“Inflation Is a Pressure Point:” HCA Healthcare Reports Decline in Q3 Earnings

“Inflation Is a Pressure Point:” HCA Healthcare Reports Decline in Q3 Earnings

HCA Healthcare, Inc. handled the storm well, all things considered. Despite market headwinds and tough labor conditions, HCA’s revenues in the third quarter of 2022 totaled $14.971 billion, compared to $15.276 billion in the third quarter of 2021, a drop of approximately 2%. For the third quarter of 2022, adjusted EBITDA totaled $2.902 billion, compared to $3.224 billion in the third quarter of 2021.  “Despite a difficult comparison to the prior year due to the COVID-19 Delta variant, we are pleased with our results and the execution of our teams in a challenging operating environment, which included tremendous efforts from our courageous frontline caregivers and support teams who... Read More »
Yale New Haven Health Completes Acquisition of CT Hospitals

Yale New Haven Health Completes Acquisition of CT Hospitals

Yale New Haven Health, one of the largest health systems in Connecticut, has finalized an agreement to acquire a set of hospitals from Los Angeles-based Prospect Medical Holdings, Inc. But there are a few more complicated details of this deal we need to run through.  Prospect Medical Holdings is selling the operations of the hospitals, related businesses, real estate assets, physician clinic operations and outpatient services of Waterbury Health, Manchester Memorial Hospital and Rockville General Hospital. However, Prospect is acquiring the real estate of those hospitals from Medical Properties Trust, Inc. (MPT) for $457 million,  the approximate amount MPT paid for the hospitals... Read More »
“Inflation Is a Pressure Point:” HCA Healthcare Reports Decline in Q3 Earnings

Juniper Advisory Handles Sale of 3 HCA Hospitals to LCMC Health

LCMC Health, the New Orleans-based, non-profit health system, is adding three hospitals to its network in a new deal. Working with Juniper Advisory, a specialized investment banking firm focused exclusively on nonprofit organizations, LCMC has struck a deal to purchase Tulane Medical Center, Lakeview Regional Medical Center and Tulane Lakeside Hospital from HCA Healthcare. The deal coincides with a new partnership with Tulane University, which will involve LCMC and Tulane joining forces to expand health care in southern Louisiana. One element of the deal calls for most of the services provided at Tulane Medical Center to move to East Jefferson General Hospital and University Medical Center... Read More »
Hospital M&A Market Flash Update

Hospital M&A Market Flash Update

Investment activity in healthcare is extremely healthy this year, with deal volume expected to break records. However, the hospital market seems to be in a different spot, based on year-to-date numbers. Through Q3, there have been 42 announced transactions, compared with 70 total in 2021. Deal closures have been slower, most likely due to market headwinds facing health systems and providers, such as labor shortages. There has also been stricter scrutiny of mergers and acquisitions from the Federal Trade Commission (FTC). The regulatory agency has sued to block several mergers, such as the deal between HCA Healthcare and Steward Health Care System for a sale of five hospitals in Utah and... Read More »
Excela Health and Butler Health System Sign Letter of Intent to Merge

Excela Health and Butler Health System Sign Letter of Intent to Merge

A new deal is set to create another mega-health system in Pennsylvania. Officials at Excela Health and Butler Health System announced on June 1 that the organizations have signed a letter of intent to merge. Although the details still need to be ironed out and regulators still need to give the thumbs-up, the new health system would generate more than $1 billion in annual revenue, employ approximately 7,300 people, and have more than 1,000 physicians and practitioners that serve a population of 750,000. This combination will support five hospitals including Butler Memorial Hospital, Clarion Hospital, Frick Hospital, Latrobe Hospital and Westmoreland Hospital. Excela Health, a 578-bed,... Read More »
Hospital M&A Market Flash Update

HCA Healthcare Lowers 2022 Guidance

HCA Healthcare posted its financial performance for the first quarter of 2022, and there was some good news. The health system saw higher year-over-year revenues, increasing nearly 7% to $14.945 billion, compared to $13.977 billion in the first quarter of 2021. Same-facility revenue per equivalent admission increased 2.7% over the first quarter of 2021, while same-facility inpatient revenues grew 5.4%, and same-facility outpatient revenues rose 10.6%. Despite these gains, HCA’s year-over-year net income dipped, dropping from the first quarter of 2021’s $1.4 billion to nearly $1.3 billion in the first quarter of 2022. Adjusted EBITDA for the quarter also dipped from last year’s nearly $3.1... Read More »