Merger, Acquisitions and Partnerships

CVS/Aetna

• Approved by DOJ in November, announced as closed Nov 28, 2018.
• Aetna had to drop Medicare Part D ops to get approval. Overall integration is valued at $69B.
• During the DOJ process, Aetna sold Medicare Part D plans to WellCare in September. Included 2.2M members. WellCare funded its purchase entirely with cash reserves.
• CVS and Aetna were competing on Part D services to 6.8M members nationwide.
• Going into deal, CVS had 4.8M members in drug plans, with revenue of $185B in 2017.

Cigna/Express Scripts

Finalized Dec 20, 2018.

Total $67B acquisition of Express Scripts by Cigna.

Value prop in press is enhanced analytics capabilities and acceleration of value based care efforts.

Plan-Provider

Humana/Kindred

Closed July. Humana bought the home health / hospice provider for $4.1B. Sale brokered by TPG Capital and Welsh, Carson, Anderson and Stowe. Is paired with deal to by Curo Health Services (another hospice provider).

United/DaVita

Deal was announced in late 2017, but struggled to get through FTC process most of 2018. As of December, price was $4.3B with some questions over whether DaVita was as strong as initially thought when deal began. Original price was $4.9B.

Centene/Ascension

Announced June.

Will offer a combined Medicare Advantage plan in multiple markets in 2020.

Ascension has 2,600 sites of care. 152 hospitals, 50 senior living facilities.

Harvard Pilgrim/Partners Healthcare

Announced plans in summer, put on hold November. Press out of C-Suite said “deal was getting too complicated.”

What will Walgreens do?

See owler, crunch base, etc