TeamHealth to Merge with IPC Healthcare

TeamHealth Holdings (Knoxville, TN, USA) has signed an agreement to acquire acute hospitalist and post-acute provider IPC Healthcare (North Hollywood, CA, USA), for an enterprise value of USD 1.6 billion.

The combination of the two physician-centric companies is expected to have a network of 15,000 healthcare professionals, and will be better positioned to handle the new bundled payments for care improvement initiative (BPCI), since the combined company will have a unique presence across emergency medicine, hospitalist, and post-acute services such as nursing homes and assisted-living facilities. IPC healthcare, which provides such services in approximately 2,000 post-acute facilities across 28 states, has the leading platform in the United States.

IPC Healthcare currently has a network of affiliated physicians and other clinical providers that offer services in 400 hospitals and 1,700 post-acute care facilities. The company provides comprehensive training and information technology and management support systems to the facilities that it serves to enhance the quality and reduce the cost of patient care. The merger will also allow TeamHealth to take on more contract workers for outsourcing staffing solutions to emergency rooms, hospitals, and nursing homes in the United States.

“We are excited to announce this strategic transaction with IPC Healthcare to create the leading physician services organization spanning multiple specialties,” said Mike Snow, president and CEO of TeamHealth.

“This transaction ensures that we extend TeamHealth's competitive position, and we are confident that together we will create a more powerful platform from which to deliver significant value creation for our patients, physicians, and other stakeholders.”

“We look forward to partnering with TeamHealth to advance our mission of delivering high-quality inpatient care efficiently and cost-effectively,” said Adam Singer, CEO of IPC Healthcare. “Both TeamHealth and IPC Healthcare are physician centric organizations with strong track records of delivering superior solutions to our healthcare provider partners nationwide. We look forward to being a critical contributor to the future growth strategy and value creation for TeamHealth while creating new and exciting opportunities for our valued employees.”

The US Centers for Medicare & Medicaid Service (CMS; Baltimore, MD, USA) BPCI payment model is intended for providers who can effectively manage care both inside the hospital setting and beyond. It is comprised of four broadly defined models of care, which link payments for multiple services beneficiaries receive during an episode of care. According to the CMS, BCPI can align incentives for providers, allowing them to work closely together across all specialties and settings

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