Tenet Healthcare Rethinks Aspen Deal
Tenet Healthcare Corporation (NYSE: THC) is selling UK-based Aspen Healthcare Ltd. after only three years of ownership. NCM Healthcare UK Ltd., a subsidiary of NCM Health plc (LSE: NCM), is the buyer, paying $332 million. Tenet acquired the nine-facility company from Welsh, Carson, Anderson & Stowe (WCAS) in March 2015, for $215 million. The transaction was announced simultaneously with Tenet’s acquisition of a 5o.1% stake in United Surgical Partners International, another WCAS portfolio company, for $425 million. WCAS, together with other investors, retained a 49.9% interest in USPI at the time of the announcement. On April 26, 2018, Tenet announced that it acquired... Read More »
Q2:18 Health Care Deal Volume and Value Explode
What a quarter it was. Even with preliminary data, the numbers of deals and dollars spent in the second quarter of 2018 are impressive. The quarter began with a bang in April (176 deals), settled in May (136 deals) and slowed in June (122 deals). That still adds up to 432 transactions reported in the second quarter, up 1% compared with the first quarter, and 13% better than the same quarter in 2017. The Services sectors accounted for 59% of the deal volume in Q1:18, five percentage points lower than in the previous quarter, and three percentage points lower than Q2:17. The Long-Term Care sector, which turned in 47 deals in April alone, posted gains of 28% compared with Q1:18 and 33%... Read More »
U.S. Hospital Transaction Trends, at Mid-Year
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 »
Maryvale Hospital Opens Again in Phoenix
Tenet Healthcare (NYSE: THC) divested five hospitals in 2017, collecting at least $895 million on two of the deals. The goal is to pay down its $14.9 billion in debt (as of the most recent quarter). What hasn’t been made as public are the hospitals it is shuttering in various markets. Abrazo Maryvale Hospital, a 228-bed acute care facility in the western part of Phoenix, Arizona, was one of those Tenet closed in December 2017, citing a decline in patient demand. The hospital was run through the Abrazo Community Health Network, and handled about 43,000 emergency room visits annually. The Abrazo network had reduced services at the Maryvale campus in recent years, closing its birthing... Read More »Schedule a demo
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