Community Health Systems Sells Three More Hospitals
Community Health Systems (NYSE: CYH) is still at it. The financially troubled hospital chain unloaded three more hospitals in May, bringing the number of divested facilities in 2019 to seven. The latest announcements involved two Florida hospitals, Heart of Florida Regional Medical Center (193 beds) in Davenport and Lake Wales Medical Center (160 beds) in Lake Wales, along with their respective assets, physician clinic operations and outpatient services. The acquirer is AdventHealth, formerly known as Adventist Health System, a not-for-profit healthcare system with 45 hospital campuses and more than 8,200 licensed beds in nine states. Lake Wales Medical Center has been struggling... Read More »
WVU Health Adds The Health Plan to its Roster
Hospitals and health systems typically buy outpatient services such as urgent care and ambulatory surgery centers to raise their market presence. West Virginia University Health System (WVU Health), a not-for-profit system based in Morgantown, West Virginia, instead has merged with The Health Plan, a community-based not-for-profit health maintenance organization that offers Medicare Advantage, Medicaid, Point-of-Service and Preferred Provider Organization plans. Based in Wheeling, it has licenses in West Virginia’s 55 counties, as well as a 36-county area in Ohio. WVU Health is the state’s largest health system with nine hospitals in the state and one in Oakland, Maryland. It... Read More »
Varian Medical Makes Two Deals in May
Varian Medical Systems (NYSE: VAR) is on the move again. The Palo Alto, California-based medical device maker announced two deals in May 2019 targeting two very different companies. Varian (market cap $11.6 billion) designs, manufactures, sells and services medical devices and software products for treating cancer and other medical conditions. The earlier deal, announced on May 9, brought aboard privately held cardiac ablation firm Cyberheart, based in Sunnyvale, California, for an undisclosed amount. CyberHeart’s intellectual property covers cardiac radioablation, which involves using radiation in the heart and other forms of radiosurgery for certain heart diseases. The second deal,... Read More »
Hospital M&A: Bigger Isn’t Always Better
That was the week that was. Two huge hospital mergers came to an end, one successfully and the other, not. In announcing the end results, CEOs involved in those deals each emphasized their goal was not about “getting bigger,” but to deliver better health care to more patients. Seriously, what CEO is going to say they just need more facilities to boost the bottom line and don’t care about patients? First, the deal that crossed the finish line. For 15 months, Catholic Health Initiatives and Dignity Health negotiated the details of the definitive agreement they signed in December 2017. The deal closed on February 1, creating one of the largest not-for-profit health systems in the country with... Read More »
Healthscope Changes Hands Again
Healthscope Ltd. (ASX: HSO), Australia’s second largest private hospital chain, is being sold once again, this time for $4.14 billion, or 1.8x revenue. The Melbourne, Victoria-based company owns 43 hospitals across all states in Australia and is the largest pathology services provider in New Zealand, with 24 laboratories. Three buyers are involved, two of them real estate investment trusts (REITs). First, Brookfield Business Partners LP (NYSE: BBU), a subsidiary of Brookfield Asset Management Inc. (NYSE: BAM), will acquire 100% of Healthscope’s shares, priced at $1.81 (AU$2.50) per share. That returns approximately $1.0 billion in equity. The remainder will be paid with $1.4... Read More »Schedule a demo
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