Global Healthcare Advisors’ M&A Database


Our proprietary platform provides market intelligence on M&A deals, notable developments and regulatory changes pertinent to our clients.

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Showing results 1 through 50 of 5400

Website
Vertical
Category
QTR
Year
Summary
Dermatology
Deal
Q2
2019
Advanced Dermatology and Cosmetic Surgery (ADCS), one of the nation's leaders in high-quality dermatology, today announced the acquisition of the dermatology practice of Dr. Robyn James with locations in Fort Washington and La Plata, Maryland, effective June 7, 2019. The practice, called Advanced Dermatology of Southern Maryland (ADSM), will continue to be led by Dr. James and Dr. Jeffrey Weddington, dermatologists who have been in private practice in the community for more than 15 years. "We have enjoyed a professional working relationship with Advanced Dermatology over the past 10 years, and are delighted to formally become part of the ADCS organization," said Drs. James and Weddington in a joint statement. "We have always appreciated the commitment to quality, service and integrity demonstrated by the entire team at ADCS and look forward to working more closely with them as we continue to serve our patients and build our practice." Terms of the transaction were not disclosed.
Dermatology
Deal
Q2
2019
Water's Edge Dermatology ("Water's Edge" or "the Company"), a leading provider of comprehensive dermatology services through 37 Florida locations, announced today that it has acquired a controlling interest in Coast Dermatology ("Coast"), a medical/cosmetic dermatology practice in Venice, Florida. Terms of the transaction were not disclosed. This transaction follows the Water's Edge acquisition of PBC Dermatology last month and marks the Company's second add-on acquisition since it was acquired by San Francisco-based middle-market private equity firm Gryphon Investors ("Gryphon") in June 2018. Led by Dr. Greg Neily, Coast Dermatology (https://www.drneily.com/) offers general dermatology, Mohs surgery, cosmetic dermatology, and select vein services. Coast will continue to operate under its existing name under the direction of Dr. Neily.
Urgent Care
Deal
Q2
2019
Tampa General Hospital and Fast Track Urgent Care have launched a new partnership to provide medical care at 10 locations throughout the Tampa Bay area, including two in Pinellas County. The joint announcement of the 50-50 partnership between TGH and Fast Track marks the first time Tampa General has offered freestanding clinical care in Pinellas County. It also is an expansion for Fast Track, which currently operates eight clinics. The 10 locations will be known as "TGH Urgent Care powered by Fast Track." Plans for more locations are underway. The new locations exemplify how Tampa General is building a new breed of health system, one that links multiple locations for high-quality, low-cost patient-centered care to the high-level acute hospital care for patients with serious and complex illnesses. Tampa General's health system also includes 15 Tampa General Medical Group locations, 14 Tower imaging locations, the TGH Brandon HealthPlex and the TGH Advanced Organ Disease & Transplantation Institute at Lee Health. Fast Track, which was the first organization in the Tampa Bay area to be certified by the Urgent Care Association of America, currently operates eight clinics. Tampa General Hospital operates TGH Urgent Care in Brandon and is about to open another clinic in Sun City. All 10 of these locations will now be branded as TGH Urgent Care Powered by Fast Track.
Surgical Centers / Facilities and Practices
Deal
Q2
2019
The University of Kansas Health System St. Francis Campus (St. Francis Campus) and Tallgrass Surgical Center announced that they have completed the transaction for the hospital's acquisition of the surgery center. "With the addition of the Tallgrass Surgery Center to our family, we can offer patients more convenience, better access to care, and more healthcare delivery options," commented St. Francis Campus CEO Steve Anderson. "Tallgrass Surgical Center is a first-class surgical facility offering quality patient care provided by professionals dedicated to service excellence. We welcome them and look forward to continuing to expand our many outpatient surgical options." Tallgrass is a multispecialty surgery center that houses three operating rooms and one procedure room. Its specialty focus includes general surgery, gynecology, ophthalmology, orthopedic surgery, otolaryngology, pain management, plastic surgery, podiatry, retinal procedures, urology, and weight loss surgery.
Hospitals & Health Systems
Deal
Q2
2019
The unification of Bridgeport Hospital and Milford Hospital was approved by the State of Connecticut's Office of Health Strategy (OHS). Under the agreement, effective at 12:01 am on Sunday, Milford Hospital becomes a fully integrated campus of Bridgeport Hospital, a member of Yale New Haven Health. Facing historic shifts in the healthcare environment, Milford Hospital has been experiencing a decline in volume and revenues in the past several years. In 2014, Yale New Haven Hospital (YNHH) and Bridgeport Hospital partnered to create a highly successful Inpatient Rehabilitation Unit (IRU) which generated exceptionally high patient satisfaction rates. However, the need for a broader relationship became apparent as financial performance continued to be challenged. Under the integration, Yale New Haven Health intends to develop the Milford Campus of Bridgeport Hospital into a vibrant, state-of-the-art community hospital and center for gerontologic health, staffed with clinicians who have the requisite geriatric competencies to care for an aging population based upon the patient's goals, preferences and values.
