November 5, 2019

Around the nation: Stryker plans to acquire Wright Medical for $4B

Daily Briefing

    According to FierceHealthcare, the shoulder implants, replacements, and related technology that Wright manufactures would "help fill some of the largest gaps in Stryker's portfolio," in today's bite-sized hospital and health industry news from California, Michigan, and Tennessee.

    • California: Attorney General Xavier Becerra (D) has blocked a proposed merger between St. Joseph Health System and Adventist Health, Becerra's office announced Thursday. In the announcement, Becerra cited concerns that the deal could potentially "increase health costs, and … limi[t] access and availability of health care services." When the potential deal was announced, consumer groups, including the ACLU of Northern California and Health Access California, expressed concerns that religious directives governing the health systems could limit access to certain services. In a statement, Adventist Health said, "Both Adventist Health and St. Joseph Health are very disappointed in the outcome of this decision" (Hiltzik, Los Angeles Times, 11/1).

    •  Michigan/Tennessee: Stryker has announced plans to acquire Wright Medical for $4 billion. According to FierceHealthcare, the shoulder implants, replacements, and related technology that Wright manufactures would "help fill some of the largest gaps in Stryker’s portfolio," while some of Wright’s extremity devices would act as a "complement to Stryker’s foot-focused products." Each company's board of directors has approved the deal. It's expected to close in the second half of 2020, pending Wright shareholders' adoption of certain resolution, according to FierceHealthcare (Bolton,Memphis Business Journal, 11/4; Hale, FierceHealthcare, 11/4). 

    • Tennessee: Monroe Carrell Jr. Children's Hospital at Vanderbilt has named Meg Rush interim president. Rush has served as chief of staff for the hospital since 2007 and became its executive medical director in 2012. Rush succeeds Luke Gregory, who died from lymphoma in October (Vaidya, Becker's Hospital Review, 10/31).
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