Health Care M&A in Q4:15

by | Oct 26, 2015 8:56 am | Physician Medical Groups

Okay, so we had a record third quarter in 2015, with more than 390 deals (we’re still counting) and $198 billion-plus in spending. Looking ahead to the fourth quarter, consolidation in many sectors is still strong, as rivals realize they may need to join forces to achieve scale. Case in point: AmSurg Corporation (NASDAQ: AMSG) made an unsolicited $7.5 billion offer for TeamHealth Holdings (NYSE: TMH), which is in the midst of its own acquisition of IPC Healthcare (NASDAQ: IPCM). Although Team Health rebuffed the offer, a larger one is in the offing, no doubt. Also, the huge cash reserves on many companies’ balance sheets are likely destined for M&A transactions, particularly if... Read More »

Team Health Pays $1.6 Billion for Hospitalists

by | Aug 10, 2015 8:50 am | Physician Medical Groups

The $1.6 billion acquisition of IPC Healthcare (NASDAQ: IPCM) by Team Health Holdings (NYSE: TMH), announced last week, was just the latest—and, yes, the biggest—in a stream of transactions targeting physician medical groups. The deal vaults Team Health to a leading position in the increasingly strategic post-acute setting, and effectively positions the company to capitalize on CMS’ migration to value-based, bundled payments, with the combined companies set to manage some $2 billion in Medicare spending. The risk, of course, is that the company will depend on government payors for more than half of their patients, and self-pay patients for another 15% of reimbursement. And with hospital... Read More »

Doctors Groups on an M&A Hot Streak

by | May 26, 2015 6:25 pm | Physician Medical Groups

Interest in physician medical groups is reaching a boiling point in 2015, with 36 transactions announced as of May 22. Nine announcements were made in May alone, including last week’s deal for the 276-physician Chidren’s and Women’s Physicians of Westchester, by Boston Children’s Hospital. Contrast that with 2014’s total of 60 acquisitions, and 2015 is shaping up to be an interesting year. The big players—IPC Healthcare (NASDAQ: IPCM), MEDNAX (NYSE: MD) and TeamHealth Holdings (NYSE: TMH)—are still leading the field in the number of acquisitions, but there several other companies making inroads. Check out the chart below.  Read More »