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 April
2008 issue
First Quarter 2008 M&A Results--
219 Deals Announced Worth $27.1 Billion
A total of 219 mergers and
acquisitions were announced in the health care industry during Q1:08. Based
on prices revealed to date, a total of $27.1 billion was spent to finance
them.
Read the issue to see an example of the kinds of deals that have been made
available to potential buyers and investors in the current, challenging
acquisition market.
...
The Hospital M&A Market--
New Report Shows Values Down Slightly In 2007
A new report from Irving Levin Associates analyzes the recent M&A market for
Hospitals and allied health services sectors.
Despite the departure of most financial buyers from the market, results show
that salient hospital acquisition multiples have declined only slightly from
2006 to 2007.
...
In the Departments
Services
-Health Care Services
-Deal Summaries
-Additional Transactions
-Transaction Updates
Technology
-Health Care Technology
-Deal Summaries
-Additional Transactions
-Transaction Updates
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the current issue!
Read more about
The Health Care M&A Monthly.
Articles Archive
Companies Mentioned in this issue:
April 2008
A
Abbott Laboratories p16
Advanced Medical Partners p9
Allion Healthcare p9
Allscripts Healthcare Solutions p14
Allscripts-Misys Healthcare Solutions p14
Almost Family p4
Ambulatory Services of America p8
Amerita p9
Amgen p16
Apex Home Healthcare Services p4
Applied Biosystem p10
Arthorcare p16
Assisted Living Concepts p3
Avecia Biologics p10
AVI BioPharma p10
B
Bentley Pharmaceuticals p16
BioArray Solutions p16
Biomed of America p9
Boston Avenue Capital LLC p8
Braff Group p4
Brevard Kidney and Hypertension Center p8
Broad Oak Partners p10
C
Canyon Creek Development p8
Capital Senior Living Corp. p8
Cardinal Health p9
Carlyle Seniors Housing p8
Centene Corp. p8
Chestnut Ridge Primary Care p9
CIT Capital Securities LLC p9
Community Health Systems p1, p7
CPEX Pharmaceuticals p16
CreditSuisse p16
Crown Pointe Retirement Community p8
CRT Capital Group p7
D
Datascope p16
Dayton Heart Hospital p7
DiscoCare p16
Docpharma p16
Doctors Hospital p4
DRI Capital p10
E
Eastdil Secured p8
Endo Pharmaceuticals p16
Enturia, Inc. p9
Ercole Biotech p10
Excela Health p9
Extendicare REIT p3
F
Ferrer Freeman and Company p9
Floyd Medical Center p7
G
Global Med Technologies p14
Goldman Sachs p16
Good Samaritan Hospital p7
H
HCA, Inc. p1
Health Management Associates p7
HealthTronics p9
Highland Capital Management LP p10
Home Care Connections p4
Hoya Corp. p14
Humana p8
I
Immucor p16
Inlog, SA p14
IV Solutions p9
J
Johnston Memorial Hospital p7
L
LHC Group p4
M
Marcus & Millichap p8
Matrix Laboratories p16
Matthes Capital Management p8
MedCath Corp. p7
Medical Center Hospital Authority p4
Mindray Medical p16
Misys Healthcare Systems p14
Misys plc p14
Mountain States Health Alliance p7
N
Nanogen p10
Novant Health p8
Novartis p16
O
Olympus p14
OSF Health Plans p8
OSF Saint Francis p8
P
PDL BioPharma p10
Pentax Corp. p14
Pfizer p16
Pharmacia p16
PharmAthene p10
Piper Jaffray p10
Presidio Pharmaceuticals p10
Progenitor Cell Therapy p10
Psychiatric Solutions p4
R
Radiation Oncology Services of America p8
RehabCare p7
Renal Advantage p8
Rivercrest Home Health Care p4
Russell County Medical Center p7
S
Senior Living Investment Brokerage p8
Southern Ocean County Radiation Oncology p8
StemCells p10
Sunrise at Simi Hills p8
Sunrise Senior Living p8
T
Takeda Pharmaceutical p16
TAP p16
Tenet Healthcare Corp. p3
Teva Pharmaceutical p16
The Celtic Group p8
The Provident Group p8
The Specialty Hospital p7
Triad Hospitals p1
U
United Medical Corp. p4
V
Vintage Senior Housing p8
W
Welsh, Carson, Anderson & Stowe p8
West Creek Capital LLC p8
Westland Convalescent and Rehab Center p8
Wyeth p16
X
XTL Biopharmaceuticals p10 |
The Hospital M&A Market--
New Report Shows Values Down Slightly
in 2007
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article to a friend
Email Editor
Results
from The Health Care Acquisition Report, 14th edition,
present a number of conclusions about the merger and acquisition market
for hospitals and allied services sectors.
The 2007 hospital M&A market
resembled 2006 in that both years could boast a very large, multi-hospital
transaction which tended to skew statistics. In 2006 a consortium of
private equity companies privatized HCA, Inc., which operated 181
acute-care facilities, in a deal worth $33.0 billion. In 2007,
Community Health Systems (NYSE: CYH), now the largest publicly traded
hospital operator, paid $6.8 billion to acquire Triad Hospitals and
its 51 facilities. Unlike the period of 2004–06, financial buyers such as
private equity groups were largely absent in 2007. Only one deal,
involving the acquisition of a portfolio of Long-Term Acute Care
hospitals, was carried out by a private equity firm; the rest were
strategic buyers.
Another feature that
characterizes the hospital M&A market for 2007, as it did in 2004–06, is a
reshuffling of portfolios to create stronger regional networks and cast
off financially, strategically and geographically marginal, outlying
facilities. In the wake of its purchase of Triad Hospitals, Community
Health Systems has wasted no time in rationalizing the resulting facility
portfolio with the sale of 13 hospitals in five deals. In this capacity,
it overtook Tenet Healthcare Corp. (NYSE: THC), previously the
largest seller of hospitals.
A total of 58 transactions
were announced in 2007 involving 149 hospitals with 22,440 beds for a
combined total of $8.8 billion. This represents a general decline from
2006 when 57 deals were announced involving 249 hospitals with 54,550 beds
for $35.0 billion, an amount that included the record-breaking $33.0
billion privatization of HCA by a consortium of private equity firms.
Hospital pricing in 2007 declined slightly with average and median
price-to-revenue multiples of 0.74x and 0.60x, respectively, from the
corresponding 2006 figures of 0.75x and 0.73x, but still above their 2004
counterparts of 0.61x and 0.53x.
Due perhaps to the real
estate component of many hospital deals, financial buyers were largely
absent themselves from the 2007 Hospital M&A market; a number of
not-for-profit operators, including large Catholic systems, filled the gap
left by their absence. The full report is now available from Irving Levin
Associates (click
here for more information).
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