Stat of the Week: Hospital M&A up 40% in Q4:17
Hospital M&A activity accelerated in the fourth quarter of 2017. The number of hospital acquisitions rose to 21 in the fourth quarter, up 40% from the 15 publicly announced acquisitions in the third quarter of 2017. Compared with the same quarter in 2016, which posted 23 transactions, activity was down 9%. None of the transactions disclosed a purchase price in the third quarter of 2017. Four of the deals disclosed prices, for a combined total of $2.82 billion. None of the transactions in the third quarter disclosed a price, although the fourth quarter of 2016 posted a total of $2.31 billion. The largest deal in the quarter was UnitedHealth Group’s (NYSE: UNH) $2.8 billion acquisition... Read More »
Hospital Mergers Point to the Future of Health Systems
Hard on the heels of the merger announcement between Dignity Health and Catholic Health Initiatives came the news that Ascension Health and Providence St. Joseph Health were in their own talks to merge. The Dignity/CHI deal will create a 139-hospital system spanning 28 states, with revenue of more than $28 billion. If the Ascension/Providence merger is realized, the resulting company would be the largest hospital system, with 191 hospitals in 27 states, and annual revenue of $44.8 billion. By contrast, the current largest system, for-profit HCA (NYSE: HCA), has approximately 175 hospitals and revenue of $42.7 billion. Even if the Ascension/Providence deal doesn’t go through, the... Read More »
Dignity Health and CHI Make It Official
Dignity Health and Catholic Health Initiatives, two major not-for-profit health systems, signed a letter of intent to explore a merger in October 2016, and finally tied the knot in December. Although Catholic Health is the larger of the two, with 101 hospitals, its financial picture isn’t a rosy as its partner’s. Dignity Health, based in San Francisco, is a 22-state network of more than 9,000 physicians and other advanced practice clinicans and 63,000 employees. It operates 39 acute-care hospitals and 250 ancillary care sites such as urgent and occupational care, imaging centers, home health and primary care clinics. In fiscal 2017, which ended on June 30, it reported revenue... Read More »
Deal of the Week: Concentra/Dignity Health
Even as it continues merger talks with the troubled hospital chain, Catholic Health Initiatives, Dignity Health sold its rehabilitation and occupational health division, U.S. HealthWorks for $753 million. The acquirer, Concentra Group Holdings, is jointly held by Select Medical Corporation (NYSE: SEM), Welsh, Carson, Anderson & Stowe and minority equity shareholders including Cressey & Company. The combination will bolster both companies’ urgent care platforms as new payment models push for care delivery outside of hospital setting. Dignity Health will receive a 20% equity interest in the combined entity, valued at $238 million, and the remainder of the purchase price in... Read More »
Are Hospitals Dead? The Future of the Hospital
Join us this Thursday, October 26, at 1:00 pm ET, for our webinar, “Are Hospitals Dead? The Future of the Hospital.” Lisa Phillips, editor of HealthCareMandA.com, will moderate the lively discussion with panelists David Friend, MD, managing director and chief transformation officer at BDO, Bobby Guy, shareholder at Polsinelli, and Patrick Pilch, managing director and national healthcare advisory leader at... Read More »Schedule a demo
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