Consortium of private equity firms to buy Medline • Why this local drugmaker has an edge over AbbVie • New Mercy owners promise to be hospital “stewards”
MEDLINE OFFER VALUE OF OVER $ 30 BILLION: A consortium of private equity firms has struck a deal to buy medical supplies company Medline Industries Inc. in what would be one of the biggest debt buyouts of all time.
The group, made up of Blackstone Group Inc., Carlyle Group Inc. and Hellman & Friedman, will take a majority stake in Medline. Singaporean company GIC Pte will also invest as part of the partnership, the consortium said in a statement on Saturday.
Northfield-based Medline, America’s largest private manufacturer and distributor of medical supplies such as medical gloves, face masks, gowns and examination tables is run by the billionaire Mills family: CEO Charlie Mills, his cousin Andy Mills, who is president, and COO Jim Abrams, who is Charlie’s brother-in-law.
The Mills family will remain the largest single shareholder, the statement said, adding that there will be no change in Medline’s management team. READ MORE.
ABBVIE’S LOSS IS TOLMAR’S GAIN: Tolmar Pharmaceuticals’ prostate cancer drug Eligard has long been opposed to Lupron, sold by North Chicago-based AbbVie and manufactured by Takeda. But when problems at a Japanese factory last year forced Takeda to temporarily halt production of the drug, Tolmar suddenly reserved the US prostate cancer hormone therapy market for himself.
With Lupron on ice, Eligard’s market share more than doubled to 65% at some point last year, according to Anil D’Souza, CEO of Buffalo Grove-based Tolmar.
“Really, all capacity in the (American) market was us and AbbVie – and we were the only ones controlling our own supply chain,” says D’Souza, who refuses to reveal Eligard’s sales or estimate the market dollar value. READ MORE.
MERCY’S NEW OWNERS PROMISE TO BE “MANAGERS” OF THE HOSPITAL: It is the start of a new era. Mercy Hospital & Medical Center, Chicago’s oldest hospital, has a new name and new owner.
On Friday, leaders of Insight Hospital & Medical Center Chicago spoke to community members and pledged to transform Bronzeville Hospital into a “destination hub.”
In addition to increasing lines of service, Insight plans to restore the hospital’s full emergency department, re-establish it as an educational facility, and add three independent community members to its board of directors. ‘administration.
Hospital CEO Atif Bawahab admitted that the Flint, Michigan-based company was not “embraced with open arms” when it announced plans to buy the hospital from Trinity Health for $ 1.
“We see ourselves as the stewards of the hospital. As a people, the torch has now been passed. But we will always recognize the work that has been done before us, ”he said. “It’s going to be a collaborative effort to rebuild us together. “
Insight, which took over on June 1, has pledged to operate the full-service community hospital until at least 2029.
“They expressed their commitment to work with us, to determine what the needs of our community are and to include us – it has been so encouraging and hopeful,” said State Representative Theresa Mah, D- Chicago, at the press conference. Event. Three lawmakers recently criticized the Mercy deal in a letter from Crain to the editor, writing that “the city has chosen to go ahead with the sale of Mercy Hospital in Bronzeville to Insight, without any due diligence , without finances or plan of operation “.
TELEHEALTH, OTHER COVERS SPRINGFIELD SESSION HIGHLIGHTS: A move that makes many of the temporary pandemic regulations providing for parity in telehealth coverage permanent is one of the most high-profile healthcare bills currently on the Illinois governor’s office JB Pritzker.
HB3308 will require state-regulated insurance plans to cover and reimburse telehealth services at the same level as in-person care. The requirement will be extended indefinitely for mental health and substance use disorder services and until the end of 2027 for all other types of health care. This does not apply to self-insured plans or Medicaid, although Medicaid currently pays the same rates for telehealth and in-person care.
Here’s where other health care bills stand:
- Prescription repository program: Also on Pritzker’s desk is HB 119, which would establish a system for people to return their unnecessary, unopened prescription drugs to pharmacies, which would then be made available to low-income residents.
