United HealthCare And Humana Plan $5.5 Billion Merger April 21, 2023 by Paul Lendner United HealthCare and Humana, two of the nation's largest for-profit managed care companies, have agreed to a $5.5 billion merger. I am not receiving compensation for it (other than from Seeking Alpha). Here's LHCGs COO during the Q421 earnings call: And then shifting gears to retention, I'm pleased that we continue from all the data that we have access to, not only for the industry but across our peers, to be the leader in the industry when it comes to the voluntary turnover for our frontline staff. A growing number of reports demonstrate a direct connection between healthcare and housing, and were starting to see corporations and organizations taking concrete steps to do something about it, because its the right thing to do and, if done right, it is profitable. In this context, the merger will allow UNH to optimize for more home value-based care and could potentially even lower healthcare prices and/or improve quality for consumers. This transaction confirms that consolidation proceeds in all areas of the healthcare industry, despite financial setbacks by large companies in several sectors. 2022 The Dark Report. Aetna will pay $37 billion cash and stock to acquire Humana, the companies announced on July 3, in what will be the biggest health insurance merger to ever hit the industry. Improving the Patient Financial Experience Throughout the Patient Journey. Secondly, since Joe Bidens executive order on promoting competition in 2021, antitrust regulators have been putting increasing attention on healthcare mergers, highlighting impact on workers wages and the degree of vertical integration. The home healthcare market is highly fragmented. Apparently, ever since the pandemic, UNH has sought to expand the segment. Yet these kinds of innovations that address both the financial needs of businesses and the health and well-being of their customers, employees, and neighbors are foundational for our future. This successful acquisition may encourage other companies to take on the Department of Justice to secure deals on this same scale or bigger. With this acquisition, Oracles corporate mission expands to assume the responsibility to provide our overworked medical professionals with a new generation of easier-to-use digital tools that enable access to information via ahands-freevoice interface to secure cloud applications. The Anthem & Walmart partnership will allow individuals in Anthem's Medicare Advantage plans to use OTC plan allowances to purchase OTC medications and health-related items. Rural Hospitals Infographic, Hospital Merger Benefits: An Econometric Analysis Revisited, Anticompetitive Conduct by Commercial Health Insurance Companies, Hospital Merger Benefits: An Econometric Analysis Revisited Executive Summary, Back to Basics to Sustain the Gains May 10, Virtual Learning Session: Becoming an Age-Friendly Health System Apr 27, Hospitalization as a Teachable Moment: Plant-Based Options on Patient Trays Apr 26, Addressing the Elephant in the Room: Shame and Sentinel Emotional Events in Health Care, Challenging the Status Quo for Improved Patient Outcomes, Achieving The Quadruple Aim through Health Care Innovation, Creating a Value Proposition for TeamSTEPPS: How Your Frontline and Your Bottom Line Can Both Win, What's Your Story? Additionally, global issues, such as the ongoing labor shortage, supply chain disruptions, geopolitical turmoil and fluctuating inflation concerns, may spur an increase in the number of healthcare industry M&A transactions. UNH owns two subsidiaries - Surgical Care Affiliates (SCA) and DaVita Medical Group - that have been indicted of agreeing not to solicit each others senior employees. Critics of the merger, including the AHA, have warned that the deal could lead to massive consolidation in health care data. Please enable it to take advantage of the complete set of features! As a healthcare industry executive, Barger genuinely cares about the well-being of his customers and is optimistic about the work yet to be done. Granted, a majority-democrat FTC is a risk and could lead to a change in how mergers are evaluated. Paul Lendner ist ein praktizierender Experte im Bereich Gesundheit, Medizin und Fitness. The question now is: Whats next for Optum? When predicting future outcomes for healthcare M&A deals, it is a good idea to see how the 2022 year ended for the industry. Optum, a fast-growing part of UnitedHealth Group and a key reason the company will eclipse $300 billion in total revenue next year, has said Change Healthcare will become a part of the . Second, it believes it can extract economies of scale from its large size. One United HealthCare share will be exchanged for every two Humana shares. UnitedHealth Group's: The Diversified Healthcare Behemoth Chugs Along Our employees, customers, and partners are the source of our success and inspiration as we create a thriving ecosystem that delivers accessible, high-quality, and sustainable healthcare for all,Segert said in a statement. Limited funds: Inflation concerns and limited funds can prevent some companies from investing in any type of healthcare merger or acquisition. Without a comprehensive road-mapped plan for effective IT integration, the company could experience production declines and service delays. The merger, which has been approved by the boards of directors of both companies, requires shareholder and regulatory approval and is expected to close in the third quarter of 1998. Humana in $5.5 billion merger with United Healthcare Services are offered in addition to regular primary care providers, such as LHCG. Humana acquired home health and hospice provider Kindred At Home, Date: Announced April 27,closed August 17. Both litigations are ongoing with trials expected in 2023. The in-home care market in the US is highly fragmented. Cigna reportedly wants to buy Centenebut we think the multi-billion But the LHC deal is just the latest in a series of huge investments UnitedHealth and Optum have made to continue their expansion into care delivery. Humana bought the remaining 60 percent interest in Kindred at Home as a way tocontinue commitment to investing in home-based clinical solutions. Enhancing core operations: M&A deals, especially healthcare technology mergers and acquisitions, can help companies improve core operations and increase production while lowering operating costs. LHCG operates in the post-acute healthcare market. MINNEAPOLIS (AP) _ Managed health care giants United HealthCare Corp. and Humana Inc. will merge in a $5.5 billion deal, the companies said today. 4 Strategies for Becoming Organized at Work. Recent Acquisitions by Humana, UnitedHealth Group and CVS Health/Aetna The transaction is expected to close in 2022. There are many ways companies can invest in the communities where they live and work, including real estate. (UHG) and Humana Having said that, the number of patient visits in 2021 were at ~2.1m compared to 12m+ patient encounters at LHCG, though the latter include hospice patients.