According to the Centers for Medicare and Medicaid Services, or CMS, Americans spent $3.5 trillion on healthcare in 2017, representing approximately $10,739 per person. From one year before, spending grew at a 3.9% rate, the slowest since 2013 and a decline from 4.8% and 5.8% in 2016 and 2015 respectively. As a percent of gross domestic product (GDP), the CMS says healthcare spending stayed flat from 2016 to 2017 at 17.9% of GDP, the first time since 2013.
On Thursday, a Food and Drug Administration (FDA) advisory council recommended approval for an epilepsy drug that would be the first plant-derived cannabidiol medicine for prescription use in the US.
A recent report from Health Care Cost Institute found that Americans under the age of 65 who were insured by their employer spent more than ever on healthcare. Total spending per person is growing faster than it has in prior years at 4.6% in 2016, compared to growth of 4.1% in 2015 and sub 3% in the 2012-2014 period. The increase in spending was nearly entirely based on price increases, as utilization of most services remained unchanged or declined both year over year and in the 2012-2016 period.
Roching Holdings (SWX: RO), a Swiss developer of pharmaceutical and therapeutic medicines used in oncology, has agreed to acquire Ignyta (NASDAQ: RXRX), a US developer of personalized-medicine therapies designed for autoimmune diseases.
Kindred Healthcare (NYSE: KND) will be acquired for $9.00 per share in cash by Humana (NYSE: HUM), TPG Capital, and Welsh, Carson, Anderson & Stowe (“WCAS”). The total consideration equates to approximately $4.1 billion.