Mergers & Acquisitions
The organizations said they would continue to collaborate with each other, but as two separate health systems.
Paragon provides infusion services to patients through an omnichannel model.
The purchase price for the transaction, net of certain tax benefits, is reduced from $510 million to approximately $425 million.
The combined systems would create a 30-hospital network with a reported $14 billion in revenue.
A merger between competitors that increases concentration and consolidates a market may substantially lessen competition, agencies say.
Cigna was to acquire Humana in a deal that would have come about by the end of the year, says WSJ.
The White House has specifically called out the acceleration of consolidation in healthcare markets, saying it too often leads to higher costs.
The two health systems also jointly own Ascension Saint Thomas Rehabilitation Hospital in Nashville.
The combined entity would boast about $10 billion in revenue from the 28 hospitals that would be brought together.
The idea is that the pricing capabilities of Cost Plus drugs will be integrated into Expion's product suite and enhance transparency.