Has Healthcare M&A Volume Bottomed Out?

Has Healthcare M&A Volume Bottomed Out?

by | Jun 9, 2020 8:48 am | Healthcare Market Updates | 0 comments

The only way to go is up, right? April was the first full month after the World Health Organization declared the COVID-19 virus a pandemic on March 11, and you can see the impact in the healthcare M&A numbers. Even after adding deals that surfaced in later weeks, April 2020 deal count just barely crossed the 100 mark, according to our Deal Search Online database. With 97 deals on the books for May, it seems we have bottomed out. It might take more than a year to hit the numbers that were posted in May 2019 (175 deals), but with restrictions loosening around the country, June might show increased activity. For instance, the last week of May didn’t have a single Long-Term Care deal... Read More »
HCR ManorCare Offloads Some Assets

HCR ManorCare Offloads Some Assets

by | Feb 12, 2020 11:15 am | Long-Term Care, Rehabilitation | 0 comments

HCR ManorCare, the second largest skilled nursing operator in the United States, has sold Heartland Rehabilitation and MileStone Staffing Services to Grant Avenue Capital, a healthcare-focused private equity firm in New York. Terms of the deal were not disclosed. HCR went through a Chapter 11 bankruptcy restructuring in 2018 and was purchased for a total of $3.3 billion by a joint venture between Welltower (NYSE: WELL) and ProMedica, a not-for-profit health system. All the organizations are based in Toledo, Ohio. Welltower owns 80% of the HCR real estate and ProMedica owns 20%. ProMedica owns 100% of HCR’s operating company, for which it paid $470 million in cash and used a $1.15... Read More »
Welltower and ProMedica Buy QCP and HCRMC

Welltower and ProMedica Buy QCP and HCRMC

by | Apr 30, 2018 9:41 am | Home Health & Hospice, Long-Term Care | 0 comments

Toledo, Ohio is a hotbed of healthcare deal making, all of a sudden. Three companies based there joined together to carve up HCR ManorCare, the financially beleauered tenant of Toledo-based Quality Care Properties, Inc. (NYSE: QCP). Welltower Inc. (NYSE: WELL) and not-for-profit ProMedica Health System joined the fray, and it became one complicated deal. Quality Care Properties was spun out from HCP, Inc. in October 2016, taking with it HCP’s skilled nuring assets, most of which were operated by HCR ManorCare (HCRMC). As of December 31, 2017, QCP owned 259 skilled nursing facilities with 22,205 beds, 59 assisted living/memory care communities with 3,843 units, one 37-bed surgical... Read More »

Long-Term Care Sector Revs up in November

by | Nov 3, 2016 1:05 am | Long-Term Care | 0 comments

The Long-Term Care M&A market seemed to hit the doldrums, with 22 transactions in September and just 20 transactions in October. The sudden slowdown left us wondering if this could be the new norm after a red hot couple of years, where the sector averaged about 30 deals per month in 2015, and settled slowly down to 26 deals per month, through the end of October 2016. So the first week in November came as quite a shock. In the first two days of the month, two of the three largest transactions of the year were announced, along with a $337 million deal for 31 skilled nursing facilities. Sixteen transactions in this sector were announced in the first four days of November, 80% of October’s... Read More »