Pharmaceuticals & Biopharmaceuticals
Deal
Q2
2019
Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced that it has entered into a definitive agreement to acquire Tilos Therapeutics, a privately held biopharmaceutical company developing therapeutics targeting the latent TGFβ complex for the treatment of cancer, fibrosis and autoimmune diseases. Under the terms of the agreement, Merck, through a subsidiary, will acquire all outstanding shares of Tilos for total potential consideration of up to $773 million, including an upfront payment as well as contingent milestone payments. Tilos was founded by Boehringer Ingelheim Venture Fund and Partners Innovation Fund, based on discoveries by the laboratory of Dr. Howard Weiner at Brigham and Women's Hospital and Harvard Medical School. Additional investment was provided by ShangPharma Innovation Fund.
Contract Research Organizations
Deal
Q2
2019
AptarGroup, Inc. today announced that it has acquired two leading pharmaceutical services companies, Nanopharm Ltd. and Gateway Analytical LLC, for a combined enterprise value of approximately $50 million. The acquisitions are part of Aptar's strategy to broaden its portfolio of services that support pharmaceutical and biotech customers to accelerate and derisk their complex product developments. Both acquisitions bring complementary, value-added and differentiated analytical, testing and development services for all stages of drug development and commercialization. The expanded services platform will enable Aptar Pharma to collaborate earlier with customers to support their complex drug formulations and delivery requirements as they face increasingly competitive and regulated markets. Nanopharm, located in Newport, UK, is a science-driven, leading provider of orally inhaled and nasal drug product design and development services. Gateway Analytical, located in Gibsonia, PA, provides industry-leading particulate detection and predictive analytical services to customers developing injectable medicines.
Life Sciences
Deal
Q2
2019
Oncternal Therapeutics, Inc., (Nasdaq: ONCT) a clinical-stage biotechnology company developing potential first-in-class product candidates for cancers with critical unmet medical need, today announced that the reverse merger with GTx, Inc., closed on June 7, 2019. The combined company will operate under the name Oncternal Therapeutics, Inc., and its shares will commence trading on the Nasdaq stock exchange on June 10, 2019, under the ticker symbol "ONCT."
Public Health Programs
Deal
Q2
2019
DLH Holdings Corp. (NASDAQ: DLHC) ("DLH" or the "Company"), a leading provider of innovative healthcare services and solutions to federal agencies, today announced that it has acquired privately-held Social & Scientific Systems ("SSS") of Silver Spring, Maryland. The firm, with approximately 400 employees, is a leading public health service organization providing solutions in clinical and biomedical research, epidemiology, health policy, and program evaluation. SSS utilizes advanced research (including longitudinal studies), data analytics, and secure IT platform services to assist mission-critical public health agencies within the Department of Health & Human Services - including the National Institutes of Health (NIH) and the Centers for Medicare and Medicaid Services (CMS) - along with other healthcare-related institutions. SSS was purchased for $70 million in cash, or $63 million net of transaction-related tax benefits worth $7 million on a net present value basis.
Skilled Nursing Facilities
Deal
Q2
2019
LECOM Senior Living is acquiring another senior living community, its sixth in Erie County. The Millcreek Township-based organization, a part of LECOM Health, is acquiring the Village at Luther Square, 149 W. 22nd St. The 110-bed skilled nursing facility, which opened in 1906, is expected to change ownership within the next 90 days. The purchase price was not disclosed.
Assisted Living
Deal
Q2
2019
Autumn Lake Healthcare at Beloit and the Suites at Beloit purchased the former Premier Rehabilitation and Skilled Nursing located at 2121 Pioneer Drive, and Pioneer Assisted Living across the street at 2221 Pioneer Drive, on Feb. 1 and is operating the facilities under new management. Josh Davis of Chicago is one of the executives of Autumn Lake Healthcare at Beloit and the Suites at Beloit and is overseeing the two facilities, which are being operated under the Autumn Lake Healthcare umbrella. Autumn Lake Healthcare maintains a network of independent nursing homes and rehabilitative care centers across Connecticut, New Jersey, Maryland and Wisconsin, according to its website, autumnlakehc.com. Under the Autumn Lake Healthcare umbrella, the sites will have access to more support in clinical areas such as nurse consultants. Autumn Lake Healthcare at Beloit has 120 beds, and The Suites at Beloit have 54 beds.
Home Health & Hospice
Deal
Q2
2019
KMT Medical Incorporated (KMT Medical), an international group of companies providing home healthcare services to consumers, announces a definitive agreement for noma-med GmbH (noma-med) to join its group of companies, pending approval from the German Federal Cartel Office. noma-med will join a group of European and US Service Business counterparts operating under KMT Medical. noma-med is a leader in home healthcare in Germany. Established in 1994, the company delivers products and services in the ostomy, continence, wound care, enteral and parental feeding areas. The company operates under the philosophy of providing high quality care to help patients achieve a life of independence.
