Material Change Transaction Notices (MCN) and Cost and Market Impact Review (CMIR)
Consolidation in the health care market is common, and can be an underlying driver of high prices. The Office of Health Care Affordability (OHCA) is responsible for reviewing and evaluating consolidation, market power, and other market failures through cost and market impact reviews of mergers, acquisitions, or corporate affiliations involving health care service plans, health insurers, hospitals, physician organizations, pharmacy benefit managers, and other health care entities. This review begins with a notice of material change transaction on the part of a health care entity. OHCA reviews the transaction, and if warranted, conducts a full cost and market impact review.
Below is the list of notices of material change transactions submitted to OHCA. Members of the public who wish to submit comments regarding a specific Notice can send an email to CMIR@hcai.ca.gov by the anticipated OHCA review completion date indicated in the Notice document.
Transaction List- Material Change Notices
| MCN Parties | Transaction Type | Date Submission Completed | CMIR? |
|---|---|---|---|
| Korean-American Medical Group, Inc and Swan Practice Holdings, P.C. | Korean-American Medical Group, Inc (KAMG), a physician-owned independent practice association, will become a subsidiary of Swan Practice Holdings, P.C. and become subject to an administrative services agreement with SMG Operating Company. KAMG’s physician shareholders will also receive an indirect minority ownership interest in SMG Aggregator, LLC. | December 23, 2024 | |
| CSI Medical Group, P.C. | Eric Schweiger, M.D. will acquire all of the equity interests of CSI Medical Group from Greg Morganroth, M.D.; the transaction will concurrently close with the sale of California Skin Institute Intermediate Holdings, LLC. | December 24, 2024 | |
| Ambry Genetics Corporation and Tempus AI, Inc. | Tempus AI, Inc. will acquire Ambry Genetics Corporation. Both parties previously partnered to distribute germline sequencing for inherited cancer risk and this acquisition intends to further expand inherited risk screening for cancer patients. | December 20, 2024 | |
| KTLA Properties Limited Partnership | KTLA Properties Limited Partnership will sell substantially all of the assets of Alamitos West Health & Rehabilitation and Katella Senior Living Community to 3952 Katella Avenue, LLC, and 3902 Katella Avenue, LLC. The transaction will also transfer the operations of the Alamitos West Health & Rehabilitation and Katella Senior Living Community to Malcolm Healthcare, Inc. and Rigby Creek Senior Living, Inc. | November 5, 2024 | CMIR Waived |
| Western Sierra Medical Clinic, Inc and Sierra Family Medical Clinic, Inc | The transaction is a merger of Western Sierra Medical Clinic and Sierra Family Medical Clinic, two Federally Qualified Health Centers (FQHCs), with Western Sierra Medical Clinic as the surviving entity. | September 17, 2024 | CMIR Waived |
| Carelon Health of California, Inc. (f/k/a CareMore Health Plan) | A joint venture between Elevance and Clayton Dubilier & Rice, LLC to build a payor-agnostic, advanced primary care and physician enablement business serving consumers in several states. | September 13, 2024 | CMIR Waived |
| The Cigna Group and Health Care Service Corporation (HCSC) | HCSC is acquiring all of the assets relating to The Cigna Group’s Medicare Advantage Plan Business, Medicare PDP Business, Supplemental Health Plans Business, and CareAllies Business. | August 16, 2024 | CMIR Waived |
| Laboratory Corporation of America Holdings and BioReference Health, LLC | Labcorp will acquire BioReference’s laboratory testing businesses focused on clinical diagnostics and reproductive and women’s health across the United States outside of New York and New Jersey. | July 11, 2024 | CMIR Waived |
| Invitae Corporation and Laboratory Corporation of America Holdings | The transaction is an asset sale, through which LabCorp Genetics, Inc., a newly formed entity, will acquire certain assets of Invitae Corporation in accordance with the negotiated Asset Purchase Agreement and certain requirements under the bankruptcy code. | June 5, 2024 | CMIR Waived |
| Rehabilitation Center of Santa Monica Operating Company, LP | The submitter’s lease for the skilled nursing facility property is expiring and the landlord requested submitter’s cooperation in remaining the operator until the new operator/tenant obtains its license to operate the facility. | April 12, 2024 | CMIR Waived |