http://www.healthcaredive.com/news/whats-driving-the-big-health-insurance-mergers/402945/
As with the recent flurry of hospital mergers and acquisitions, the biggest driving force for the current insurance industry mergers is likely the Affordable Care Act (ACA). The New York Times says that although the ACA is bringing insurers more revenue by way of additional customers, greater pricing transparency and government funding cuts have also put more pressure on their profit margins.
Teva Neuroscience Inc.’s parent company plans to acquire the generics unit ofAllergan for $40.5 billion, a deal that will vault Teva Pharmaceutical Industries Ltd. into the top ranks of global drug manufacturers, The Wall Street Journalreports.
Anthem will buy Cigna for $54.2 billion, the insurer announced on Friday, in a deal that will reduce the former “Big Five” private health insurers to just three. Aetna has already announced a $37 billion deal to acquire Humana. If both deals are approved, Anthem, Aetna and UnitedHealthcare would stand as the largest insurers in the United States.
http://ww2.cfo.com/health-benefits/2015/07/insurer-consolidation-check-health-costs/
It may be counterintuitive, but combinations like Aetna’s planned purchase of Humana could lead to lower pricing from medical providers.
The beleaguered Daughters of Charity Health System has received a $250-million lifeline from BlueMountain Capital Management, which will recapitalize and manage the six-hospital system. The New York firm may eventually purchase DCH.
Robert Issai, president and CEO of the Daughters of Charity Health System.
HENRY KOTULA 