REITs Move in on Behavioral Health
When it comes to health care, real estate investment trusts (REITs) typically target medical office buildings, which can be converted to other uses more easily than an acute-care hospital can. But some privately held hospitals and health systems are turning to REITs as a way to get cash out of a portfolio company, sometimes without exiting. Through April 2017, two deals have featured a REIT as hospital acquirers, compared with only one announced deal in 2016. Now, behavioral health hospitals are REIT targets. Ventas’ (NYSE: VTR) 2015 healthcare REIT spinoff, Care Capital Properties, Inc. (NYSE: CCP), recently moved into the behavioral health care sector. On April 10, the company... Read More »Kohlberg and Co. Expands its Alita Care Platform
Private equity companies are driving most behavioral health activity in 2017, as they continue to trade practices and build up regional platforms. Through March 28, 2017, 12 behavioral health care deals are on the books. Nearly 60% of these deals were announced by financial buyers, six of which were PE- backed behavioral health companies. One was a private equity firm and one a blank-check investment firm. In April 2016, American Capital Ltd. (NASDAQ: ACAS) announced the sale of its portfolio company, The Meadows of Wickenburg, Inc., to Kohlberg & Company LLC, a New York-based private equity firm, for $180 million. Located in Arizona, The Meadows provides addiction and... Read More »Behavioral Health Care Posts 30% Increase in Deal Volume
The Mental Health Parity and Addiction Equity Act (MHPAEA) of 2008, which was originally independent from the Affordable Care Act (ACA), requires health insurers and group plans that already offer mental illness coverage to provide the same level of benefits as they would for medical and surgical care. Beginning in 2014, the ACA extended the reach of the MHPAEA by requiring all qualified health plans offered through the health insurance marketplaces to include coverage for mental and addiction disorders as one of the 10 categories of Essential Health Benefits. It also states that the coverage must comply with the federal parity requirements set forth in the MHPAEA. The uncertainty... Read More »Arizona Behavioral Health Company Grows
Behavioral health care deals dried up in February, but the action is picking up again. On March 2nd, 2017, not-for-profit Community Partners Inc., a parent company of behavioral healthcare service providers in Arizona, acquired Tucson-based Assurance Health & Wellness, for an undisclosed amount. Assurance Health, a division of Sinfonia HealthCare Corporation, serves approximately 7,000 clients in a clinic that combines primary care with behavioral health treatment. Fletcher McCusker, CEO of Sinfonia, cited financial pressures as a reason for the combination. The combined company will operate as a not-for-profit entity, and will be one of the largest providers of mental health services... Read More »
Strategic vs. Financial Healthcare Buyers in 2016
Every spring, we publish myraid statistics on the healthcare services deals announced the year before, in the form of The Health Care Services Acquisition Report. This year’s 23rd edition, which will available in late March, has this examination of what financial buyers targeted in 2016. Strategic buyers continued to dominate the health care services M&A market in 2016, as they have in the past. Their 683 deals made up 73% of the year’s deal volume. The $45.7 billion spent accounted for 63% of the combined total of $72 billion. A total of 259 deals, or 27% of the services deal volume in 2016, were carried out by financial buyers, such as private equity firms and real estate... Read More »Schedule a demo
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