Express Scripts to buy eviCore Healthcare for $3.6B
In what the company says will create a "comprehensive patient benefit management solution," prescription benefit services company Express Scripts is acquiring eviCore Healthcare for $3.6 billion.
EviCore Healthcare works with health plans to lower unnecessary scans and tests.
- The purchase comes as Amazon is looking to likely enter the prescription drug benefit business, which could be a competitor to Express Scripts. There are also concerns that Express Scripts may lose Anthem as a customer.
The purchase allows Express Scripts to provide additional services beyond their current offerings, which could help if the prescription benefit sector becomes more crowded by companies with deep pockets like Amazon.
The deal goes beyond the pharmacy benefit business and stretches into working with insurers in the medical benefit management services sector. EviCore, which has about 4,000 employees, contracts with health plans and commercial clients to “ensure appropriate use of healthcare services."
The company manages medical benefits for 100 million people as well as benefits in categories, such as radiology, cardiology, musculoskeletal disorders, post-acute care and medical oncology.
The deal will allow Express Scripts to offer more health plans than prescription benefit services soon. Namely, a second way to control healthcare costs — prescription drugs and scans/tests.
Express Scripts expects to close the deal in the 4Q of 2017.