Change Healthcare may sell off assets to close UnitedHealth deal, plus more vendor news
Radiology vendor Change Healthcare is considering selling off assets so its blockbuster merger with UnitedHealth Group could gain regulatory approval, Bloomberg reported Monday.
The two healthcare heavyweights have been working on their proposed union for more than a year, with UHG offering $8 billion in cash to acquire the Nashville-based firm. However, the deal has faced several hurdles, including opposition from multiple provider groups and a Department of Justice investigation.
Change is now consulting with advisers about possibly divesting payment integrity business ClaimsXten, which could fetch more than $1 billion, Bloomberg reported Jan. 24 citing anonymous sources. However, there is no certainty a deal will be reached, nor if such a sale would satisfy regulators.
UnitedHealth Group announced in December that it was pushing back its timeline, planning not to complete the deal prior to April 5. The two parties had originally hoped to close the transaction in 2021’s second half. Along with the purchase price, UHG would also assume $5 billion of Change Healthcare’s debt and fold the Blackstone Group-backed software and analytics firm into its Optum business unit.
Agfa to raise radiology prices
Imaging technology and IT firm Agfa is raising prices for its radiology solutions, the company announced on Jan. 20.
Costs for all medical films and equipment will increase between 5% to 10% in response to “inflationary pressure.” Meanwhile, prices for other radiology solutions will leap by a “double digit” percentage.
“All along 2021, the division experienced a substantial cost increase for raw materials, energy, packaging material and transport,” Agfa said in an announcement. “The impact has been so severe that, despite internal cost reductions, a price increase is inevitable.”
Philips’ sales decline
In the fourth quarter of 2021, Royal Philips saw its comparable sales decline about 10%, impacted by supply chain challenges and COVID-related delays in equipment installations.
Despite such challenges, the Amsterdam-based industry giant saw promise in its imaging segment, leaders said Monday. Comparable order intake for the Diagnosis & Treatment business rose 10%, including double-digit growth in image-guided therapy and smaller gains in ultrasound.
Philips inked 80 long-term strategic partnerships in all of 2021 and is optimistic about this year, despite any pandemic-related interruptions.
“Based on good customer demand and our growing order book, we expect to resume our growth and margin expansion trajectory in the course of 2022,” CEO Frans van Houten said Jan. 24. “In the short term, however, we continue to see significant volatility and headwinds related to COVID-19 and supply chain challenges, despite our ongoing mitigation efforts.”
Rapid fire
Here are a few more radiology vendor news items of note, in rapid fashion:
- Artificial intelligence firm Qure.ai has scored U.S. Food and Drug Administration clearance for an algorithm that uses chest X-rays to help docs assess breathing tube placements.
- The Medical Imaging & Technology Alliance believes a recent CMS decision to limit coverage for a controversial Alzheimer’s drug will “severely” restrict Medicare beneficiaries’ access to treatment.
- Aidoc recently inked a partnership with Novant Health system, which will utilize the company’s imaging AI solutions to expedite triage of patients in the emergency department.
- The U.S. Department of Defense has granted its approval for the use of iCAD’s breast AI platform across military healthcare facilities, the Nashua, New Hampshire, firm announced Monday.
- Interventional radiology medical device maker Theromics recently scored $2 million in new seed funding.
- Imaging Healthcare Specialists, one of the largest radiology practices in Southern California, has partnered with vendor Within Health, hoping to increase patient compliance for overdue imaging studies.
- Strategic Radiology has partnered with StreamlineMD to provide member practices with the company’s EHR software for managing office-based interventional radiology services.
- And finally, medical imaging firm Rezolut recently acquired the assets of Westwood Open MRI, a Los Angeles-based radiology center.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.