Bankrupt Hospital M&A Up in Non-Expansion States

Has the decision to expand or not to expand Medicaid impacted merger and acquisition activity among hospitals and health systems? With only two years’ worth of data (2014 and 2015), it’s still early to draw definitive conclusions. So consider the following data as anecdotal evidence of the economic impact the various state governments have brought to bear on healthcare providers in their states. Mergers and acquisitions among all types of hospitals—acute care, long-term care, critical access, etc.—in the Medicaid expansion states increased from 49 deals in 2014 to 56 deals in 2015. Hospitals and health systems based in non-expansion states saw M&A activity decrease in the same time... Read More »

Meridian Targets Magellan Biosciences

Lead poisoning has been a prominent news story this year, thanks to the tragic circumstances now playing out in Flint, Michigan. So it’s no surprise that Magellan Biosciences, Inc. and its subsidiary, Magellan Diagnostics, Inc., have been sold to Meridian Bioscience, Inc. (NASDAQ: VIVO) for $66 million. Majority owner Ampersand Capital Partners, together with Tekla Capital Management and Boston Community Venture Fund, made their exit from the business. Magellan has built a national reputation for point-of-care testing kits that measure levels of lead in the bloodstream. Its LeadCare® II, LeadCare Ultra and Plus systems are used by more than 6,500 physician offices and clinics in the... Read More »

Advent International Acquires ATI Physical Therapy

Private equity continues to invest in rehabilitation companies. The latest deal, the fifth of five announced in March 2016, is from Advent International, a Boston-based firm with more than $30 billion invested in 310 companies. For an undisclosed price, the firm took a majority interest in ATI Physical Therapy, a portfolio company of KRG Capital. ATI specializes in outpatient rehabilitation and adjacent healthcare services. It operates more than 500 clinics in 19 states, and served nearly 300,000 unique patients in 2015. Read More »

Home Health in March: Five Deals and a Bankruptcy

The Home Health & Hospice sector had a very slow year in 2015, with just 47 deals made public. Deal making activity has picked up quite a bit in 2016, with 12 deals in the first two months and five more in the first three weeks of March. The only deal to report a price was the $84 million acquisition of Genesis Healthcare’s (NYSE: GEN) home health and hospice business, by Compassus. Genesis is selling the majority of its home health and hospice operations, which are located in California, Idaho, Montana and New Mexico. Privately-held Compassus is a nationwide network of community-based post-acute care services primarily focused on hospice, palliative and home health care. In... Read More »