Pharmaceutical Deals, 2006 to 2015

by | Apr 20, 2016 3:50 pm | Pharmaceuticals

Drug manufacturers came under heavy scrutiny late in 2015, both for their pricing practices and their penchant for acquiring overseas rivals to gain lower corporate tax rates. The latter issue was the major impetus for the lrgest health care deal ever announced, Pfizer’s (NYSE: PFE) $160 billion takeover of Dublin-based Allergan plc (NYSE: AGN). The Treasury deparment moved quickly to change its rules on “inversions,” making them even more onerous. Pfizer walked away from the deal, not surprisingly. Public sentiment about the high price of many drugs, including generics, is having a chill effect on this sector. 2016 may turn out to be a quiet year for pharma deals, at... Read More »

Rehabilitation Deals, 2006 to 2015

by | Apr 19, 2016 9:03 pm | Rehabilitation

The M&A market in the rehabilitation sector picked up steam in 2015, with 30 announced transactions. The shift toward bundled payments, led by the Center for Medicare and Medicaid Services, had a strong effect on this fragmented market. Private equity firms were building platforms, while at least one REIT picked up a few facilities. 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 actual interest in this field. Read More »

Medical Devices Deals, 2006 to 2015

by | Apr 19, 2016 8:49 pm | Medical Devices

Mergers and acquisitions in the medical device sector hit a rough patch in 2013. That’s when the 2.3% excise tax, mandated in the Affordable Care Act, went into effect, and the change was felt almost immediately. In 2015, the tax was lifted for a period of two years, but deal making still hasn’t gone back to the heady days of 2011. Read More »

Hospital Deals, 2006 to 2015

by | Apr 19, 2016 8:41 pm | Hospitals

Hospital merger and acquisition activity remained strong in 2015, as the effects of the Affordable Care Act continued to ripple through the healthcare industry. Small hospitals and healthcare systems felt greater financial pressure to merge, partner or affiliate with larger hospitals and systems as the shift to value-based and capitated reimbursements gained ground. Hospitals in states that expanded Medicaid generally were in better financial shape than those in states that did not expand the healthcare safety net. Read More »

American Addiction Centers Adds Property

by | Apr 19, 2016 8:40 pm | Behavioral Health Care

American Addiction Centers, part of AAC Holdings, Inc. (NYSE: AAC), is expanding its Greenhouse operations in Arlington, Texas. The company actually bought a 100-room Econo Lodge and Suites Six Flags, located less than three miles from its 130-bed Greenhouse residential facility and its new outpatient center. The price was $5.35 million. AAC expects the 100-room sober living property to generate approximately $5 million in incremental revenue and approximately $2 million in incremental adjusted EBITDA for its Greenhouse outpatient center in 2017. Read More »