The FTC’s Recent Losses in Hospital M&A

by | Jun 22, 2016 7:35 pm | Hospitals, Physician Medical Groups

The Federal Trade Commission’s antitrust unit has been very active in the health care sector in recent years, thanks in part to the steady beat of hospital mergers and acquisitions taking place. In 2015, 102 hospital transactions were announced, up slightly from 99 the year before. Halfway through 2016, we’ve recorded 48 hospital deals, which is keeping pace with the two previous years. The FTC challenged a few of those deals, including the NorthShore University Hospital/Advocate Health Care merger in Chicago and the Penn State Hershey Medical Center/PinnacleHealth System in Pennsylvania. The agency has notched up some significant wins in years past, most recently the December... Read More »

Kindred Expands in Arkansas

by | Jun 21, 2016 5:52 pm | Home Health & Hospice, Long-Term Care

Kindred Healthcare (NYSE: KND) is at it again. The Louisville, Kentucky-based long-term care company announced its acquisition of a broad portfolio of home health, hospice and personal care services under the aegis of the Arkansas Department of Health. Kindred won a state bidding process with a bid of $39 million. The targets include 74 home health locations serving 69 counties in the state, seven offices providing hospice services in 42 counties, and its personal care services business that assists patients with daily living activities. The transaction will expand Kindred’s services from six offices providing home health and hospice in four counties to offices providing home health,... Read More »

AmSurg Finds a Partner for $6.7 Billion

by | Jun 20, 2016 2:03 pm | Physician Medical Groups

Last fall, AmSurg Corp. (NASDAQ: AMSG) made an unsolicited bid for TeamHealth Holdings (NYSE: TMH), to the tune of $7.8 billion. At the time, TeamHealth was working its way through its own merger with IPC Healthcare, for $1.6 billion. It snubbed AmSurg’s offer as too low, and went on to complete its IPC acquisition on November 23, 2015. Analysts who follow the Physician Medical Group sector generally praised AmSurg’s offer from a strategic perspective, as it would create one of the largest national providers of outsourced physician services to health systems. Alas, AmSurg withdrew its offer on November 2. For the record, AmSurg provides ambulatory and physician services in the... Read More »

MEDNAX’ MedData Adds RCM Company

by | Jun 16, 2016 8:25 am | eHealth, Physician Medical Groups, Private Equity

MedData, Inc. made its second acquisition this year. The MEDNAX (NYSE: MD) subsidiary agreed to pay $400 million for revenue cycle management (RCM) company Cardon Outreach LLC, a portfolio company of Serent Capital.  Cardon Outreach provides specialized eligibility assistance, accounts receivable recovery services, third-party liability and other services. Cardon Outreach works with more than 800 hospitals and other healthcare facilities in 46 states. The acquisition is expected to be accretive to GAAP earnings. MEDNAX anticipates the acquisition will add an initial $0.06 in annualized diluted earnings per share and $0.14 in annualized adjusted earnings per share. Cain Brothers is... Read More »