Hospital M&A: Bigger Isn’t Always Better

Hospital M&A: Bigger Isn’t Always Better

by | Feb 7, 2019 2:56 pm | Hospitals | 0 comments

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

HCA Keeps the Title for Average Price per Hospital Bed

by | Aug 31, 2018 12:00 pm | Hospitals | 0 comments

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 »
U.S. Hospital Transaction Trends, at Mid-Year

U.S. Hospital Transaction Trends, at Mid-Year

by | Jun 8, 2018 12:38 pm | Hospitals | 0 comments

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 »