U.S. Hospital M&A Trends, 1H 2019

U.S. Hospital M&A Trends, 1H 2019

by | Jul 8, 2019 12:08 pm | Hospitals | 0 comments

It’s been a slow year for hospital mergers and acquisitions in the United States. In the first half of 2019, just 29 transactions have reached the definitive agreement stage, or actually closed. In the first half of 2018, 38 transactions made that cut. The targets are much smaller in 2019, too. A total of 4,991 beds changed hands in the first six months of this year, compared with 9,327 beds in the same period in 2018. Fourteen not-for-profit hospitals or systems (2,380 beds combined) were targets in 1H:19, and three of them were critical access hospitals which are regulated to just 25 beds. That’s not a stand-out trend, considering six critical access hospitals found new... Read More »
U.S. Hospital M&A Trends, 1H 2019

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 »
Deal(s) of the Week: Teva, Take Two

Deal(s) of the Week: Teva, Take Two

by | Sep 21, 2017 7:14 pm | Pharmaceuticals, Private Equity | 0 comments

Debt has been a key deal driver this year, particularly in the hospital sector, where Community Health Systems (NYSE: CYH), Quorum Health Corporation (NYSE: QHC) and Tenet Healthcare (NYSE: THC) are shedding less desirable assets. Joining them now is generic drug maker Teva Pharmaceutical Industries Ltd. (NYSE: TEVA), which is shouldering $35 billion of debt brought on by its $40.5 billion acquisition of Allergan’s (NYSE: AGN) line of generics, announced in July 2015. The company hasn’t announced an acquisition since September 2016. What a difference a year makes, as generic drug prices have been squeezed and the company has been selling off non-core assets to pay down its... Read More »

U.S. Hospital Deals Holding Steady

by | Aug 18, 2017 3:27 pm | Hospitals, Private Equity | 0 comments

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 a target this sector could meet or even surpass, but that’s not a very high bar to reach, considering there were 96 deals for U.S. hospitals announced in 2015. Spending on this year’s hospital deals has been anemic. Through August 1, almost $2.3 billion has been spent on mostly private hospital transactions, with the largest, at $1.4 billion,... Read More »

Hospital Deals Rebound in May 2017

by | May 26, 2017 5:24 pm | Hospitals, Private Equity | 0 comments

Hospital merger and acquisition activity was fairly quiet in the first four months of the year, totaling 24 deals that made to a definitive agreement or beyond. Then came May, with a combined total of 13 transactions announced in the first four weeks (through May 26). Deal volume in the hospital sector through May 26 now totals 37 transactions, targeting 79 hospitals with 13,854 beds. The nearly $2.3 billion combined spending includes the $1.4 billion just announced by Medical Properties Trust (NYSE: MPW), which acquired the real estate assets of 10 acute care hospitals and one behavioral health facility (approximately 2,400 beds) belonging to IASIS Healthcare, a TPG portfolio company.... Read More »