Global Healthcare Advisors’ M&A Database


Our proprietary platform provides market intelligence on M&A deals, notable developments and regulatory changes pertinent to our clients.

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Showing results 1 through 50 of 9072

Website
Vertical
Category
QTR
Year
Summary
Healthcare Staffing
Deal
Q2
2020
LLR Partners today announced an investment in TrueLearn, a provider of online test preparation and data analytics to healthcare education and training institutions. The capital will be used to help accelerate the company's organic growth in existing market verticals, fund expansion into new healthcare markets and pursue strategic acquisitions. Founded by Dr. Joshua Courtney in 2008, TrueLearn empowers the next generation of healthcare professionals to perform at their highest levels, both in the classroom and on high-stakes licensure exams. The company has supported tens of thousands of young physicians and healthcare professionals who have used TrueLearn to achieve their career goals in medicine.
Diagnostics
Deal
Q2
2020
OraSure Technologies, Inc. (NASDAQ: OSUR), a leader in point of care diagnostic tests and specimen collection and stabilization devices, and microbiome laboratory and analytical services, today announced that it has entered into a definitive agreement to acquire privately owned UrSure, Inc. ("UrSure") for cash. Based in Boston, UrSure is developing and commercializing products that measure adherence to HIV medications including pre-exposure prophylaxis or PrEP, the daily medication to prevent HIV. This includes laboratory-based tests that can measure levels of the medication in a patient's urine or blood, as well as several additional point of care products in development. These products will allow healthcare professionals to assess patient adherence and determine with accuracy if the medication has not been taken as prescribed. PrEP has been shown to be 99 percent effective at preventing HIV infection when taken daily, adding another tool to help ensure that patients stay healthy.
Digital Health / Health Tech, Pharmacy
Deal
Q2
2020
Fusion Health announced that it has completed its acquisition of 100% voting and non-voting shares of Kalos, Inc. Kalos, a leader in pharmacy management solutions, is located in Topeka, Kansas. The company is nationally recognized for its proven software in retail pharmacies, universities, and correctional facilities. Fusion Health is an industry leader in Electronic Health Records (EHR) within the corrections industry as well as other government run agencies. Recognized by .INC as one of the fastest growing private companies in the United States for the past three years, Fusion's acquisition of Kalos will allow for its expansion and diversification in its markets and product offerings.
Life Sciences
Deal
Q2
2020
Chondrial Therapeutics, Inc., a clinical-stage biotechnology company focused on developing treatments for complex rare diseases, today announced the completion of its reverse merger with Zafgen, Inc. (Nasdaq:ZFGN). The combined, publicly traded clinical-stage biotechnology company will operate under the name Larimar Therapeutics, Inc. and its shares will commence trading on the Nasdaq Global Market on May 29, 2020, under the ticker symbol "LRMR." The combined company also announced it has secured funding commitments in a private placement financing of common stock (or pre-funded warrants to purchase common stock in lieu thereof) for $80 million of gross proceeds before placement agent fees and expenses. The financing is being led by Cowen Healthcare Investments, and includes participation from biotechnology specialist funds Acuta Capital, funds managed by Janus Henderson Investors, Logos Capital, OrbiMed, RA Capital Management, and Vivo Capital, along with other healthcare-focused institutional investors.
Hospitals & Health Systems
Deal
Q2
2020
Summa Health and Beaumont Health are ending their partnership plans nearly a year after the two announced they were working together to bring Summa into the Michigan-based Beaumont system, the two announced Friday, May 29. This comes after they put their partnership process on hold in late April as they focused on COVID-19. Summa and Beaumont are now finalizing details to end the planned partnership. The organizations signed a letter of intent last July and a definitive agreement in December. They later received all necessary state and federal regulatory approvals, according to a joint media statement from the two systems. "Throughout this process, each of the organizations has continued to operate independently, and each will continue to focus on providing exceptional health care services for their respective markets," a joint media statement from the two organizations said. "Both Beaumont Health and Summa Health value the support that each organization has received from their employees, physicians and communities throughout this process and will continue to work to meet their needs moving forward."
Pharmaceuticals & Biopharmaceuticals
Deal
Q2
2020
AcelRx Pharmaceuticals, Inc. (AcelRx) (Nasdaq: ACRX), a specialty pharmaceutical company focused on the development and commercialization of innovative therapies for use in medically supervised settings, today announced the execution of an amendment to its merger agreement to acquire Tetraphase Pharmaceuticals, Inc. (Tetraphase) (NASDAQ: TTPH), with revised consideration of $37.0 million in stock and cash based on the AcelRx closing share price on May 28, 2020, plus up to $16.0 million in contingent value rights (CVRs) payable in cash. The total consideration payable to Tetraphase stockholders and warrant holders includes AcelRx stock valued at $24.2 million, based upon the closing share price of AcelRx stock of $1.50 on May 28, 2020, plus $12.8 million in cash.
