Morning Briefing
Summaries of health policy coverage from major news organizations
KKR Bulks Up On Health Care Holdings With $2.4 Billion Ambulance Deal
Modern Healthcare: Envision Sells Its Ambulance Business To KKR For $2.4 Billion
Envision Healthcare's long journey to sell its giant ambulance business has culminated in a $2.4 billion deal with a Kohlberg Kravis Roberts & Co. operating company, the companies announced Tuesday. Under the deal, Envision's American Medical Response will be combined with KKR's Air Medical Group Holdings to create a medical transportation behemoth serving more than 5 million patients annually across 46 states and the District of Columbia. (Barkholz, 8/8)
Bloomberg: KKR Extends Health Flurry With $2.4 Billion Ambulance Deal
The combined businesses will transport more than 5 million patients a year through air and ground ambulances in 46 U.S. states and Washington D.C., the companies said. The deal is expected to close in the fourth quarter pending the approval of regulators, they said in a statement on Tuesday. Shares of Nashville, Tennessee-based Envision climbed about 5.7 percent to $58.17 before the start of regular trading. (Thomson, 8/8)
In other health industry news —
The Wall Street Journal: CVS Moves Deeper Into Doctors’ Turf
CVS Health Corp. hit by slower store sales and the defection of some big insurance providers, is moving ever more onto doctors’ turf in a bid to win back business. The company said Tuesday that it intends to expand a program in which it marshals pharmacists, hundreds of on-site medical clinics and its vast data network to help people manage chronic diseases including asthma and high blood pressure. (Terlep, 8/8)
Bloomberg: CVS Health Is Sued Over ‘Clawbacks’ Of Prescription Drug Co-Pays
CVS Health Corp. was sued by a California woman who accused the drugstore operator of charging customers co-payments for certain prescription drugs that exceed the cost of medicines. CVS, the largest U.S. pharmacy chain, overbilled consumers who used insurance to pay for some generic drugs and wrongfully hid the fact that the medicines’ cash price was cheaper, Megan Schultz said in her Aug. 7 lawsuit. Schultz said in one case she paid $166 for a generic drug that would have cost only $92 if she’d known to pay cash. (Feeley and Hopkins, 8/8)
