Stat of the Week: Hospital M&A up 40% in Q4:17
Hospital M&A activity accelerated in the fourth quarter of 2017. The number of hospital acquisitions rose to 21 in the fourth quarter, up 40% from the 15 publicly announced acquisitions in the third quarter of 2017. Compared with the same quarter in 2016, which posted 23 transactions, activity was down 9%. None of the transactions disclosed a purchase price in the third quarter of 2017. Four of the deals disclosed prices, for a combined total of $2.82 billion. None of the transactions in the third quarter disclosed a price, although the fourth quarter of 2016 posted a total of $2.31 billion. The largest deal in the quarter was UnitedHealth Group’s (NYSE: UNH) $2.8 billion acquisition... Read More »
Hospital Mergers Point to the Future of Health Systems
Hard on the heels of the merger announcement between Dignity Health and Catholic Health Initiatives came the news that Ascension Health and Providence St. Joseph Health were in their own talks to merge. The Dignity/CHI deal will create a 139-hospital system spanning 28 states, with revenue of more than $28 billion. If the Ascension/Providence merger is realized, the resulting company would be the largest hospital system, with 191 hospitals in 27 states, and annual revenue of $44.8 billion. By contrast, the current largest system, for-profit HCA (NYSE: HCA), has approximately 175 hospitals and revenue of $42.7 billion. Even if the Ascension/Providence deal doesn’t go through, the... Read More »
Deal(s) of the Week: Teva, Take Two
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 »
Stat of the Week: Home Health & Hospice -27%
Mergers and acquisitions in the home health and hospice sector have continued a downward spiral, beginning in Q1:17. 2016 ended with 62 deals, which was a healthy rebound following a lackluster performance in 2015. The sector also experienced growing interest from financial buyers in that time. But, as of September 21, only 33 deals have been publicly announced, down 27% from the 45 deals announced in the same period last year. Based on disclosed prices, only $20.95 million has been spent, down 98% from the same period in 2016, when $1.0 billion had been committed to finance those deals. The bulk of this year’s spending total comes from a deal announced on March 1 by Amedisys, Inc.... Read More »Schedule a demo
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