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Thank you for visiting Healthcare Banker a news aggregator of middle market Investment Banking activities in the Healthcare and Life Science Industries. This site addresses current affairs and other relevant topics dealing with Mergers, Acquisitions, Start-Ups, Capital Raises, Private Placements, IPO's, Lending and other aspects of Corporate Finance related to Healthcare Services, Healthcare IT, Medical Devices, and Life Science Businesses.

Thursday, October 19, 2017

2017 Looking To Be The Gold Standard For Healthcare M&A

Hospital Merger and Acquisition Activity on Pace to Potentially Exceed 2016, According to Kaufman Hall Analysis

(from Kaufman Hall)

Hospital and health system partnership transactions for 2017 total 87 as of the end of the third quarter, setting a pace for transactions in 2017 that may exceed the 102 deals completed in 2016. Twenty-nine transactions were announced in the third quarter of 2017, slightly less than the 31 deals announced in the second quarter, according to the latest analysis by Kaufman Hall, a leading provider of strategic and financial consulting services, and enterprise performance management and decision support software.

Wednesday, September 27, 2017

Private Equity Still Frothy On Home Health Acquisitions

Despite Headwinds, Home Health Valuations Remain High

(from Home Health Care News)

The home health sector has faced a few hurdles since the beginning of 2017.

Publicly announced home health M&A activity proved lackluster in the first and second quarter of the year, as the industry continues to reel from regulation overload from the Centers for Medicare & Medicaid Services (CMS).

But despite these challenges, investors are still drawn to the industry, even as valuations for in-home care services providers have reached “all-time highs.”

Wednesday, August 9, 2017

Outpatient ASC M&A Fueled by Health Systems

As outpatient surgeries grow, hospitals look to claim piece of ASC market

(from Modern Healthcare)

With the looming financial threat from the migration of lucrative hip and knee replacement procedures to outpatient settings, some hospitals and health systems have acquired ambulatory surgery centers or formed joint ventures with surgeons in these centers.

That allows hospitals to keep a piece of the revenue.

And it better aligns their interests with surgeons, who like ambulatory centers because the greater efficiency of these facilities lets them do more procedures in a day and make more money, said Naya Kehayes, practice leader for ambulatory surgery at ECG Management Consultants.

Tuesday, July 25, 2017

Repeal & Replace Uncertainty Weighing Down Hospital Stocks

Hospital Operators Sink Amid Healthcare Confusion--But HCA Stays Ready for More Deals

(from TheStreet)

HCA Healthcare Inc. (HCA) sunk 3.62% to $82.96 per share in early afternoon trading Tuesday, July 25 after reporting lower than expected second quarter earnings.

Uncertainty surrounding congressional action on the Affordable Care Act have impacted hospitals along with the rest of the healthcare sector. Tenet Healthcare Corp. (THC) and Community Health Services Inc. (CHY) descended on Tuesday, July 25 alongside HCA, down 7.16% and 8.26% respectively.

HCA second quarter revenues increased by four percent to $10.733 billion and cash flow totaled $1.404 billion, but revenue still missed the $10.85 billion benchmark presupposed by analysts. HCA is now projecting its earnings per share to fall in the range of $7.00 to $7.30, which is lower from its prior forecast of $7.20 to $7.60.

Tuesday, June 27, 2017

The Big Picture - 2017 Healthcare M&A Report

Global Healthcare Private Equity and Corporate M&A Report 2017

(from Bain & Co.)

Turmoil creates opportunity, and in 2016, there was plenty of both.

Private equity investors contended with a world of uncertainty. Would the long-running global recovery gain strength, falter or muddle along? Would the UK vote to exit the EU? Who would win the US presidential election?

Amid all this volatility, investors latched onto healthcare as a safe haven—that is, an industry with proven resilience to economic turbulence. The growth of healthcare is powered by several immutable long-term trends: an aging global population, a rising incidence of chronic diseases, an expanding demand for quality services and an ongoing need to deliver those services more efficiently.

Wednesday, June 7, 2017

Q1 2017 Healthcare Services M&A Pulse - Volume, Value, Multiples

Healthcare Services Continues To See Elevated Activity  

While debate continues over the repeal and replacement of Obamacare, the US Health Services industry continues to be a hotbed of activity as Q1 2017 deal volume ticked up by 0.9% and 2.6% over prior year and prior quarter. Deal value however saw a sharp decline primarily as reporting for this sector was not as forthcoming with $7.9 billion disclosed, resulting in a decline of 49.3% and 58.2% over prior year and prior quarter. The shift towards value based reimbursements continues to have an effect on health systems M&A activity as they look to exercise more control over referral streams and ancillary services. This was evidenced by the 48 transactions among Physician Groups which experienced the greatest deal volume growth of 109% and 78% over prior year and prior quarter.

Thursday, May 4, 2017

Healthcare Deals Report: Looking Forward

VMG’s Health Care Transactions and M&A Report: 2016 Trends and 2017 Expectations

(from VMG Health

Health care M&A activity continued its half-decade long growth trend in 2016. Though the dollar value of total deals decreased relative to 2015 due to a spike in managed care megadeals in 2015, when excluding 2015, the dollar value of deals has continued to increase annually since 2012. The increase in both volume and value of health care M&A activity is driven by changing technology, an aging population, an increase in the number of insured people through the Patient Protection and Affordable Care Act (ACA), and the implementation of valuebased payments and alternative payment models. Taken together, these factors have driven providers to consolidate in an effort to take advantage of the economies of scale necessary to meet the goals of the “triple aim,” namely, increase service offerings and access to care, decrease cost, and improve the quality of care.