WellCare Health is set to acquire Meridian Health Plans for $2.5bn
WellCare Health Inc is set to acquire Meridian Health Plan (Michigan), Inc., Meridian Health Plan (Illinois), and MeridianRx, a pharmacy benefit manager (PBM), collectively known as Meridian for $2.5bn in cash. The transaction is expected to close by the end of 2018.
One of the largest, privately held and for profit managed care organisations in the US, Meridian expects to generate more than $4.3bn in total revenue in 2018. As a result of this transaction, WellCare will diversify its Medicaid portfolio through the addition of Michigan, where Meridian has the No. 1 Medicaid market position; deepen its Medicaid business in Illinois; and acquire an integrated PBM platform.
Serving approximately 1.1mn Medicaid, Medicare Advantage (MA), integrated dual-eligible and Health Insurance Marketplace members in Michigan, Illinois, Indiana and Ohio, Meridian has achieved high quality ratings from the National Committee for Quality Assurance (NCQA) for its Medicaid health plans.
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"WellCare and Meridian share a similar commitment to serving our members through a comprehensive, integrated approach to healthcare," explained Ken Burdick, WellCare's CEO.
"This transaction strategically aligns with our focus on government-sponsored health plans, will strengthen our capabilities and growing business, and will meaningfully advance our growth agenda."
Meridian has approximately 508,000 Medicaid members in Michigan and 565,000 Medicaid members in Illinois. Upon closing, WellCare will have the No. 1 Medicaid membership market share in Michigan and Illinois, increasing its leading market position from four to six states. WellCare will also expand its MA business through the addition of Meridian's 27,000 MA members in Michigan, Illinois, Indiana and Ohio.
In addition, as a result of this transaction, the company will add an integrated PBM platform that provides a wide range of services and product offerings to both Meridian's members and third parties.
Walmart, the next health tech giant - a timeline
Retail giant Walmart has been building its healthcare division for a number of years, but its recent acquisition of a telehealth firm and the slow down of its clinic expansion suggest its focus has now shifted to health tech. We look at key moments in Walmart's history in healthcare.
Walmart announces plans to provide "full primary care services" by 2020. The plans include opening clinics in underserved, urban areas, where the chain has many existing stores.
A series of “Healthcare Begins Here” events launch at Walmart stores, where consumers are given information on leading healthy lives, as well as free blood pressure, blood glucose and vision screenings, and access to vaccinations.
As part of the organisation's commitment to pursue a more data-centric approach to worker safety, Walmart partners with StrongArm, manufacturers of safety wearables. Staff begin wearing FUSE, a small sensor worn between their shoulder blades that detects injury risk. Within a year, ergonomic injuries decreased by 65%.
Walmart opens its first health centre in Dallas. The 10,000 square-foot "super centre" offers primary care, X-rays and ECG, counselling, dental, optical, hearing and community health services. Prices are affordable regardless of health insurance status.
The same year a partnership with Doctor on Demand is announced, a telehealth company offering mental health services. As part of the agreement Walmart employees are able to access these services for free.
The first health and wellness clinic opens in Springdale, Arkansas, providing primary care, dental care, vision and hearing services as well as behavioural health, fitness and wellness education classes.
Walmart acquires CareZone’s medication management technology. CareZone's app reminds users to take their medication and provides refill reminders. The acquisition complements Walmart's existing pharmacy service.
The Wall Street Journal reports that Walmart is in talks with Verizon to implement 5G wireless service in select sites, to help boost digital health services.
As part of its COVID-19 response, drive-thru testing is offered at hundreds of Walmart Neighborhood Market drive-thru pharmacy sites, free of charge through Humana .
The retail giant teams up with the Department of Veterans Affairs to offer telehealth services to veterans at stores in Wisconsin, Michigan and Iowa.
Walmart Mexico signs a deal with Jack Nathan Medical Corp, a Canadian tech-focused healthcare provider. This will see 153 new medical clinics open within stores across Mexico, taking the total in the country to 203.
Walmart announces it is acquiring MeMD, a multi-speciality telehealth provider. The acquisition will enable Walmart Health to provide access to virtual care across the US. At the same time it is reported that plans to open further clinics are deliberately slowing down.
"Today people expect omnichannel access to care, and adding telehealth to our Walmart Health care strategies allows us to provide in-person and digital care across our multiple assets and solutions" Dr. Cheryl Pegus, executive vice president for Health & Wellness said of the announcement.