Vertical integration, consolidation of payers as promotion of health business – mergers and acquisitions
Alexion Pharma“$ 40 Billion Sale” AstraZeneca (Nasdaq: AZN) and Immune medicine‘$ 20 billion sale Gilead Sciences (Nasdaq: GOLD) last year helped set expectations high in a healthcare company. Will the party go on? Trends such as vertical integration and telemedicine have been driving this year’s deal flow so far.
“The value of the deals was robust in the first half of 2021, and not just for reasons of size or competition,” says, ” Melinda Durr, Headmaster at EY Parthenon yesterday at a media round table. “We see activities to close operational gaps and steer business into new openings.”
Health care payers want to consolidate and integrate vertically by searching for health care services and assets.
The optimization of administrative procedures and the automation of processes are technology-related ways of the future. For example, some payers have so many variations in the plans that they can have hundreds in operation in a single state.
For healthcare providers, this means a renewed focus on clinical care beyond the office. The pandemic forced providers to rethink supplies as in-office volumes declined. Home care and telemedicine are attractive opportunities for expansion.
The dealmakers have already got off to a robust start. Mednax (Nasdaq: MD) $ 50 million Sell his American anesthesiology too North American partners in anesthesia The past year could be a sign of upcoming deals: buyers with optimized processes can scale through opportunistic purchases.
Telemedicine is also experiencing a boom. Teladoc health $ 14.8 billion merger with Livongo closed End of last year as part of a life-long patient health agreement.
“What could come next,” says Durr, “is for nontraditional healthcare companies to show interest in the sector. Tech companies are signaling an interest in evolving another operating model that will force a rethink of their strategic value and how they are delivered to the end user. “
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