurer clients and their members better navigate care payments. The deal is expected to close in the third quarter.
Recuro Health, a virtual health company, acquired Competitive Health to build out the integrated benefits component of its Digital Medical Home platform. Competitive Health has developed a suite of digital cost reduction and employer engagement products for employers. Terms of the deal were not disclosed.