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 […]

U.S. Hospital REIT Deals Surge in 2019

It’s become an accepted, almost expected, transaction. Privately held hospitals sell their real estate assets to a real estate investment trust (REIT) to get some fresh cash and to focus on operations rather than physical plants. Between 2009 and 2012, REIT deals for U.S. hospitals were announced once or twice a year. The number rose […]

U.S. Hospital Deals Surged in the Third Quarter

Mergers and acquisitions among U.S. hospitals and health systems rose 28% in the third quarter of 2019, posting 23 transactions versus 18 deals in the previous quarter. Deal volume compared with the same quarter in 2018 (15 deals) was up 53%. Q3:19 had the strongest M&A activity in the previous four quarters, according to our […]

U.S. Hospital REIT Deals Roar Back in 2019

REIT deals are back in the Hospital sector, after a two-year lull. Through mid-July, six transactions targeting U.S. hospitals were announced by real estate investment trusts (REITs), a total that equals the annual REIT deal volume of 2013, 2015 and 2016. Three of this year’s U.S. deals were announced in July 2019. Medical Properties Trust […]

Healthcare Dollar Volume Exploded in January

Dollar volume for healthcare deals announced in January was ridiculous, topping $90 billion. We don’t see figures like that in most quarters. The outsized total results from a single deal, of course. Bristol-Myers Squibb’s (NYSE: BMY) $74 billion acquisition of Celgene Corp. (NASDAQ: CELG) made up 81% of the month’s total. Suffice it to say […]

Hospice Compassus
Hospice Compassus

Healthscope Changes Hands Again

Healthscope Ltd. (ASX: HSO), Australia’s second largest private hospital chain, is being sold once again, this time for $4.14 billion, or 1.8x revenue. The Melbourne, Victoria-based company owns 43 hospitals across all states in Australia and is the largest pathology services provider in New Zealand, with 24 laboratories. Three buyers are involved, two of them real […]

Lumenis
Lumenis

LifePoint Health Goes Private with Apollo Global Management

More for-profit hospitals are landing in the hands of private equity firms. On July 23, LifePoint Health, Inc. (NASDAQ: LPNT) announced its acquisition by private equity firm Apollo Global Management (NYSE: APO) for $5.6 billion. It will be merged with Apollo’s portfolio company, RCCH HealthCare Partners. The deal takes LifePoint Health private, although the combined […]

U.S. Hospital Deals Holding Steady

Seven months into 2017, hospital mergers and acquisitions in the United States are slow and on the smaller side. Even with Community Health System’s (NYSE: CYH) ongoing divestiture announcements, just 51 transactions have been announced through August 1. In all of 2016, 84 transactions for U.S. hospitals were announced. With five months to go, that’s […]

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).

Investors Want Health Care Services with No Strings Attached

Health care investors are moving out of sectors that could be hit with federal funding cuts, or become vilified in the media.