Medical Care
Sonic Healthcare to Acquire LADR for $446.9m via Share & Cash
2024-12-09
The acquisition of Laboratory Group Dr Kramer & Colleagues by Sonic Healthcare marks a significant milestone in the healthcare industry. This strategic move is set to bring about numerous benefits and synergies, enhancing Sonic's operations and service offerings.

Financing and Immediate Impact

The acquisition will be financed through a combination of Sonic's shares and cash. The latter will be funded from existing resources, which is expected to have an immediate impact on earnings per share. It is anticipated that within three years, significant accretion and a high return on invested capital will be achieved. The return on invested capital is expected to exceed Sonic's cost of capital, with an 11% per annum return post-three years.

Synergies and Operational Enhancements

Synergies are expected to be fully realised within this period, enhancing multiple operational areas. Procurement will become more efficient, specialised testing will be streamlined, equipment maintenance will be improved, laboratory overlaps will be optimised, and the supply and distribution of medical consumables, equipment maintenance, and logistics will be enhanced. This will lead to better overall operational performance and cost savings.

Remaining Equity and Integration

Sonic is set to acquire the remaining 85% equity through a put/call structure, with an estimated cash outflow of approximately €55m by 2027. The integration of LADR with Sonic's existing German operations will be overseen by the senior leadership teams of both companies. The leadership of LADR, including CEO and medical director professor Jan Kramer, CFO Thomas Wolff, and infection prevention and control medical director Dr Tobias Kramer, have committed to long-term roles within Sonic following the acquisition.

CEO's Perspective

Sonic Healthcare CEO Dr Colin Goldschmidt expressed his enthusiasm about the acquisition. He said, "The partnership between LADR and Sonic Healthcare Germany is an important and substantial step for Sonic in Germany and Europe. Our closely aligned respective cultures, both based on a commitment to medical leadership and high-quality medicine, augur well for a successful integration which will further strengthen our service offering to clinicians and patients, and which will also enhance efficiencies in our operations."

Transaction Completion and Future Outlook

The completion of the transaction is contingent upon customary closing conditions, such as antitrust clearance, and is expected to be finalised in the first half of next year. This acquisition follows a distribution agreement signed in July 2023 by Microba Life Sciences and Sonic Healthcare through its subsidiary Douglass Hanly Moir Pathology for an advanced infectious disease test, MetaPanel. This indicates Sonic's continued growth and expansion in the healthcare market.
HHS Officials Focus on 2024 Healthcare Summit & Initiatives
2024-12-09
The 21st Century Cures Act has been a significant force in the healthcare landscape. It was initially approved over a nine-year period and is now entering its final year. This act aims to bring about rapid healthcare technology and IT policy changes by fostering tech innovation, updating clinical trial plans, and considering citizen feedback. Department of Health and Human Services officials are working hard to ensure its full implementation.

Unleashing Healthcare Innovation with the Cures Act

Executing the Promises of the Cures Act

Steven Posnack, principal deputy assistant secretary for technology policy at HHS, has been laser-focused in 2024 on fulfilling the promises of the Cures Act. With a $500 million budget agreed upon in late 2016, his office is dedicated to driving progress. This includes initiatives such as the information blocking regulations, the Trusted Exchange Framework and Common Agreement (TEFCA), and transparency requirements for AI used in certified health IT. Posnack's role as an ambassador to the private sector allows him to collaborate and bring about meaningful change. 1: The information blocking regulations play a crucial role in removing barriers to the free flow of health data. By addressing this issue, providers, patients, payers, and public health entities can more easily exchange information. This leads to improved coordination of care and better healthcare outcomes. 2: TEFCA, on the other hand, is an innovative architecture that facilitates health data-sharing between different health information networks across the country. It eliminates the impediments that have previously hindered seamless information exchange, enabling a more connected and efficient healthcare system.

AI's Impact on Healthcare Delivery

The AI element of Posnack's remarks is set to be a highlight of the Healthcare Summit. Joe Raetano, who works for the VA, shared insights on how AI is transforming the speed and comprehensiveness of healthcare delivery. AI has the potential to analyze vast amounts of data quickly and provide valuable insights for diagnosis and treatment. 1: With AI, healthcare providers can make more informed decisions based on data-driven insights. This leads to more accurate diagnoses and personalized treatment plans, improving patient outcomes. 2: The use of AI in healthcare also has the potential to reduce costs by streamlining processes and identifying areas for improvement. It can help identify patterns and trends that may not be apparent through traditional methods.