Healthcare Investors / Advisors, Industry Trends
Notable Developments
Q2
2019
Private equity firms continue to flock to physician-run practices, a fragmented space where demographic and technological trends are converging, and one where sellers' expectations can make a deal vulnerable to failure if not managed properly. Buying physician practices and consolidating them into larger platforms has been a private equity strategy for two decades, but in the last several years, PE involvement has extended to a wide-range of specialty areas - dermatology, ophthalmology, orthopedics and oncology, among others. The physician practice management, or PPM, space appeals to PE investors looking to build regional or national businesses through add-on acquisitions. PE firms can help with marketing initiatives and brand awareness, and by reducing operating costs through back-office improvements. A larger organization may also have greater leverage with payers. Private capital can help companies enhance technological capabilities, build new revenue streams, and make acquisitions, says Ryan Buckley, a partner with investment bank Livingstone. "In an evolving landscape with competitors, hospitals and health systems, and payers - which in many respects are becoming providers as well - having the financial firepower that private equity investment brings is critical."
Notable Developments
Q2
2019
Vesey Street Capital is evaluating the sale of HealthChannels nearly five years into its investment in what is now the nation's largest medical scribe company, five sources familiar with the situation told Buyouts. Sources characterized the process as tightly run and sponsor-driven, though some of the people cautioned that HealthChannels could field interest from a small handful of strategics. The process is in its mid stages, with management meetings having already taken place, they said. HealthChannels produces revenue and Ebitda of approximately $540 million and $110 million, respectively, some of the people said. The company is expected to command a multiple of Ebitda in the high teens to 20x range, they said. Fort Lauderdale, Florida-based HealthChannels ought to benefit from scarcity value as large buyout funds remain eager to invest in healthcare companies of significant scale. HealthChannels is also considered an attractive target for private equity due to its strong management team, growth profile, high revenue visibility, high customer retention rate and lack of reimbursement risk, sources said. Led by CEO Michael Murphy, HealthChannels is parent to the nation's largest medical scribe company, ScribeAmerica. Medical scribes work alongside physicians to enter patient information in real time. Medical scribes allow doctors to focus on patient care as opposed to electronic health record documentation, helping relieve clinical overload. HealthChannels also operates CareThrough, a care-management business, and QueueLogix, which provides back-office medical coding and billing software and services.
Healthcare Information Technology
Notable Developments
Q2
2019
Digital-IT and population-health businesses enabling providers - doctors, community and hospital systems - to better analyze data from electronic health records, claims and clinical treatment are poised to become tomorrow's healthcare-IT winners. This is happening as the industry's transition from fee-for-service to value-based care has gained momentum. Value-based reimbursement models are those that condition providers' compensation on their ability to generate positive health outcomes and manage their resources more effectively. Private-capital firms are supporting the providers and this transformation of healthcare. They're investing billions into IT businesses that enable providers to make better data-driven reimbursement decisions. These investors have recognized the opportunity to build scalable, well-capitalized businesses that will be in demand for years to come.
Life Sciences
Notable Developments
Q2
2019
Roche (SIX: RO, ROG; OTCQX: RHHBY) and Spark Therapeutics, Inc. (NASDAQ: ONCE) ("Spark") today announced that they have each received a request for additional information and documentary material (the "Second Request") from the U.S. Federal Trade Commission (the "FTC") in connection with the FTC's review of Roche's pending acquisition of Spark. Issuance of the Second Request is part of the regulatory review process. The effect of the Second Request is to extend the waiting period until 10 days after Roche has substantially complied with the Second Request, unless the waiting period is terminated earlier by the FTC or the parties have entered into a timing agreement with the FTC. The parties remain committed to the transaction and are working cooperatively and expeditiously with the FTC in connection with its review. As a result of the Second Request, pursuant to the Agreement and Plan of Merger, dated as of February 22, 2019, by and among Roche Holdings, Inc., 022019 Merger Subsidiary, Inc., and Spark (the "Merger Agreement"), Roche has extended the offering period of its previously announced tender offer to purchase all of the outstanding shares of common stock (the "Shares") of Spark.
Home Health & Hospice
Regulatory
Q2
2019
The U.S Centers for Medicare & Medicaid Services (CMS) is in the process of developing a mandatory new comprehensive quality reporting tool to replace the current Hospice Item Set measures. Though initially the agency will use the tool, known as the Hospice Evaluation and Assessment Reporting Tool (HEART), exclusively for quality reporting, CMS in time will likely use the tool to inform new payment models, according to the agency. As with other mandatory CMS quality reporting programs, hospices could see payment reductions of up to 2% for failing to report HEART data after the tool and associated requirements are finalized.
Orthopedics
Deal
Q2
2019
Excelsior Orthopaedics is growing again, this time through an integration with two other orthopedic groups that will add 10 more physicians to the practice. The biggest piece is the merger of Northtowns Orthopedics into the practice, with nine surgeons joining Excelsior's 22 surgeons as physician owners. The 10th physician will leave Buffalo Orthopaedic Group to join Excelsior, bringing a few support staff and mid-level practitioners. The integration, which creates one of the largest orthopedic practices in the region, also adds four locations into the Excelsior network, already one of the region's largest specialty medical practices. When completed, Excelsior will grow to 90 medical providers and 350 total staffers, including about 55 from Northtowns. Mark Wolbert, vice president for business development, said all 10 physicians will be vested in the partnership. The integration also allows them to continue working as private practitioners, versus joining a hospital as an employee - a growing trend in the health care world. The integration also allows them to grow their practice through Excelsior's ancillary service lines in therapy and imaging, areas that Northtowns and Buffalo Orthopedic Group don't offer.
