Three for-profit health systems entered into several transactions this year as part of strategic plans to strengthen their hospital portfolios, offload certain facilities or explore ways to expand their reach.
Transactions & Valuation Issues
Yale New Haven (Conn.) Health is seeking $80 million from the state to help with its plan to buy three Connecticut hospitals, according to an Oct. 17 Hartford Courant report.
The University of Iowa Health system made a final bid of $28 million in its ultimately unsuccessful attempt at buying bankrupt Mercy Iowa City hospital, according to an Oct. 16 report in The Gazette.
Pueblo, Colo.-based Parkview Health System has until Jan. 24 to come to a merger agreement with Aurora, Colo.-based UCHealth before any such deal could fall apart, according to an Oct. 16 filing.
Duluth, Minn.-based St. Luke's and Wausau, Wis.-based Aspirus Health have signed a definitive agreement to form a 19-hospital system with more than 130 outpatient locations and 14,000 employees.
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Christus Health has bought the 50% of Santa Fe, N.M.-based St. Vincent Regional Medical Center it didn't already own.
More than one-third of hospital and health system transactions announced in the third quarter involved an entity that cited financial distress as a driving factor, according to a Kaufman Hall M&A report published Oct. 12.
Private equity (PE) investment in healthcare is soaring, as investors have raised large amounts of capital and see attractive opportunities in the industry — especially health services.
More than a dozen hospital mergers, acquisitions, joint ventures, affiliations and partnerships were unwound or called off throughout the past 21 months.
Morgantown, W.Va.-based Monongalia Health System is one step closer to completely absorbing Davis Health System after the two parties signed a definitive agreement to merge Oct. 11 following regulatory and other approvals.