Welcome to HealthcareBanker.com

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.

Tuesday, May 31, 2016

Health Systems Reactive To Mergers & Acquisitions

The Impact of the Health Care Consolidation Trend
(from H&HN Mag

Some megadeals in the medical device and drug industries — totaling $170 billion — hold significant implications for hospitals and health systems.

In the last 30 days, medical device and drug megadeals involving more than $170 billion have dominated headlines:

  • Zimmer Holdings (the second largest orthopedic device manufacturer) agreed to acquire Biomet (No. 4 in orthopedic devices) for $13.35 billion — the biggest device deal since the 2012 Johnson & Johnson acquisition of Synthis for $21.2 billion.
  • Novartis and Glaxo Smith Kline announced a $20 billion deal to swap assets strengthening the core businesses in each organization.
  • Valeant’s $45 billion hostile bid to acquire Allergan and its Botox franchise, financed in part with Pershing Capital, continued to get attention.
  • Pfizer announced a $99 billion deal to acquire Astra Zeneca.
The health care industry is accustomed to deals. In our communities, consolidation of physicians with hospitals is standard fare. Hospitals are integrating with long-term care providers and merging with peers to achieve scale in regional systems.

Thursday, May 19, 2016

Healthcare IT M&A Aligning With Policy Trends, Activity Easing

Looking at the M&A Dance in Healthcare IT: How Will 2016 End Up, Trend-Wise?

The M&A activity of 2015 reflected some of the fundamental realities of U.S. healthcare’s broader trajectory

It was excellent to speak this week with Michelle Mattson-Hamilton and Ben Rooks of ST Advisors, a strategic and financial advisory firm focused on the healthcare IT industry. Ben and Michelle have been part of our team preparing the Healthcare Informatics 100 compendium for several years now, and, along with our colleagues at Porter Research, have been instrumental in helping us, the editors of Healthcare Informatics, bring the best list possible to our readers.

Together, Ben and Michelle have decades of experience with business mergers and acquisitions; and their focus on the healthcare IT industry in their analysis published this week offered numerous important insights.
Among the key points they made in their well-written analysis article:

Thursday, May 12, 2016

Two Things Healthcare CEO's Must Consider Prior To A Merger Or Acquisition

So many M&A deals collapse because leaders neglect this simple strategy

(from Becker's HR)

An analysis of 2,500 acquisitions by LEK Consulting shows more than 60 percent of them destroy shareholder value. Yet many corporate leaders continue to feel compelled to pursue growth through mergers and acquisitions, reasoning that failing to increase scale poses equally dangerous risks.
"Perhaps such deals should come with an official warning: 'Acquisitions can result in serious damage to your corporate health, up to and including death,'" Alan Lewis and Dan McKone, managing directors and partners at LEK Consulting, wrote in a recent article published by the Harvard Business Review.

According to their research, the problem lies not in the high volume of M&A deals, but that oftentimes executives don't pay enough attention to the evaluation process that serves as a foundation for these deals. As a result, they often "get deals wrong."

Monday, May 9, 2016

M&A Helps Health Systems Diversify Revenue Streams

Hospital Mergers, Acquisitions Bring Revenue Opportunities

(from RevCycle Intelligence

Hospital mergers and acquisitions have become a promising way for healthcare organizations to achieve scale and bolster their revenue cycles.

Hospital mergers and acquisitions have been on the rise ever since the Affordable Care Act started to change the way the healthcare system generates its revenue. Throughout 2013, many major health systems consolidated to create multi-hospital networks, a previous report noted. In 2014, there were 95 hospital mergers and acquisitions, which set a record for the industry.

The hospital takeover trend does not appear to be going away. Recently, a number of hospitals either officially merged or planned to merge. Here is a rundown of the most recent merger and acquisition announcements across the industry.