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

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

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

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 »

More Big Deals for Doc Groups

by | May 26, 2017 5:32 pm | Physician Medical Groups, Private Equity

The Physician Medical Group sector started off the year strong and hasn’t lost any momentum as physician groups continue seeking scale to survive. As of May 26, 2017, 77 deals have been announced. The largest disclosed deal was Optum’s (NYSE: UNH) $3.3 billion acquisition of Surgical Care Affiliates, Inc. (NASDAQ: SCAI) in January. In May, the second largest deal of the year was announced. The acquirer, Surgery Partners (NASDAQ: SGRY), operates surgical facilities in the United States. Its target is National Surgical Healthcare,  a portfolio company of Irving Place Capital, for $760 million. National Surgical Healthcare owns and operates 21 surgical facilities in partnership with local... Read More »

What’s Next for Managed Care?

by | Feb 24, 2017 8:38 pm | Managed Care, Physician Medical Groups, Private Equity

The managed care mega-deals of 2015 have blown up. Aetna (NYSE: AET) and Humana (NYSE: HUM) amicably terminated their $37 billion merger, following a federal judge’s order in January to block the deal on antitrust grounds. The $1 billion termination fee was in the works. A different federal judge blocked Anthem (NYSE: ANTM) and Cigna’s (NYSE: CI) $54.2 billion merger on similar grounds. Things turned ugly quickly, as Cigna declared the deal dead and sued Anthem for the $1.85 billion termination fee, and another $13 billion in damages on behalf of its shareholders. Anthem says it will go ahead with the merger. What do the Big Five health insurers do now that they’re... Read More »