Long-Term Care Deal Value Surges in Q2:17
The dollar volume of publicly announced seniors housing and care acquisitions in the second quarter of 2017 surged to $9.7 billion, a nearly 600% increase over the first quarter’s volume of $1.4 billion. The number of announced transactions in the second quarter (75) was basically even with the first quarter (76), according to new acquisition data from HealthCareMandA.com. The dollar volume is the highest since the second quarter of 2014. Driving the dollar volume were two billion-dollar acquisitions, including the acquisition of Care Capital Properties by Sabra Health Care REIT in a transaction valued close to $4.0 billion, as well as the acquisition of Hawthorn Retirement Group by... Read More »Kindred Exits Skilled Nursing Business
Kindred Healthcare (NYSE: KND) has made no secret that it is getting out of the skilled nursing business. It took until June 30 for the deal announcement to come, and when it did, it was a bit of a surprise that a single buyer was taking over the entire business. Private equity firm BlueMountain Capital Management, LLC, through a joint venture it is leading called BM Eagle Holdings, agreed to acquire Kindred’s 89 skilled nursing facilities. BlueMountain, you may recall, acquired the financially failing Daughters of Charity hospital system in California in July 2015, following the collapse of Prime Healthcare Services’ $849 million bid in March 2015. A week after this deal with Kindred... Read More »Rehab Deals Have Risen Steadily Since 2013
The rehabilitation has historically been the smallest of all the healthcare sectors, typically accounting for the fewest number of deals and lowest dollar volume. Despite an abnormal 27 transactions announced in 2008, the sector generally saw between 10 and 20 deals a year, and minimal spending as well, (see chart below). Even after the Affordable Care Act was passed in 2010, when most health care services saw an influx in investment, the rehabilitation sector was largely ignored because some reimbursement headwinds at the time. But, as rehab facilities found their place in ACOs, reimbursement eased and large companies began to build their platforms in the highly fragmented sector,... Read More »Health Care Deals Slide in April 2017
April usually doesn’t feel like February, at least, weather-wise. As far as healthcare mergers and acquisitions go, however, deal volume in April 2017 (103 deals) feels a lot like February’s deal volume (102). The chart below shows the clear winners and losers in April 2017. Deal volume was down 29% compared with the previous month (March, 145 deals), and slid 12% compared with the year before (April 2016, 141 deals). Healthcare services deal volume accounted for just 50% of April’s preliminary total. The services sectors typically account for higher percentages than the technology sectors (although that trend is reversed when it comes to dollar volume). The services side... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
