Hospital Deals Rebound in May 2017

Hospital merger and acquisition activity was fairly quiet in the first four months of the year, totaling 24 deals that made to a definitive agreement or beyond. Then came May, with a combined total of 13 transactions announced in the first four weeks (through May 26). Deal volume in the hospital sector through May 26 now totals 37 transactions, targeting 79 hospitals with 13,854 beds. The nearly $2.3 billion combined spending includes the $1.4 billion just announced by Medical Properties Trust (NYSE: MPW), which acquired the real estate assets of 10 acute care hospitals and one behavioral health facility (approximately 2,400 beds) belonging to IASIS Healthcare, a TPG portfolio company.... Read More »

Quorum Health Pares Its Rural Hospital Portfolio

Just as the Department of Health and Human Services reported that rural hospitals are better at reducing hospital-acquired infections and score better in value-based purchasing plans, Quorum Health Corporation (NYSE: QHC) announced the sale of two of its 38 rural hospitals in October. One analyst says at least six more deals are pending. Quorum Health was spun out of the ailing Community Health Systems (NYSE: CYH) in April 2016. Community Health took on more than it could handle in 2013, when it announced its $7.6 billion acquisition of Health Management Associates, then a for-profit, 71-hospital chain in 15 states. With approximately 11,000 licensed beds, the price worked... Read More »

Community Health Systems Buys into Five Oklahoma Hospitals

Community Health Systems, Inc. (NYSE: CYH) bought out its joint venture partner, INTEGRIS Health, to take full title to five hospitals in Oklahoma: Blackwell Regional Hospital (53 beds), Clinton Regional Hospital (56 beds), Marshall County Medical Center (25 beds), Mayes County Medical Center (52 beds) and Seminole Medical Center (32 beds). The five hospitals were previously owned through a joint venture between INTEGRIS and subsidiaries of Health Management Associates, Inc., which Community Health announced it would acquire in July 2013, for $7.6 billion. No price was disclosed on this deal. Read More »