Industry Trends
Notable Developments
Q2
2020
One of the most common phrases in U.S. healthcare in the past few years has been this one: "one foot in the boat, one on the shore," or, alternatively, "one foot in the boat, one on the dock." Either way, the idea is that the leaders of patient care organizations - hospitals, medical groups, and health systems - are having to adapt to a split-screen payment landscape, in which they will continue to receive a significant portion of their reimbursement in the form of discounted fee-for-service payment, even as they move ahead into value-based reimbursement, via such vehicles as accountable care organizations (ACOs), bundled payments, and other incentive-based forms of payment, with the federal government through the Medicare program, with state governments through Medicaid managed care programs, and with private health plans. Now, with the COVID-19 pandemic creating massive shocks to the U.S. healthcare system, some of the forward march of value-based payment systems has slowed at least somewhat.
Durable Medical Equipment
Notable Developments
Q2
2020
The continued private equity support behind one well-performing public company is another sign that people are getting over the durable-medical-equipment sector's historically tainted reputation. AdaptHealth, formerly QMES, has long flown under the radar, but the company has been scaling quickly with an aggressive M&A playbook: 65 closed acquisitions since 2012, as of January... not bad. All this while PE attention in DME has ramped up. The result? Healthcare sponsors have taken notice.
Healthcare Information Technology
Notable Developments
Q2
2020
Based on its recent partnerships and moves in the digital health, tech market intelligence platform CB Insights ventured to predict where the tech giant could go next in a new report.
Oncology
Notable Developments
Q2
2020
Despite facing challenges such as limited access to personal protective equipment (PPE) following the COVID-19 outbreak, radiation oncology clinics quickly implemented safety and process enhancements that allowed them to continue caring for cancer patients, according to a national survey from the American Society for Radiation Oncology (ASTRO). However, the vast majority (85%) of the respondents said that their practices were seeing fewer patients, with an average dropoff of about a third from the normal volume. The majority of practices experienced staff reductions, due mainly to declines in patient volume (49%) and increased family care responsibilities (28%), according to the survey. Relatively few (11%) had reductions due to COVID-19 illness among staff members.
Healthcare Information Technology
Deal
Q2
2020
Sunstone Partners, a growth equity investment firm focused on tech enabled services and software companies, has invested in Med Tech Solutions ("MTS"), a leading national healthcare information technology company that offers enterprise-level technology services, private and public cloud services, security and compliance services, application support services, and 7x24 end user support. Sunstone's investment will empower MTS with significant resources to continue to accelerate growth, expand service offerings and further enhance service delivery, and will drive forward MTS' mission to deliver innovative technology solutions that empower clients to focus on delivery of exceptional patient care.
Primary Care
Deal
Q2
2020
Memorial Healthcare System has acquired Broward Guardian, a Medicare accountable care organization (ACO) composed of mostly primary care physicians in South Florida. This acquisition allows Memorial to support the continued development of a vibrant network of community-based, primary care physicians to coordinate care for Medicare patients, while providing physicians the necessary resources to become successful in the emerging value-based healthcare model. With Memorial's full operational support, Broward Guardian is poised to expand its network of participating primary care physicians across South Florida, helping the community based, independent physicians strengthen their own practices and focus on a population health approach.
Pharmaceuticals & Biopharmaceuticals
Deal
Q2
2020
Gaithersburg, Maryland-based Novavax, whose experimental COVID-19 vaccine is now in limited human trials, has acquired Praha Vaccines A.S., gaining its biologics manufacturing facility in Bohumil, Czech Republic, for $167 million. Novavax said the facility could provide an annual capacity of more than 1 billion doses of its NVX-CoV2372 vaccine beginning next year. Novavax's vaccine candidate showed promising results in animal studies this spring. It is currently testing the vaccine with 130 humans in Australia and expects to report results in July. If promising, Phase 2 trials will be conducted in multiple countries, including the United States. "Manufacturing capacity is a critical component of our strategy to deliver a vaccine for the COVID-19 pandemic," said Novavax chief executive Stanley Erck. "This acquisition provides the vital assets required to produce more than 1 billion doses per year."
