REIT Deals for Hospitals Are Picking Up

by | Feb 10, 2017 7:36 pm | Hospitals, Private Equity

Most acquisitions in the Hospital sector are made by another hospital or health system. In 2016, 59% of U.S. hospital acquirers were not-for-profit organizations, down from 65% in 2015 but still the majority. Lately, real estate investment trusts (REITs) have taken an interest in the hospital sector, where there seems to be no end to the supply of struggling standalone hospitals. Eight deals were announced by REITs in 2016, involving 19 hospitals, for a approximately $1.5 billion. Many of the target hospitals or systems were owned by private equity firms which wanted out. That was the case in September 2016, when Cerberus Capital Management sold off the real estate assets of its portfolio... Read More »

January Deal Volume Beats December 2016 and January 2016

by | Feb 10, 2017 5:44 pm | Biotechnology, Pharmaceuticals, Physician Medical Groups

The year got off to a good start, as far as mergers and acquisitions are concerned. Deal volume reached 156 transactions in January, up 19% compared with December 2016, and up 50% over January 2016. It’s easy to point to the annual J.P. Morgan Healthcare Conference, held in January, as the cause of the sudden boost, particularly in the Biotechnology and eHealth sectors. But the conference didn’t have the same effect last January, when just 104 deals were reported, and those two sectors didn’t see comparable deal volume. If anything, deal volume might have been expected to decline, considering all the “repeal and replace” talk from the incoming Republican administration. That obviously... Read More »
Telehealth Deals Dial Up in Early 2017

Telehealth Deals Dial Up in Early 2017

by | Feb 10, 2017 5:07 pm | eHealth, Private Equity

Three telehealth deals have been announced in the first six weeks of 2017, an indication that this sub-sector of digital health is on track to set a(nother) M&A record. In 2016, eight of these deals were announced, an increase of 100% compared with 2014 and 60% versus 2015. Telehealth is loosely defined as the use of technology to support long-distance clinical healthcare. Some examples include live video between a patient and healthcare provider, transmission of medical images to a specialist, and remote monitoring which allows patients and providers to track vitals and manage chronic conditions. On February 2nd, 2017, Specialists On Call, Inc., a portfolio company of Warburg Pincus... Read More »

CRO Deals Are Hot and About to Get Hotter

by | Feb 9, 2017 9:49 pm | CRO, Other Services, Private Equity

The need for outsourced research and development services has caused a huge increase in the number of deals for contract research organizations (CROs) and contract manufacturing organizations (CMOs).  In 2016, 36 acquisitions of CROs and CMOs were announced in 2016, a 157% increase from 2015’s total of 14 deals, according to data reported in the Health Care Services Acquisition Report, 2017. That pace is picking up. In the first six weeks of 2017, six CRO/CMO deals have been announced,with even more to come. Last week, Reuters reported that Laboratory Corp. of America Holdings (NYSE: LH) is in talks to buy Pharmaceutical Product Development LLC (PPD), a portfolio company of Hellman &... Read More »