GI Alliance Holdings LLC

Acquisition of a majority stake in GI Alliance, the country's leading gastroenterology management services organization, to accelerate Cardinal Health's multi-specialty growth strategy Acquisition of the Advanced Diabetes Supply Group, a leading national direct-to-patient provider of diabetes medical supplies, to accelerate Cardinal Health's at-Home Solutions growth strategy Company announces plan to hold Investor Day in June 2025 DUBLIN, Ohio, Nov. 11, 2024 /PRNewswire/ -- Cardinal Health (NYSE: CAH) announced today that it has entered into definitive agreements to acquire two companies that accelerate Cardinal Health's strategic growth areas and that will enhance patient care. The company also provided confirmation of its capital deployment plans. Cardinal Health will acquire a majority stake in GI Alliance (GIA), the country's leading gastroenterology (GI) management services organization (MSO), from a combination of GIA physician owners and funds managed by affiliates of Apollo (NYSE: APO). Cardinal Health will purchase its majority stake for approximately $2.8 billion in cash, which will represent 71% ownership. GIA will operate as a platform within Cardinal Health's Pharmaceutical and Specialty Solutions segment. Cardinal Health will also acquire the Advanced Diabetes Supply Group (ADSG), one of the country's leading diabetic medical supplies providers, for approximately $1.1 billion in cash. ADSG will merge with Cardinal Health's at-Home Solutions business. "Today is an exciting day at Cardinal Health as we announce two strategic and financially compelling transactions that build upon our progress in Specialty and accelerate growth in our at-Home Solutions business," said Jason Hollar, Chief Executive Officer, Cardinal Health. "Over the past two years, we have improved operating performance and financial flexibility by executing on our focused growth strategy. These transactions enhance Cardinal Health's ability to deliver a greater value proposition for providers and patients, while representing the next step in our ongoing focus to drive sustainable shareholder value creation." GI Alliance: the leading GI management services organization and a foundation of Cardinal Health's multi-specialty platform for further growth GI Alliance's leading national MSO platform includes over 900 physicians across 345 practice locations in 20 states, with extensive reach into the local communities they serve. GIA supports a complete continuum of gastroenterology care across its member sites, with significant additional depth in anesthesiology, pathology, infusion, radiology and clinical research. GIA-affiliated doctors treat patients in 135 ambulatory surgical centers and 165 hospital networks, supported by 95 infusion centers. GI Alliance operates a multi-specialty platform that will further expand both nationally and in other key therapeutic areas, while building upon the technology and specialty practice capabilities acquired by Cardinal Health in the previously announced acquisitions of Specialty Networks (urology, GI, rheumatology) and Integrated Oncology Network (medical oncology, radiation oncology, urology). "Growing our Specialty business is our top priority," said Hollar. "By partnering the GIA MSO platform and leadership in gastroenterology with our own national presence and specialty experience, GI Alliance and Cardinal Health together create a meaningful platform that will deliver great results for patients and providers. We are excited to welcome James Weber, M.D., and his team to the Cardinal Health family." "Cardinal Health and GI Alliance are aligned in our shared vision to build a physician-led, national specialty healthcare platform that will be the preferred choice for all patients seeking dependable, high-quality care," said James Weber, M.D., Chief Executive Officer, GI Alliance. "This partnership brings together two like-minded organizations focused on delivering exceptional care and enhanced clinical and operational support for physicians that drives increased value." The Advanced Diabetes Supply Group: a leading national direct-to-patient diabetes medical supplies provider that enhances capabilities to service patients in their homes Advanced Diabetes Supply Group delivers comprehensive diabetes solutions that are tailored to support individual patients at-home, consistent with Cardinal Health's at-Home Solutions strategy to support this rapidly growing patient population. ADSG serves approximately 500,000 patients annually by providing the latest innovations in diabetes therapies from leading manufacturers. "Last January, we elevated the priority of investing in our growth businesses like at-Home Solutions because this is exactly where the future of healthcare is going," said Hollar. "Like at-Home Solutions, ADSG has a proven track record for leading this industry with innovation, knowledge and unparalleled commitment to patients. We're confident that the highly synergistic combination will enhance our ability to take advantage of positive industry trends and drive further growth, deliver on our promise of exceptional service and solutions to customers, and create shareholder value." "We couldn't