Healthcare Investors / Advisors
Notable Developments
Q2
2020
The 2019 novel coronavirus (COVID-19) pandemic continues to have a significant effect on American lives and businesses. The healthcare industry is no exception, and private equity funds and other strategic buyers that invest in the healthcare industry should be aware of key COVID-19-related trends and considerations regarding the acquisition or sale of healthcare businesses.
Home Health & Hospice
Notable Developments
Q2
2020
An international private equity fund that aims to make a social impact with its investments is now tying itself to home health care in the U.S. London-based Bridges Fund Management was started overseas in 2002. Now, its U.S. Sustainable Growth Fund is making its mark domestically as a lower- to middle-market private equity fund that provides capital, sector expertise and strategic support to management teams. Moving forward, Bridges is looking to grow a post-acute care platform company. Last week, it announced it had made an investment in Richmond, Virginia-based James River Home Health.
Home Health & Hospice
Notable Developments
Q2
2020
As the novel coronavirus pandemic continues disrupting the business of hospice, many providers anticipate a decrease in annual revenues for 2020, according to recent research by the National Association for Home Care & Hospice (NAHC). Among the contributing factors to revenue drops is a decline in hospice patient admissions and referrals amid the public health emergency. As the NAHC research found, 60% of the hospices surveyed anticipated a decrease in annual revenues due to the pandemic's pitfalls, "with just under 30% expecting a decrease of 15% or more" during calendar year 2020. Majority of the providers cited increased costs of supplying staff with personal protective equipment (PPE) as a driving force, with hospices calling for more federal funding of PPE supplies among increased costs and high demand.
Medical Devices, Surgical Centers / Facilities and Practices
Notable Developments
Q2
2020
The flight of joint replacements and other lucrative procedures from acute care hospitals to ambulatory surgery centers was happening before the COVID-19 pandemic, but the crisis may prove to accelerate the trend. "That shift was underway, but not very quickly: things never are in healthcare," said Tim van Biesen, head of Bain & Company's global healthcare practice. Some 5,700 ASCs in the U.S. carried out 23 million procedures in 2018, according to data cited by Bain last fall. The year prior, ASCs reportedly carried out more than half of all outpatient surgeries, versus having 32% share 15 years ago._ The specialized, lower-cost centers have been an apple of private equity's eye, and have allowed more business to be taken away from acute care hospitals in recent years as CMS has moved additional procedures off of its inpatient-only list. In the context of COVID-19, with many ASCs able to work through elective procedures sooner or at greater capacity than their hospital counterparts, the centers are all the more critical to the financial recovery of many medtechs and health systems alike.
Healthcare Investors / Advisors, OBGYN / Women's Health
Notable Developments
Q2
2020
So-called femtech startups bring technological solutions to problems related to women's health. In recent years, the focus and funding has landed on menstruation and fertility - with offerings ranging from organic tampons to egg freezing. Yet founders and investors say that menopause startups - much like the life stage itself - still largely face societal stigma. Across the world, these startups have raised $254 million to date since the start of 2009; femtech startups as a whole raised more than $498 million in 2019 alone, according to PitchBook data. Nonetheless, the opportunity can't be ignored given the vast market size: An estimated 1.1 billion women throughout the world will be postmenopausal by 2025, according to the North American Menopause Society. "Investors are starting to recognize that menopause is a massive market that's ripe for innovation," said Ann Garnier, founder and CEO of Lisa Health, which offers non-hormonal programs, like wellness exercises and a symptoms tracker, to help women entering menopause.
Industry Trends
Notable Developments
Q2
2020
As the coronavirus threat ramped up in March, hospitals, health systems and private practices dramatically reduced inpatient, nonemergency services to prepare for an influx of COVID-19 patients. A poll released Wednesday reveals that the emptiness of medical care centers may also reflect the choices patients made to delay care. The Kaiser Family Foundation poll found that 48% of Americans said they or a family member has skipped or delayed medical care because of the pandemic, and 11% of them said the person's condition worsened as a result of the delayed care.
Radiology
Notable Developments
Q2
2020
Radiology Associates of Richmond (RAR), one of the oldest, continuously operating private radiology practices in the United States, has aligned with the Strategic Radiology (SR) coalition of independent practices. RAR represents the first member from the state of Virginia to join the SR coalition, which has 28 member practices in 20 different states. The Richmond practice is highly subspecialized with 60 radiologists, provides interpretations and department leadership for two health systems, and offers community access to medical imaging and interventions through four outpatient centers and an outpatient vascular center.
