Issue link: https://beckershealthcare.uberflip.com/i/653721
30 PRACTICE MANAGEMENT Physician Group M&A Up 15% in Q4: 5 Key Trends By Laura Dyrda P hysician medical group mergers and acquisitions were up in the fourth quarter of last year, according to the Health Care M&A report from Irving Levin Associates. Here are five key notes: 1. Physician medical group mergers and acquisitions were up more than 15 percent from the third quarter of 2015; they were up 29 percent year-over-year. 2. There were 22 publicly-announced physician medical group acquisitions, and only one came with a disclosed price: Envision Healthcare's acquisition of Questcare Med- ical Services for $135 million. 3. For the full year of 2015, there were 88 announced acquisitions, a 46.7 percent increase over the same period last year. 4. Three of the four quarters last year posted at least 20 acquisitions. 5. The physician medical group mergers and acquisition market is expected to remain active this year. The con- tinued consolidation will likely include medical groups acquiring other groups and large hospitals and health systems acquiring interest in primary medical groups. n Justice Department Investigates Pain Compounding Cream for $500M Potential Fraud: 5 Things to Know By Laura Dyrda C ompounding creams to treat pain are the target of a new big Justice Department investi- gation aer allegations emerged that companies sent out more product than was ordered, overbilled and automati- cally refilled prescriptions without being asked. And some of the creams report- edly have little or no medical value, according to a report in Nasdaq. e compounding cream sales surged in recent months aer endorse- ments from professional athletes, including former NFL quarterback Brett Favre, were peppered across the companies' marketing campaigns. Elderly pain patients, athletes and vet- erans are among the targeted groups for these creams. Some of the creams cost $10,000 per tube. Here are five key notes on the investigation: 1. e Justice Department reported potentially $500 million in healthcare fraud is linked to the compounding creams for pain, with Tricare as the biggest victim. Tricare paid $1.75 billion for compounding drugs, including these creams, during the 2015 fiscal year. Last year's payment was 18 times more than the amount paid for the three prior years. 2. Companies such as World Health Industries, which also does business as Aspire Rx, are under FBI investigation. Mr. Favre reportedly is an investor in WHI and created a business along with others associated with WHI called 3B Medical Group in 2013. WHI founders also founded Opus Rx, an addi- tional company under investigation. 3. Opus and at least six others associated with the investigation filed chapter 11 bankruptcy protection in the past few months. 4. WHI and Opus are based in Mississippi, and the U.S. attorney for the Southern District of Mississippi is overseeing the probe. Various agencies have raided pharmacy businesses around Jackson, Miss., as well as Florida, Utah and Alabama locations. Authorities have also seized $15 million in property as well as several vehicles from 80 bank accounts due to suspected fraud. 5. e FDA doesn't approve compounded creams due to limited amounts distributed, and compounding pharmacies are primarily state-regulated. Mississippi investigators believe some creams sold don't have medical value, according to the report. Many were marketed and sold online. n "The Justice Department reported potentially $500 million in healthcare fraud is linked to the compounding cream for pain, with Tricare as the biggest victim."