U.S. Hospital Deals and Trends, YTD 2019

by | Nov 22, 2019 3:46 pm | Hospitals

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 striking statistic: Just half the number of beds have traded hands in 2019. By this time in 2018, the bed-count in target hospitals was 25,309. In 2019, there are only 12,901 (-49%). In 2018, a few major systems changed hands, which pushed up the bed total. The largest was Apollo Global Management’s $5.6 billion take-private deal for LifePoint Health (formerly NASDAQ: LPNT),... Read More »
U.S. Hospital Deals Surged in the Third Quarter

U.S. Hospital Deals Surged in the Third Quarter

by | Oct 21, 2019 12:01 pm | Hospitals

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 most recent data. What factors boosted the most recent quarter’s results? A major contributor was Medical Properties Trust (NYSE: MPW), which announced three transactions in July, totalling $1.7 billion. The largest of the three deals, at $1.55 billion, was to acquire the real estate assets of 16 hospitals (2,383 beds) in California, Connecticut and... Read More »
U.S. Hospital Deals Surged in the Third Quarter

U.S. Hospital REIT Deals Roar Back in 2019

by | Jul 19, 2019 1:28 pm | Hospitals

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 (NYSE: MPW) made a splash, announcing a combined $1.75 billion invesment in 24 hospital facilities through three separate transactions. The largest of the three, at $1.55 billion, was for 14 acute care hospitals and two behavioral health hospitals (2,383 beds) owned by for-profit Prospect Medical Holdings in California, Connecticut and... Read More »
Partners and Care New England Move Forward, Slowly

Partners and Care New England Move Forward, Slowly

by | Feb 2, 2018 12:29 pm | Hospitals

It’s not easy getting from the letter-of-intent stage, through due diligence, to a definitive agreement. Many hospitals that announce an LOI agreement go into due diligence and don’t end up on the altar after all. That seemed to be the fate of the LOI announced last April (2017) between Boston-based Partners HealthCare System and Providence, Rhode Island-based Care New England (CNE). The two not-for-profit systems had held on-again, off-again talks previously, and now both organizations’ boards were willing to give a merger a go. CNE includes Kent Hospital (323 beds), Women & Infants Hospital of Rhode Island (247 beds), the VNA of Care New England, Butler Hospital, an... Read More »