DaVita acquires HealthCare Partners

May 21, 2012 at 1:14 PM Leave a comment

Like the acquisition of Monarch by United several months ago, large for profit entities are finding value in ACO management infrastructures.  This deal is for $4.42 billion in cash and stock:  http://www.latimes.com/business/money/la-fi-mo-davita-health-deal-20120521,0,1684433.story

What’s going on here?  What I think is happening is that sophisticated observers are seeing the movement to accountable care as inevitable, and they are placing bets on companies that can manage in that environment.  Fixed population reimbursement plus variable payment for hitting quality parameters is how these companies operate, and this appears to be the most feasible solution in the market currently to running out of money to pay for FFS-driven health care.  The future belongs to the efficient and effective, not simply the productive irrespective of value.  HealthCare Partners is clearly in the former category.

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