• Connecticut: On Monday, Cigna Group said that it is not pursuing a combination with rival insurer Humana despite recent reports that the two companies had resumed discussions about a potential deal. In a statement, Cigna said that it "remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close." Cigna said it is focused on buying back its own shares, with $6 billion of stock repurchased year to date, including $1 billion so far in the fourth quarter. According to Michael Wiederhorn, an analyst at Oppenheimer, "Cigna's latest clarification certainly puts the possibility of such a deal to bed." (Roy/Sunny, Reuters, 11/11; Lauerman, Bloomberg/Modern Healthcare, 11/11)
• District of Columbia: A proposal drafted by Sens. Bill Cassidy (R-La.) and Maggie Hassan (D-N.H.) advocates for site-neutral payments. The bill claims these would reduce patient healthcare costs, decrease provider consolidation, improve Medicare's finances, and assist rural hospitals in high-need areas. However, several healthcare organizations, including the American Hospital Association (AHA) and the Michigan Health & Hospital Association, have pushed back against the proposal, saying that it would reduce access to care. "Rather than addressing the root causes driving physician acquisitions, this instead proposes dramatic and untenable Medicare cuts, reducing seniors' access to critical hospital-based care," said Stacey Hughes, EVP at the AHA. "We urge Congress to address the true drivers of physician acquisitions, which include significant underpayments to providers and persistent delays and denials of care by commercial insurers." (DeFrietas, HealthLeaders, 11/11)
• District of Columbia: The Department of Justice (DOJ) has filed a lawsuit against UnitedHealth Group* (UHG) to block its $3.3 billion acquisition of Amedisys, a home health and hospice services provider. The attorneys general of Illinois, Maryland, New Jersey, and New York are also suing UHG to block the acquisition. If the Amedisys acquisition is completed, DOJ said that UHG could control at least 30% of the home health or hospice markets in eight states and expand its presences in those services to five additional states, as well as to 500 locations across 32 states where it already competes. (Herman/Bannow, STAT+ [subscription required], 11/12; Grantham-Philips, Associated Press, 11/12; Eastabrook, Modern Healthcare, 11/13; Reuters, 11/12)

*Advisory Board is a subsidiary of Optum, a division of UnitedHealth Group. All Advisory Board research, expert perspectives, and recommendations remain independent. 

Vertical integration and consolidation are significantly altering the healthcare landscape. From health plans to retailers to incumbent health systems, consolidation is reshaping conventional norms in the industry. Radio Advisory's Rachel Woods sat down with Advisory Board experts Paul Trigonoplos and Eliza Dailey to discuss the reasons for and reactions to the recent explosion in consolidation across the industry and explore how different stakeholders are responding and where the future is heading for diversification and integration.