Rehabilitation Attracted Private Equity and REITs in 2016
The Rehabilitation sector is still fairly fragmented, but consolidation is coming. Some 40 deals have been announced in 2016, a 21% increase compared with 2015’s then-record of 33 deals. This year saw a ramp-up in the number of deals announced by REITs and private equity firms, too. Spending in this sector is generally lower than other sectors, because so many transactions are made by local or regional buyers who want to keep deals private. Many targets are privately owned, and sellers don’t wish to disclose prices, either. In 2016, deal value was approximately $712 million, down 11% compared with 2015’s $799 million. For this sector, those figures represent healthy... Read More »Rehab Hospitals Attract More REITs in 2016
REITs are on the move in the healthcare services sectors, and rehabilitation hospitals are following the trend we’ve noted in the Hospital sector. Through December 1, REITs have made five acquisitions targeting rehabilitation hospitals, compared with two such deals announced in 2015, and two in 2014. The most recent announcement came from Global Medical REIT Inc. (NYSE: GMRE), which went public on June 29, 2016. Using proceeds from that IPO, the company acquired three rehab hospitals from affiliates of Healthcare Realty Trust Inc. (NYSE: HR), for a total of approximately $68 million. HealthSouth Corp. (NYSE: HLS) is the tenant in all three hospitals, which are located in Mesa, Arizona, and... Read More »Rehabilitation Deals Still Rising, Thanks to Private Equity
The year isn’t over, and the Rehabilitation sector has already equaled last year’s deal total. Thirty-three deals have been made public through November 11, 2016, compared with 33 in all of 2015. Spending is a bit lower at this point in 2016, at $623 million, down 21% compared with last year’s annual total of $799 million. That may change, depending on the number of deals that disclose prices between now and the end of the year. Four private equity firms have made acquisitions in this sector in 2016. Even though no price was disclosed, the largest was probably from Advent International, which acquired ATI Physical Therapy, a platform company based in Bolingbrook,... Read More »October M and A Settles into Second Place
What’s a synonym for “slowdown?” We’re as tired of writing about monthly deal volume dropping off as you probably are of reading about it. But M&A activity in October 2016 can only be summed up as slackening, declining, decelerating. Preliminary deal volume is now at the second-lowest level of the year, just 112 transactions. Only January’s deal volume was lower, at 104 transactions. We may have a few additions to October’s total as the fourth quarter grinds on, but it’s not typical to find another 15 deals. Deal value also dropped off. At $12.8 billion, it ranks as the second-lowest level of spending for the year. July 2016 still holds the honor of being the slowest month for... Read More »Three-Way Therapy Merger
On October 18, Casamba LLC, a leading supplier of enterprise software systems to large therapy providers in the United States, announced a three-company merger with HealthWyse and TherapySource. Based in Boston, Massachusetts, privately held HealthWyse serves the clinical, financial and regulatory needs for home health, hospice and private duty care through its fully integrated electronic medical record. Based in Birmingham, Alabama, privately held TherapySource provides clinical and billing solutions to more than 3,500 outpatient therapy clinics across the country through its TherapySource, Rehab Toolkit, and Revenue Cycle Services solutions. The addition of these two post-acute software... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
