Prisma Health Picks Up Three LifePoint Hospitals
Not-for-profit Prisma Health, based in Greenville, South Carolina, has stayed out of the news since it was formed by the merger of Greenville Health System and Palmetto Health. That changed in March, with the announcement that it was adding three hospitals operated by LifePoint Health. Financial terms of the asset purchase agreement weren’t disclosed. Prisma Health operates 18 hospitals around the state, with 2,984 beds and more than 300 physician practice sites. The merger between Greenville Health and Palmetto Health was first announced in 2017, as several mid-sized health systems began to form larger regional systems. The merger became official in January 2019. LifePoint Health,... Read More »
Hospital M&A in 2019, by the Numbers
The hospital M&A market experienced some significant changes last year. In the United States, the rush to regionalize tapered off in 2019, after four years of multi-hospital transactions. The market for long-term acute care hospitals (LTACHs) was hopping, unfortunately driven by a couple of large bankruptcy proceedings. Deals either targeting or involving critical access hospitals (CAHs) ticked up slightly. And the divestiture programs of some for-profit chains began to wind down. In all, 74 U.S. hospital deals reached the definitive agreement or finalized stage in 2019, excluding foreign deals and those made by real estate investment trusts (REITs). The total is 12% more than the 66... Read More »
The State of the 2020 Hospital Market
The hospital market was more active in 2019 than it has been since 2015, with 99 deals reaching the definitive agreement stage or closed. In 2015, 100 deals were announced. In the years in between, deal volume dropped from 89 in 2016 to 81 in 2018. Many not-for-profit systems find themselves on firmer financial ground and are negotiating deals from positions of strength, not fear. But the healthcare landscape continues to shift, and the role of the hospital is changing with it. In 2020, many hospitals are still the life-blood of their communities, often as the largest employer. But their role as the central hub of all healthcare delivery in the community is lessening, and fast. “Ten to 15... Read More »
Western Maryland Health Joins UPMC
Western Maryland Health System (WMHS) has officially joined Pittsburgh-based UPMC. Western Maryland operates the Western Maryland Regional Medical Center (200 licensed beds) and serves the residents of Cumberland, Maryland and surrounding counties in Maryland, Pennsylvania and West Virginia. The deal culminates a relationship between the organizations that began in 2018 with a clinical affiliation. In March 2019, both boards signed a non-binding letter of intent to negotiate an affiliation agreement. The merger was finalized on February 1 and the system was renamed UPMC Western Maryland. The board of UPMC Western Maryland consists of 12 directors, with 8 appointed by the current WMHS board... Read More »
Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020
Every year, starting in November, the crystal balls come out and the prognostications begin. What will the new year bring? Who or what will make out better and who or what will not? We talked with Gary Herschman, a member of Epstein Becker Green’s Healthcare and Life Sciences practice, about the healthcare sectors he and his firm are watching in 2020. Here are their predictions for 2020. Health Care M&A: What do you see as the biggest themes in the healthcare industry this year? There are a lot of moving parts, from the discovery of new drugs to the shifting attention to post-acute care. Gary Herschman: We see three key “drivers” of health industry transformation that are already... Read More »Schedule a demo
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