Gastroenterology
Deal
Q2
2020
US Digestive Health ("US Digestive"), a management services organization created to expand access to high-quality, low-cost gastroenterology care, announced today that it has partnered with Carlisle Digestive Disease Associates ("Carlisle Digestive"), a gastroenterology practice in Carlisle, PA. Serving Central and Southeastern Pennsylvania, including the Greater Philadelphia region, US Digestive is rapidly advancing the delivery of digestive health services, bringing new insight into the evaluation, treatment, and prevention of digestive health disorders. Including its new partnership with Carlisle, US Digestive oversees a network of gastroenterology providers and services with 20 locations, 8 ambulatory surgery centers, 72 physicians, 30 advanced practice providers, and more than 500 total employees. US Digestive was formed in 2019 by Amulet Capital Partners, LP ("Amulet"), a healthcare private equity investment firm based in Greenwich, Connecticut, in partnership with member practice partner physicians.
Healthcare Supplies & Suppliers
Deal
Q2
2020
AdaptHealth Corp. (NASDAQ: AHCO) ("AdaptHealth" or the "Company"), a leading provider of home medical equipment, supplies and related services in the United States, announced Tuesday that it has entered into two separate definitive agreements to acquire San Diego, California based Solara Medical Supplies, LLC ("Solara") and Minneapolis, Minnesota based ActivStyle, Inc. ("ActivStyle"). Founded in 2002, Solara is the largest independent distributor of continuous glucose monitors ("CGM") in the United States and offers a comprehensive suite of direct-to-patient diabetes management supplies to patients throughout the country, including CGMs, insulin pumps and other diabetic supplies. Solara is currently owned by Linden Capital Partners, a leading healthcare-focused private investment firm. ActivStyle is a leading direct-to-consumer supply company that provides incontinence and urology products to patients throughout the United States. ActivStyle is currently owned by the Riverside Company.
Home Health & Hospice
Deal
Q2
2020
A Charleston, S.C.-based location of national aging services company Senior Helpers has acquired hospice provider Lowcountry Companions, also located in South Carolina. Financial terms of the deal were not disclosed. Senior Helpers, parent company to the Charleston location, is a portfolio company of Altaris Capital, a private equity firm which purchased the senior services company for $125 million in 2016. Senior Helpers operates using a franchise model. Their Charleston franchisee, rather than the parent company, completed the Lowcountry transaction. Lowcountry provides a range of services including hospice care, home health care and programs to address social determinants of health for seniors to allow them to age in place, including meals and some home maintenance among others. The company services the Mount Pleasant and Charleston, S.C.-regions.
Home Health & Hospice
Deal
Q2
2020
Bridges Fund Management announced its recent partnership with James River Home Healthcare, LLC, the sixth investment made by the Bridges U.S. Sustainable Growth Fund, LP. James River provides skilled home health and hospice care services to patients in the Richmond, Virginia metro market. The partnership with Bridges will be the first step in building a broader post-acute care platform in both Virginia and surrounding states. Expansion efforts will be realized through both acquisition and opening of new branch offices. James River's Founder and Chief Executive Officer, Shane Maley, will continue to lead company operations and is retaining a significant ownership stake in the business.
Diagnostics
Deal
Q2
2020
Coppe Healthcare Solutions (Coppe Laboratories), a CLIA Certified Laboratory based in Waukesha, Wisconsin, has acquired Open CoVIDx, the laboratory division of the Open Medicine Institute based in San Francisco Bay area of California. The CEO of Coppe Laboratories is Dr. Konstance Knox, the Virologist who previously co-founded what is now Viracor-Eurofins in the year 2000. Dr. Knox has expanded Coppe's testing footprint to serve 1,000 Doctor's Offices in the United States, and internationally with a Coppe run Laboratory at the new 5,000 bed Hamptons Hospital, under development at Mwale Medical and Technology City (MMTC) in Kenya. Open CoVIDx is a division of the Open Medicine Institute, founded by the current CEO, Dr. Andy Kogelnik. It has a 104,000 square foot facility in the biotech incubator at a former pharmaceutical campus in Mountain View, CA. The merger will become Coppe-Open CoVIDx Laboratories, and will combine the laboratory capacities of the two for a total of 1.5 million COVID-19 diagnostic tests per month, by end of June 2020.
Life Sciences
Deal
Q2
2020
Tetra Therapeutics announced Tuesday that it has entered into a definitive merger agreement for Shionogi & Co., Ltd. to acquire Tetra. With this acquisition, Shionogi will obtain global rights to Tetra's entire portfolio of compounds for the treatment of brain disorders associated with cognitive and memory deficits, notably BPN14770, a selective inhibitor of phosphodiesterase-4D (PDE4D). The two companies entered into a collaboration and investment agreement in 2018 and earlier this year announced an expanded alliance to develop and commercialize BPN14770 for the treatment of Alzheimer's disease (AD), Fragile X syndrome (FXS) and other indications. Currently, Tetra is conducting a Phase II study in FXS and recently completed a Phase II study in AD in the United States.