Contract Manufacturing Organizations
Deal
Q2
2019
Great Point Partners ("GPP"), a Greenwich-based private investment firm focused on the health care industry, announced Monday a $22 million equity commitment to Bionova Scientific, a leading specialized biologics contract development and manufacturing organization ("CDMO"). GPP funded $13.3 million at closing, with a commitment to fund an additional $9 million over the next two years. Founded in 2014 and based in Fremont, CA, Bionova helps clients manage all aspects of biologics development and manufacturing, from early stage research material generation to process development to contract manufacturing services. Great Point's growth equity investment allows Bionova to complete the build out of a 57,000 square foot GMP facility in Fremont, CA with the capability to manufacture clinical grade protein therapeutics for its global customer base. Bionova marks Great Point's second investment in the biologics CDMO space, as GPP previously invested in Cytovance Biologics. "We are thrilled to once again invest in the biologics CDMO industry and look forward to replicating the success we had with Cytovance," said Noah Rhodes, Managing Director at Great Point Partners. "We have known Amy, Chung, and the Bionova team for a number of years and look forward to helping them better serve their customers through the build out of a first-class biologics GMP facility in the Bay Area." Global Healthcare Advisors has confirmed that this was a majority acquisition on the part of GPP.
Contract Manufacturing Organizations
Deal
Q2
2019
Tergus Pharma ("Tergus"), an end-to-end service provider for topical pharmaceutical research, drug development, testing and manufacturing, has announced a 100,000-square-foot building for its new headquarters and plans to invest to expand into commercial manufacturing. Tergus will provide comprehensive services from development through manufacturing and will become a Contract Development and Manufacturing Organization, or CDMO. Tergus announced a partnership with Great Point Partners ("GPP") a Greenwich, CT based health care investment firm. GPP has provided growth equity, growth recapitalization, and management buyout financing to more than 100 growing health care companies. Tergus provides Topical Formulation development, In Vitro Permeating Testing (IVPT), In Vitro Release Testing (IVRT), Skin Biology, Analytical services, and Clinical Trial Materials (CTM) manufacturing services for branded and generic dermatology products. Great Point's investment will allow Tergus to build a state-of-the-art commercial manufacturing facility in the Raleigh-Durham, NC area and will begin construction in July 2019. The new 100,000 square foot facility will have Clinical Trial Material (Phases I thru III) Supplies and commercial manufacturing capabilities and expand current capacity by over 400%. Tergus plans to open the new facility in early 2020.
Hospitals & Health Systems
Deal
Q2
2019
Nine months after entering acquisition talks, Huntingdon, Pennsylvania-based J.C. Blair Health System has cleared regulatory review and this week has joined Penn Highlands Healthcare, the health system announced. The flagship J.C. Blair Memorial Hospital, a 71-bed, non-profit community hospital located about 120 miles east of Pittsburgh, becomes the fifth hospital in the DuBois, Pennsylvania-based Penn Highlands system and has been renamed as Penn Highlands Huntingdon. "This affiliation represents an exciting new chapter in our growth," Penn Highlands Healthcare CEO Steven M. Fontaine said in a media release. Penn Highlands Board Chairman Dick Pfingstler said the acquisition of J.C. Blair will expand Penn Highlands's footprint strengthen its ability to recruit providers and grow its specialty services. "Creating even more healthcare access and delivery throughout our region aligns perfectly with our longstanding mission to serve our communities," Pfingstler said. J.C. Blair Memorial Hospital has 40 physicians on staff, and more than 400 employees, serving 45,000 residents of Huntingdon County. medical staff of nearly 40 physicians, over 400 employees, and more than 40 active volunteers, J.C. Blair is the only hospital in rural Huntingdon County, serving over 45,000 permanent county residents.
Hospitals & Health Systems
Deal
Q2
2019
Quorum Health Corporation (NYSE: QHC) today announced that it has entered into a definitive agreement to divest the 106-bed Watsonville Community Hospital in Watsonville, California to Halsen Healthcare. The transaction is expected to be complete by the end of the third quarter of 2019, subject to customary approvals and conditions. The Company anticipates that the total cash proceeds from the transaction will be approximately $35 to $40 million, subject to final working capital balances. All cash proceeds from the transaction will be used to repay outstanding principal on the Company's Term Loan Facility.
Pharmacy
Deal
Q2
2019
OmniSYS, a technology company focused on innovative solutions for the retail pharmacy industry, announced Wednesday that it has acquired Rx-Net and its automated pricing solution, ProfitMax. ProfitMax provides a fully-automated, single interface, multi-location prescription price management solution for retail pharmacies. By taking into account customer-specific pricing goals, third-party reimbursement and a combination of market-based data sources, ProfitMax automatically helps set and adjust a pharmacy's usual and customary (U&C) pricing so that they can maximize reimbursement while maintaining competitive and profitable prices for cash-paying customers. Rx-Net manages an annual prescription volume of over $4 billion, with customers in all 50 states. Their automated pricing solution is integrated with most pharmacy management system vendors, allowing pricing information to be accessed from a pharmacist's existing workflow.
