awarded more than $2.6 million in grants to healthcare providers last Wednesday in a push to cut costs
and promote healthcare innovation across the state.
Gov. Peter Shumlin and Vermont Health Care Innovation Project leaders announced the eight grants in Rutland. The purpose of the grants is to cut healthcare costs by supporting projects that encourage collaboration between healthcare providers and patients.
“Our challenge is to put a stop to skyrocketing healthcare costs that are hammering Vermont businesses and families,” Shumlin said. “Through this grant program, we are supporting leaders who are working to do just that.”
Providers from Rutland to the Northeast Kingdom to Burlington received funds. Recipients include: the Vermont Program for Quality in Health Care, which received $350,000 for a statewide partnership to improve surgical care; Bi-State Primary Care and HealthFirst, recipients of $400,000 each to develop provider networks that will increase care quality and reduce costs; the Vermont Medical Society Education and Research Foundation and the Fletcher Allen Health Care Department of Pathology and Laboratory Medicine, which received almost $549,000 to work on a statewide program to reduce what officials called “unnecessary and potentially harmful medical testing.”
The grants are funded through a program administered by CMS' Center for Medicare and Medicaid Innovation
. In total, the center granted Vermont $45 million over the next three years in support of the project. —Associated Press
Magellan Health Services, Avon, Conn., announced plans this week to acquire CDMI, a privately held Newport, R.I.-based provider of clinical consulting programs that also negotiates and administers drug rebates for managed care organizations and other clients.
Acquisition of CDMI is expected to enhance Magellan's clinical programs and outreach services for managing chronic conditions, as well as broaden its Magellan Rx Management clinical specialty drug and medical management support capabilities. It will also create opportunities to grow and scale the business by tapping into CDMI's existing customer base, according to a company release.
Founded by pharmacy executives in 2009, CDMI works with more than 30 health plans and had net revenues of about $43 million in 2013. George Petrovas, CDMI's co-founder and executive vice president, will move into the role of CDMI president, which will operate under Magellan Rx Management.
“CDMI and Magellan Rx Management have similar cultures and a persistent focus on their customers. I'm pleased that we'll be joining Magellan during this exciting period of growth,” Petrovas said in a release. “CDMI's clinical products, services and relationships will supplement Magellan Rx Management's suite of industry-leading pharmacy offerings and products, as we work together to grow this business.”
Magellan has agreed to pay $205 million for CDMI—$125 million in cash and $80 million to be reinvested in Magellan restricted common stock by CDMI's principal owners and certain key management. There is also up to an additional $165 million available in potential contingent payments. Subject to customary closing conditions, the transaction is expected to be completed in the second quarter of 2014. Follow Rachel Landen on Twitter: @MHrlanden