West Jefferson Medical Has a New Owner
On October 1st, West Jefferson Medical Center, a 405-bed not-for-profit acute care facility in Marrero, Louisiana, officially became the sixth hospital in the LCMC Health family. West Jefferson began looking for a partner back in 2012. New Orleans-based LCMC was chosen earlier this year after it agreed to make lease payments of at least $200 million over 45 years, plus make $340 million in capital improvements in the next 15 years. Although West Jefferson reported revenue of $243 million through 2014, EBITDA was a negative $2.3 million in those 12 months. All’s well that ends well. Read More »2015: The Year of the Small Hospital Deal
You may have read the article in The Wall Street Journal on September 22, titled “Health Law Speeds Merger Frenzy.” It featured our data on the pace of hospital M&A between 2009 and August 31, 2015, with the obvious conclusion that 2015 is the winner for the most deals announced in the first eight months. We took that a step further this week, to see how many small hospitals (defined as 100 or fewer beds) have changed hands in recent years. The data below clearly shows that 2015, even with partial data, tops the previous five years with 34 deals (45% of the total) announced with small hospitals as the target. We’ll have more in the October issue of Health Care Deal News, so sign up... Read More »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 »Schedule a demo
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