News Briefs

✦ Cigna Corp.’s Evernorth division has reached a deal to acquire the telehealth platform MDLIVE, the companies said on Feb. 26. Cigna is already an MDLIVE customer and investor, and noted in a press release that the telehealth firm “has a sizable and forward-thinking client base, a class-leading provider network, brand recognition among customers and consumers, and experience in medical and behavioral health.” In a note to investors about the deal, Evercore ISI analysts wrote that “although we don’t view MDLIVE as particularly differentiated vs. other telehealth providers, it gives [Cigna] a platform to better integrate telehealth medical and behavioral visits into its healthcare offering to help control costs and improve patient experience, and expands the service offerings Evernorth can cross-sell into other health plans.” The analysts also noted that previously MDLIVE was considering going public, and its latest funding round valued it above $1 billion. No financial terms were disclosed for the deal, which is subject to customary closing conditions and regulatory approvals, and is expected to be completed in the second quarter of 2021. Read more at https://prn.to/3qZ9eOr.

✦ Hawaii elected to renew its contract with Centene Corp.’s ‘Ohana Health Plan to provide behavioral health care services to Medicaid-eligible adults with severe and persistent mental illness under the state’s Community Care Services (CCS) program. The plan, which serves about 5,000 members ages 21 and older who have severe and/or persistent mental illness, has been the sole contractor for CCS since 2013. The contract extension will begin July 1 and continue for three years, and the state holds two one-year options to extend it. Read more at http://prn.to/3sxWpuR.

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