- TeamHealth Holdings Inc. has agreed to buy IPC Healthcare Inc. for $1.4 billion.
- The deal will help move TeamHealth, a provider of hospital contract workers, into the business of providing aides for post-acute care, including nursing homes.
- It also helps align TeamHealth business in an era of bundled Medicare payments.
Medicare payment bundling is the most obvious reason why this deal makes sense. As Medicare moves toward value-based reimbursements instead of paying for individual services, TeamHealth has put itself in position to offer services across the care spectrum, Leerink Partners analyst Anagha Gupte told Reuters.
The all-cash deal represents a 37.3% premium to the Monday closing price of IPC shares. By Tuesday, those shares were approaching the offer price of $79.57/share.