October 25, 2020

Concierge Medicine Today | For Doctors Forum

A Community in Healthcare Where Experienced Doctors Can Learn What's Working, Trade Notes & Network | Est. 2007 | This site does not constitute medical or legal advice | National-International Education & News | Industry Trade Publication

Report: P&G could unload health care business

2 min read

cropped-concierge-physician-reviews-2014.jpg

By Barrett J. Brunsman, Staff reporter, Cincinnati Business Courier

P&G bought a minority stake in MDVIP in January 2007 and acquired full ownership in 2009. The terms of the transaction weren't disclosed then. P&G said at the time of the investment that the proactive approach leads to lower hospitalization rates and significant cost savings to patients, employers and the health-care system as a whole.
P&G bought a minority stake in MDVIP in January 2007 and acquired full ownership in 2009. The terms of the transaction weren’t disclosed then. P&G said at the time of the investment that the proactive approach leads to lower hospitalization rates and significant cost savings to patients, employers and the health-care system as a whole.

FEBRUARY 24, 2014 – Procter & Gamble Co. CEO A.G. Lafley has a “watch list” of businesses that the Cincinnati-based company might be interested in selling, and one of them might be its health care subsidiary MDVIP.

The nationwide MDVIP network, which reportedly includes about 700 doctors who provide enhanced access to medical services and consultations in exchange for a membership fee of $1,500 or more, is based in Boca Raton.

Lafley addressed a group of market analysts in that Florida city last week, but he declined to name any of the businesses Procter & Gamble might be willing to part with as he restructures the corporation (NYSE: PG).

The Wall Street Journal reported Monday that MDVIP is for sale, citing as its sources unnamed “people familiar with the situation.” Investment bank Piper Jaffray is advising P&G in the matter, according to the report.

“It is pure speculation, and you know we don’t comment on rumor,” P&G communications director Paul Fox told me with regard to the Journal’s story.

Just Released! On Sale Now $9.95
Just Released! On Sale Now $9.95

About 170,000 people were members of MDVIP in 2011, generating about $255 million annually in fees, according to the South Florida Business Journal.

As the Cincinnati Business Courier reported in 2010, the P&G subsidiary gets a portion of the annual fees paid to the doctors in the network, who are not employees of MDVIP.

The doctors affiliated with P&G limit the number of patients they see to 600 or fewer, as opposed to the more than 2,000 patients a typical practice might see, according to the P&G website. That has resulted in MDVIP being described in media reports as a concierge health service.

P&G caters to such a niche market that large health care systems might not be interested in buying it, but a private equity firm might, the Wall Street Journal reported.

Most of P&G’s businesses involve household products such as Tide laundry detergent or Pampers diapers, but P&G invested in P&G in 2007 and acquired full ownership in 2010.

Source: http://www.bizjournals.com/cincinnati/news/2014/02/24/report-pg-could-unload-health-care.html?page=all

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Copyright © All rights reserved. Newsphere by AF themes.
%d bloggers like this: