Premier $100M IPO a 'Pittance'
Premier is owned by 181 hospitals, health systems, and other healthcare organizations, including Adventist Health, Catholic Health Partners, Geisinger HealthSystem, and the University of Texas MD Anderson Cancer Center. The owners will be issued Class B shares and retain voting control.
Premier also provides purchasing contracts for 2,900 hospitals, 100,000 alternate sites, and 400,000 physicians.
The IPO will include a reorganization of Premier into two divisions, one will focus on traditional supply chain activities (Premier Supply Chain Improvement) and the other on consulting and performance (Premier Healthcare Solutions).
Allegations of Kickbacks
In going public, Premier joins MedAssets as the only other major GPO that is shareholder-owned. There is bad blood between the two competitors. MedAssets has accused Premier of encouraging hospitals to join in order to participate in the IPO, which is a violation of federal anti-kickback regulations.
Premier states in the IPO prospectus that its discussions "with current and prospective member owners regarding the possibility that we would undertake an initial public offering were conducted in compliance" with the anti-kickback statutes. It concedes, however, that "no assurance can be given that enforcement authorities will agree with our assessment."
Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.
- HCA to Acquire CareNow Urgent Care Centers
- Dental Board Case Before SCOTUS Has Far-Reaching Implications
- BCBS Tries New Drug Contracting Model
- Abington Health, Jefferson Health Plan '100% Equal' Merger
- 76% of Physicians Don't Like CMS Quality Reporting Programs
- The Case for Recycling Surgical Supplies
- Federal Appeals Court Mulls Observation Status
- Ballot Initiative Pits Providers Against Payers in SD
- How the Military's EHR Reboot Will Impact Interoperability
- Aetna Cuts 4 New Accountable Care Deals