Pharmaceuticals & Biopharmaceuticals
Deal
Q2
2019
Hauppauge, NY-based pharmaceutical company Contract Pharmacal Corp. has acquired Florida Pharmaceutical Products, Inc. (FPP), a generic pharmaceutical company focused on R&D, co-development and licensing. Headed by its president, 35-year industry veteran Larry Lapila, FPP has already inked a variety of partnership agreements in 2019. In January, FPP entered into a partnership with Bluepharma, agreeing to file an ANDA and manage product sales, marketing and distribution within the U.S. upon FDA approval. In February, the company signed a joint venture agreement to manage sales, marketing and distribution for Quinn Pharmaceuticals, an own-label distributor with commercial products.
Pharmaceuticals & Biopharmaceuticals
Deal
Q2
2019
Edesa Biotech, Inc., a clinical-stage biopharmaceutical company, today reported that the previously announced business combination with Stellar Biotechnologies, Inc. (Nasdaq: SBOT) ("Stellar"), which was completed pursuant to a share exchange agreement, has closed. The combined company will focus on the development and advancement of innovative treatments for dermatological and gastrointestinal indications. The combined company will be called Edesa Biotech, Inc. and will commence trading on the Nasdaq Capital Market on June 10, 2019 under the symbol "EDSA."
Life Sciences
Deal
Q2
2019
Biogen (Nasdaq: BIIB) today announced that it has completed its acquisition of Nightstar Therapeutics (NST; Nasdaq: NITE), a clinical-stage gene therapy company, which is focused on adeno-associated virus (AAV) treatments for inherited retinal disorders. As a result of the acquisition, Biogen now has added two mid- to late-stage clinical assets, as well as preclinical programs, in ophthalmology. The total transaction value was approximately $800 million, after taking into account expected transaction expenses and cash at closing. NST's common stock will no longer be listed for trading on the Nasdaq Global Select Market.
Health Plans
Deal
Q2
2019
LifeShield National Insurance Co. ("LifeShield") announced that it has entered an agreement to acquire IAC Group, the parent company of Individual Assurance Company ("IAC"), a leading life, accident, and health insurer with a strong presence in the Medicare supplement market. The agreement has been unanimously approved by the boards of LifeShield and IAC Group. Following the transaction, IAC will continue to operate under the IAC brand as a subsidiary of LifeShield.
Real Estate Investment Trust
Deal
Q2
2019
Medical Properties Trust, Inc. (the "Company" or "MPT") (NYSE: MPW) announced Thursday that it has completed the previously announced A$1.2 billion acquisition of the real estate interests of 11 Australian hospitals operated by Healthscope Ltd. The Company financed the acquisition with a A$1.2 billion unsecured five-year term, Australian-denominated loan with a syndicate of banks. Medical Properties Trust, Inc. is a self-advised real estate investment trust formed to acquire and develop net-leased hospital facilities.
Surgical Centers / Facilities and Practices
Notable Developments
Q2
2019
Surgery Partners spent much of 2018 shifting strategy to focus on its ambulatory surgery center business instead of its ancillary business, after CEO Wayne DeVeydt came on board in January 2018. After closing two surgical hospitals, closing or selling five ASCs and closing or consolidating 16 physician practices, the company is now taking this year to reflect and move forward, according to CFO Tom Cowhey during the Jefferies 2019 Global Healthcare Conference on June 4 in New York City. Surgery Partners aims to spend around $80 million to $100 million on mergers and acquisitions. The company has had success doing small one-off deals that tend to be non-competitive and have low single-digit multiples. In other broker-led deals, Mr. Cowhey said the company saw deals in the 7 to 8 multiple range.
Hospitals & Health Systems
Notable Developments
Q2
2019
The total number of healthcare mergers and acquisitions hit a record high in 2018, and dozens of deals have been announced so far this year. Here are 13 transactions involving hospitals and health systems that were announced or finalized in the past month, according to a list compiled by Becker's Hospital Review.
Skilled Nursing Facilities
Notable Developments
Q2
2019
Acknowledging the disconnect between investor sentiment and opportunity in the skilled nursing space, the CEO of National Health Investors (NYSE: NHI) invited skeptics to check out his company's portfolio. "I know a lot of people think about skilled nursing and crinkle their nose, but if you took a deep dive on our skilled nursing portfolio, I think you'd like what you saw," Eric Mendelsohn said during a Thursday presentation at Nareit's annual REITWeek event in New York City. Mendelsohn isn't the only REIT chief to observe the gulf between Wall Street perceptions of nursing homes and the vast quantities of private equity and family office cash chasing the buildings. Rick Matros, CEO of Sabra Health Care REIT (Nasdaq: SBRA), has frequently talked about the two sides of skilled nursing sentiment Ñ the general investors who see warning signs, and the people in the know who see dollar signs with strong operators. Toward the end of NHI's presentation, which primarily consisted of an overview of its recent moves on the senior housing front, Mendelsohn expressed interest in expanding into behavioral health care properties. "We love behavioral health," Mendelsohn said. "We have two behavioral health buildings. Behind the scenes, out of the eyes of investors, we've been chasing behavioral health assets very hard. They are priced to perfection, and they are the darling of private equity and family offices," he said.
Industry Trends
Regulatory
Q2
2019
2018 saw a significant upswing in antitrust litigation against health care providers; 27 cases were filed in 2018 versus 17 in 2017. In its latest Antitrust Update for Health Care Providers, McDermott Will & Emery discusses what caused the notable rise, what kinds of cases were brought over the past two years and how they were decided, and what cases warrant particular attention in 2019.
