Dollar Value of Hospital M&A Activity Drops


The hospital acquisition market posted a slight increase in the first quarter of 2016, rising 4% compared with the previous quarter, according to The Health Care M&A Report. The 24 publicly announced hospital acquisitions were equal to the transaction volume in the year-ago first quarter. Dollar volume totaled $1.2 billion, a decrease of 67% compared with the fourth quarter.

The largest acquisition in this first quarter to come with a disclosed price was the $550 million acquisition of Capella Healthcare, a joint venture between management and Medical Properties Trust, by RegionalCare Hospital Partners. The new company has been named RCCH Health Partners, and has 18 hospital campuses in 12 states with more than 13,000 employees, 2,000 affiliated physicians and $1.7 billion in revenue.

“The consistent deal volume from one quarter to the next, and year-over-year, shows the hospital sector has stabilized in the wake of changes caused by the Affordable Care Act,” commented Lisa Phillips, editor of the Health Care M&A Report, which publishes the data. “Now we are waiting see what impact the Medicare Access and CHIP Replacement Act will have on this market in the future,” Phillips added. This market will see continued 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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