Life Sciences
Deal
Q2
2020
Merck (NYSE: MRK), known as MSD outside the United States and Canada, and Themis, a company focused on vaccines and immune-modulation therapies for infectious diseases and cancer, announced Tuesday that the companies have entered into a definitive agreement under which Merck, through a subsidiary, will acquire privately-held Themis. Themis has a broad pipeline of vaccine candidates and immune-modulatory therapies developed using its innovative measles virus vector platform based on a vector originally developed by scientists at the Institut Pasteur, a world-leading European vaccine research institute, and licensed exclusively to Themis for select viral indications. In March, Themis joined a consortium together with the Institut Pasteur and The Center for Vaccine Research at the University of Pittsburgh, supported by funding from the Coalition for Epidemic Preparedness Innovations (CEPI), to develop a vaccine candidate targeting SARS-CoV-2 for the prevention of COVID-19.
Life Sciences
Deal
Q2
2020
Sensei Biotherapeutics, Inc., a clinical-stage biopharmaceutical company developing precision immuno-oncology therapies, today announced the acquisition of Alvaxa Biosciences, Inc., a camelid antibody therapeutics company with technology licensed from Fred Hutchinson Cancer Research Center. Under the terms of the agreement, Sensei will acquire Alvaxa Biosciences and its existing camelid nanobody libraries, expertise in nanobody discovery, as well as its partnership with Hope Farms, LLC, a United States Department of Agriculture (USDA) licensed Alpaca farm, for the generation of future alpaca-derived nanobodies.
Life Sciences
Deal
Q2
2020
Histogen Inc. (NASDAQ: HSTO), a regenerative medicine company with a novel biological platform that replaces and regenerates tissues in the body, announced today the completion of its previously disclosed merger with Conatus Pharmaceuticals Inc. The combined company changed its name to Histogen Inc. and will focus on developing patented technologies that replace and regenerate tissues in the body. Histogen is expected to begin trading today, May 27, 2020, on The Nasdaq Capital Market under the ticker symbol "HSTO". The previous ticker symbol was "CNAT" (Nasdaq: CNAT). Histogen will maintain its headquarters in San Diego, California and will be led by President and Chief Executive Officer, Richard W. Pascoe.
Medical Devices, Orthotics & Prosthetics
Deal
Q2
2020
Conventus Orthopaedics, Inc. today announced it has completed the acquisition of Flower Orthopedics, the market leader in Ready-for-Surgery™ single use, sterile-packaged, implant and instrument kits. The state-of-the-art sterile FlowerCube™ system eliminates expensive set processing, which enables surgical facilities to complete back-to-back cases, enhance efficiencies, and maximize resources. In addition to a robust fixation portfolio, Flower's continuum of care also extends into the fast-growing wound care market for both orthopedic & podiatric surgeons.
Pharmaceuticals & Biopharmaceuticals
Deal
Q2
2020
Qualigen Therapeutics, Inc. (NASDAQ: QLGN) (Qualigen or the Company) (formerly known as Ritter Pharmaceuticals, Inc. and formerly traded under the symbol RTTR), has completed its previously announced merger transaction with Qualigen, Inc., a company focused on the development of novel therapeutic products for the treatment of cancer and infectious diseases, as well as the worldwide sales of its flagship FastPack¨ rapid diagnostic platform. The combined company will operate under the name Qualigen Therapeutics, Inc. pursuing the business of Qualigen, Inc., and the Company's common stock will commence trading on the Nasdaq Capital Market at the open of trading today under the ticker symbol QLGN.
Industry Trends
Notable Developments
Q2
2020
Health-care deals declined in April as the coronavirus pandemic has forced investors to delay or reconsider planned mergers and acquisitions. But transaction activity is expected to pick back up later this year as physicians and independent hospitals hard hit by canceled procedures look to partner with larger health systems to help relaunch their businesses, analysts say. Many independent hospitals and small health systems around the country are feeling the ill effects of having to postpone or delay elective procedures and other non-emergency services as a result of Covid-19, Gary Herschman, a member of Epstein Becker & Green in Newark, N.J., said. But merger and acquisition activity among independent hospitals is expected to rise sharply towards the second half of this year and into 2021, as they look to partner with larger health systems with substantial capital and advanced infrastructure to help them weather difficult times, he said. Physician groups across the country, who have similarly been devastated by Covid-19, will also be flocking to join larger organizationsÑsuch as hospital systems, national healthcare companies, and large platform groups backed by private equity investors," he said.
