Q4 Mergers at Three-Year Low
The demand for merger communication shows signs of leveling off as the industry's trend toward consolidation hits a downward spiral. Healthcare mergers in Q4 of 1998 dipped 23 percent to a three-year low of 206 publicly announced transactions from 268 deals in Q4 of 1997, according to the preliminary finding of a new report by the New Canaan, Conn., research and publishing firm Irving Levin Associates. The complete report will be available in Mid-February.
Total merger activity in 1999 will continue to be significant at about 900 transactions, according to estimates, due to:
- Medical costs rising faster than inflation; and
- Fewer investment dollars chasing the increasing demand for healthcare services.
The major factors driving merger activity are physician medical groups, long-term care facilities and hospitals.
(Irvin Levin, Laura Piselli, 800/248-1668; http://www.levinassociates.com)
Online Effort Triggers Expansion
After only six months of targeting health insurance cybershoppers, Blue Cross and Blue Shield of North Carolina (BSBCNC) generated 1.5 million hits Web site hits and 1,000 online requests for information on rates. BCBSNC launched its preferred provider organization (PPO) plan, Blue Advantage, last summer and targets online consumers who buy insurance on their own rather than going through an employer.
This traffic provides exciting confirmation that BSBCNC is well positioned to take advantage of the strong online demand for health plan information. Its corporate Web site (http://www.bcbsnc.com) will expand to include a new suite of health plan products and interactive components for managing diseases like asthma and diabetes. When visitors click over to the Blue Advantage site, http://www.blueadvantage.com, they can get rate quotes based on where they live, their age and choice of deductible options. Once customers have obtained their rate quotes, they can request an application online or call BCBSNC directly. To maintain privacy, confidential medical information is not requested.
Blue Advantage is being promoted through a television campaign that started in December and banner ads on a variety of state-specific Web sites.
(BCBSNC, Susanne Powell, 919/765-4897)
HMO Inspires Smokers to Quit
A Michigan health plan is helping members stick to their New Year's resolution to stop smoking by offering coverage for nicotine replacement therapy and several "kick the habit" benefits.
When recommended by their personal care physician, members of the Health Alliance Plan (HAP) are eligible for:
- Smoking control programs;
- Cessation counseling;
- FDA approved nicotine replacement therapy; and
- Zyban, the prescription drug for helping smokers quit.
This initiative is positioned as an extension to HAP's preventive healthcare offerings, which include coverage for immunizations, women's health screenings and prenatal care. HAP, a subsidiary of the Henry Ford Health System, serves 3,500 employer groups and represents more than 555,000 members in southeast Michigan and northern Ohio.
(HAP, Susan Schwandt, 248/443-1076)
Targeting Rural Women
The FDA office of Women's Health recently worked with a broad network of partners to launch Women's Health: Take Time to Care, a national health initiative aimed at promoting wise use of medicine. The campaign targets women because they often manage medications for their families. It educates them about preventing interactions between drugs, following usage instructions, keeping track of medication regimens and getting professional advice.
Nationwide, medication misuse costs $76.6 billion and between at least 30 percent of people who use medication do not use them as prescribed, says the FDA.
To reach rural areas, the National Wholesale Druggists Association (NWDA) distributed 100,000 informational brochures to more than 250 pharmacies and clinics in counties throughout Texas, Mississippi and Kentucky as part of a 15-region effort.
(NWDA, Marsha Friedman, 703/787-0000, ext. 221, http://www.nwda.org; FDA, Marcia Henderson, 301/827-3368, http://www.fda.gov/womens)