be more excited about joining Cardinal Health at-Home Solutions to build on our mission of being a trusted partner in this critical space of the healthcare industry," said Bill Mixon, Chief Executive Officer, Advanced Diabetes Supply Group. "It's clear that we both share the same passion of making sure the patients we serve have the best possible outcomes. Together, we can bring more simplicity, speed and quality to patients living with diabetes and the providers who care for them." Capital Deployment Cardinal Health reaffirmed its disciplined capital allocation framework. The company expects both the GIA and ADSG acquisitions to close in early calendar year 2025, subject to customary closing conditions, including the receipt of required regulatory approvals. The two transactions are expected to be accretive to Cardinal Health's revenue and segment profit growth, and to non-GAAP earnings per share (EPS), in the first 12 months following close. The company expects to reflect the transactions in its fiscal year 2025 guidance upon closing. Cardinal Health does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. Including the acquisition of Integrated Oncology Network, which remains on track to close by the end of the calendar year, the company intends to finance the announced transactions with a combination of cash on hand and new debt financing. Cardinal Health plans to take a focused approach to pay down debt over the next 18 to 24 months. The company does not expect its deleveraging plans to change its previously outlined share repurchases for fiscal year 2025. "Our priorities remain unchanged: investing in our business for growth, while preserving our investment grade credit ratings, returning capital to our shareholders and exploring strategic M&A," said Aaron Alt, Chief Financial Officer, Cardinal Health. "We are excited for the new sources of anticipated profit growth that GI Alliance and ADSG bring to Cardinal Health, along with additional opportunities for value creation." Beginning on the third anniversary of GIA's closing, Cardinal Health has the ability to exercise a call right to purchase up to 100% of the remaining outstanding equity. In connection with the acquisition agreements, the company entered into a commitment letter with Bank of America, pursuant to which Bank of America has committed to provide a 364-day senior unsecured bridge term loan facility in an aggregate principal amount of up to $2.9 billion to fund these acquisitions. 2025 Investor Day Cardinal Health plans to host an Investor Day on June 12, 2025, in New York City. The event will be live-webcast and archived on the company's Investor Relations website. Webcast Cardinal Health will host a webcast Tuesday at 8:45 AM ET to discuss the transactions. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required. Presentation slides and a webcast replay will be available on the Investor Relations page for 12 months. Advisors Centerview Partners served as financial advisor to Cardinal Health on the acquisition of GI Alliance. Skadden, Arps, Slate, Meagher & Flom LLP and Ropes & Gray LLP served as legal advisors. J.P. Morgan Securities LLC served as financial advisor to Cardinal Health on the acquisition of ADSG. Skadden, Arps, Slate, Meagher & Flom LLP and DLA Piper LLP served as legal advisors. Bank of America Securities served as lead advisor on financing matters. Citi served as financial advisor to Cardinal Health on strategic portfolio composition, including as it relates to the transactions. About Cardinal Health Cardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. Our company's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives every day. Learn more about Cardinal Health at cardinalhealth.com and in our Newsroom. About GI Alliance GI Alliance is the leading, physician-led, majority physician owned network for gastrointestinal care in the United States. GI Alliance supports practice management for more than 900 independent gastroenterologists, delivering the highest quality of GI care for patients in 345 practice locations across the country. Partnering with the nation's premier GI physician practices, GI Alliance supports operational management, ancillary service development, and patient engagement, enabling practices to focus on providing the highest quality patient care while maintaining clinical autonomy. Offering a full spectrum of services for the management of digestive health, GI Alliance is committed to excellence and innovation in gastroenterology. About the Advanced Diabetes Supply® Group Founded in 2002, the Advanced Diabetes Supply® Group (ADSG) is a leading national distributor of specialized diabetes supplies. Owned by Court Square Capital Partners, ADSG is made up of the Advanced Diabetes Supply (ADS) and United States Medical Supply (US MED) brands, both of which share a vision to be one of the nation's premier diabetes equipment suppliers. Visit and for more information. Contacts Media: Erich Timmerman, [email protected] and (614) 553-3853 Investors: Matt Sims, [email protected] and (614) 553-3661 Cautions Concerning Forward-Looking Statements This news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook, and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks associated with our planned acquisitions of GIA and ADSG, including the risk that we may not receive required regulatory approval or otherwise fail to complete one or both of the acquisitions and the risk that we may fail to realize the anticipated strategic and financial benefits of the acquisitions. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This news release reflects management's views as of November 11, 2024. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this news release can or will be achieved or completed. SOURCE Cardinal Health WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In GET STARTED

