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Four More Behavioral Health Deals in May

by | May 10, 2016 6:20 pm | Behavioral Health Care, Private Equity

Mergers and acquisitions in the behavioral health care sector have picked up significantly in April and May. Although only eight deals were announced in the first quarter of 2016, nine more have come along in just the past six weeks. Four have been announced in the first 10 days of May, beginning with Acadia Healthcare Company (NASDAQ: ACHC) and its acquisition of TrustPoint Hospital in Murfreesboro, Tennessee from privately-held Polaris Hospital Company. TrustPoint is a 129-bed facility, and since the deal closed on May 1, Acadia has filed a certificate of need for another 100 beds. Moving north to Buffalo, New York, two not-for-profits merged to become one of the largest community-based... Read More »

Quintiles/IMS Merger Keeps Lab Sector Humming

by | May 6, 2016 9:25 pm | Laboratories, MRI & Dialysis

Laboratories are big business, and they’re trading for very strong multiples these days. This year in particular, we’ve seen a lot of global M&A action around contract research organizations (CROs) and contract development and manufacturing organizations (CDMOs). The most recent announcement was the all-stock merger of equals between Quintiles (NYSE: Q) and IMS Health Holdings (NYSE: IMS). First, the details. IMS Health shareholders will receive a fixed exchange ratio of 0.384 shares of Quintiles common stock for each share of IMS Health common stock. Upon completion, IMS shareholders will own approximately 51.4% of the shares of the combined company on a fully diluted... Read More »

PE Firms Target Revenue Cycle Management

by | May 5, 2016 1:49 pm | eHealth

Follow the money. Everywhere in health care today, controlling the flow of revenue is critical to success, from physician practices to hospitals, skilled nursing facilities and more. As critical as it is, revenue cycle management took a back seat to electronic medical records in recent years, as CMS enforced the early stages of Meaningful Use to get physician practices on board with EMRs. Now that the switch to the ICD-10 coding system is firmly in place, investors’ attention has turned back to revenue cycle management (RCM). In just the first four months of 2016, nine RCM companies have been acquired, surpassing 2014’s total of eight RCM deals, and putting this year on track to beat... Read More »

MEDNAX Looks to Improve the Patient Experience

by | May 4, 2016 5:45 pm | eHealth, Physician Medical Groups

MEDNAX , Inc. (NYSE: MD), once focused exclusively on managing neonatology and anesthesia practices, is moving to manage the entire patient experience. In August 2014, it acquired MedData, Inc., a revenue cycle management company for an undisclosed price. The plan was to provide management services to facilities and physician groups beyond its then-existing footprint. A year later, in September 2015, MedData brought aboard Alegis Revenue Group, a national third-party receivables company. Alegis managed more than $3 billion in charges for more than 240 hospitals nationwide. The company’s patient-advocacy approach to eligibility and enrollment cut revenue cycle time from referral to... Read More »

Geriatric Behavioral Health Companies Merge

by | May 4, 2016 12:16 am | Behavioral Health Care, Private Equity

MedOptions, Inc. of Old Lyme, Connecticut announced its acquisition of San Diego-based Vericare on May 2, 2016. Vericare provides geropsychology and geropsychiatry behavioral health services in skilled nursing facilities. It employs more than 400 licensed behavioral healthcare professionals in more than 600 facilities across eight states. Similarly, MedOptions provides behavioral health services to residents of skilled nursing homes in Connecticut, Maryland, Massachusetts, New Jersey and Pennsylvania. The two companies each provide a similar integrated behavioral care model to deliver services to a primarily geriatric population. The combined business will be the sole national provider of... Read More »

April Deal Volume Was Decent

by | Apr 29, 2016 6:51 pm | Biotechnology, eHealth, Long-Term Care

We’re still in preliminary territory, so don’t bank on this yet. Health care M&A hit 120 deals for the month of April 2016, down 12% versus the previous month’s 136 deals, but 7% better than the same month a year ago. Long-term care deals led the transaction activity with 21 deals (18% of the total), with Biotechnology (17 deals, 14%) and eHealth (16 deals, 13%) close behind. Thanks to the $30.7 billion Abbott (NYSE: ABT) offer for St. Jude Medical (NYSE: SJM), spending for the month was far higher than in recent months. April’s deal value now stands at $42.2 billion, up 240% compared with March’s $12.4 billion and 732% compared with April 2015’s... Read More »

AbbVie Buys a Pipeline

by | Apr 29, 2016 6:37 pm | Biotechnology, Pharmaceuticals

After only four deals announced in 2014 and 2015, AbbVie (NYSE: ABBV) gained momentum in the M&A space this year in an effort to expand and diversify its portfolio. The timing isn’t a coincidence, since it faces the looming expiration of Humira’s patent in December. The drug that accounted for 63% of AbbVie’s 2014 sales could lose its dominant position in the autoimmune disease market as competitive generics take the field. In the first four months of 2016, AbbVie has dished out $6.4 billion on three deals (two collaborations and one acquisition). On March 7th, the company announced a collaboration with Boehringer Ingelheim that added anti-IL-23 to its immunology pipeline. The... Read More »

Abbott’s $30.7B Deal Boosts Medical Device M&A

by | Apr 28, 2016 8:46 pm | Laboratories, MRI & Dialysis, Medical Devices, Pharmaceuticals

Medical device deals are back in fashion. In the first four months of 2016, 41 deals were announced in this sector, compared with just 30 for the comparable time period in 2015. Spending on deals in this sector has already hit $42.7 billion, compared with $5.7 billion in the first four months of 2015. The largest by far this year is Abbott’s (NYSE: ABT) announcement on April 28 that it would spend $30.7 billion to acquire Minneapolis-based St. Jude Medical, Inc. (NYSE: SJM). St. Jude shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of approximately $85 per share, and a transaction equity value of $25 billion. Add in... Read More »