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 »
NorthShore University HealthSystem Strikes Back
Ever since its planned merger with Advocate Health Care was crushed by the Federal Trade Commission in 2017, NorthShore University HealthSystem has looked for opportunities to expand its reach in Chicagoland. Half-way through 2019, it finally happened. Swedish Convenant Health, which operates a 216-bed acute care community hospital on Chicago’s North Side, has agreed to join the four-hospital NorthShore system. Swedish Covenant includes the Swedish Covenant Medical Group, medical fitness center Galter LifeCenter, the Swedish Covenant Hospital Foundation, and a managed care organization, Swedish Convenant Physician Partners. The target posted approximately $273.5 million in revenue... Read More »
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 »Schedule a demo
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