Sanders Trust Buys Cobalt Rehab Hospital
Curahealth, a portfolio company of Nautic Partners, is selling the real estate assets of a rehabilitation hospital in New Orleans operated by its subsidiary, Cobalt Rehabilitation. Birmingham, Alabama-based The Sanders Trust will pay $29 million for the 60-bed inpatient rehab facility. The Cobalt Rehabilitation Hospital is a Class A, 65,345-square-foot facility located less than two miles from the new Louisiana State University and Veteran Administration hospitals that have approximately 1,000 acute care beds. Built in 2016, it serves a wide range of physical rehabilitation patients with conditions such as stroke, trauma, hip fracture, brain injuries, concussions, orthopedic and... Read More »
HCR ManorCare Offloads Some Assets
HCR ManorCare, the second largest skilled nursing operator in the United States, has sold Heartland Rehabilitation and MileStone Staffing Services to Grant Avenue Capital, a healthcare-focused private equity firm in New York. Terms of the deal were not disclosed. HCR went through a Chapter 11 bankruptcy restructuring in 2018 and was purchased for a total of $3.3 billion by a joint venture between Welltower (NYSE: WELL) and ProMedica, a not-for-profit health system. All the organizations are based in Toledo, Ohio. Welltower owns 80% of the HCR real estate and ProMedica owns 20%. ProMedica owns 100% of HCR’s operating company, for which it paid $470 million in cash and used a $1.15... Read More »
PE-Backed Phoenix Rehabilitation Adds New Clinic
Phoenix Rehabilitation and Health Services Inc. has been on an acquisition spree since Audax Group acquired the group in December 2018. The rehabilitation firm has reported three deals since then, growing at a steady pace across the country. The partnership first reported a deal last September, acquiring Black Mountain Physical Therapy in Black Mountain, North Carolina. Black Mountain offers a range of treatment including skilled manual therapies, therapeutic exercises, and neuromuscular reeducation to treat biomechanical and structural problems. The clinic gave Phoenix a foothold in the North Carolina market. Just before the end of 2019, Phoenix acquired a physical therapy clinic in in... Read More »
2019’s Biggest Healthcare Deals, by Sector
2020 has just begun, which means it’s time to look back at the healthcare M&A landscape of 2019. Just three days into the new year, nearly 1,780 deals are already on the books for 2019. More deals will turn up as we search our many sources, but the number likely won’t top the record of 1,900-plus set in 2018. Thanks to the multi-billion-dollar deals announced in the Biotech and Pharmaceutical sectors, 2019 will set a new spending record. Preliminary data show $399.1 billion was spent on healthcare acquisitions last year, about 20% higher than in 2018. We expect that number to rise as we go through the year and the 10Ks and quarterly reports come out. It’s possible the... Read More »
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 »