Partnerships and Strategy Updates:
Microsoft and Epic announced a VERY notable collaboration hitting on all of the major healthcare buzzwords with one go! The two industry leaders will expand their longstanding partnership to develop and integrate generative AI into Epic environments on Microsoft's Azure cloud platform. This…seems like a BFD. (Microsoft)
Huge deal in anesthesia, apparently - National Partners in Healthcare joined forces with Medstream Anesthesia, adding 700+ providers, 216,000 cases, and 61 facilities across 12 states, alongside 59 Chief CRNAs, 59 Medical Directors, and 90 practice management personnel. This partnership establishes NPH as a top anesthesia company in the U.S., now serving nearly 500,000 cases in over 220 facilities across 17 states with 1,200+ providers. I mean sheesh. (Link)
The Cano Health Saga continues, and this whole debacle is going to be a case study very soon. Expect to see continued activist investor activity in this value-based care name. As the rest of the sector seems to be performing quite well, Cano Health is getting dragged down to penny stock levels by an incompetent leadership team. (Cano) (Summary)
KeyCare notched another health system win by partnering with Allina Health Partners through its Epic-based telehealth platform for specialist and primary care support. (Link)
Clover Health is undergoing some cost restructuring on a winding road toward profitability…perhaps someday. (Link)
Finance and M&A Updates:
Optum merged Prospero Health with Landmark Health into a single palliative care unit in March. (Link)
The $11B Presbyterian Health Services and UnityPoint Health Merger is moving closer to closing time. (ModernHealthcare)
The Carlyle Group pulled out of a $15B deal to acquire Cotiviti - "The decision is also a setback for Veritas, which has been seeking a buyer for Cotiviti since late 2021, Bloomberg reported. The owner had also considered an IPO at that point." (Pitchbook)
Fresh off raising $100M in February, Vytalize acquired IPA of New York through investing in its related MSO - Practice Management of America. IPA NY is one of the largest multispecialty IPAs in the country, holding more than 3,000 providers.
"M&A activity in the Physician Medical Group (PMG) sector fell in the first quarter of 2023 to 135 publicly announced deals. This drop represents a 14% decrease from Q4:22 and an approximate 4% decline from Q1:22" (Link)
Digital Health and Startup Updates:
Virtual mental health startup Spring Health raised $71M at a $2.5B valuation. Oddly, investors weren't disclosed for the round. Spring evidently covers 5 million lives across both health plans and employers leading to 270% revenue growth in 2022. It previously raised $190M at a $2B valuation in a Series C in September 2021. (Fierce)
Data analytics platform Arcadia received $125M in financing from Vista Credit Partners. (Link)
MedArrive raised $8M, an add-on from its $25M Series A to enable care delivery in the home. (Link)
Notable launched a new product called Patient AI, using longitudinal patient datapoints to develop a comprehensive clinical and social understanding of each patient. Sounds like some pretty cool capabilities. (Link)
Flume Health launched Flume Relay in late March to help payors with vendor integration. The new product aims to cut down on both time and cost to integrate solutions between plan and vendor. (Link)
CTRL Therapeutics - a biotech firm working on a cell therapy for solid tumors - launched this week with $10M in funding including backers like Intermountain and General Catalyst. (Source)
Olive is narrowing its focus to revenue cycle management after its divestiture of noncore utilization management assets to Availity (Olive)
Scene Health - a medication adherence platform - raised a $17.7M Series B (Scene)
Policy and Payment Updates:
The Supreme Court issued a temporary pause on recent abortion pill rulings surrounding mifepristone. (TheHill)
As par for the course, hospital lobbyists are calling CMS' inpatient rule update of 2.8% 'woefully inadequate' (Beckers)
Costs, Data, and Other Updates:
Medscape published a survey of 10,000+ physicians in 29+ specialties disclosing total compensation and year over year growth, among other interesting insights.
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