Digital Health / Health Tech
Notable Developments
Q2
2020
Central Logic, a software company that improves the management of patient transfers, is nearing a sale to an unknown private equity firm, according to three sources familiar with the sale process. The majority recapitalization is expected to value the Sandy, Utah-based company north of $100 million, two sources said. One said the company hoped to fetch between $110 million to $125 million. A third source placed annual recurring revenue at approximately $20 million.
Cardiovascular
Notable Developments
Q2
2020
COVID-19 put an abrupt stop to face-to-face clinical consults, structural interventions, elective procedures, cardiac rehab, and clinical trials. But as regions around the world take tentative steps to return to a new normal, many cardiologists are contemplating the short- and long-term impact of the pandemic. TCTMD spoke with 10 physicians across the cardiology spectrum to gauge how the health crisis caused by the SARS-CoV-2 virus may change care in the months and years ahead.
Primary Care
Notable Developments
Q2
2020
Primary care practices need new ways of being paid if they are going to survive and thrive in the wake of the COVID-19 pandemic, several speakers said last week during a webinar hosted by the Alliance for Health Policy. "Fee-for-service is simply not a system this is conducive or amendable to primary care being able to thrive and meet all of its opportunities and needs even in a normal day, and certainly not in a COVID day," Asaf Bitton, MD, executive director of Ariadne Labs in Boston, said on the webinar, which also was sponsored by the Commonwealth Fund and the National Institute for Health Care Management. "When visits get disrupted for any reason ... and combine that with the fact that the majority of primary care practices have low reserves or no reserves -- they often exist on a month-to-month basis and don't have that prospective form of predictable population-based payment -- that really puts them at risk of not being able to make it through this tumultuousness." Prior to the pandemic, a solution was being developed to this problem -- physician-based accountable care organizations (ACOs), said Sean Cavanaugh, MPH, chief administrative officer at Aledade, a company that helps practices set up ACOs.
Industry Trends
Notable Developments
Q2
2020
A group representing some of the largest U.S. employers has asked Congress for a year-long ban on mergers and acquisitions among hospitals and doctors groups that received government money to cope with the effects of the COVID-19 pandemic. The Pacific Business Group on Health, whose members include Boeing, Salesforce, Tesla, and Walmart, said in a letter addressed to congressional leaders this week that it feared that further consolidation in the healthcare industry could lead to higher costs. Physician practices' revenues have plummeted across the United States since shutdowns were imposed to stop the spread of the coronavirus, as patients stay home except for emergencies. Even before the pandemic, well-funded hospital systems were taking over smaller doctors groups and hospitals to increase market share. PBGH said it fears these larger players will be even better positioned to buy struggling practices coming out of the crisis, raising healthcare prices for employers. The group asked for a year-long M&A ban for any healthcare provider receiving any of the $170 billion government relief approved for the industry.
Hospitals & Health Systems
Notable Developments
Q2
2020
St. Elizabeth Healthcare is expanding its footprint to Southeast Indiana. St. Elizabeth and Highpoint Health have signed a Letter of Intent to integrate Highpoint Health in Greendale and its associated physician group into the St. Elizabeth system, officials announced Friday. Officials said the transition for Highpoint Health and Highpoint Health Physician Partners comes after financial struggles due to the coronavirus pandemic. "When Highpoint Health, like so many rural hospitals across the nation, began facing significant financial challenges from COVID-19, St. Elizabeth provided assistance to help stabilize the financial outlook for the system. Unfortunately, the significant financial strain made it impossible for Highpoint to recover," officials said.
Hospitals & Health Systems
Notable Developments
Q2
2020
The merger of four financially struggling Chicago South Side hospitals is off. The move comes after lawmakers approved revisions to the state's hospital assessment program, but left out a pool of about $500 million to help facilities across the state transform in an evolving industry. The South Side hospitals were banking on a significant piece of the pot. "After carefully evaluating the eleventh-hour shift in the legislation establishing the Hospital Transformation Fund, we have determined that we see no path forward for our project that would transform health care on the South Side and help address disparities in health for the patients we serve," the hospitals said in a letter to Illinois Department of Healthcare & Family Services Director Theresa Eagleson. "We have grave concerns about this development, and we believe this action will force hospital closures, cause further service cuts, and push access to care even further out of reach for the families we serve."
