BJC HealthCare, Saint Luke’s Health System Begin Merger Talks
Two Missouri-based health systems have begun merger negotiations. On May 31, BJC HealthCare of St. Louis and Saint Luke’s Health System of Kansas City announced they have signed a non-binding letter of intent to form an integrated, academic health system in the state. The letter of intent was unanimously approved by both health systems’ Boards of Directors. Combined, this new organization will have $10 billion in revenue. BJC HealthCare is one of the largest nonprofit integrated academic healthcare systems in the country, providing services to residents primarily in the greater St. Louis, southern Illinois and southeast Missouri regions. With net revenues of $6.3 billion and more... Read More »
Hospital Market Status & Review: Spring 2023 Update
As we approach the halfway point of 2023, we thought it’d be worthwhile to examine the state of the hospital M&A market so far. Through mid-May, strategic buyers and investors announced 30 hospital deals, 16 of which were in the first quarter, according to data captured in the LevinPro HC database. Considering the number of mergers already in the letter-of-intent stage, deal activity is on pace to beat the volume from 2022. Health systems and hospitals were battered with headwinds in 2022, such as staffing issues and operating expenses, forcing hospitals to partner with a more extensive system or network. But another challenge has been competing in the outpatient care market, which has... Read More »
Flagler Health+ and UF Health Strike Definitive Merger Agreement
After three months of negotiation, Flagler Health+ and UF Health have reached a definitive agreement to merge their two organizations together. Flagler Health+ operates a 335-bed acute-care general hospital from an 80-acre site just south of the city limits of St. Augustine, Florida. It also owns a home health network, the Outpatient Surgery Center of St. Augustine, LLC., Flagler Professional Health Services, Inc. and CF Management Administrative Company, LLC, which provides a variety of outpatient health and urgent care services to the surrounding community. Flagler had $355 million in revenue and $30.6 million in EBITDA, according to the health system’s annual report for the... Read More »
HCA Healthcare Emerging from Severe Staffing Headwinds
HCA Healthcare Inc (NYSE: HCA), a for-profit healthcare provider based in Nashville, Tennessee, reported $4.93 earnings per share for the quarter, beating the consensus estimate of $3.99 by a whopping $0.94. This increase is largely due to HCA Healthcare’s revenue growth, which was up 4.3% on a year over year basis from $14.9 billion in Q1:22 to $15.6 billion in Q1:23. The healthcare provider’s expenses rose from the first quarter of 2022, reaching $13.67 billion. Yet, despite the rising expenses, HCA Healthcare reported a $1.36 billion profit in the first quarter, an improvement from last year’s profit of $1.27 billion. However, this is a decrease from HCA’s $2.1 billion... Read More »
Kaiser Permanente Acquires Geisinger Health, Launching Risant Health
Kaiser Permanente announced on April 26 that it was acquiring Geisinger Health, which will join Risant Health, a new nonprofit organization created by the Kaiser Foundation Hospitals. Geisinger Health comprises 10 hospitals, as well as a health plan with more than half a million members. The Danville, Pennsylvania-based health system has 25,000 employees and more than 1,700 physicians. Kaiser Permanente is among the country’s largest nonprofit systems with 39 hospitals. Its operations span eight states coast to coast with roughly 13 million members who receive care through its integrated model. The organization reported $95.4 billion in operating revenue across 2022, as well as a $1.3... Read More »Schedule a demo
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