Other Highlights at the Healthcare Summit

"These are exciting times in the Centers for Medicare & Medicaid Services' Office of Information Technology," as enthused by Lee Ann Crochunis, deputy director of CMS OIT. She will be closing out the Healthcare Summit and is looking forward to sharing the current strategic perspectives and how the community can contribute. 1: The Healthcare Summit offers a unique opportunity for professionals in the healthcare and GovCon sectors to come together and discuss the latest developments and challenges. It provides a platform for networking and collaboration. 2: With speakers like Steven Posnack and Lee Ann Crochunis, attendees can gain valuable insights and learn about the latest initiatives and strategies in healthcare technology and IT policy. It is an event not to be missed.Don't miss Steven Posnack and Lee Ann Crochunis' direct addresses to the GovCon community at the Potomac Officers Club's 2024 Healthcare Summit! It's happening this Wednesday, Dec. 11 at the Falls Church Marriott Fairview Park in Virginia.
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FIFA's Vancouver Park Conversion to Begin in January
2024-12-09
In January, full-scale construction is set to commence, converting two Vancouver community parks into professional-grade practice areas for the Federation International de Football Association (FIFA) teams. This significant undertaking comes as the city gears up to host FIFA World Cup 26. The city has also added $30 million to the construction fund to expedite the building of a new $107 million outdoor amphitheatre, which will be ready to host the FIFA Fan Fest, allowing fans to watch televised games.

Vancouver's Parks Transformed for FIFA's Big Event

Construction Beginnings and Host City Details

FIFA World Cup 26 will involve 16 host cities, 48 teams, and 104 matches played in Canada, the U.S., and Mexico from June 11 to July 19, 2026. Vancouver is taking a leading role, with seven of the 13 planned Canadian games being held at BC Place. The city's hosting will start on June 13, 2026, with a group stage game and conclude with a round of 16 knockout match on July 7. Turner Construction has been appointed as the general contractor for preparing the two Vancouver park areas, while Colliers Project Leaders will manage the project.During the games at BC Place, which can seat 54,000, portions of Killarney Park North and Memorial Park South in East Vancouver will serve as practice areas, along with press and conference areas, coach and team facilities, and stands. Both parks have a central field playing area and an outdoor track.

Park Upgrades and Facility Details

FIFA PRESS RELEASE reveals that Vancouver's Killarney Park North and Memorial Park South will be overhauled in 2025 to provide practice facilities for incoming international FIFA teams. This includes adding coaching and team facilities, press facilities, and stands. Tina Mack, the City of Vancouver Parks Board vice-president of planning and park development, stated that the work will involve developing two soccer pitches in the central fields, which are graded, provide drainage, have irrigation, and lights."We are also rebuilding the track," Mack said. Memorial Park has a six-lane rubberized track, while Killarney is a cinder track. Both are quarter-mile tracks. Memorial Park presents challenges due to its establishment in 1926 to honor soldiers from the Second World War. The piping serving the 80-year-old fieldhouses is also being replaced.

Construction Phases and Timeline

The first construction phase focuses on civil engineering, establishing ground works such as installing the necessary infrastructure and lighting requirements at each site. While this is underway, permits for buildings to be sited at the parks are being applied for, with approval aimed for late February or March.The second phase involves above-ground works, such as installing the lighting and the buildings. The largest structures are the team and coaching buildings, which will be modular and capable of being moved to other sites after the FIFA event. The press centre and bleachers are temporary and will be removed after the event.Quotes are currently being evaluated, and there is no figure on cost yet. Turner aims to have work done at both sites simultaneously, and subcontractors can bid on work at one or both sites. The construction team is targeting September for the placement of sod on the grass pitches. In July 2024, the City of Vancouver called for expressions of interest from companies that could provide the sod for the pitches.The third phase will address any additional work needed on the grounds or buildings.

FIFA Fun Fest and Amphitheatre Construction

In addition to the park upgrades, the city is planning a FIFA Fun Fest at Hastings Park, the Pacific National Exhibition (PNE) site. Here, individuals can watch match games on the new amphitheatre that is currently under construction.The $30 million approved by the council is slated to expedite construction if needed to meet the deadline for the FIFA event. Walters Group has been awarded the contract for the construction of the amphitheatre in collaboration with EllisDon Construction. As a fabricator and erector, Walters Group will be responsible for supplying the structural steel elements and installing key components of the amphitheatre's steel, timber roof, and stage structure.The outdoor facility can accommodate 10,000 attendees and features one of the world's largest free-span timber roof structures. Designed by Revery Architecture and engineered by Fast + Epp, the design features a starburst arch structure that covers the amphitheatre by landing on only three points. The form is comprised of six-barrel vaulted segments intersecting at diagonal planes, creating a clear span of 105 metres from buttress tip to tip. The timber arched roof will cover approximately 7,200 square metres and is slightly larger than the Richmond Oval completed in 2008.
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