In 2018, strategic mergers and acquisitions played a significant role in changing the healthcare landscape, specifically among the larger healthcare provider organizations. The average disclosed revenue size of all acquisition targets in 2018 was $409 million.* Vertical integration continues to be a key strategy for payors, primarily driven by the need to moderate costs, identify potential cost efficiencies and improve access for patients. One of the most notable vertical integration transactions was Humana’s $4.1 billion acquisition of Kindred Healthcare’s post-acute operations, including its home health and hospice units. Other acquisitions to note include LHC’s acquisition of Almost Home and Cigna’s acquisition of PBM Express Scripts.

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