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The Strategist in Brief: November 8, 2024 · The Strategy Catalyst Dispatch

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  This is the audio version of the strategist and brief for November.
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  This week's edition begins with some breaking news coverage.
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  Of the recent election results.
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  While control of the house of representatives remains.
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  And outstanding question at the time of writing.
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  The Republican party could be poised.
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  To gain unified control of the federal government.
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  Republicans love a stronger.
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  Hand in the upcoming lame duck session of Congress, which will likely stall any significant.
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  It changes.
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  A narrow Senate majority gives the GOP control of.
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  Spending an appointments.
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  But a potential narrow house.
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  Majority could make governance difficult.
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  It's hard to predict Republican policy priorities, but we could.
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  Imagine action on site neutral payments, ACA reform, abortion, public health.
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  Now our first market scan.
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  Elephants health plans to acquire home health company care bridge for 2.7.
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  Billion dollars.
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  The company takes risk for Medicaid and dual eligible.
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  Patients with physical or intellectual disabilities who are receiving home and community.
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  Based services.
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  Cambridge tout savings in the high single digits.
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  Low double digits with hospitalizations 23% lower.
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  And skilled nursing facility days, 16% lower.
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  Access.
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  Yes to elephants as capital could help care bridge grow more rapidly.
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  The high acquisition price suggests the payer sees the company as a growth vehicle.
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  Cambridge sees a$120 billion total addressable market.
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  For home and community-based patients.
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  With half acquirable through major.
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  For payers that has already worked with.
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  The question is if other payers will want to see this business.
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  Moving on to our next market scan Sanford.
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  Health and Marshfield clinic health system signed a merger agreement.
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  If the merger.
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  Closes, the combined system will have more than$10 billion in annual revenue.
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  4,600 providers and 425,000.
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  And members across two integrated health plans.
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  Marshfield needs a financial.
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  Naturally stable partner with deep pockets capable of absorbing its recent steep.
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  Steep operating losses and Sanford could be a good match given its healthy operating.
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  Operating margin.
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  Sanford might benefit from greater geographic diversity.
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  given its reliance on more rural areas.
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  Greater scale.
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  And improved payer mix.
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  And value based care, knowledge transfer.
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  The merger is a test of the continued viability of non-contiguous mergers to pass regular.
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  Our final market scan covers our favorite.
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  Insights from this year's health 2024 conference in Las Vegas.
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  During a panel executives with Amazon pharmacy, Walgreens blue.
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  Blue cross blue shield of California and pharma criticized the PBM business model.
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  And call it on the industry to find better ways to align incentives.
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  If.
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  Congress addresses PBM reform.
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  It could threaten the flywheel business model.
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  And pursued by the major providers like United health group and CVS, Aetna.
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  Separately, the coalition for health AI revealed.
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  The draft template for its AI model card, a standardized summary of product capable.
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  Capabilities that the organization hopes will function like a nutrition label for AI.
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  Healthcare use cases.
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  Chuy's efforts could help streamline.
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  AI adoption and give health systems better tools to evaluate safety.
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  But healthcare organizations will still need to retain their own AI talent to make.
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  Smart decisions about AI products.
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  Microsoft GE healthcare.
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  Care new Vidia and other tech vendors presented a variety of new products at the conference.
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  But the industry as a whole seems focused on irrative and incremental improvements.
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  That concludes our summary of this week's strategist.
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  Just addition.
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  Be sure to check out the full version on the web@hmacademy.com.