Dignity Health and CHI Make It Official
Dignity Health and Catholic Health Initiatives, two major not-for-profit health systems, signed a letter of intent to explore a merger in October 2016, and finally tied the knot in December. Although Catholic Health is the larger of the two, with 101 hospitals, its financial picture isn’t a rosy as its partner’s. Dignity Health, based in San Francisco, is a 22-state network of more than 9,000 physicians and other advanced practice clinicans and 63,000 employees. It operates 39 acute-care hospitals and 250 ancillary care sites such as urgent and occupational care, imaging centers, home health and primary care clinics. In fiscal 2017, which ended on June 30, it reported revenue... Read More »
Deal of the Week: Concentra/Dignity Health
Even as it continues merger talks with the troubled hospital chain, Catholic Health Initiatives, Dignity Health sold its rehabilitation and occupational health division, U.S. HealthWorks for $753 million. The acquirer, Concentra Group Holdings, is jointly held by Select Medical Corporation (NYSE: SEM), Welsh, Carson, Anderson & Stowe and minority equity shareholders including Cressey & Company. The combination will bolster both companies’ urgent care platforms as new payment models push for care delivery outside of hospital setting. Dignity Health will receive a 20% equity interest in the combined entity, valued at $238 million, and the remainder of the purchase price in... Read More »
Rehabilitation Deals Gained Strength in 2016
Mergers and acquisitions in the Rehabilitation sector continued the climb that began in 2014, with a 21% increase in deal volume since 2015. Mergers and acquisitions in the Rehabilitation sector continued the climb that began in 2014. A total of 40 deals were announced in 2016, up 21% compared with the year before, and 90% higher than in 2014. This fragmented sector has benefited from the growing emphasis on post-acute care and cost efficiencies, similar to the Home Health sector. Like physician medical groups, targets in this sector tend to be small, privately held operations and their acquisitions aren’t always publicly announced. For that reason, the data may underrepresent the... Read More »Rehabilitation Attracted Private Equity and REITs in 2016
The Rehabilitation sector is still fairly fragmented, but consolidation is coming. Some 40 deals have been announced in 2016, a 21% increase compared with 2015’s then-record of 33 deals. This year saw a ramp-up in the number of deals announced by REITs and private equity firms, too. Spending in this sector is generally lower than other sectors, because so many transactions are made by local or regional buyers who want to keep deals private. Many targets are privately owned, and sellers don’t wish to disclose prices, either. In 2016, deal value was approximately $712 million, down 11% compared with 2015’s $799 million. For this sector, those figures represent healthy... Read More »Schedule a demo
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