HGP Health IT April Insights

May 02, 2019

HGP’s April Health IT Insights provides a summary of Health IT transactions, news, and public company performance during the month of April. Health IT transaction activity reflected the dynamic nature of the industry in April, with transactions ranging from consumer wellness and lifestyle platforms to AI-based clinical decision support solutions.  During the month, CMS introduced new value-based payment models for primary care practices and an expansion of telemedicine benefits for Medicare Advantage plans.  Legislation for Medicare-for-All led by Bernie Sanders and co-sponsored by multiple key candidates in the Democratic Primary hammered healthcare stocks during the month.  Although investment analysts and the CBO were quick to counter that a shift to a single payer system is very low probability from a cost and political feasibility perspective, the news was enough to rattle investors in health insurance and hospital management companies.

 

Noteworthy Transactions

Noteworthy themes in April include:

Other noteworthy M&A transactions and buyouts include:

Other noteworthy capital transactions include:

 

Noteworthy News Headlines

 

Public Company Performance

HGP tracks stock indices for publicly traded health IT companies within four different sectors - Health IT, Payers, Healthcare Services, and Health IT & Payer Services. The chart below summarizes the performance of these sectors compared to the S&P 500 for the month of April:

 

 

The following tables include summary statistics on the four sectors tracked by HGP as well as the S&P 500 and NASDAQ for March 2019: