Hospital Bankruptcies Contributing to M&A Volume

by | Mar 8, 2016 8:00 am | Hospitals

The hospital sector staged a strong showing in February, with 11 transactions recorded thus far. The month’s total beat January’s four deals, and was even higher than December 2015’s nine transactions. Unfortunately, bankruptcy proceedings provided the catalyst for four of February’s hospital deals, and we’re sure to see more in the year ahead. Last year, at least 11 hospital deals involved a bankrupt facility, so four already on the books in 2016 doesn’t seem to bode well. Prices for the hospitals reached $96.2 million, which was what HCA North Texas (NYSE: HCA) paid for Forest Park Medical Center at Frisco, a 54-bed hospital that is part of the failing, physician-owned chain in Texas.... Read More »

Sabra Buys the NMS Portfolio

by | Jun 29, 2015 1:40 pm | Other Services

Sabra Health Care REIT (NASDAQ: SBRA) plunked down $234 million for four skilled nursing facilities, known as the “NMS Portfolio,” all located in Maryland. The four skilled nursing facilities, with a combined total of 678 beds, specialize in transitional care and medically complex post-surgical, ventilator and dialysis patients. Sabra will enter into a triple-net master lease agreement with the current operator on three of the facilities and a triple-net lease agreement on the fourth, which is encumbered by a HUD loan. They will have an initial term of 15 years, two 10-year renewal options and annual rent escalators equal to the great of 2.50% or CPI, but not to exceed 2.75%. Initial yield... Read More »