It has almost been a year since the announcement was made by CVS Health that it will be acquiring Atena, the health insurer. Now, after a year, CVS Health is about to close the deal with the health insurer.
The Department of Justice gave the two companies a green signal so that they could proceed with the deal in October.
The deal of acquiring Atena has costed CVS Health $69 billion. Despite the go ahead from the Department Of Justice, the two companies still require the signing off of the key state insurance agencies.
On Monday, the companies announced that they are expecting to complete the transaction and close the deal by Wednesday as they have received the approval from all their regulators.
The healthcare industry will be redrawn by this deal.
In case of CVS Healthcare and Atena, this deal will incorporate creation of a new company which will include an insurer of health as well as a pharmacy and negotiations in the prices of the drugs with the drug-makers known as the Pharmacy Benefits Manager (PBM)
The Part D of the drug plan prescription business of Atena will be divested because of the agreement with the Department of Justice.
The healthcare businesses’ boundaries are changing rapidly now. In order to grow, the companies do not prefer to acquire the companies which operate in the same business.
Instead they prefer acquiring those businesses which have a different line so that the company can move into a new line with the combinations of business that does not look same.
This is a part of the plan of the healthcare companies so that they can reduce the cost as well as gain more and more control over the patients in need of their services by diversifying.
Source: BusinessInsider, NewYorkTimes
