Cencora, formerly Amerisource Bergen, a large drug wholesaler, is acquiring a greater equity stake in American Oncology Network. All three of the major drug wholesalers have interests in oncology companies. Why? So they can push very expensive cancer drugs through those practices and so they can eliminate competition by consolidating oncology practices. It is another prime cause of excessive health spending and it should be banned and divestiture forced. At what point are policymakers finally going to understand that non-physician ownership of physician practices benefits no one, whether the owner is a hospital, a drug company of some type, a private equity firm or a health plan. It creates misery for the doctors and it inevitably results in higher prices with no gain in outcomes. We need to return to a competitive situation in which only doctors can own and control practices and there is limited consolidation.
There is some weird angle here, as Angle Health raises $600 million in a new capital round, but it appears some of it is to provide liquidity to existing shareholders. The company helps brokers and others sell and administer health plans and supposedly arranges low cost treatments for expensive conditions. And of course there is an AI "angle". Color me dubious.
More AI craziness in health care. A company called H1 is buying Defacto Health for God-knows how much money. Both companies claim an AI background and to help with "provider intelligence". Anytime you see this gibberish in a press release you know trouble is in store for investors.
To show you how AI fever has infected every part of the investing world, this company, Forus, raised $150 million in new capital at a $3 billion valuation by saying it is AI driven. The company basically connects clinicians and drug manufacturers supposedly to enhance prescribing and treatment. The only reason I can imagine why it gets this kind of valuation is that drug companies think it will help them sell more of their really high priced medicines.
Thyme Care decides its time to party, spicing up its business with a fresh $125 million in capital, with a valuation of over $2 billion. The company helps manage cancer care and intends to expand its offerings with the new funding.
Aug292026
Virtual physical therapy company Sword Health sticks it to shareholders by acquiring virtual mental health company Headspace in an all cash deal valued at somewhere between $200 million and $300 million. Headspace has already screwed its investors by doing a grossly overpriced merger with another mental health company and the value of this transaction appears to be lower than the total capital invested in Headspace.
Cityblock raises $116 million in new capital, partly to help with the acquisition of Homeward Health. Cityblock coordinates and provides care in urban settings and Homeward is focused on rural America. Cityblock has raised around $900 million, so hopefully its Blockhead investors will see a return.
Happy Health is ecstatic to raise $75 million in new capital for its home health monitoring platform, which helps manage sleep apnea and other problems. We will see how ecstatic investors end up being.
DocGo, a provider of medical transport services and "mobile" health, is acquiring Hicuity Health, which offers "virtual" care services. To show you what great investments many of these health care companies are, the acquisition is being paid for by just assuming debt, so shareholders in Hicuity will get nothing.
Hinge Health, which manages care for musculoskeletal and migraine conditions, opens the door to gastrointestinal care with a $105 million acquisition of Cylinder Health, which focuses on managing meds and other treatment for those illnesses.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.