Hospital M&A: Bigger Isn’t Always Better
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 »
Hospital Transactions Held Steady in Q3:2018
Mergers and acquisitions in the Hospital sector held steady from the second to the third quarter, with 15 definitive agreements announced in each. Deal volume dropped 12% compared with the same quarter in 2017. The 15 deals announced in the second quarter made up 19% of the 80 deals announced in the previous 12 months. One factor behind the decline from the first quarter was the end of the announced divestitures made by some for-profit chains, particularly Community Health Systems (NYSE: CYH) and its spin-off, Quorum Health (NYSE: QHC). Together with Tenet Healthcare (NYSE: THC), these three companies spent the previous six quarters selling off underperforming assets in non-core markets.... Read More »
Tower Health Adds Urgent Care and ASC Deals
Tower Health, a six-hospital system across southeastern Pennsylvania, is growing its network rather aggressively lately. On October 2, it announced the acquisition of Premier Urgent Care, which runs 19 urgent care centers in Pennsylvania and Delaware. A week earlier, it reported a new joint venture with United Surgical Partners International (USPI), part of Tenet Healthcare (NYSE: THC). Tower Health is the new name for the former Reading Health System, based in West Reading, Pennsylvania. Until May 2017, the system consisted of Reading Hospital, which housed a cancer institute, a cardiac center, a rehabilitation hospital and a physician network of more than 1,000 physicians. On May 30 of... Read More »
Walgreens Buys Pharmacies from Detroit Medical Center
The Detroit Medical Center (DMC) sold off its retail and outpatient pharmacy business to Walgreens, a unit of Walgreens Boots Alliance (NYSE: WBA), for an undisclosed amount, according to Crain’s Detroit Business. The deal includes seven specialty pharmacy sites and one mail-order service business. The DMC made the move as part of a pharmacy reorganization, a process that has resulted in layoffs or reassignments of some two dozen employees. The hospital is part of Tenet Healthcare Corp. (NYSE: THC), which has been in the process of selling non-core hospitals and reorganizing to pare down debt. Walgreens will operate branded specialty pharmacy outlets at some of DMC’s six... Read More »Schedule a demo
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