SAN FRANCISCO, Jan. 30, 2024 /PRNewswire/ -- GI Alliance, the nation's leading network of gastroenterology providers, has partnered with Ambience Healthcare to build a comprehensive suite of AI documentation tools, specifically customized for gastroenterology. Ambience's products are already deployed with leading regional GI practices throughout the United States, and GI Alliance physicians are currently leveraging these tools to reduce new patient documentation time by 83%. By repurposing time saved on documentation, clinicians are able to devote more time to comprehensive care and see additional patients. At its core, GI Alliance operates on a philosophy grounded by three guiding principles: patient-first, quality-centric, and provider-led. These fundamentals drive the decisions, behaviors, and superior patient outcomes that make GI Alliance the industry leader in gastroenterology practices and innovation. Seeing the potential of generative AI to reduce documentation burden for clinicians and improve patient and clinician communication, GI Alliance began looking for a partner who could co-build customized solutions for gastroenterology. Ambience Healthcare offers clinicians the most comprehensive suite of AI documentation tools in healthcare, designed to reduce clinician burnout, improve system efficiency, and enhance documentation of high quality care. Working together, both organizations were able to create the most capable AI models in GI. "We explored a variety of generative AI solutions on the market, but the documentation produced sounded too robotic, and was not specific enough for gastroenterology. This is the main challenge for AI tools in clinical documentation, they haven't been customized for GI medicine. By partnering with Ambience, we were able to build a network of products that have been custom built for GI." - Paul J. Berggreen, M.D. and Chief Strategy Officer of the GI Alliance. Customizing AI for GI Medicine One of the challenges for AI documentation technology is that every specialty has a different care model and different workflows. If these differences haven't been accounted for, clinicians struggle to adopt the product because they find it difficult to fit into their workflow and spend too much time editing the generated documentation. Ambience has worked side-by-side with GI Alliance clinicians to account for the nuances of GI documentation, including: Support for complex visits, including IBD encounters Dietary and nutritional assessments Documentation support for clinical pathway adherence Automating common GI scoring systems, such as Bristol stool chart and Glasgow-Blatchford bleeding scores Accurate capture of prior diagnostic procedures and pathology reports Clinicians can also easily customize their notes from a variety of formatting options, based on their individual preferences. With Ambience's suite of AI tools, clinicians are now experiencing fewer symptoms of burnout, while feeling more present with their patients. "The true advantage of this innovative solution lies in its ability to enable clinicians to concentrate solely on delivering top-notch patient care, with the confidence that Ambience will create a high-quality note on their behalf, available immediately after the visit. Our team has diligently ensured that this tool not only fulfills documentation requirements but also accommodates clinicians' individual preferences, from succinct notes to more detailed, diagnosis-based assessments and plans. Furthermore, we have rigorously tested its compatibility with the workflow demands of our gastroenterologists," said Nancy Farrar, P.A.-C, Executive Director of Clinical Informatics at GI Alliance. For clinicians across all specialties, and available soon for all GI Alliance members, Ambience Healthcare offers the most comprehensive suite of AI documentation tools including: AutoScribe: A real-time AI medical scribe that generates comprehensive notes across all clinical specialties and integrates directly with all major EMRs; AutoCDI: A point-of-care CDI assistant that analyzes conversations and past EMR context to ensure that ICD-10 codes, CPT codes, and documentation all appropriately support each other, as well as full audit trails for revenue cycle teams; AutoRefer: AI software that improves handoffs by composing clinically relevant and well-organized referral letters to specialists for expert consult and from specialists back to primary care for long-term management; AutoAVS: An after-visit summary tool that creates comprehensive educational