Global Integrated Reimbursement Services, Inc. (GIRS) tracks major insurer mergers including the Anthem and Cigna Corp mergers that was blocked by the U.S. Department of Justice. See our LinkedIn Page for more details.
However, insurers are now also considering merging with healthcare delivery systems. One such case of a merger that we are tracking is that of Ardent Health Services (“Ardent”) and LHP Hospital Group, Inc. (“LHP”). The companies jointly announced on Wednesday, October 5th, 2016 that they have entered into a definitive merger agreement under which the operations of the two companies will be combined if the merger goes through. Ardent will remain headquartered in Nashville and will assume management and operation of LHP through the guidance of LHP executives. Ardent will remain headquartered in Nashville and will assume management and operation of LHP through the guidance of LHP executives. Ardent has stated that there is no overlap in the markets served by their company and LHP. Ardent Health operates 14 hospitals in New Mexico, Oklahoma and Texas. LHP owns five hospitals in Florida, Idaho, New Jersey and Texas. The companies, in a joint statement said that the merger when completed would result in the creation of the second-largest privately owned, for-profit hospital system in the country by revenue, with 19 hospitals in six states and $3 billion in revenue.
“This transaction dramatically enhances our scale, diversity and geographic reach—creating new synergies that better position us for future growth and investment in new and existing markets,” said David Vandewater, Ardent President and CEO.
The transaction is expected to close in early 2017, awaiting regulatory reviews and approvals.
Mergers often change medical policy coverage for client Products that needs to be tracked. Mergers also can often impact patient access, increase billing confusion, and create a dynamic payer environment. Once mergers are finalized, during the transition period you should track the implementation of new changes to coverage policies, billing guidelines, and other details that are key for your accounts to get coverage and payment.
GIRS is tracking the merger of Ardent Health Services with LHP as well as other mergers in order to understand their implications for patient access to our clients’ medical technologies.
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Sources: Last viewed October 20, 2016
http://www.modernhealthcare.com/article/20161006/NEWS/161009945?utm_source=modernhealthcare&utm_medium=email&utm_content=20161006-NEWS-161009945&utm_campaign=financedaily
http://www.prnewswire.com/news-releases/ardent-health-services-and-lhp-hospital-group-inc-announce-plans-to-merge-300339962.html
http://www.businesswire.com/news/home/20161005006406/en/Ventas-Issues-Secured-Debt-Financing-Commitment-Ardent