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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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All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

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