The Hospital M&A Market: Five-Year Review & Outlook, 2006

The Hospital M&A Market: Five Year Review & Outlook

Annual Research Report
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Editions: First Edition

See samples:
Table of Contents
Preface
Transaction

Here’s the report that will give you fingertip access to every fact and figure you need to evaluate a target, assess your hospital’s potential asking price, or complete a consulting project.

You get an analysis of the past five years of hospital M&A activity, including key statistics, charts and graphs on top acquirers, top sellers, biggest deals and more.

There’s no quicker way to get updated on the hospital acquisition market. No more searching the Internet or your files for the data you need. It’s all here for you to use in your next deal--it’s like having an in-house research department at a fraction of the cost!

Get all this market intelligence and more:

3	Deal-by-deal transaction data for every announced deal from 2001 through 2005
3	Annual market activity and trend analysis
3	All the hard-to-find statistics you need to size up the market today--and tomorrow--including: Price/revenue ratios Price/EBITDA ratios Price/bed ratios Single vs. multiple facility deals

Table of Contents - The Hospital M&A Market - 2006

Preface
Introduction
The Current Market: 2001-2005
Empire Building: 1992-1996
Jockeying For Position: 1996-2000
Back to the Present
Looking To The Future
Hospital Mergers and Acquisitions by Number of Beds, 2001– 2005
Summary of Acquisitions, 2001 – 2005
Price/Revenue and Price/EBITDA Multiples, 2001 – 2005
Single versus Multiple Facility Acquisitions, 2001 – 2005
Companies Announcing Two or More Transactions, 2001 – 2005
The Ten Largest Transactions, 2001 – 2005
Analysis of Nonprofit and For-Profit Acquisitions, 2001 – 2005

Transaction Summaries
2001
2002
2003
2004
2005

Index

Preface - The Hospital M&A Market - 2006

This is the first edition of The Hospital M&A Market: Five-Year Review & Outlook, which covers the merger and acquisition market for acute-care hospitals during the five-year period of 2001-2005. This Report provides a compilation of the individual deals that were announced during this period, and analyzes trends in the development of this important market. The Report focuses on acute-care hospitals and, somewhat tangentially, long-term acute-care hospitals, known as LTACs; it omits discussion of behavioral health care and rehabilitation facilities.

Following the format of previous years, the transactions were first reported in various Irving Levin companion publications: The Health Care M&A Weekly, The Health Care M&A Monthly and The Health Care M&A Report (published quarterly). As has been our custom, transactions are tracked based upon the announcement date of a transaction rather than the consummation date. The announcement date typically receives the most media publicity and, more importantly, reflects terms available in the market at the time.

In preparing this Report, we have amended and updated the deals previously reported in the weekly, monthly and quarterly publications based on information obtained from the media, SEC documents, and interviews with management to bring you the most timely and accurate information available. Transactions cancelled after being announced are deleted from the data, which sometimes results in changes in the number of transactions from one period to the next. In addition to the deals reported in the other Irving Levin publications, we have added transactions to this Report which were not available previously, but for which data has subsequently become available.

We hope that the information contained in this Report will assist our readers in making business and investment decisions. The longitudinal nature of the Report, analyzing the development of the market over several years, will permit you to see which forces have impacted this market and which ones continue to drive it.

Stephen M. Monroe
Senior Editor

Sanford B. Steever
Editor

Sample Transaction - The Hospital M&A Market - 2006

SECTOR: HOSPITALS

TARGET: Province Healthcare Company

ACQUIRER: LifePoint Hospitals, Inc.

LISTING: NYSE: PRV
LOCATION: Brentwood, Tennessee
UNITS: 2,486 (beds)
REVENUE: $818,000,000
NET INCOME: $120,000,000 (EBITDA)

LISTING: NASDAQ: LPNT
CEO: Kenneth Donahey
PHONE: 615-372-8500
FAX: 615-372-8586
LOCATION: 103 Powell Court, Suite 200
Brentwood, Tennessee 37027
WEBSITE: www.lifepointhospitals.com

Province Healthcare operates 20 acute care hospitals in 12 states with 2,486 licensed beds. On a trailing 12-month basis, PRV generated revenue of $818 million, EBITDA of $120 million and net income of $59 million.

LifePoint Hospitals operates 30 acute care hospitals with about 2,850 beds. On a trailing 12-month basis, LPNT generated revenue of $968 million, EBITDA of $188 million and net income of $78 million.

ANNOUNCEMENT DATE: August 15, 2004
PRICE: $1,700,000,000 (approximate)
TERMS: Cash, stock, assumption of debt.

PRICE PER UNIT: $683,829
PRICE/REVENUE 2.08
PRICE/NET INCOME: 14.17

This deal offers PRV shareholders a 66% premium over the stock's price the day before the announcement. The combined company will have 50 hospitals with 5,285 beds; of the 50 facilities, 47 will be in markets where LPNT is the sole community hospital provider.