Deal Volume Rose in July
July’s combined transaction total hit 127 deals, up 2% compared with the bang-up month of July 2014, which had 124 transactions. The Services sector had a strong performance, accounting for 60% of deal volume. Long-Term Care made up 27% of the volume overall with 34 announced transactions. That equalled the record set last July for the sector, and will probably break it as more deals come to light. The Managed Care sector posted some extra activity, although seven deals versus two deals the month prior and a year ago isn’t moving the needle very high. July 2015 DealsShare of Total Services Behavioral Health Care32% Home Health & Hospice23% Hospitals76% Labs, MRI & Dialysis43%... Read More »LifePoint Takes 2 Hospitals For-Profit
LifePoint Health, Inc. (NASDAQ: LPNT) last week announced two deals for smaller community hospitals that turned the not-for-profit entities into local tax payers. One was Fleming County Hospital (52 beds) in Flemingsburg, Kentucky. The other was an acquisition conducted via a joint venture with Norton Healthcare, called Regional Health Network of Kentucky and Southern Indiana. The JV acquired 241-bed Clark Memorial Hospital in Jeffersonville, Indiana, with a capital commitment of at least $80 million over the next five years. The local county councils are thrilled to move these not-for-profits into the tax base, no doubt. Meanwhile, the mood in other parts of the country is to sue the... Read More »Q2:15 Hospital M&A Stayed Active
Hospital mergers and acquisitions didn’t flag in the second quarter of 2015, with at least 23 “definitive agreements” signed. That’s equal to the 23 recorded in the first quarter of the year. (We wait until hospital transactions get that far in the process, because so many fall apart after they sign a letter of intent.) Ventas Inc.’s (NYSE: VTR) $1.75 billion acquisition of Ardent Health Services was the biggest deal of the quarter, followed by Ventas’ expected spin-off of Ardent’s hospital operations to Equity Group Investments, LLC for $475 million. Watch for The Health Care M&A Report, Second Quarter 2015 to be published next week. Read More »Ventas Spins Off Ardent Health’s Hospital Operations
As expected, Ventas, Inc. (NYSE: VTR) transferred the majority of Ardent Health Service’s hospital operations to Equity Group Investments last week, in exchange for $475 million. Ventas retains the owned real estate of the 10 Ardent Health hospitals, which it acquired in April 2015 for $1.75 billion. Ventas retains a 9.9% interest, while EGI and current Ardent Health Services management share the remaining ownership stake. Read More »Nautic Partners Exits, HealthSouth Buys In
Nautic Partners made a grand exit last week as it sold Reliant Hospital Partners, LLC to HealthSouth Corporation (NYSE: HLS) for $730 million. Reliant operates a portfolio of 11 inpatient rehabilitation hospitals in Texas, Massachusetts and Ohio, plus three inpatient satellite locations in Massachusetts, for a total of 902 beds. All of the hospitals are leased. Operating entities at seven of the hospitals include minority limited partners whose interest represents less than 10% of the equity of the combined Reliant operating entities. HealthSouth will assume the lease obligations of all the acquired hospitals. Based on the structure of the transaction, it expects to realize a tax benefit... Read More »Schedule a demo
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