Transactions & Valuation Issues

There is rapid consolidation in the healthcare industry today as hospitals and health systems attempt to expand their market presence, seek financial sustainability and strive to become more efficient. Although mergers, acquisitions and other affiliations are commonplace in the healthcare…

Marietta, Ga.-based WellStar Health System and Atlanta-based Piedmont Healthcare are discontinuing their joint Medicare Advantage plan, according to the Associated Press.

Anthem, in its application to the Connecticut Insurance Department to acquire rival health insurer Cigna, said it has no plans to cut Cigna workers if the proposed deal goes through, according to a Hartford Courant report.

The following healthcare mergers, acquisitions and general transactions took place or were announced in the past week.

This summer, the news was saturated with talks of mega-mergers among the big five health insurers. In early July, Aetna agreed to buy Humana, and Anthem inked a deal with Cigna that same month.

Camden, S.C-based KershawHealth, Franklin, Tenn.-based Capella Healthcare and Charleston, S.C-based MUSC Health have signed a definitive agreement finalizing a partnership.

Two mergers involving Danville, Pa.-based Geisinger Health System have been approved by the Pennsylvania Office of Attorney General, Geisinger authority members learned Sept. 23, according to The Daily Item.

Traverse City, Mich.-based Munson Healthcare has approved an agreement to add Charlevoix (Mich.) Area Hospital as the fifth hospital in its network.

The board of Hawaii Health Systems Corp.'s Maui Region has chosen to enter negotiations with Oakland, Calif.-based Kaiser Permanente to manage the three state-owned hospitals in Maui County.

HealthTrust announced that Hospital Sisters Health System (HSHS), a healthcare system serving 3 million people in Illinois and Wisconsin, signed a renewal participation agreement that will extend a relationship that began in April 2007 through December 2020.