Second Time’s the Charm for Two New Hampshire Systems
It took almost 10 years and a lot of changes, but Dartmouth-Hitchcock and the owner of Catholic Medical Center are merging. Nine months after signing a letter of intent in January 2019, Dartmouth-Hitchcock Health and GraniteOne Health made it to the definitive agreement stage. The not-for-profits made it official on September 30 and announced the deal on October 2. Dartmouth-Hitchcock Health, based in Lebanon, is New Hampshire’s only academic health system. It operates Dartmouth-Hitchcock Medical Center and includes the Dartmouth-Hitchcock Norris Cotton Cancer Center, the Children’s Hospital at Dartmouth-Hitchcock, four affiliate hospitals, home health services and ambulatory... Read More »
U.S. Hospital Deals Surged in the Third Quarter
Mergers and acquisitions among U.S. hospitals and health systems rose 28% in the third quarter of 2019, posting 23 transactions versus 18 deals in the previous quarter. Deal volume compared with the same quarter in 2018 (15 deals) was up 53%. Q3:19 had the strongest M&A activity in the previous four quarters, according to our most recent data. What factors boosted the most recent quarter’s results? A major contributor was Medical Properties Trust (NYSE: MPW), which announced three transactions in July, totalling $1.7 billion. The largest of the three deals, at $1.55 billion, was to acquire the real estate assets of 16 hospitals (2,383 beds) in California, Connecticut and... Read More »
TowerBrook & Ascension Acquire Hospice Compassus in $1 Billion Deal
TowerBrook Capital Partners and Ascension have joined forces in a hospice deal worth $1 billion, or 11.8x revenue. The joint venture is buying Hospice Compassus, which provides hospice, palliative and home health care and services to patients in more than 25 states, from Formation Capital and Audax Private Equity. Towerbrook and Ascension will own equal stakes in Hospice Compassus after buying the hospice firm an auction that started in early 2019. Formation and Audax backed Hospice Compassus for roughly five years, recapitalizing the company in 2014 for roughly $300 million, according to the same report. Although it’s no surprise that PE firms are big players in the Home Health and... Read More »
St. Christopher’s Hospital Goes to Auction in Philly
Yet another hospital bankruptcy has led to an auction and a sale. This time it was St. Christopher’s Hospital for Children in Philadelphia, Pennsylvania. The 188-bed hospital is a healthcare outpost in north Philly and one of only two children’s hospitals in the city. In 2018 it and Hahnemann University Hospital were sold by Tenet Healthcare (NYSE: THC) to California investment banker Joel Freedman, represented as American Academic Health Systems LLC (AAHS), for $170 million. Hahnemann’s financial troubles prompted American Academic to file for Chapter 11 bankruptcy protection on June 30 and led to that hospital’s closure in July 2019. St. Christopher’s... Read More »
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 »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