Home Health & Hospice
Regulatory
Q2
2019
Earlier this week, a bipartisan pair of U.S. senators released a "secret list" of nursing homes under consideration for placement on the federal government's roster of properties with serious quality issues. Maintained by the Centers for Medicare & Medicaid Services (CMS), the list features more than 400 nursing homes that are "candidates" for the Special Focus Facilities (SFF) program, which targets properties with a history of serious health and safety violations. CMS has typically kept that group of potential SFF nursing homes to itself - until Pennsylvania Senators Pat Toomey and Bob Casey leaked it on Monday. Although the list does not directly affect home health providers, it has raised questions about the extent to which CMS is keeping tabs on the industry and sharing its findings with the public. It appears, however, that home health providers can rest assured. CMS does not have a Special Focus Facilities-type program for home health agencies, a spokesperson confirmed to Home Health Care News via email on Thursday. Additionally, according to the spokesperson, creating one is not something the agency is currently considering.
Behavioral Health
Deal
Q2
2019
Anthem, Inc. (NYSE:ANTM) today announced that the company has entered into a definitive agreement to acquire Beacon Health Options (Beacon), the largest independently held behavioral health organization in the country. Beacon currently serves more than 36 million individuals across all 50 states, including nearly 3 million individuals under comprehensive risk-based behavioral programs. The acquisition aligns with Anthem's strategy to diversify into health services and deliver market-leading integrated solutions and care delivery models that personalize care for people with complex and chronic conditions. The acquisition of Beacon will offer Anthem the opportunity to combine its existing behavioral health business with Beacon's successful model and support services to fully scale integrated behavioral and physical health capabilities to customers and consumers nationwide. Anthem will acquire Beacon from Bain Capital Private Equity and Diamond Castle Holdings, who invested to grow and improve the company and help achieve its mission. Financial terms of the transaction were not disclosed. The acquisition is expected to close in the fourth quarter of 2019 and is subject to standard closing conditions, customary state regulatory approvals and the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Multi-Specialty and Other Physician's Offices
Deal
Q2
2019
Eastern Nephrology Associates (ENA) has announced its merger with Southeastern Nephrology Associates (SENA) effective June 1st. The new organization will operate as Eastern Nephrology Associates. The merger joins two prominent kidney care physician practices which will include 27 physician partners, 4 associate physicians, and 14 advanced practitioners. Collectively, the practice will manage more than 2200 dialysis patients, operate two vascular access centers, provide a fully integrated laboratory, manage kidney transplant patients, and oversee a robust clinical trials program. ENA will continue to see patients in its 10 offices and 25 dialysis centers throughout eastern North Carolina and South Carolina.
Healthcare Information Technology
Deal
Q2
2019
Jump Capital, a Chicago-based venture & growth capital firm, today announced the sale of its portfolio company, Champion Healthcare Technologies ("Champion"), a software-as-a-service provider for hospitals to track and manage tissue and implantable devices throughout their chain of custody to enable regulatory compliance, improve patient safety, and increase cost savings by optimizing device utilization. The Riverside Company ("Riverside") has acquired Champion and combined it with HemaTerra Technologies, a recent Riverside investment that provides software solutions to hospital-based and independent blood and plasma collection centers. Terms of the transaction were not disclosed.
Behavioral Health, Pediatrics, Physical Therapy & Outpatient Rehabilitation
Deal
Q2
2019
After working together for years, Pediatric Therapy Services and the Mankato Clinic are merging on September 3, 2019. Formerly an independent clinic, Pediatric Therapy Services has been providing therapy for children for nearly 30 years. Life and healthcare changes made the merger a necessity after years of growth. Pediatric Therapy Service's location on St. Andrew's Drive will remain the same along with their satellite office at Mankato Clinic Children's Health Center. "Pediatric Therapy Services has had just a wonderful reputation in this community so we've, naturally, partnered with them. Our pediatricians work closely with their therapists to take care of these kids, so we see it as being a smooth transition," said Mankato Clinic CEO, Randy Farrow. The merger will provide services between both Pediatric Therapy Services and the Mankato Clinic to be under the same umbrella.
Healthcare Consulting
Deal
Q2
2019
Preempting the highly anticipated sales process for PE-backed Advarra, Genstar Capital agreed to buy the provider of compliance-related services for clinical research, according to sources familiar with the matter. The pending acquisition values the Columbia, Maryland, company at about $1.3 billion and represents an 18x multiple of Ebitda, the sources said. In connection with the transaction, majority investor Linden Capital through Fund IV intends to reinvest alongside Genstar, the sources said. Northlane Capital, Bethesda, Maryland, will exit its equity interest in full. The agreement marks the conclusion of a Jefferies- and Houlihan Lokey-run sales process, with initial bids for the company submitted only about two weeks ago, Buyouts reported. Multiple parties tried to preempt what sources characterized as a heated sales process that fielded interest from a broad set of bidders in its early stages. Linden, which initially invested via its third fund, expects to post an 8x return on the sale, one of the sources said. Advarra provides independent institutional review board, institutional biosafety committee and research quality and compliance consulting services in North America. The company serves more than 3,000 pharmaceutical, biotech, medical-device and contract-research companies, as well as universities, academic medical centers and hospital systems.
