Orange County Healthcare Mergers and Acquisitions Could Have Negative Impact on Pharma


Consolidation in Healthcare Could Limit Pharmaceutical Rep Access in Orange County, CA, According to the Recent Orange County Market Overview Now Available from HealthLeaders-InterStudy

NASHVILLE, Tenn.--(BUSINESS WIRE)-- HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that pharmaceutical companies could find limited access to healthcare plans in Orange County as healthcare mergers and acquisitions lead to consolidation. The recent acquisition of the market’s largest independent physicians’ association by a health plan could affect patient access and adherence to prescription drugs, according to the recently published Orange County Market Overview.

Physicians may also pose a negative impact on pharma in Orange County, according to the report.

“There are signs that local physician groups may want to manage more risk including pharmacy as part of their capitation agreements with health plans,” said HealthLeaders-InterStudy Analyst Laura Beerman. “This could increase the use of generic prescriptions to control pre-patient costs.”

A few developments do bode well for pharma in this region. A Pioneer Accountable Care Organization in the market will integrate pharmacists with its care teams, according to the report. Additionally the Medi-Cal Right Care Initiative will increase adherence to prescription drugs for high blood pressure and cholesterol. According to the report, these drugs are likely to be branded as California’s Medicaid program has one of the nation’s lowest generic drug utilization rates.

In addition to providing detailed analysis of levers and barriers in the market, the Orange County Market Overview answers the following questions:

  • Which health systems and physicians groups recently received ACO grants?
  • What entity has provided the funding?
  • What are the differing quality objectives of these ACOs?
  • What reimbursement reform pilot will likely fall victim to a Blue Shield contracting dispute? What initiatives is Blue Shield funding as part of its net-income refund pledge?

You can view an abstract of the report here:

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Kristi Guillemette, 781-993-2618
[email protected]
Decision Resources Group
Elizabeth Marshall, 781-993-2563
[email protected]

KEYWORDS:   United States  North America  Tennessee

INDUSTRY KEYWORDS:   Health  Biotechnology  Pharmaceutical  Managed Care