U.S. Hospital Transaction Trends, at Mid-Year
It just might be “the pause that refreshes.” Or it could be the beginning of a painful contraction in the hospital market. In the first five months of 2018, 34 deals—representing definitive agreements and closures—have been announced. That’s the same number reported in the first five months of 2017. The difference lies behind the number of deals, of course. In the first five months of 2017, several large hospital systems merged or were acquired. Among the deals were Mississippi Baptist Health System (four hospitals) and Baptist Memorial Health (17 hospitals); IASIS Healthcare (17 hospitals) and Steward Health Care (18 hospitals); and Steward Health’s acquisition of eight hospitals from... Read More »
Centegra Health Joins Northwestern Memorial
Around 40 hospital deals have been announced in 2018, through May 25, and all but four have targeted a standalone hospital (including seven critical access hospitals). The largest hospital deal announced in May, based on the number of hospitals involved, was the merger of Centegra Health System’s three hospitals with Northwestern Memorial HealthCare, a seven-hospital system based in Chicago, Illinois. Centegra operates three hospitals in McHenry County, where it is the largest employer. They are Centegra Health Huntley (128 beds), Centegra Health McHenry (151 beds) and Centegra Health Woodstock (72 beds). Northwestern Memorial has seven hospitals in Chicago and its surrounding... Read More »
Healthcare Services Roundup through April 2018
It’s been quite a year for healthcare deals in general, with nearly 600 announced transactions in the first four months. That’s 7% more than there were announced in the first four months of 2017. Dollar volume has soared, too. In 2018, $141.8 billion has already been committed to fund the 588 transactions. Thanks to some mega-billion-dollar deals in 2018, the total is 30% greater than the nearly $109 billion spent in the same period of 2017. Collectively, the Services sectors are booming, which isn’t always the case. Services deals made up 63% of all deals in the first four months of 2018, and 57% of the disclosed dollars, now at $81.3 billion. The Technology sectors... Read More »
Q1:18 Hospital Deals Rise 25% YoY
Mergers and acquisitions in the Hospital sector picked up slightly in the first quarter, up 9% compared with the previous one to 25 deals. It was up 25% compared with the same quarter in 2017, and the 25 deals comprise 29% of the 86 deals announced in the previous 12 months. Some of the activity is still being fueled by divestitures by the publicly traded companies, Community Health Systems (NYSE: CYH), Quorum Health (NYSE: QHC), and Tenet Healthcare (NYSE: THC). All are trying to lower their debt load, and for Community Health and Tenet, activist shareholders are demanding more attention to the balance sheet. In the first quarter, Community Health sold five hospitals (one in Louisiana,... Read More »March Added One Mega-Deal, and Saw Another One Halted
After a busy M&A month in February, with 125 deals reported, March didn’t disappoint. Preliminary results show deal volume equaled the previous month’s total. The figures look good, in the face of the recent stock market swings, the Trump administration’s talk of trade wars and cancelling trade deals. But a look back to March 2017 shows this month’s deal volume is down 19% compared with the 155 deals logged then. And that wase in the face of the Trump administration’s efforts to repeal and replace the Affordable Care Act. Check out the April issue of Health Care M&A News for the deal volume and value charts, by sector. We’re not saying this year’s healthcare market is lacking in... Read More »Schedule a demo
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