4 New Types of Healthcare Deals We're Seeing

Article written by: Molly Gamble, Becker's Hospital Review, May 29, 2018

Healthcare dealmaking involves more players with different goals and new business models than ever. It is a disservice to refer to healthcare M&A with the same vocabulary as in decades past. Tried and true language still serves a purpose, but doesn't express the aims and diversity of mergers and acquisitions in healthcare today.

Here are four archetypes of new healthcare deals, as outlined by PwC. The firm's full report, "The New Health Economy in the Age of Disruption," can be found here.

1. Vertical integrators.

This category represents deals such as CVS Health and Aetna, Optum and DaVita Medical Group, and Cigna and Express Scripts. These couples are trying to lower costs of the supply chain by owning more of it and extending those savings to consumers. The challenge? Only half of executives involved in M&A report financially successful integrations. That is a concerning statistic for healthcare executives "about to spend tens of billions to make acquisitions," according to the PwC team... Read full article here.


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