Hospitals: Buying, Selling and Valuing

FOR IMMEDIATE RELEASE

David Grossman
Event Coordinator
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com

NORWALK, CT – January 28, 2016 – Irving Levin Associates, Inc. will host an important health care webinar on Thursday, February 11, 2016, during which expert panelists will discuss hospital M&A. Merger and acquisition activity among hospitals and health systems has remained steady in the past two years, as the effects of the Affordable Care Act have slowly taken hold. Now these providers are in the midst of the transition from fee-based to value-based and bundled payments, assuming more risk than ever before. Yet, even as more consumers gain health care coverage, inpatient volumes continue to drop nationwide.
At the same time, renewed scrutiny from the Federal Trade Commission could cause even more transactions to unwind. Will M&A be replaced by affiliations, joint ventures and partnerships? Our panel will discuss emerging trends in valuations, deal structure and regulatory scrutiny.
Brian Nichols, Partner at Robinson & Cole LLP and moderator of the panel, will pose topical questions such as: how the various forms of affiliations, partnerships and joint ventures may affect a valuation; how the typical deal structure is changing in this economic climate; historic acquisition pricing metrics, and what the outlook is for 2016 and beyond; and about the niche opportunities that are opening up as healthcare providers expand their continuum of care.
Our panel of experts will address these topics and others—and answer questions from the listening audience. Our experts include: Curtis Bernstein, Principal, Pinnacle Healthcare Consulting; Colin McDermott, Managing Director, VMG Health; and Manfred Steiner, Managing Director & Principal, BGL Healthcare Transaction Advisors.
Founded in 1948, Irving Levin Associates, Inc. is the leading publisher of newsletters, reports, and online data on mergers and acquisitions in the seniors housing and healthcare industries. Irving Levin Associates invites you to take part in this don’t-miss webinar.
Hospitals: Buying, Selling and Valuing is expected to generate a stimulating discussion. If you’re interested in this topic, you’ll want to attend this informative webinar on Thursday, February 11, at 1:00 pm ET.
Please visit www.levinassociates.com/conferences/1602-online-conference or call (203)846-6800 for more information.
 
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Seniors Housing & Care M&A Activity Sets Record in Q4: 2015

FOR IMMEDIATE RELEASE

Stephen M. Monroe
Partner
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com

 

NORWALK, CT – January 28, 2016 – The seniors housing and care merger and acquisition market, which includes skilled nursing, assisted living, memory care, independent living and CCRCs, continued to strengthen after the record-setting year in 2014. In the fourth quarter of 2015, there were 105 publicly announced acquisitions in the seniors housing and care M&A market, compared with 88 transactions in the year-ago quarter and 100 transactions in the third quarter of 2015. For fourth quarter activity, the 105 transactions represents a record and resulted in another full-year record of seniors housing and care transactions, which totaled 354 publicly announced acquisitions, or 17% higher than in 2014.
The dollar value of those transactions in 2015 has been much lower than in 2014. The total dollar value of the M&A transactions in this year’s fourth quarter was just $2.2 billion, compared with $8.8 billion in the year-ago fourth quarter. And, the fourth quarter in 2015 posted a 50% drop in dollar volume from the third quarter, even though the number of transactions was slightly higher. For full-year totals, the dollar value in 2015 was $13.97 billion, which is almost half the total dollar volume of $25.5 billion recorded in 2014. “The year 2015 will go down as the year of the small deal, as the billion-dollar deals of the past have all but disappeared. That may change in 2016 if investors decide to take advantage of the current low stock values of the publicly traded companies,” commented Steve Monroe, Editor of The SeniorCare Investor. “After the records reached in 2014 in average price per unit and per bed, we were not expecting such a strong market in 2015, but we may hit some records again after we finish our tally of the year’s results, which will be published in the 21st edition of The Senior Care Acquisition Report,” Mr. Monroe continued.  
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the Health Care M&A Information Source.  For more information, or to order the report, call 800-248-1668.  Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing acquisition markets.
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Hospital M&A Activity Slowed in Q4:2015

FOR IMMEDIATE RELEASE

Lisa Phillips, Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
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NORWALK, CT – January 27, 2016 – The hospital acquisition market decreased in the fourth quarter of 2015, falling 31% from the third quarter’s activity (32 deals). The 22 publicly announced hospital acquisitions were also 29% lower than the transaction volume (31 deals) in the year-ago fourth quarter.
The largest acquisition in the fourth quarter to come with a disclosed price was the acquisition of Al Noor Hospitals Group plc, based in Abu Dhabi, United Arab Emirates, by the South African hospital operator Mediclinic International Ltd. for $2.3 billion. Al Noor Hospitals Group provides primary, secondary and tertiary care services through its hospitals and medical centers in the UAE. Mediclinic International operates hospitals throughout South Africa, Namibia, Switzerland and the UAE.
“The weaker performance in the fourth quarter was not surprising, given the hit most publicly traded hospital companies’ stocks took, beginning in the third quarter,” commented Lisa Phillips, Editor of the Health Care M&A Report, which publishes the data. With 102 announced acquisitions in this sector for the full year, 2015 posted a 3% increase over 2014 in number of announced hospital acquisitions. “In the United States, big hospital deals were scarce in 2015. Most transactions involved smaller, community-based hospitals,” stated Phillips. This market is expected to remain active in 2016, with consolidation occurring in large and small markets.       
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the Health Care M&A Information Source.  For more information, or to order the report, call 800-248-1668.  Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing M&A markets.
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Behavioral Health Care M&A Activity Jumps in Q4:2015