Medical Cannabis and Cannabinoids
Notable Developments
Q2
2020
Cresco Labs (CSE:CL) (OTCQX:CRLBF) ("Cresco" or "the Company"), one of the largest vertically integrated multi-state cannabis operators in the United States, announced Tuesday that it has entered into agreements with Verdant Creations, LLC and its affiliates (collectively "Verdant") that will give Cresco the option to purchase four additional Ohio dispensaries (the "Dispensaries") currently operated by Verdant (the "Transaction"). Completion of the Transaction is subject to approval by the Ohio Board of Pharmacy and, upon closing, Cresco will have a total of five dispensaries in Ohio Ð the maximum allowed by the State. Verdant currently operates dispensaries in Cincinnati, Chillicothe, Marion, Newark, and Columbus, Ohio. The Columbus location is not part of the Transaction.
Industry Trends
Regulatory
Q2
2020
As healthcare providers around the country struggle to respond to patient needs during the Covid-19 crisis, many are reportedly struggling financially as well. In the past, this scenario has led to an increase in merger and acquisition activity, and many healthcare analysts are predicting an increase in such activity for the second half of the year and into 2021. In light of this development, the California Legislature is considering a bill that would require the California Attorney General's pre-approval of most healthcare transactions in the state. Specifically, the bill, SB 977 (as amended on May 19), would require that when a healthcare system, private equity group, or hedge fund seeks to acquire or affiliate with a hospital or provider in the state, the parties must obtain the prior approval of the California Attorney General to do so.
Medicare / Medicaid
Regulatory
Q2
2020
The Centers for Medicare & Medicaid Services (CMS) announced Friday it has finalized changes to Medicare Advantage (MA) and Medicare Part D. The changes - detailed in a final rule for 2021 - partly seek to strengthen access to telehealth services, an increasingly important component of the health care system amid the ongoing coronavirus emergency. While the changes included in the rule do not directly focus on home health care providers, they could encourage greater telehealth adoption as a way of building more MA relationships, experts say. Specifically, Friday's rule gives MA plans more flexibility to count telehealth providers in certain specialty areas toward meeting CMS network adequacy standards. Examples of those specialty areas include dermatology, psychiatry, cardiology, primary care and more.
Regulatory
Q2
2020
Amid concerns about predatory acquisitions of weakened companies and strategic assets during the COVID_19 crisis, more and more countries are restricting foreign direct investment (FDI) in their domestic companies, especially in the medical and healthcare industries. These restrictions tend to target Chinese investment in particular. Japan is no exception. On April 22, 2020, the Nikkei reported that the Japanese government appears to be moving in a direction to "add advanced medicine and medical equipment businesses to the list of sectors deemed critical to national security" under the revised Foreign Exchange and Foreign Trade Act (FEFTA, or, the "Act"). This addition of medical-related sectors to the list will render the review process of FDI in Japanese medical companies more stringent.
Multi-Specialty and Other Physician's Offices
Deal
Q2
2020
St. Mary's Medical Center has reached an agreement to purchase the assets of Huntington Internal Medicine Group, the area's largest physician group practice, the two entities announced Tuesday. The agreement has been approved by the board of directors of both organizations, and St. Mary's plans to submit an application to the state Health Care Authority for a certificate of need. If it receives the HCA's approval, the deal can be completed in September. "We acknowledge that an acquisition during the COVID pandemic is unexpected," Mike Mullins, president and CEO of Mountain Health Network, said in the release. "While this is a difficult economic time, both boards recognize the acquisition is an important investment for our region's future and are committed to bringing it to fruition. When complete, HIMG will join SMMC, CHH and Marshall Health as we build an information technology platform to better serve all patients." HIMG was founded in 1971 and now consists of more than 60 physicians, physician assistants and nurse practitioners. St. Mary's Medical Center is an acute care hospital with 393 licensed beds.
Diagnostics
Deal
Q2
2020
Roche (SIX: RO, ROG; OTCQX: RHHBY) announced Thursday that it has acquired Stratos Genomics, an early-stage sequencing technology company to advance the development of Roche's nanopore sequencer. The acquisition provides Roche access to Stratos Genomics unique chemistry, Sequencing by Expansion (SBXª). The Roche nanopore sequencer, once developed, will utilise a novel approach that combines electronic and biological components to sequence DNA for fast, flexible and cost-effective clinical diagnostic testing. "Roche is dedicated to creating innovative diagnostics for the most challenging clinical conditions with techniques that are tailored to individual genetic and disease profiles. These solutions address the demands of research and clinical practice to deliver on the promise of personalised healthcare for patients," said Thomas Schinecker, CEO Roche Diagnostics.
