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Thank you for visiting HealthcareBanker.com a news aggregator of middle-market mergers and acquisition activity in the healthcare industries. This site addresses investment banking topics dealing with M&A, Capital Raising, Borrowing/Lending and other Corporate Development and Finance activities within the Healthcare Services, Healthcare IT, Medical Device, and Life Science industries.

Friday, May 31, 2019

Physician Practice Acquisitions - Part 1 of 3


A Primer on Hospital and Private Equity Consolidation

(By David Lopez)

For the better part of the last decade, physician practices have seen a wave of consolidation by hospitals and private equity with 2018 being no exception [1]. M&A activity in physician practices continues to grow and outpace other sectors as deals in the healthcare industry are coveted by investors for their strong growth, recession resistance, and superior historical returns. In fact, acquisitions by hospitals and private equity in provider services broke records last year according to Bain & Co’s 2019 global healthcare report.

This is not a new phenomenon as during the 1990s competition to consolidate physician practices reached a feverish pitch with the emergence of Health Maintenance Organizations (HMOs), and the resulting joint ventures formed to integrate and operate acquisitions while adhering to federal and state regulations [8]. It is widely regarded that these earlier attempts at consolidation ultimately failed; however, important lessons were learned by hospitals and private equity evident in how present-day physician practice transactions are structured [10] [26].

The healthcare industry has changed since the 90s as new regulatory frameworks and financial incentives now drive the consolidation we see from hospitals and private equity, which continue to pursue physician practice acquisitions, albeit taking distinctly different approaches and for uniquely specific objectives which this article will attempt to shed some light on in a three part series [21]. 


Friday, March 29, 2019

Orthopedics - The Next Wave of M&A Consolidation

Private equity sees ripe opportunity in healthcare this year


Private equity investment in healthcare has ballooned over the past decade, and experts say 2019 is poised to be another robust year, with potential ripe targets in orthopaedics and mental health and addiction treatment.

Private equity deals in healthcare in the U.S. more than doubled over the past 10 years, according to financial data firm Pitchbook. In 2008 there were 325 deals (including buyers and sellers) and in 2018 that number swelled to 788, a record number of deals representing more than $100 billion in total value.

Thursday, February 28, 2019

Why Are Hospitals Rolling-Up Physician Practices At A Record Pace?


Hospital Acquisitions of Physician Practices Rose 128% Since 2012

New data shows hospital acquisitions of physician practices are increasing, causing the number of hospital-employed physicians to rise by 70 percent from 2012 to 2018.



Hospital acquisitions of physician practices continues to be a strong trend in the healthcare space, according to new data from Avalere Health and the Physicians Advocacy Institute (PAI).

In an emailed press release, the organizations reported that hospitals acquired approximately 8,000 physician practices between July 2016 and July 2018. That number is on top of the 5,000 hospital acquisitions of physician practices from July 2015 to July 2016.

Friday, January 25, 2019

2019 JPM Healthcare Conference Recap – Deals, ACA, Outlook, & More!


(By David Lopez)

The 37th Annual J.P. Morgan Healthcare Conference kicked-off on Jan. 7 with a bang as Eli Lilly and Company (LLY) announced that it would acquire Loxo Oncology (LOXO) for $8 billion. Loxo Oncology will provide Eli Lilly with access to several cutting-edge cancer fighting drugs including those that inhibit oncogenic drivers in cancer. Eli Lilly purchased Loxo at a premium of about 68% or $235-per-share. 

The deal is the second largest biotech acquisition since the start of the new year. The first being Bristol Myers Squibb Co’s (BMY) acquisition of Celgene Corp. (CELG) for $74 billion, which was announced on Jan. 3.