• Health Catalyst Invests In healthfinch

    To kick off the third quarter, Health Catalyst has announced its second acquisition of 2020. On July 9, the company announced it acquired healthfinch, Inc. for roughly $40 million. healthfinch provides a workflow integration engine delivering insights and analytics into EMR workflows to automate physicians’ ability to close patient care gaps in... Read More »
  • Second Quarter Healthcare M&A Activity Drops

    The decline in second quarter healthcare M&A probably won’t surprise many of our readers. The second quarter was the first full quarter of healthcare M&A in the shadow of the COVID-19 pandemic, and deal making took a hit as a result, as shown in results from our DSO database. Compared with Q1:20, Q2:20 dropped 20%, with 322 transactions... Read More »
  • Sanofi Inks New Licensing Deal

    Just weeks following its agreement with Translate Bio (NASDAQ: TBIO) for COVID-19 vaccine development, Sanofi (NYSE: SNY) has a new agreement with Kymera Therapeutics Inc. Sanofi and Kymera are signing a multi-program collaboration to develop and commercialize first-in-class protein degrader therapies targeting IRAK4 in patients with... Read More »
  • Summit BHC Expands Into West Virginia

    Private equity-backed Summit BHC has announced a new acquisition in West Virginia. The behavioral health treatment company added Highland Hospital to its network for an undisclosed sum. Meridian Behavioral Health Systems, LLC is selling Highland Hospital, an inpatient psychiatric facility (131 beds) with 24 beds dedicated to psychiatric... Read More »
  • Health Care M&A Deals, July 10, 2020

    The Health Care M&A deals chart is a selection of transactions announced during the prior week(s). The M&A transactions presented here are from our Deal Search Online database, which is updated daily to provide our subscribers with the most up-to-date information and trends in the healthcare industry. The largest deal of the week based on... Read More »
More Competition Coming in Behavioral Health Care

More Competition Coming in Behavioral Health Care

It’s been a wild ride in recent years. Merger and acquisition activity in the Behavioral Health Care sector soared to a record 91 transactions in 2018, an increase of 264% over 2014 (25 deals) and up 60% compared with 2017 (57 deals). The majority of the 2018 deals—63%, in fact—were made by private equity firms or their portfolio companies. For the record, PE firms accounted for 46% of all acquisitions and 24% of the spending in the nine healthcare services sectors last year. M&A in this sector hasn’t been as robust in 2019. With 50 deals reported through the first week in September, the sector isn’t likely to see another 40 announced by the end of the year. One reason for the slowing... Read More »
PE Firms Swarmed to Behavioral Health in Q4:17

PE Firms Swarmed to Behavioral Health in Q4:17

Deal activity in the Behavioral Health Care sector was consistent with most of the previous quarters. Although deal volume slipped 14% from the previous quarter, it rose 20% compared with the same quarter a year earlier. The fourth quarter’s total of 12 deals represents 22% of the 54 transactions announced in the past 12 months. Private equity firms accounted for all but one acquisition in the fourth quarter, as smaller firms sold companies and larger firms purchased them as add-ons to their existing portfolios. Universal Health Services (NYSE: UHS), which operates inpatient psychiatric hospitals, was the only publicly traded acquirer in this quarter. Substance abuse treatment programs and... Read More »
Behavioral Health Care Deal Trends in 2017

Behavioral Health Care Deal Trends in 2017

The Behavioral Health Care sector has enjoyed growing interest from private equity and other investors in recent years. Federal legislation regarding coverage of mental health conditions certainly boosted that interest, as has the growing public acceptance of the magnitude of need for services. Also, the fragmented nature of this sector has kept platform-building acquisitions rather low. From a focus standpoint, behavioral health care covers mental health issues, as well as substance abuse, eating disorders, autism spectrum services and care for individuals with developmental disabilities. Co-morbidities often exist, particularly between mental health and substance abuse conditions. Then... Read More »
PE Firms Swarmed to Behavioral Health in Q4:17

PE Firms Target Behavioral Health, Eating Disorder Programs

Behavioral health care has never been a particularly active sector, but deal volume has increased year-over-year between 2010 and 2016, growing 412% in that time. And there’s a good chance that 2017 will continue this trend. Through August 30, 32 behavioral health care deals have been announced, up 7% compared with the same period last year. So what else is going on this year? So far, we haven’t seen anything close to a mega-deal. The largest price tag this year was Care Capital Properties’ (NYSE: CCP) $380 million acquisition of the real estate assets of six behavioral health hospitals from Signature Healthcare Services LLC, dba Aurora Behavioral Health. This was the second REIT... Read More »

Behavioral Health Care Market Is Healthy, Not Frothy

The Behavioral Health Care M&A market has enjoyed six years of strong growth, following passage of the Affordable Care Act in 2010. The market peaked at 41 deals announced in 2016, with $3.4 billion in combined spending. Despite the uncertainty surrounding the ACA’s replacement, merger and acquisition activity is still strong in the early months of 2017. Tailwinds are stronger than headwinds. Destigmatization of addictions, mental health issues and other disorders has brought attention to the care needed by millions. There is still significant, unmet need in many sub-sectors, such as acute care psychiatric beds. De novo building is easing some of that need, and could lead to more... Read More »