Aspirus Buys Portfolio of Ascension Hospitals
Ascension Wisconsin, part of the Ascension health system, is divesting seven hospitals (total of 264 beds) in north and central Wisconsin. Three are acute care hospitals, and four are designated as critical access hospitals. The buyer is Aspirus, a nonprofit rural health service with six hospitals in Wisconsin and four in Michigan, 50 clinics, home health and hospice care, pharmacies, critical care and air-medical transport, nursing homes and a broad network of physicians. No terms were disclosed, but the seven facilities generated $392.2 million revenues for the fiscal year of 2019 and $73.8 million in EBITDA. The divestment includes Eagle River Hospital in Eagle River (14 beds); Good... Read More »
Hospice Deals Heat Up
It’s been a busy year in the Home Health & Hospice sector. Deal volume is poised to surpass the record 85 transactions announced in 2018. Through late November, 79 deals are in our DealSearchOnline database and more are expected before year-end. Home health agencies account for the bulk of the transactions every year, making up 72% in both 2015 and 2016, for example. In the past two years, however, hospice companies have seen a surge in investor interest. In 2018, hospice companies accounted for 33% of the 85 deals in the sector. Through the end of November 2019, they make up 38% of the sector’s deal count. Valuations are often described as “frothy” for home... Read More »U.S. Hospital Deals and Trends, YTD 2019
Winding down to the end of 2019, it’s a good time to take stock of this year’s U.S. hospital M&A market. In mid-November, we have 70 transactions on the books, up 16% compared with the same period in 2018. But 2019 M&A activity has taken a decidedly different path from the deals of 2018. One striking statistic: Just half the number of beds have traded hands in 2019. By this time in 2018, the bed-count in target hospitals was 25,309. In 2019, there are only 12,901 (-49%). In 2018, a few major systems changed hands, which pushed up the bed total. The largest was Apollo Global Management’s $5.6 billion take-private deal for LifePoint Health (formerly NASDAQ: LPNT),... Read More »
Home Health & Hospice Sector Deals Dipped in Q3:19
Deal volume in the home health and hospice sector dipped slightly in the third quarter of 2019, down 23% with 20 publicly announced transactions, compared with 26 acquisitions in the second quarter, according to data from HealthCareMandA.com. Compared with the third quarter of 2018, home health and hospice M&A activity decreased by 20%, when 25 acquisitions were announced. Six of the transactions disclosed prices in the third quarter of 2019, for a combined total of nearly $1.2 billion. In the same quarter of 2018, the total dollar value based on disclosed prices was just $7.2 million. Of the 20 transactions announced in the third quarter, 35% were announced by private equity firms or... Read More »Schedule a demo
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