Healthcare is seeing a surge in entities pursuing opportunities arising from the transition from fee-for-service to value-based models, according to VMG Health’s 2025 Healthcare M&A Report, released on April 22.
Here are 13 value-based care transactions shaping the industry, according to VMG Health.
Payers and retailers
1. In January 2024, Cigna announced the sale of its Medicare business — CareAllies, Medicare Advantage and Medicare Part D businesses — to nonprofit payer Health Care Service Corporation for $3.3 billion. The sale included 600,000 MA members, 450,000 supplementary plan members, and 2.5 million Part D enrollees, along with CareAllies, which serves 400,000 patients in value-based care.
2. In March 2024, Walgreens revealed plans to close 160 VillageMD clinics, increasing the number from the previously expected 60 closures in 2023. Walgreens also disclosed it was considering selling all or part of its majority stake in VillageMD after originally investing $5.2 billion in 2021. Meanwhile, in May 2024, Cigna wrote off $1.8 billion of its $2.5 billion VillageMD investment.
3. Walmart announced the closure of all 51 Walmart Health and Walmart Health Virtual Care clinics, citing unsustainable business models due to reimbursement challenges and rising labor and operating costs.
Provider groups and technology primary care platforms
4. In February 2024, Denver-based Everside Health and Indianapolis-based Marathon Health, both primary care providers, merged, combining more than 680 health centers across 41 states to serve 2.5 million eligible patients.
5. Also in February 2024, Miami-based primary care provider Cano Health filed for Chapter 11 bankruptcy and completed a court-supervised restructuring by June 28. Cano exited unprofitable markets to refocus on Florida, achieving an enterprise value estimated between $580 million and $720 million, according to VMG Health.
6. In June, Optum, parent company of ASC chain SCA Health, called off its plan to acquire financially troubled Steward Health Care’s 1,700-physician group, Stewardship Health, amid regulatory concerns over consolidation.
7. In August, Steward Health sold Stewardship Health to Nashville, Tenn.-based Revere Medical, formerly Rural Healthcare Group, part of private equity firm Kinderhook Industries, for $245 million. Stewardship brought 5,000 providers and 400,000 attributed lives to Revere’s network, and the deal has received federal regulatory approval.
8. In April 2024, Elevance Health and its private equity partner launched Mosaic Health. The partnership will bring together two CD&R assets, digital platform Apree Health and Florida-based provider group Millennium Physician Group, and Carelon Health.
9. In November 2024, Alhambra, Calif.-based Astrana Health, formerly Apollo Medical Holdings, agreed to acquire select businesses from Prospect Health System — including its health plan, medical groups, MSO operations and hospital assets — for $745 million at a 9.2x EBITDA multiple. Despite Prospect Health filing for Chapter 11 in January, the transaction is proceeding as planned.
10. Also in November 2024, Miami-based CareMax filed for Chapter 11 bankruptcy and entered into two sale agreements: ClareMedica Health Partners will acquire most of CareMax’s operating clinics for $100 million, and Revere Medical will acquire CareMax’s MSSP MSO business supporting 80,000 Medicare beneficiaries for $10 million.
11. In December 2024, NeueHealth announced plans to go private in a $1.3 billion transaction with New Enterprise Associates and affiliates, offering shareholders $7.33 per share, a 70% premium, according to VMG Health.
Health systems
12. In March 2024, Kaiser Permanente closed its acquisition of Geisinger Health, making Geisinger the first member of Risant Health. Kaiser committed at least $2 billion to Geisinger by 2028 to support strategic initiatives in value-based care expansion.
13. In December, Risant Health completed its second major acquisition with the addition of Cone Health, a North Carolina-based health system. Although no purchase price was disclosed, Risant will provide over $1 billion in capital investment and $400 million for system integration and platform implementation.
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