Becker's ASC Review

25 TRANSACTIONS 5 industry-shifting healthcare moves in 2022 By Patsy Newitt From Amazon to CVS Health, here are five major healthcare deals in 2022 that are shiing the industry: 1. Although the deal is currently under review by the state of Oregon, Amazon announced in July that it plans to acquire One Medical, primary care company, for $3.9 billion. e deal could raise costs for all medical groups and further alter the dynamics of physician recruiting and acquisitions, according to a Forbes report. Independent physicians should be prepared for "an entirely new dynamic" when it comes to prospective buyers, the report said. e new market will include unconventional buyers, such as larger retail companies. ere will also be a push toward consolidation as more buyers look to buy physician practices. 2. On Sept. 5, CVS Health entered a deal to acquire home health company Signify Health for $8 billion, a move that marks the company's efforts to expand its value-based care offerings. Signify's value-based provider network includes 50 health plan clients and members, which expanded aer it acquired Caravan Health in March 2022. UnitedHealth Group, Amazon and Option Care Health all made bids for the company, but CVS Health came out on top with the highest bid, adding more than 10,000 clinicians to CVS Health's portfolio. 3. In September, Livonia, Mich.-based Trinity Health completed its acquisition of MercyOne, five months aer entering into an agreement with Chicago-based CommonSpirit Health. MercyOne was founded in 1998 through a collaboration between Catholic Health Initiatives, now CommonSpirit, and Trinity Health. e system reports annual revenues of $3 billion, according to Kaufman Hall. 4. In November, primary care disruptor VillageMD agreed to acquire physician practice group Summit Health in a transaction valued at roughly $8.9 billion. e deal combines Village Practice Management with Summit Health, the parent company of CityMD urgent-care centers. While still subject for review, the deal is expected to close in the first quarter of 2023. Village MD is majority owned by Walgreens Boots Alliance, who has invested $3.5 billion, through a mix of debt and equity, to support the acquisition. 5. On Dec. 2, Charlotte, N.C.-based Atrium Health and Advocate Aurora Health, dually headquartered in Downers Grove, Ill., and Milwaukee, closed on their formal combination, resulting in a newly combined $27 billion, 67-hospital system called Advocate Health. Atrium and Advocate Aurora announced their plan to combine May 11, creating the fih-largest nonprofit health system in the U.S. "is will create one of the most effective large systems in the country," Becker's Healthcare Publisher Scott Becker said. "It both brings together two great systems and two exceptional leaders in Jim Skogsbergh and Gene Woods. is merger may also be the clearest indication that bigger systems are needed to provide care and offset the power of the payers." n Amazon clears hurdle in One Medical deal: What ASCs should know By Patsy Newitt T he Oregon Health Authority has approved Amazon's proposed acquisition of One Medical, clearing a hurdle to cementing the deal. The authority's regulatory review found that Amazon purchasing One Medical likely wouldn't "substantially" lower access to care in the state, The Seattle Times reported Dec. 28. However, health equity concerns could arise if One Medical steers commercially insured patients with higher pay rates away from clinics that also serve the Medicare and Medicaid populations. Amazon and One Medical are still waiting for federal approval to close the deal. The deal could raise costs for all medical groups and further alter the dynamics of physician recruiting and acquisitions, according to a Forbes report. Independent physicians should be prepared for "an entirely new dynamic" when it comes to prospective buyers, the report said. The new market will include unconventional buyers, such as larger retail companies. There will also be a push toward consolidation as more buyers look to buy physician practices. n SCA Health has 9,200 physicians By Laura Dyrda S CA Health, based in Deerfield, Ill., has grown over the last few years to include hundreds of surgery centers and thousands of physicians in its network. The company now has more than 9,200 physicians and 320 surgical facilities across the U.S., up from 8,500 physicians and 260 surgical facilities in 2021. SCA Health, part of Optum Care, now also includes PE Gi Solutions as it's gastroenteorlogy-focused ASC business. SCA Health is also focused on value- based care. It offers the Global 1 payment platform to optimize billing structures under bundled payments. n

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