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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.

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.

Wednesday, March 15, 2017

Hospital Acquisition Of Physician Practices: Things To Look Out For


3 hidden costs hospitals should consider when acquiring physician practices

(from Becker's Hospital) 

Consolidation has been increasing across the healthcare industry, and it's not just hospitals acquiring other hospitals. Hospitals are also increasingly acquiring physician practices.
A recent study by Avalere Health revealed hospital ownership of physician practices jumped 86 percent between 2012 and 2015. The study also found 38 percent of physicians were employed by hospitals in July 2015.
With this trend comes a myriad of challenges for hospitals and physicians, according to Heather Delgado, a partner and member of the healthcare department at the law firm of Barnes & Thornburg.

Monday, February 20, 2017

Q4 2016 Healthcare Services M&A Pulse - Volume, Value, Multiples


2016 Ends Strong Despite Lower Volume & Values

M&A activity in US Healthcare Services remained strong in 2016 when compared to other industries, despite seeing lower year over year deal values and volume. 


Overall deal volume in 2016 was slightly lower (1.4%) then in 2015, while deal value was significantly lower (59.6%) primarily as a result of several large 2015 Managed Care deals. 2016 Q4 was basically flat vs. Q3 with little movement both up and down on deal volume (1.3%) and deal value (-8.7%). 

The Affordable Care Act (ACA) continues to have a significant influence in Healthcare Services M&A driving both vertical and horizontal integration, as the shift from traditional fee-for-service reimbursements moves towards value-based payment models, spurring consolidation and resulting in larger but fewer players in the industry. 

However, despite the new administrations promise to repeal and replace the ACA the shift towards value-based care is not intrinsically tied to it, thus Healthcare Services transaction activity should remain strong in 2017 as payers and providers look to provide care at a lower cost with better outcomes.