Business Services
Deal
Q2
2019
Preempting the process for Spectrum Equity-backed Definitive Healthcare, Advent International is investing in the highly sought after healthcare-data provider, according to three sources. The transaction is valued around $1.7 billion, two sources said, while a third characterized the deal as an equity recapitalization. Spectrum will remain an investor in Definitive Healthcare. Multiple sponsors were engaged in the process, with indications of interest submitted in late May, three of the sources said. Other parties in the mix submitted initial bids around the $1.4 billion region, one source said. Spectrum, with offices in Boston and San Francisco, in March 2015 provided a growth-equity investment in Definitive Healthcare. Led by Founder and CEO Jason Krantz, Definitive Healthcare provides data and healthcare intelligence on hospitals, physicians and other healthcare providers. The company offers insights and comprehensive databases around patient trends, provider and network affiliations, among other things to support strategic decision making. The company serves a diverse customer base consisting of pharmaceutical companies, construction companies, medical device companies, financial services firms, technology vendors, staffing companies, consultants and care providers.
Home Health & Hospice
Deal
Q2
2019
The Ensign Group, Inc. (NASDAQ: ENSG), the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, home health care, hospice care and assisted living companies, announced Wednesday that a subsidiary of Cornerstone Healthcare, Inc., Ensign's home health and hospice portfolio subsidiary, acquired the assets of Preceptor Health Care, which provides home health, hospice, and therapy services in eastern Wisconsin. The acquisition was effective June 1, 2019. "This strategic acquisition allows Cornerstone to partner with Ensign's skilled nursing and senior living facilities in the area," said Christopher Christensen, Ensign's President and Chief Executive Officer. "Providing this full range of services," Christensen continued, "gives us a unique opportunity to improve outcomes and reduce rehospitalization rates for those patients who entrust us with their care."
Revenue Cycle Management
Deal
Q2
2019
Waystar, a leading provider of revenue cycle technology, today announced the acquisition of PARO, a financial assistance predictive analytics solution designed for the healthcare industry. The solution, now offered as a part of Waystar's technology platform, helps hospitals better assess charity care, reduce bad debt and meet community benefit requirements. Nonprofit hospitals are required to make reasonable efforts to determine if patients are eligible for financial assistance before engaging in collections to demonstrate community benefit and maintain their not-for-profit status. The PARO presumptive charity solution automates this process to proactively and consistently identify patients that qualify for charity under a provider's Financial Assistance Policy. In 2018, PARO's technology screened nearly 11 million patient visits and identified more than 3.5 million patient visits as eligible for free or discounted care, thus reclassifying more than 30 percent of what would otherwise be considered bad debt write offs to charitable care. Waystar's acquisition of PARO comes on the heels of a busy year of product expansion. In September of last year, Waystar strengthened its revenue cycle management capabilities with the acquisition of Connance, a leading provider of workflow driven by predictive analytics solutions. Just a month later, the company added enhanced claims monitoring capabilities through its acquisition of the transaction services business from UPMC's Ovation.
Contract Research Organizations, Immunology
Deal
Q2
2019
The recently merged NEOMED-LABS / Pacific Biomarkers (NLPBI), a leading immunology centric service provider specialized in assay development and clinical laboratory testing for vaccines and soluble large molecules, announced today the acquisition of PAIRimmune, Laval, Quebec, a non-GLP preclinical immunology service provider. With a legacy of more than 20 years in the assay development, immunogenicity and efficacy predictive in vitro and in vivo models, PAIRimmune's CEO Danielle Poirier and her team have a solid reputation for outstanding science within the community. Since 2015, they work as a CRO with small Biotech, academic groups and the most prestigious vaccine and large molecule Pharma companies. This acquisition reinforces NLPBI's ability to serve the needs of the health industry from the preclinical stage where this is so critical to develop robust data needed to take informed go/no-go decisions.
Surgical Centers / Facilities and Practices
Deal
Q2
2019
Portneuf Medical Center, Bingham Memorial Hospital and Mountain View Hospital have entered into an unlikely partnership to jointly operate the local Skyline Surgery Center. Blackfoot-based Bingham Memorial helped launch the Pocatello surgery center, located at 285 Vista Drive, six years ago. Officials with PMC say the agreement will provide the first low-cost, out-patient surgery option for their local patients. Bingham Memorial leaders say by partnering with their competitors, they'll be able to expand the surgery center and serve more patients. Mountain View, based in Idaho Falls, is seeking to accommodate strong patient growth in the Pocatello market. Officials with the health care providers said during a Tuesday press conference they finalized a joint venture about a month and a half ago, and they ratified a full partnership with other physicians on May 24.
