Hospital Transactions Held Steady in Q3:2018
Mergers and acquisitions in the Hospital sector held steady from the second to the third quarter, with 15 definitive agreements announced in each. Deal volume dropped 12% compared with the same quarter in 2017. The 15 deals announced in the second quarter made up 19% of the 80 deals announced in the previous 12 months. One factor behind the decline from the first quarter was the end of the announced divestitures made by some for-profit chains, particularly Community Health Systems (NYSE: CYH) and its spin-off, Quorum Health (NYSE: QHC). Together with Tenet Healthcare (NYSE: THC), these three companies spent the previous six quarters selling off underperforming assets in non-core markets.... Read More »
Tower Health Adds Urgent Care and ASC Deals
Tower Health, a six-hospital system across southeastern Pennsylvania, is growing its network rather aggressively lately. On October 2, it announced the acquisition of Premier Urgent Care, which runs 19 urgent care centers in Pennsylvania and Delaware. A week earlier, it reported a new joint venture with United Surgical Partners International (USPI), part of Tenet Healthcare (NYSE: THC). Tower Health is the new name for the former Reading Health System, based in West Reading, Pennsylvania. Until May 2017, the system consisted of Reading Hospital, which housed a cancer institute, a cardiac center, a rehabilitation hospital and a physician network of more than 1,000 physicians. On May 30 of... Read More »
Jefferson Health and Einstein Healthcare Agree to Merge
Two Philadelphia-based not-for-profit health systems have agreed to merge. Einstein Healthcare Network and Jefferson Health System signed a definitive agreement on September 14, following their letter of intent signing in March 2018. Einstein is a leading healthcare sytem with approximately 1,000 beds. It includes Einstein Medical Center Philadelphia (548 beds), Einstein Medical Center Montgomery, and Einstein Medical Center Elkins Park, as well as MossRehab, an inpatient rehabilitation hospital, and Willowcrest, a skilled nursing facility. Jefferson Health provides primary to highly-specialized care through 14 hospitals, more than 40 outpatient and urgent care locations, the... Read More »
HCA Keeps the Title for Average Price per Hospital Bed
After months of deliberations, for-profit HCA Healthcare (NYSE: HCA) signed a definitive agreement to acquire western North Carolina’s largest health system, not-for-profit Mission Health. The price, approximately $1.5 billion, includes substantially all of Mission Health’s assets. The proceeds of the sale combined with Mission Health’s remaining cash and investments–after all debts and obligations have been paid–will ultimately be transferred to the newly formed Dogwood Health Trust. Under the agreement, HCA will acquire Mission Hospital (763 beds) and CarePartners Rehabilitation Hospital (80 beds), both in Asheville; Mission Hospital McDowell (49 beds) in Marion; Angel... Read More »
Tenet Healthcare Rethinks Aspen Deal
Tenet Healthcare Corporation (NYSE: THC) is selling UK-based Aspen Healthcare Ltd. after only three years of ownership. NCM Healthcare UK Ltd., a subsidiary of NCM Health plc (LSE: NCM), is the buyer, paying $332 million. Tenet acquired the nine-facility company from Welsh, Carson, Anderson & Stowe (WCAS) in March 2015, for $215 million. The transaction was announced simultaneously with Tenet’s acquisition of a 5o.1% stake in United Surgical Partners International, another WCAS portfolio company, for $425 million. WCAS, together with other investors, retained a 49.9% interest in USPI at the time of the announcement. On April 26, 2018, Tenet announced that it acquired... Read More »Schedule a demo
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