handouts for patients and their families, tailored specifically to each visit, and translated into their language of preference; AutoPrep (coming soon): Intelligent pre-charting to assist the clinician in catching up on context and designing the agenda for the visit. By leveraging the Ambience AI operating system, gastroenterologists with GI Alliance are already seeing significant results. At Arizona Digestive Health, Dr. Yvette Lam is currently saving 5-6 hours per week, and seeing significant improvements with patient and clinician communication. "Other scribing solutions were not compatible with my workflow and notes started to pile up. Ambience AutoScribe slots into my patient care routine, enabling me to consistently complete my charts on the same day while eliminating multitasking during visits. It accurately captures the details of each conversation and summarizes concisely, so that I can focus on important medical information and make comprehensive decisions and recommendations. With AutoAVS, I've also been able to save time and clearly communicate appointment summaries and treatment plans for my patients and their families," said Dr. Yvette Lam, Arizona Digestive Health, powered by GI Alliance. About GI Alliance: GI Alliance is a physician-led and majority physician-owned GI practice management company providing services to over 800 independent gastroenterologists operating in Arkansas, Arizona, Colorado, Connecticut, Florida, Illinois, Indiana, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Texas, Utah, Washington, and now Rhode Island. GI Alliance managed practices focus on providing the highest-quality care to their patients. In addition to providing operational support for practices, GI Alliance is working to unite gastroenterologists nationwide by aligning interests and improving patient care. *GI Alliance did not receive funding to issue this press release, and neither GI Alliance nor any of its members or employees have any financial interest in Ambience Healthcare. About Ambience Healthcare: The mission of Ambience Healthcare is to supercharge clinicians with breakthrough generative AI technology. Leading healthcare systems and organizations across North America partner with Ambience Healthcare to reduce clinician burnout, improve system efficiency, and enable high-quality care. Founded in 2020 by Mike Ng and Nikhil Buduma, Ambience is headquartered in San Francisco, California, and backed by Kleiner Perkins, OpenAI Startup Fund, Andreessen Horowitz, Optum Ventures, Human Capital, Martin Ventures, AIX Ventures, AirTree Ventures, John Doerr, Jeff Dean, Richard Socher, Pieter Abbeel, Anne Wojcicki, Eren Bali, Jay Desai, Nish Bhat, Matt Mochary, and others. To learn more, visit ambiencehealthcare.com. SOURCE Ambience Healthcare

CTGI Awarding Scholarships to High School Students DALLAS, Aug. 15, 2023 /PRNewswire/ -- GI Alliance, the nation's premier gastroenterology management organization, is providing two scholarship awards through the Connecticut GI Foundation for Charitable Giving. The physicians, advanced practice providers, and staff at Connecticut GI understand the challenges individuals with chronic gastrointestinal and liver conditions face. The team appreciates the importance of higher education and is working to assist these students in achieving their academic and professional goals. The Connecticut GI Scholarship Program was created through the Connecticut GI Foundation for Charitable Giving. The Connecticut GI Scholarship Program is awarding two $2000 scholarships during the 2023-2024 scholastic year to Connecticut residents and students. Scholarships are granted to students with inflammatory bowel disease (IBD), chronic liver disease, or another chronic/significant GI issue who are pursuing post-secondary education. Scholarship applications are available through September 1. In addition to the scholarship program, CTGI gives back to the community through participation in and sponsorship of numerous GI-related events supporting patients, research, and education. CTGI is actively working on a plan to further serve the community by providing colonoscopies to indigent individuals. "Our patients are our number one priority, and we believe in supporting the communities where we work and live is essential," said Jeffry Nestler, M.D., CTGI President. "Whether through scholarship, colorectal cancer screening events, or awareness events, CTGI is proud to be a strong community partner." For more information on Connecticut GI Foundation for Charitable Giving scholarship, please visit the website at . About GI Alliance GI Alliance is a physician-led and majority physician-owned GI practice management company providing services to over 800 independent gastroenterologists operating in Texas, Arkansas, Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Utah, Washington, and Connecticut. GI Alliance-managed practices focus on providing the highest-quality care to their patients. In addition to providing operational support for practices, GI Alliance is working to unite gastroenterologists nationwide by aligning interests and improving patient care. GI Alliance Communications Communications@GIAlliance.com SOURCE GI Alliance