Merger, Acquisitions, Partnerships and Investments


Centene-WellCare deal overwhelmingly approved by shareholders in both companies. After a bit of drama with Humana suggesting it may be interested back in May, shareholders of both Centene and WellCare approved the deal by a 99% approval vote. Combined 2019 revenue is expected to be $91B, with $5B EBIDTA. The combined organization is currently working through approval processes in 26 different states, and expects the deal to fully close by the summer of 2020.

Colorada AG fought United and DaVita merger- Although the FTC approved it, the CO AG filed a complaint against it on the grounds that Optum and DaVita together would drive price increases. UHC is the region’s main MA carrier and adding DaVita could have significant impact. The CO lawsuit was settled after UHC agreed to several concessions, mostly to protect 2 Colorado plains from adverse contract actions by the new combined UHC-DaVita organization. In related news, Intermountain Healthcare will pick up HealthCare Partners in NV (UHC had to divest the plan as part of the DOJ approval process).

District Judge holding up CVS/Aetna deal despite federal DOJ approval- U.S. District Judge Leon was not in favor of the merger as of December but has not yet concluding his part of the process (a consent decree is still needed from him to move forward). Leon has conducted additional hearings to address impacts of the merger he feels were not examined by DOJ officials. As of the time of writing, 5 state AGs were preparing to speak at a hearing to convince Leon to scuttle the deal. Leon is using an obscure law (the 1974 Tunney Act) as the grounds for his prerogative in the case, and as such the legal path forward is uncertain.

Community Care Alliance of Illinois acquired by Clear Spring Health (Medicare Advantage)- Announced April but had to work through regulatory approval related to CCAI’s financial troubles. Deal closed in mid-May.

Magellan bidding process advances to next stage- Most analysts agreed UHC and Anthem were in the lead to buy, but there were surprises in store.  The UHC purchase of DaVita and Anthem’s purchase of Beacon Options took them out of the equation. The current influencing Magellan shareholder is a fund called Starboard Value. Starboard is signaling it wants to consider a sale to Private Equity instead. As of time of writing, Centerbridge Partners was leading PE firm. Earlier analysis suggested that Magellan would be acquired for about $95/share, with a estimated market value of $1.6B.

UHC Optum set to purchase Equian- If the deal goes through, Optum will spend $3B to pick up the payment processor. The acquisition could be one of the final pieces in UHCs strategy to solidify its stake in provider and plan operations integration.

Partners Healthcare of MA leaves Proposed Care New England talks – Partners was planning on acquiring Proposed care, but Rhode Island Governor Raimondo would rather see a partnership with Lifespan instead. Partners announced its backing off early June.



AccentCare (post-acute care) to be bought by Advent International (PE firm)- AccentCare provides rehab, skilled nursing care, hospice and case management across 16 states. AccentCare was owned by Oak Hill Capital

Ensign Group grew to 198 skilled nursing facilities – the June acquisition of Golden Palms in Texas brought them to almost 200 facilities.


Encompass Health to acquire Alacare- Encompass will gain 23 home health and hospice locations in Alabama.  


Bon Secours Mercy Health is selling 51% of its equity in Ensemble Health Partners to Golden Gate Capital- The stake in the revenue cycle management (RCM) firm will be sold for $1.2B. Ensemble now has 3,600 employees serving 27 health systems. This deal comes on the news of Bain Capital also buying into RCM with the combination of Navicure and Zirmed to form Waystar.

North Carolina

Atrium Health, Wake Forest Baptist Health and Wake Forest University merging – The deal will make a new 49-hospital system.

New York

Nuvance Health in NY formed- The merger of Health Quest and Western Connecticut Health Network will create a 7-hospital system with $2.4B in annual revenues.


Caid Solutions (billing / collections) acquired by Argos Health- Argos is PE-backed (NaviMed) and the combination will extend existing Argos footprint into Medicaid markets. Caid focuses on out-of-state Medicaid claims. 

Quartet (mental health care coordination tech) gets $60M from Centene- Total Quartet funding now stands at $153M. Centene infusion announced early June.

Health Monitor Network raises new funding with West View Capital – The patient engagement company announced “significant” investment mid-May.