The Federal Trade Commission (FTC) is opening an investigation into the business practices of pharmacy benefit managers (PBMs). PBMs have been in the hotseat for quite some time. Executives from the largest PBMs were recently called to testify before Congress to explain whether their business practices lead to higher drug prices. In the latest inquiry, the FTC announced it will require the six largest PBMs to provide a range of information and business records on operations.
Category: Drug Prices & Regulations
Is it OK for Apple and Walmart Associates to be on Medicaid?
The CEO of L.A. Care Health Plan recently blogged about walking into an Apple store in downtown Los Angeles and discovering the sales associate who assisted him was a client. L.A. Care is a purveyor of both Medicaid managed care plans and Obamacare plans sold on the Covered California health insurance marketplace. He was aghast when the sale associate said she was covered through Medi-Cal, the California Medicaid program.
Aging Colons a Goldmine for Private Equity Investors
Private equity investors are increasingly buying gastroenterology practices. Around 1,400 of the nation’s gastroenterologists are employees or partners in practices backed by private equity. According to a recent whitepaper, acquisitions of gastroenterology practices by private equity grew by 28% last year. As one investment manager noted:
We are in the Golden Age of older rectums—from a supply side, at least. Elderly people will make up 20% of the population by 2030, and health care costs are projected to approach 20% of the nation’s gross domestic product—the highest in the world, according to the U.S. Census Bureau. It would seem a boom time for gastroenterologists.