Is Bigger Better?

“Big is going to be better. Small is not going to survive." 

These are the words of an East Coast healthcare exec earlier this year.  Many analysts agree and apparently, so do some healthcare leaders - given the flurry of M&A activity in June/July and 2015.  Consider:

• Mergers / sale of US hospitals (e.g.: Tenet's sale in St. Louis)
• Acquisition of physician groups and/or HC practices
• Target's pharmacy & clinic business sale
• Nursing facility buys (e.g.: Genesis HealthCare)
• Revenue cycle management services acquisition (i.e.: ROI Companies)
• And, the pieces de resistance --- Aetna's $37B BIG BUY

Time will tell if the trend (probably) and pace continues (Check back in a few..).

Walgreens Shopping List...

No specific targets mentioned but the drugstore's new CEO, Stefano Pessina, is forthright in his intention to grow the firm.  >>Read more

What's your best guess on Walgreens' next acquisition?

Aetna Kicks It Off

As part of an expected wave of consolidation, Aetna's deal to acquire Humana is valued at $37B.  And, it's a big one - the largest health insurance merger to date.

If approved by regulators, the merger will combine Humana's Medicare Advantage business and Aetna's diversified portfolio and commercial capabilities to create the second largest U.S. managed care company.  Some of the anticipated results include:

• Higher quality healthcare at lower cost; enhanced convenience for consumers
• Increased Aetna Medicare Advantage membership (to 4.4M)
• Enhanced Aetna pharmacy business
• Strong care management capabilities by leveraging best-of-breed provider solutions

Current Aetna Chairman and CEO Mark Bertolini will lead the combined company.  According to Aetna, the acquisition is expected to close by the summer of 2016.  >>Read more