FOR IMMEDIATE RELEASE

Lisa Phillips
Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com

 
 
Norwalk, CT – January 26, 2016 – The behavioral health care acquisition market was relatively active in the fourth quarter of 2015. A total of 12 transactions were announced in last year’s fourth quarter, or 71% more than the fourth quarter in 2014. Compared to the third quarter of 2015, however, the activity remained flat as both quarters produced 12 announced acquisitions. Most of the transactions in the fourth quarter of 2015 were small, and just three had disclosed prices for a total of $35.05 million. In the year-ago quarter the total amount spent was $1.19 billion, which was dominated by one billion-dollar deal. One of the notable acquisitions in 2015’s fourth quarter was AAC Holdings, Inc.’s purchase of Las Vegas, Nevada-based Solutions Recovery, Inc. for $13.0 million. Solutions Recovery has annual revenues of about $6.0 million and provides detoxification, residential and intensive outpatient treatment services in the greater Las Vegas market.  Another transaction was the purchase of Harmon Hospital, also in Las Vegas, by LTC Properties, Inc. for $9.3 million, or $78,800 per bed. Annual revenues were expected to be over $26 million.
Behavioral health care has been growing in importance in the entire health care policy discussion, especially during this presidential election cycle. As coverage for a variety of behavioral health problems increases, investment dollars will be more attracted to the sector. We have already seen this beginning in 2015. “Having back-to-back quarters with 12 transactions in this sector is unprecedented and a sign that investment interest has certainly increased,” commented Lisa Phillips, Editor of The Health Care M&A Report, which publishes the data. “There continues to be increased interest in this once sleepy market, not only because of the underserved need for behavioral health care, but because insurance coverage and reimbursement policies may be easing for various types of behavioral health care,” stated Phillips. This market is expected to see an uptick in new development of inpatient care facilities, and that real estate component may drive investor interest as well.
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the Health Care M&A Information Source.  For more information, or to order the report, call 800-248-1668.  Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing M&A markets.
 
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Physician Medical Group M&A Activity Increased in Q4:2015

FOR IMMEDIATE RELEASE

Lisa Phillips
Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com

 
NORWALK, CT – January 26, 2016 – The physician medical group (PMG) acquisition market increased in the fourth quarter of 2015, jumping by more than 15% from the third quarter’s activity. The 22 publicly announced physician medical group acquisitions were also 29% higher than the transaction volume in the year-ago fourth quarter. Only one acquisition in the fourth quarter of 2015 came with a disclosed price, and that was the acquisition of Questcare Medical Services by Envision Healthcare Holdings, Inc. for $135.0 million. Based in Dallas, Texas, Questcare Medical has more than 800 clinical providers at 50 facilities in Texas, Oklahoma and Colorado with annual revenues of approximately $160 million. “With the strong performance in the fourth quarter, 2015 was on pace to be the most active year for physician medical group acquisitions since 2011,” commented Lisa Phillips, Editor of the Health Care M&A Report, which publishes the data. With 88 announced acquisitions in this sector for the full year, 2015 posted a 46.7% increase over 2014 in number of announced physician medical group acquisitions. “Acquisition interest has been pretty steady, with three of the four quarters posting more than 20 acquisitions each,” stated Phillips. This market is expected to remain active with consolidation among the medical groups and continued acquisition interest from large hospitals and health systems for the primary medical groups.         
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the Health Care M&A Information Source.  For more information, or to order the report, call 800-248-1668.  Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing M&A markets.
 
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Home Health & Hospice M&A Activity Remains Steady in Q4: 2015

FOR IMMEDIATE RELEASE

Lisa Phillips
Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com

 
 
NORWALK, CT – January 25, 2016 – After a decline in home health and hospice acquisitions earlier in the year, M&A activity steadied itself in the third and fourth quarters of 2015. There were 12 publicly announced transactions in the fourth quarter, matching the level in the third quarter but well below the fourth quarter of 2014, when there were 20 announced acquisitions. However, when it comes to the dollars spent on these transactions, there was a sharp drop from $273.85 million in the third quarter to $108.7 million. Most transactions are small and many do not have disclosed prices, which makes comparing the periods difficult. In the fourth quarter of 2014, the total disclosed dollar value of the transactions was $2.55 billion, largely based on two very large purchases.   
The largest transaction with a disclosed price in the fourth quarter of 2015 was the purchase of Infinity HomeCare by Amedysis, Inc. for $63.0 million. Infinity is based in Sarasota, Florida and had annual revenues of approximately $50.0 million. The second largest acquisition was Almost Family’s purchase of Home Care by Black Stone for $40.0 million. Based in Ohio, Black Stone had revenues of $46.7 million in 2014.   “The large, publicly traded home health and hospice providers are just getting bigger in this market, and post-acute providers still search for home health and hospice business in their markets,” stated Lisa Phillips, Editor of the Health Care M&A Report.  “With the continued emphasis on home and community-based care, acquisition interest will only grow, as long as reimbursement does not get cut,” continued Ms. Phillips.
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the Health Care M&A Information Source.  For more information, or to order the report, call 800-248-1668.  Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing markets.
 
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