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 March.
Provider
Fresenius Health Partners, Cricket Health and InterWell Health unveiled plans to form a value-based care company specializing in early-stage kidney disease services. The resulting entity—a combination of contracting expertise, a network of nephrologists and a tech-enabled care model—will operate under the InterWell Health brand and would be valued at $2.4 billion. Pending regulatory review, it is expected to close in the second half of 2022.
Hackensack Meridian Health and Englewood Health’s bid to merge faced another setback after a U.S. Court of Appeals panel reaffirmed the Federal Trade Commission's opposition to the deal. First announced in late 2019, the addition of Englewood Hospital, its physician network and a charitable foundation to New Jersey’s largest hospital system has raised flags among those concerned about competition in Bergen County, New Jersey.
Mon Health System and Charleston Area Medical Center Health System signed a letter of intent to merge into a single five-hospital organization. The joint organization intends to operate under the umbrella brand “Vandalia Health.” The systems said they will be filing for a certificate of need with the West Virginia Health Care Authority on April 15 and hope to close their transaction “as soon as possible.”
Piedmont Healthcare wrapped up its acquisition of north Georgia-based University Health Care System. First announced during the summer of 2021, the acquisition adds three hospitals to the larger system and shores up its presence in the greater Augusta, Georgia, area.
Atlantic Health System acquired seven Immediate Care urgent care locations. The sites, which were also partially owned by CentraState Healthcare System, are located across four New Jersey counties.
Hackensack Meridian Health announced the signing of a definitive agreement to transfer ownership of “the majority” of its long-term care facilities to Complete Care. Terms of the deal were not disclosed, although the organizations said they will maintain a care collaboration relationship upon closing “to ensure the delivery of quality care for hospital patients and residents that is clinically integrated through the care continuum.”
Exeter Health Resources has signed a letter of intent with Beth Israel Lahey Health to explore joining the Massachusetts system. Exeter, which includes a hospital, physicians group and visiting nurse/hospice association, said it chose Beth Israel after exploring similar relationships with other organizations across the broader New England region. The deal is now awaiting review from Massachusetts and New Hampshire regulators.
Payer
UnitedHealth Group announced it would acquire home healthcare provider LHC Group for $170 per share in cash, roughly $5.4 billion in total. With the deal’s anticipated close during the second half of 2022, UnitedHealth will fold LHC into its Optum subsidiary as part of its Optum Health arm, which is one of the country's largest employers of physicians. LHC Group includes some 30,000 employees who provide more than 12 million in-home services each year.
UnitedHealth Group’s Optum was also reported to have quietly acquired Refresh Mental Health from private equity firm Kelso & Company for an undisclosed sum. The latter’s 300 behavioral health locations would give Optum a greater foothold in the growing space.
Tech
Thomas H. Lee Partners, a private equity firm, is planning to purchase healthcare data enablement company Intelligent Medical Objects in a $1.5 billion deal. The software company is nearly 30 years old and manages more than 5 million clinical terms and maps to all major coding systems. The acquisition would be an exit for owner Warburg Pincus six years into the firm’s investment and values the Illinois company above its $1.5 billion price tag.
Signify Health, a value-based care platform, wrapped up its recently announced acquisition of accountable care organization builder Caravan Health for $250 million. The combined companies contract with more than 3,200 health systems and physician group practices and 10,000 primary care physicians to cover more than 500,000 lives with approximately $10 billion in total medical spend under management. Integrated together, the companies will aim to help providers manage larger populations with value-based arrangements and better coordinate care. The acquisition creates a large national network of providers including physicians, nurse practitioners and licensed social care workers that will reach more than 2 million homes this year.
GoodRx has agreed to acquire vitaCare Prescription Services from TherapeuticsMD for $150 million in cash, with an additional $7 million consideration contingent on 2023 financial performance. The deal, expected to close midway through 2022, would bring VitaCare’s patient-facing prescription filling platform to GoodRx’s prescription drug price tracking and couponing app.
Ro announced the acquisition of sperm testing, analysis and storage kit provider Dadi for an undisclosed sum. The consumer telehealth company will be rebranding the kits under the Ro name and selling each at $199 and above.
Symplr unveiled plans to purchase medical supply chain management software company GreenLight Medical as “a natural complement to [its] healthcare operations portfolio." The companies did not disclose the terms of the deal.
LetsGetChecked, an at-home diagnostics company, is acquiring Veritas Genetics and Veritas Intercontinental for an undisclosed sum. LetsGetChecked said the purchase will help bring genetics-focused offerings to its platform and virtual offerings. The deal is expected to close in the first quarter of this year.