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PE Firms Move the Needle in the Rehab Market
It’s been a quiet year in the Rehabilitation M&A market, at least through October. There have been 27 deals announced that targeted rehabilitation facilities only, a decline of 37% compared with the 43 deals announced in the full year of 2018. True, that’s 10 months in 2019 versus all 12 in 2018, but we’re not expecting a rash of deal announcements between now and December 31. Activity in this sector has been dropping since its peak in 2017, with 49 transactions. Onc factor may be the October 1 launch of the CMS’ new rule, the Patient Driven Payment Model (PDPM), which changes reimbursement and regulations on rehabilitation in skilled nursing facilities and... Read More »
Mednax Sells MedData, Pulls Back on M&A
It’s been nearly a year since Mednax Inc. (NYSE: MD) announced its MedData subsidiary was headed for the auction block. The company acquired the privately held revenue cycle management company in August 2014 for an undisclosed amount. Now that Mednax has hired teams of consultants to help it rethink its business model, MedData is a non-core asset. Frazier Healthcare Partners agreed to pay $250 million for MedData in mid-October, although Mednax has classified MedData as discontinued operations since the first quarter of 2019. The target provides management services to hospitals, health systems and healthcare providers. Back in 2014, when Mednax bought it, MedData served 3,000 physicians at... Read More »
TowerBrook & Ascension Acquire Hospice Compassus in $1 Billion Deal
TowerBrook Capital Partners and Ascension have joined forces in a hospice deal worth $1 billion, or 11.8x revenue. The joint venture is buying Hospice Compassus, which provides hospice, palliative and home health care and services to patients in more than 25 states, from Formation Capital and Audax Private Equity. Towerbrook and Ascension will own equal stakes in Hospice Compassus after buying the hospice firm an auction that started in early 2019. Formation and Audax backed Hospice Compassus for roughly five years, recapitalizing the company in 2014 for roughly $300 million, according to the same report. Although it’s no surprise that PE firms are big players in the Home Health and... Read More »eHealth Activity Climbs in Q3
The eHealth sector came out swinging this quarter, reporting 51 deals, according to our Deal Search Online database. That’s a modest 9% uptick over Q2:19 deals, but a 38% increase over the same quarter in 2018. Year-to-date totals tell a similar story. In 2018, the first three quarters reported 146 deals, while 2019 clocks in with 151 deals so far. Announced prices have followed suit as well. By the end of the third quarter in 2018, there were roughly $12.8 billion in disclosed prices, but in 2019 we’ve seen approximately $17.9 billion in the sector. Four deals disclosed prices north of a billion dollars in the first three quarters of 2018, including Verscend Technologies,... Read More »
Three Oaks Hospice Hits The Ground Running
Three Oaks Hospice, a portfolio company of Health Velocity Capital, was just launched in May 2019, but the company is wasting no time to expand. This week the company bought three hospices in Texas, Total Hospice & Palliative Care in Richardson; ABS Palliative in Carrollton; and Hospice Care and Fellowship Hospice in San Antonio. The acquisitions give it a presence in Dallas, Fort Worth, and San Antonio, providing more than 84,000 days of care annually. The deal also increases its referral network to more than 200 sources. To fuel future growth, Three Oaks has received more than $21 million from Granite Growth, Health Velocity Capital and Petra Capital. It’s been a slow month in... Read More »Schedule a demo
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