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December 19, 2023

New Antitrust Merger Guidelines The Federal Trade Commission (FTC) and the Department of Justice (DOJ) finalized new guidelines for mergers and acquisitions. They are not legally binding.  Each deal would receive an assessment based on the uniqueness of the parties and merger. The guidelines give health plans, hospitals, and others in healthcare a look into the decision-making process to determine consistency with antitrust rules. The guidelines and greater scrutiny fulfill a Biden administration pledge and come from an executive order.  FTC release here: https://www.ftc.gov/news-events/news/press-releases/2023/12/federal-trade-commission-justice-department-release-2023-merger-guidelines . Additional article here: https://www.healthcaredive.com/news/ftc-doj-final-merger-guidelines-healthcare/702897/ At the same time, two hospital entities called off their merger after challenges from the FTC and state of California regulators: https://www.fiercehealthcare.com/providers/john-muir-health-tenet-healthcare-nix-143m-hospital-deal-after-regulatory-pushback Overall, the scrutiny is good, especially on provider proposals, as most mergers lead to higher costs. #ftc #doj #mergers #acquisitions #antitrust #hospitals #healthplans Link to Article DOJ Seeks To Stall RADV Lawsuit The Department of Justice (DOJ) is urging

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December 18, 2023

More “Retail Meets Healthcare” Investments Kroger is piloting value-based primary care clinics like many other retailers. The grocery chain will team up with Better Health Group, a provider network, to build out primary care centers.  Kroger in-store clinics will be replaced. There is a senior focus. Walgreens is pulling back on its clinic investments.  So, retail healthcare is not without its risks but will continue to grow. #retailhealthcare #kroger Link to Article Molina Reduces Bright Payment for Medicare Advantage Business After diligence, Molina Healthcare will cut how much it will pay for Bright Health Group’s California Medicare Advantage plans to $425 million, from $600 million. Molina did not specify in a news release Monday why it reduced the agreed-upon purchase price by 16.7% from $600 million gross/$510 million net.  This is more bad news for the insurtech world, which has seen stunning reversals.  (Article may require a subscription.) #brighthealth #molina

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December 15, 2023

Elevance Health and HCSC Looking At Cigna Medicare Reports suggest Elevance Health and Health Care Service Corporation (HCSC) are looking at acquiring Cigna’s Medicare Advantage (MA) lives. Cigna has just over 600,000 Medicare Advantage lives, but has had lower Star ratings than desired. HCSC has just 180,000 MA lives and would love to acquire a bigger footprint. Elevance Health has just over 2 million lives and is trying to grow Medicare as well. In 2021, Elevance acquired MMM’s almost 300,000 lives in Puerto Rico to help with organic growth. #elevancehealth #hcsc #cigna #medicareadvantage #mergers #acquisitions Link to Article BCBSLA Could Be Acquired by Elevance Health At the same time, Elevance Health may acquire BCBSLA after pausing the process earlier this year. This is based on revised regulatory activity. Elevance Health is the largest for-profit owner of Blue Cross and Blue Shield plans, with 14 states nationwide. Additional article here: https://www.modernhealthcare.com/mergers-acquisitions/elevance-health-blue-cross-louisiana-merger-acquisition

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