- Extensive Infertility Coverage: HB 3709, which is also on Pritzker’s desk, extends coverage of infertility treatment to single women and same-sex couples. Currently, companies that offer pregnancy benefits are required to also cover fertility treatments such as IVF, but only for women under 35 who are medically unable to conceive or unable to become pregnant after six months.
- Preliminary authorisation: A measure to speed up the pre-authorization process is also awaiting Pritzker’s signature. HB 711, the Prior Authorization Reform Act, would set deadlines for insurance companies to approve urgent and non-urgent care. If a treatment is approved, the related supplies or services would also be considered authorized and would remain in effect for the duration of the care.
- No midwifery license: One bill that was not passed was HB3401, which would have allowed certified professional midwives to apply for a state license. Although it passed the Illinois house with flying colors, the Senate never put it to a vote.
THE NATIONAL REPORT PROVIDES FOR THE DISCHARGE OF HEALTH CARE: A report by Skokie-based healthcare consultancy Sg2 adds to a growing collection of data showing that there will be more less serious care and that it will be delivered outside hospital walls.
The report predicts that inpatient discharge volumes will decrease by 1% by 2029, while outpatient volumes will increase by 19% and outpatient surgery centers will experience growth of 25%.
There are a few reasons for dropping out of inpatient care. There are more innovations in medical technology that allow for less invasive procedures and therefore less need for all the bells and whistles that a hospital provides. Ambulatory surgery centers have also experienced tremendous growth, in part thanks to financial support from private equity firms. More from Crain’s sister post Modern health care.
THE NORTHWEST TARGETS SENIORS FOR THE PRIMARY CARE MODEL: Northwestern Medicine has introduced a new model of primary care targeting chronically ill patients and those 65 years of age and older. The Naperville clinic, launched last week, will offer one-on-one care from a team including a primary care physician, health coach and social worker helping patients overcome barriers, according to a statement.
Northwestern joins a growing list of hospital chains that develop specialty offerings for patients 65 and older, including Advocate Aurora Health and NorthShore University HealthSystem. Institutions face increasing pressure to provide better quality care at lower cost, as the population ages and Medicare moves towards insolvency.
WORK ON THE CAUSES, SOLUTIONS TO MATERNAL DEATH: In April, Illinois became the first state be approved by the US Department of Health and Human Services to extend Medicaid for up to one year after pregnancy.
As Crain’s reported in April, living conditions for mothers have deteriorated, and black women are almost three times more likely than white women to die from pregnancy-related illnesses.
The disparity has narrowed since the state released its 2018 report, which found black women were more than six times more likely than white women to die from pregnancy-related illnesses. However, “this is not due to the improvement of conditions for black women, but rather to the worsening of conditions for white women,” IDPH director Dr Ngozi Ezike said at the meeting. ‘a press briefing today. “Any disparity between the groups is unacceptable.”
Maternal health experts say extending Medicaid coverage to a full year after childbirth makes sense, as pregnancy-related complications – physical and mental – aren’t limited to the first few months.
“A lot [postpartum] health issues and health issues extend beyond the 60-day period Medicaid currently covers, ”said Dr. Rachel Bervell, obstetrician in Seattle and co-founder of OBGYN project black, which aims to raise awareness of racial injustices in maternal health care. Illinois Public Media Has More In Modern Health Care
LIST OF REMARKABLE CRAIN GENERAL ADVISORS FOR HEALTH CARE INCLUSIONS: General attorneys for more than a dozen healthcare companies have been included on Crain’s Chicago Business Notable General Advocates list. About a quarter of the boards on the list represent healthcare companies. See who made the cut.
PEOPLE ON THE MOVE
• Dr Joseph W. McIntosh, has been appointed Chief Physician for Jaguar Gene Therapy of Lake Forest. McIntosh has over 16 years of drug development experience in the biopharmaceutical industry, with a focus on the development of gene therapies.