Issue link: https://beckershealthcare.uberflip.com/i/1344616
70 ORTHOPEDICS 5 recent device company acquisitions of $100M or more By Alan Condon F rom a multibillion dollar Stryker deal to Alphatec looking to strengthen its posi- tion in the spinal imaging sector, here are five recent device company acquisitions that cost at least $100 million: In January, Smith+Nephew acquired Integra LifeSciences' extremity orthopedics business for $240 million. e deal includes a shoulder replacement system the company expects to launch next year. Aer closing, Integra's Orthopedics and Tissue Technologies segment rebranded as the Tissue Technologies segment. Integra LifeSciences in December entered into a definitive agreement to acquire ACell, a regenerative medicine company. Terms of the deal include $300 million in cash at closing and up to $100 million more in cash payments if certain revenue growth milestones are met. e deal is set to close in the first quarter. In December, Zimmer Biomet acquired A&E Medical Corp., a cardiothoracic surgery company. e $250 million transaction includes $150 million cash at closing and $100 million cash payable this year. Revenue from the portfolio will be recognized in Zimmer Biomet's dental, spine and craniomaxillofacial and thoracic business unit. Stryker completed its $4 billion acquisition of competitor Wright Medical Group in De- cember. Stryker said Wright Medical, which develops extremity and biologic products, has preoperative planning technology and sufficient scale to enable the combined busi- ness to have a more focused business unit approach. Alphatec entered into a renewed agreement in December to acquire EOS imaging in a $116.9 million all-cash transaction. e transac- tion, expected to close in the second quarter, includes a purchase price of $79.7 million plus the retirement of $37.2 million in debt. n North Carolina orthopedic MOB, ASC properties sold for $23.7M — 4 things to know By Alan Condon N ashville, Tenn.-based Montecito Medical Real Estate purchased an orthopedics-focused medical office building and ASC in Leland, N.C., for $23.7 million, Connect Atlanta Commercial Real Estate News reported Jan. 19. Four things to know: 1. The 55,590-square-foot property was built in 2019 for Raleigh, N.C.-based EmergeOrtho, which occupies 100 percent of the building, according to the report. 2. Montecito previously acquired three medical office buildings involving EmergeOrtho, which rebranded from OrthoWilmington in 2016. 3. Coldwell Banker Commercial brokered the deal. 4. The seller was not disclosed. n Patients willing to pay $3,152 more for total joint replacement surgeons with higher star rating: 4 details By Laura Dyrda P atients are willing to pay more out of pocket for total joint replace- ments at a hospital with a higher star rating than at an average hospital, according to a study published in the January 2021 issue of Health Affairs. The study authors surveyed 200 consecutive new patients with hip and knee pain about how CMS star ratings affected how much they'd be willing to pay for surgery. Four findings: 1. The average patient was willing to pay $2,607 more for hospitals with a higher star rating. 2. Patients were willing to pay $3,152 more on average for physicians with higher star ratings. 3. If patients had a prior surgery or experience with the star rating system, relative value of the added star dropped by $539.25 for hospitals and $934.50 for physicians. 4. Travel was also a small factor, and patients were willing to pay an extra $11.45 not to travel an extra mile. "Patients appear more willing to accept significantly higher copayments for higher quality of care, and surgeon quality seems relatively more impor- tant than hospital quality," concluded study authors. n