Medical & Research Laboratories
Deal
Q2
2019
COSTAS,Inc. (OTC: CSSI), announces its acquisition of Atlas Nanotech (formerly known as Nano Creaciones SAPI de CV) in an all-stock transaction that marks the Company's entrance into the multi-billion-dollar global nanomedicine marketplace. The terms of the share exchange agreement include the appointment of new managing officers and a new board of directors, the resignation of COSTA's current officers and board of directors and the retirement of 12,660,000 shares. The principles of Atlas are receiving 25,000,000 shares of CSSI subject to a lock-up agreement with staggered release of shares over a 2-year period. Atlas Nanotech (FKA Nano Creaciones SAPI de CV) is a Guadalajara based high-tech nanotechnology research and development company focused on the field of nanomedicine. The company patents and licenses nanomedicine developments for worldwide distribution. Atlas is focused on bringing to market state-of-the-art products derived from the latest breakthroughs in nanotechnology as it is applied to the medical field.
Medical & Research Laboratories
Deal
Q2
2019
Thermo Fisher Scientific, the world leader in serving science, today announced that it has completed the acquisition of HighChem, Ltd., a leading developer of mass spectrometry software based in Bratislava, Slovakia. HighChem software solutions are used to analyze complex data and identify small molecules in pharmaceutical and metabolomics laboratories. HighChem will be integrated into the chromatography and mass spectrometry business within the Analytical Instruments Segment. Terms of the acquisition were not disclosed.
Business Services
Deal
Q2
2019
GraceHebert Architects announced Wednesday it has acquired Dallas-based Curtis Group Architects, combining the two companies into a single firm. Financial details of the acquisition were not disclosed. The combined company will operate as Grace Hebert Curtis Architects with offices in Baton Rouge, New Orleans, Dallas and Pawleys Island, South Carolina. "This merger stems from a successful multi-year joint venture relationship on a variety of large-scale health care projects," Jerry Hebert, president of the new firm, said in a statement. Curtis Group Architects was established in 1996 and is a full-service architecture, planning and interiors firm that specializes in healthcare architecture and design.
Real Estate Investment Trust
Deal
Q2
2019
Montecito Medical Real Estate has acquired a 38,000-square-foot medical office building and surgery center in Gahanna, a suburb of Columbus, for an undisclosed price. The two-story facility was constructed on a build-to-suit basis for Central Ohio Urology in 2013. The ambulatory surgery center is 27 percent of the rentable area and consists of four procedure rooms and two operating rooms.
Dermatology
Notable Developments
Q2
2019
Pinnacle Dermatology, LLC and Rush University Medical Center have signed an exclusive agreement to collaborate on dermatology care across the Chicago area, including Northwest Indiana. The affiliation agreement includes clinical collaboration and an academic relationship. In addition to the affiliation agreement, Rush has taken a small minority stake in Pinnacle Dermatology. Terms are confidential. "This model affiliation of independent community and academic clinicians offers Chicago-area patients greater access to care and the combined clinical expertise of Pinnacle Dermatology and Rush," said Paula Lapinski, MD, chief medical officer and co-founder of Pinnacle Dermatology. "Together, we will create a seamless, more convenient care experience for our patients, whatever level of dermatology care they require." Pinnacle Dermatology patients with advanced skin diseases, especially certain skin cancers, will have expedited access to consults with and referrals to Rush oncology, otolaryngology and restorative plastic surgery specialists. Patients who require advanced care at Rush will have the option to schedule follow-up care closer to home at one of 18 Pinnacle Dermatology sites, including 15 in Illinois and three in Northwest Indiana. Under the agreement, Pinnacle Dermatology will market dermatology services in the Chicago area in affiliation with Rush. Pinnacle Dermatology physicians who wish to pursue teaching and research opportunities will be eligible for faculty appointments at Rush University.
Notable Developments
Q2
2019
The Department of Veterans Affairs on Thursday will begin allowing a broad section of its nine million enrollees to seek medical care outside of traditional V.A. hospitals, the biggest shift in the American health care system since the passage of the Affordable Care Act nearly a decade ago. While department officials say they are ready, veterans groups and lawmakers on Capitol Hill have expressed concerns about the V.A., which has been dogged for years by problems with its computer systems. They worry that the department is not fully prepared to begin its new policy, which Congress adopted last year to streamline and expand the way veterans get care. Previously, veterans facing a wait of 30 days or more for an appointment at their closest V.A. health care center could seek private care. Under the new policy, that waiting time would be reduced to 20 days, with the goal of 14 days by 2020.
Multi-Specialty and Other Physician's Offices
Notable Developments
Q2
2019
The U.S. Bankruptcy Court in Detroit confirmed Wayne State University Physician Group's Chapter 11 plan of reorganization and approved its emergence from bankruptcy protection on June 3. "This is tremendous news for our patients, providers, staff and the Detroit community," said Charles Shanley, M.D., WSUPG president and chief executive officer since March 2018. "Emergence from bankruptcy protection is a critical milestone in creating a stable future for the faculty of Wayne State School of Medicine supporting its medical education, research, patient care and community service missions. It allows WSUPG to continue its rebirth as a thriving, multispecialty academic group practice providing high-quality medical care for the Detroit community and a superior educational experience for the next generation of physicians." WSUPG filed for Chapter 11 reorganization in November 2018 to stem ongoing financial losses, reorganize, and modernize its financial and business operations and consolidate its expensive and expansive clinical footprint. As part of its reorganization, WSUPG has consolidated its network of outpatient locations to focus on serving the needs of the Detroit community and the WSU School of Medicine. WSUPG is conducting due diligence on a specialized multidisciplinary ambulatory site, ideally located in Detroit's Midtown area.