TPG Capital Re-enters the Southeast Asia Hospital Market
TPG Capital and its sponsored companies have been on a tear in 2019. Through its recently launched U.S. autism platform, Kadiant, the global private equity firm announced six deals since February. Its U.S.-based digital health company WellSky announced two deals in the past 12 months and back in February, Kindred Healthcare, now co-owned by TPG and Welsh, Carson, Anderson & Stowe, acquired a hospital in Los Angeles out of the Promise Healthcare bankruptcy. In early September, TPG announced its acquisition of another digital health company, Convey Health Solutions, from New Mountain Capital for an undisclosed price. Two weeks later, the firm was back in the news with a $1.2 billion deal... Read More »
KentuckyOne Unloads Jewish Hospital and its Assets
After two years of negotiations, KentuckyOne, a subsidiary of CommonSpirit Health, is selling the finiancially ailing Jewish Hospital (462 beds) and its Louisville-area assets, which include three hospitals and four outpatient centers. The negotiations dragged on so long, Jewish Hospital was in danger of closing. The acquirers are the University of Louisville (UofL) and its University Medical Center (333 beds). UofL is recieving financial assistance in the deal with a state-funded $50 million, 20-year low-interest loan, half of which is forgivable if UofL meets certain employment criteria or extends services to currently underserved areas of the commonwealth. The terms of the deal are... Read More »
New Record in Healthcare Services M&A
The record keeps growing. We reported in March that the health care services reported 1,227 deals in 2018. When we updated the data for our new Hospital M&A Acquisition Report, 8th Edition, deal volume moved upward. Source: HealthCareMandA.com, August 2019 A record 1,232 services deals were announced, which is 19% higher than the previous year and 235% higher than in 2009. Services transactions accounted for 65% of 2018’s total deal volume, slightly higher than the typical range between 58% and 63%. The trend was even stronger in the first half of 2019. Through June 30, a total of 835 deals are on the books, and the services sectors make up 67%. Spending in healthcare services has been... Read More »
U.S. Hospital REIT Deals Roar Back in 2019
REIT deals are back in the Hospital sector, after a two-year lull. Through mid-July, six transactions targeting U.S. hospitals were announced by real estate investment trusts (REITs), a total that equals the annual REIT deal volume of 2013, 2015 and 2016. Three of this year’s U.S. deals were announced in July 2019. Medical Properties Trust (NYSE: MPW) made a splash, announcing a combined $1.75 billion invesment in 24 hospital facilities through three separate transactions. The largest of the three, at $1.55 billion, was for 14 acute care hospitals and two behavioral health hospitals (2,383 beds) owned by for-profit Prospect Medical Holdings in California, Connecticut and... Read More »
U.S. Hospital M&A Trends, 1H 2019
It’s been a slow year for hospital mergers and acquisitions in the United States. In the first half of 2019, just 29 transactions have reached the definitive agreement stage, or actually closed. In the first half of 2018, 38 transactions made that cut. The targets are much smaller in 2019, too. A total of 4,991 beds changed hands in the first six months of this year, compared with 9,327 beds in the same period in 2018. Fourteen not-for-profit hospitals or systems (2,380 beds combined) were targets in 1H:19, and three of them were critical access hospitals which are regulated to just 25 beds. That’s not a stand-out trend, considering six critical access hospitals found new... Read More »Schedule a demo
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