Hospital M&A: Bigger Isn’t Always Better
That was the week that was. Two huge hospital mergers came to an end, one successfully and the other, not. In announcing the end results, CEOs involved in those deals each emphasized their goal was not about “getting bigger,” but to deliver better health care to more patients. Seriously, what CEO is going to say they just need more facilities to boost the bottom line and don’t care about patients? First, the deal that crossed the finish line. For 15 months, Catholic Health Initiatives and Dignity Health negotiated the details of the definitive agreement they signed in December 2017. The deal closed on February 1, creating one of the largest not-for-profit health systems in the country with... Read More »
HCA Keeps the Title for Average Price per Hospital Bed
After months of deliberations, for-profit HCA Healthcare (NYSE: HCA) signed a definitive agreement to acquire western North Carolina’s largest health system, not-for-profit Mission Health. The price, approximately $1.5 billion, includes substantially all of Mission Health’s assets. The proceeds of the sale combined with Mission Health’s remaining cash and investments–after all debts and obligations have been paid–will ultimately be transferred to the newly formed Dogwood Health Trust. Under the agreement, HCA will acquire Mission Hospital (763 beds) and CarePartners Rehabilitation Hospital (80 beds), both in Asheville; Mission Hospital McDowell (49 beds) in Marion; Angel... Read More »
Envision Healthcare Sells to KKR for $9.9 Billion
It’s been a bumpy road for Envision Healthcare (NYSE: EVHC). The company went public in 2013, with revenues of $3.7 million. In 2018, it is going private with KKR & Co. (NYSE: KKR), with revenues of $8.0 billion. In 2014, Envision operated American Medical Response, Inc., an air ambulance company; EmCare Holdings, provider of physician practice management services for emergency departments, inpatient physician services or hospitals; and practice management services company Evolution Health. Since then, it acquired seven physician practices, beginning with Phoenix Physicians, LLC in Fort Lauderdale, Florida ($170 million, June 2014) to Emergency Physicians Medical Group ($12o... Read More »
U.S. Hospital Transaction Trends, at Mid-Year
It just might be “the pause that refreshes.” Or it could be the beginning of a painful contraction in the hospital market. In the first five months of 2018, 34 deals—representing definitive agreements and closures—have been announced. That’s the same number reported in the first five months of 2017. The difference lies behind the number of deals, of course. In the first five months of 2017, several large hospital systems merged or were acquired. Among the deals were Mississippi Baptist Health System (four hospitals) and Baptist Memorial Health (17 hospitals); IASIS Healthcare (17 hospitals) and Steward Health Care (18 hospitals); and Steward Health’s acquisition of eight hospitals from... Read More »Schedule a demo
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