Some deals fell apart this week while others faced federal scrutiny.
Here's a look at the top healthcare deals this week.
Memorial Health System to buy hospital from CHS
Gulfport, Mississippi-headquartered Memorial Health System entered into an agreement to acquire full ownership of Merit Health Biloxi, a 153-bed acute care hospital in Mississippi, from a Community Health Systems subsidiary. CHS in 2020 sold 50% of its ownership interest in Merit Health Biloxi to Memorial. The companies expect to complete the transaction early next year. Financial details were not disclosed.
Related: Payer denials, higher expenses stunt CHS' return to profitability
Cardinal Health to acquire 2 specialty companies
Cardinal Health entered definitive agreements to acquire a majority stake in GI Alliance, a gastroenterology management services organization, and the entirety of Advanced Diabetes Supply Group, a diabetes medical equipment supplier. Cardinal expects to acquire Advanced Diabetes Supply for an estimated $1.1 billion and 71% ownership of GI Alliance for an estimated $2.8 billion. Both deals are expected to close by early 2025, pending regulatory approvals.
DOJ sues to block UnitedHealth-Amedisys deal
The US Justice Department sued to block UnitedHealth Group Inc.’s $3.3 billion purchase of Amedisys Inc. over concerns the deal would harm competition in the market for home-health and hospice services.
The antitrust lawsuit, filed in Maryland federal court, alleges the combination could lead to higher prices in home health care in 23 states and Washington, D.C., where Amedisys is a main competitor to UnitedHealth’s LHC Group. Last year, the insurer bought LHC, which was folded into its Optum Health business. The attorneys general of Maryland, Illinois, New Jersey and New York joined the complaint.
Read why UnitedHealth and Amedisys are standing by the deal.
Cigna ends Humana merger talks, prioritizes share buybacks
Cigna Group said it won’t pursue a combination with rival insurer Humana Inc., after reports the two companies had renewed discussions of a deal.
The company “remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close,” Cigna said in a statement.
Astrana Health buys some Prospect Health assets
Value-based care platform Astrana Health signed a definitive agreement with Prospect Health to acquire some of its assets for $745 million.
Pending regulatory approvals, Astrana would acquire Prospect Health Plan, Prospect Medical Groups, Prospect Medical Systems, RightRx and Foothill Regional Medical Center in Tustin, California.
Quote of the week
“Prior authorization, once granted, should be sufficient to guarantee payment. It is unacceptable that a health plan gives a 'green light' to medically necessary care and then retains or creates barriers to payment."
— American Medical Association trustee Dr. Marilyn Heine at this week's semiannual meeting
