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Vertical integrations
As healthcare providers aim to provide greater transparency , promote collaboration and lower escalating patient costs , 2018 has been the year for a significant number of vertical integrations . CVS Health ’ s $ 68mn takeover of health insurer Aetna is a case in point . By influencing more of the supply chain , it will gain significant negotiating power to reduce costs for payers and patients , develop personalised solutions and improve overall outcomes . It will also promote the eradication of delays in process by removing any third parties within traditional business models . Other notable integrations are Optum ’ s acquisition of the DaVita Medical Group , Humana and Kindred Healthcare and Cigna and Express Scripts .
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Reports have indicated that not only has the number of healthcare deals more than doubled in the last five years , the size of deals has also grown as a result of repeat investor interest , highlighting that this trend is here to stay .
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