Elevance Health Partners With Private Equity For New Primary Care Company
The insurer has partnered with Clayton, Dubilier & Rice to build a new company that's focused on primary health care. Meanwhile, the FTC's effort to block Novant Health's $320 million acquisition of two hospitals is backed by North Carolina.
Modern Healthcare:
Elevance Health, CD&R To Form Primary Care Company
Elevance Health has entered a definitive agreement with private equity firm Clayton, Dubilier & Rice to form a company focused on primary care, the insurer said Monday. The unnamed organization would combine services from Elevance's Carelon Health and Clayton, Dubilier's Millennium Physician Group and its digital health company Apree Health. Terms of the deal were not disclosed but Elevance said it is investing cash and Carelon Health assets into the partnership. (DeSilva, 4/16)
Reuters:
North Carolina Backs FTC Bid Against $320 Million Health System Deal
North Carolina has backed the U.S. Federal Trade Commission’s lawsuit seeking to block Novant Health’s $320 million acquisition of two hospitals in the state, a deal the agency said would lead to higher prices and reduced innovative care. North Carolina’s state treasurer on Monday filed a “friend of the court” brief urging, opens new tab U.S. District Judge Kenneth Bell in the Western District of North Carolina to preliminarily stop Novant from buying the hospitals from Community Health Systems. (Scarcella, 4/16)
Modern Healthcare:
Pacs Group Closes IPO, Raises $450M
Pacs Group, an operator of skilled nursing facilities, closed its initial public offering after raising about $450 million. The company, which has more than 200 skilled nursing facilities and other post-acute operations in nine states, sold 21.4 million shares of stock Wednesday at $21 per share. Underwriters also exercised the option to purchase an additional 3.2 million shares from selling stockholders at $21 per share, Pacs Group said Tuesday. (DeSilva, 4/16)
WUSF:
Tampa General Hospital Breaks Ground On Tower For Surgery, Neuroscience And Transplants
Tampa General Hospital broke ground Monday on a 12-floor medical tower for surgery, neuroscience and transplant services, a flagship effort of a $550 million master plan. The 565,000-square-foot building, adjacent to Tampa General’s main campus on Davis Islands, will include 144 beds, 32 operating suites and an expanded intensive care unit. There will also be space for education and two floors reserved for future growth. (Colombini, 4/16)
Chicago Tribune:
Walgreens Embarks On Another Round Of Layoffs
Walgreens confirmed Tuesday a new round of layoffs, the latest in a string of job cuts over the past year as the retail pharmacy giant aims to slash costs. Walgreens spokesman Fraser Engerman said the company is not disclosing the number of people it’s laying off. Most of the positions are Chicago-based, he said in a statement. (Schencker, 4/16)
Modern Healthcare:
Why CVS’ Oak Street Is Opening Retail Clinics As Others Shutter
CVS Health is opening Oak Street Health primary care clinics at its retail pharmacy stores — a move that hasn’t always worked out for competitors. CVS acquired primary care provider Oak Street last May for $10.6 billion and announced plans to add 50 to 60 Oak Street clinics in 2024. Most of those clinics are expected to be standalone locations, including some located in closed CVS stores. But CVS also is piloting a setup that replaces much of the retail space in existing stores with clinics. (Hudson, 4/16)
Axios:
CVS Pharmacy Workers Move To Unionize
Pharmacists at CVS stores are moving to join a new union as part of a growing backlash to what they say are unsafe work conditions. The new unionization effort comes months after pharmacy workers at major retailers staged walkouts — dubbed "pharmageddon" — in response to understaffing and growing workplace demands that they warn are putting patients' health at risk. (Goldman, 4/17)
