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U.S. Hospital REIT Deals Surge in 2019
It’s become an accepted, almost expected, transaction. Privately held hospitals sell their real estate assets to a real estate investment trust (REIT) to get some fresh cash and to focus on operations rather than physical plants. Between 2009 and 2012, REIT deals for U.S. hospitals were announced once or twice a year. The number rose to six per year in 2013, 2015 and 2016 (just three in 2014). After two years of two or three deals annually (2017 and 2018), the number has already reached seven in 2019, with several weeks of deal making left in the year. The most recent deal was announced on November 5, as LifePoint Health agreed to sell the real estate assets of 10 unidentified... Read More »
Second Time’s the Charm for Two New Hampshire Systems
It took almost 10 years and a lot of changes, but Dartmouth-Hitchcock and the owner of Catholic Medical Center are merging. Nine months after signing a letter of intent in January 2019, Dartmouth-Hitchcock Health and GraniteOne Health made it to the definitive agreement stage. The not-for-profits made it official on September 30 and announced the deal on October 2. Dartmouth-Hitchcock Health, based in Lebanon, is New Hampshire’s only academic health system. It operates Dartmouth-Hitchcock Medical Center and includes the Dartmouth-Hitchcock Norris Cotton Cancer Center, the Children’s Hospital at Dartmouth-Hitchcock, four affiliate hospitals, home health services and ambulatory... Read More »
U.S. Hospital Deals Surged in the Third Quarter
Mergers and acquisitions among U.S. hospitals and health systems rose 28% in the third quarter of 2019, posting 23 transactions versus 18 deals in the previous quarter. Deal volume compared with the same quarter in 2018 (15 deals) was up 53%. Q3:19 had the strongest M&A activity in the previous four quarters, according to our most recent data. What factors boosted the most recent quarter’s results? A major contributor was Medical Properties Trust (NYSE: MPW), which announced three transactions in July, totalling $1.7 billion. The largest of the three deals, at $1.55 billion, was to acquire the real estate assets of 16 hospitals (2,383 beds) in California, Connecticut and... Read More »
St. Christopher’s Hospital Goes to Auction in Philly
Yet another hospital bankruptcy has led to an auction and a sale. This time it was St. Christopher’s Hospital for Children in Philadelphia, Pennsylvania. The 188-bed hospital is a healthcare outpost in north Philly and one of only two children’s hospitals in the city. In 2018 it and Hahnemann University Hospital were sold by Tenet Healthcare (NYSE: THC) to California investment banker Joel Freedman, represented as American Academic Health Systems LLC (AAHS), for $170 million. Hahnemann’s financial troubles prompted American Academic to file for Chapter 11 bankruptcy protection on June 30 and led to that hospital’s closure in July 2019. St. Christopher’s... Read More »
TPG Capital Re-enters the Southeast Asia Hospital Market
TPG Capital and its sponsored companies have been on a tear in 2019. Through its recently launched U.S. autism platform, Kadiant, the global private equity firm announced six deals since February. Its U.S.-based digital health company WellSky announced two deals in the past 12 months and back in February, Kindred Healthcare, now co-owned by TPG and Welsh, Carson, Anderson & Stowe, acquired a hospital in Los Angeles out of the Promise Healthcare bankruptcy. In early September, TPG announced its acquisition of another digital health company, Convey Health Solutions, from New Mountain Capital for an undisclosed price. Two weeks later, the firm was back in the news with a $1.2 billion deal... Read More »Schedule a demo
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