Industry Trends
Notable Developments
Q2
2020
While the US healthcare industry has historically been stable throughout economic cycles, it has a large consumer retail component to it, and "foot traffic" has been meaningfully reduced as a result of the coronavirus. As such, many sectors within healthcare have been materially impacted. The more discretionary the service, the more the sector has been hit - with some sectors down over 80 per cent. This trend has been mitigated somewhat by the growth in some sectors like telehealth, but overall, healthcare volumes are down substantially. There are signs over the past two weeks though, that volumes have been creeping back up. These strange dynamics perpetuated by Covid-19 are having a derivative effect while PE groups sit on the sidelines, waiting to see what the valuation profile will look like once the US begins to move out of lockdown.
Healthcare Staffing
Notable Developments
Q2
2020
Medical Group Management Association (MGMA) released its 31st annual Provider Compensation and Production Report, the most comprehensive view of provider compensation in the United States. Average total primary care physician compensation rose 2.6% from 2018 to 2019, reaching $273,437. Overall, compensation for most physician specialties continued to increase. Urgent care and pulmonary specialists led these salary increases, from $259,661 to $277,393 and $385,024 to $406,245, respectively. Among the report's key findings, the top five most sizable increases in total compensation for established providers between 2018 and 2019 include the following medical specialties: Psychiatry (general): 7.69%; Urgent Care: 6.83%; Pulmonary Medicine (general): 5.51%; Internal Medicine (general): 4.00%; and Urology: 3.85%.
Medicare / Medicaid
Notable Developments
Q2
2020
There were more physician-led accountable care organizations (ACOs) than hospital-led ACOs by 2018, according to a study from Leavitt Partners. Physician-led ACOs accounted for approximately 45 percent of all ACOs in 2018, whereas hospital-led ACOs represented just 25 percent and joint-led ACOs represented 30 percent, revealed the study recently published in The American Journal of Managed Care. The percentages were notably different eight years prior when just 22 percent of ACOs were led by physician groups, the study found. That year, ACOs led by both a hospital system and a provider group dominated, accounting for 63 percent of the ACO market. Hospital-led ACOs accounted for just 16 percent. Physician-led ACOs have become increasingly popular as the model matured and could become the dominant type of ACO within the next few years. Physician groups increasingly led ACOs by 2018, but these groups could operate many more ACOs in the coming years as their market potential is significantly stronger than for hospital- or health system-led ACOs, the study found. Recent healthcare merger and acquisition trends could result in physician groups large enough to enter accountable care contracts, and physician groups with at least 15 providers could potentially form an ACO, researchers explained.
Hospitals & Health Systems
Notable Developments
Q2
2020
Nearly two-thirds of hospital executives expect full year revenues will decline by at least 15% due to the coronavirus disease 2019 (COVID-19) outbreak, according to a Guidehouse analysis of a survey conducted by the Healthcare Financial Management Association (HFMA). The results, released Thursday morning, indicated that 20% of executives expect revenue declines of more than 30% year-over-year. In fact, half of the respondents stated that it will likely take through the end of 2020 or longer for their organization's elective procedure volumes to match pre-pandemic levels. Given the financial pressures on provider organizations, almost 30% of surveyed executives said the outbreak has increased the likelihood that their organization pursues a merger or a new partnership.
Primary Care, Telehealth
Notable Developments
Q2
2020
Telehealth visits that exploded in recent months are starting to plateau and in some cases decline in popularity as doctor's offices reschedule backlogged patients for more in-person appointments, according new data from The Commonwealth Fund. Telemedicine visits accounted for about 14% of all total visits the week of April 19, according to the report, but that number dropped to 13% the next week and 12% the week after that. Telehealth visits held at 12% for the first two weeks of May. Primary care practices especially are grappling with telehealth's limitations, said Farzad Mostashari, CEO of Aledade, a startup that helps practices develop new payment models. Minor procedures involving sutures and stitches, for example, are revenue-driving primary care services that can't be done virtually. Though nowhere near pre-pandemic levels, outpatient visits are on the rebound across the country, the report found.
Dental
Notable Developments
Q2
2020
Florida is one of 40 states that have allowed dental offices to resume providing routine services following the March shutdown of nonessential businesses in much of the United States when the COVID-19 pandemic began. The American Dental Association supports dental offices reopening - with added precautions Needed- in states where COVID-19 cases are declining. It notes that patients are better off if they have their regular dental services. The dental group says many dental practices are being hit hard financially because most of their regular patients aren't coming in for routine care. But many health experts question whether states are moving too fast.