Behavioral health has been of one of the most active sectors in the healthcare transaction marketplace in recent years. Driven by plentiful investment capital, regulatory changes, the opioid crisis, public recognition of the need for mental healthcare and broader coverage from payors, the industry has seen numerous companies pursue consolidation strategies. A common trend that has emerged in the behavioral health industry involves the proliferation of joint ventures between non-profit health systems and for-profit companies to operate full service behavioral health hospitals.
LifePoint Health has signed a definitive agreement to acquire Kindred Healthcare, the for-profit health systems announced Monday. The transaction would create a massive national health system that combines LifePoint’s 87 hospitals with Kindred’s vast post-acute footprint. In addition to the transaction, LifePoint plans to invest $1.5 billion in the new entity over the next three years, the organizations said in a news release. LifePoint has hospitals in 29 states as well as more than 50 affiliated post-acute providers and 35 outpatient facilities. Kindred operates 62 long-term care hospitals, 25 inpatient rehabilitation facilities, more than 100 acute rehabilitation facilities and two behavioral health centers.
Select Medical Corporation (NYSE: SEM) today announced that it has entered into a series of transactions that will result in the company operating seven new critical illness recovery hospitals, licensed as long-term acute care, and eight new outpatient clinics through acquisitions and new joint venture partnerships. Select Medical has signed definitive agreements to acquire Acuity Healthcare, which owns and operates four long-term acute care hospitals and one satellite serving regions in New Jersey and West Virginia. Select Medical and Northwest Healthcare, a subsidiary of Community Health Systems, have signed a joint venture partnership to acquire Curahealth Tucson, a 47-bed long-term acute care hospital.
Seven months after signing a letter of intent to explore a possible acquisition, Beth Israel Lahey Health says it has forged a definitive agreement to acquire Joslin Diabetes Center. The deal, which will require regulatory approval from multiple state agencies and likely federal authorities, extends a clinical affiliation that Beth Israel Deaconess Medical Center (BILH) has had with Joslin for several decades. It also continues a trend in which specialty hospitals are being acquired by larger state systems. The merger would bring 50 physicians and 500 Joslin employees into the BILH network, which already boasts 4,900 physicians and 36,000 employees.
Franklin, Tenn.-based American Health Partners has agreed to become a subsidiary of the Mitchell Family Office, an investment firm that concentrates on the health care sector. American Health Care Partners provides a range of senior care services across nine states, including hospice. American Health Partners is currently privately owned. In addition to hospice, the company operates senior living, skilled nursing and rehabilitation facilities, home health, pharmacy and medical staffing businesses as well as psychiatric hospitals.
CMS wants to boost Medicare payments for inpatient rehabilitation facilities by 2.2% and inpatient psychiatric facilities by 2.3% next year, the agency said Wednesday. According to CMS, the changes would increase federal spending on inpatient rehab by $160 million compared to 2021. Likewise, federal spending on inpatient psychiatric facilities would go up by about $90 million. Regulators plan to require inpatient rehabilitation and psychiatric facilities to report COVID-19 vaccine coverage among their healthcare personnel.
Welsh, Carson, Anderson & Stowe is evaluating the sale of SpringStone, a network of behavioral healthcare hospitals it backed and founded over a decade ago, according to four sources with knowledge of the matter. The timing of a prospective sale comes as more individuals seek mental health services as a result of the pandemic, driving a massive need for more psychiatric hospitals.
To strengthen behavioral health services in Solano County, Adventist Health Vallejo, which has served as the county’s behavioral treatment center of choice for nearly 25 years, announced Tuesday it has signed a definitive agreement to sell the hospital and its behavioral health services to Acadia Healthcare (NASDAQ: ACHC), a leading provider of behavioral healthcare in the United States. Adventist Health Vallejo, a 61-bed psychiatric hospital that is operated as a service of Adventist Health St. Helena, provides inpatient and outpatient care.
Beth Israel Lahey Health has signed a letter of intent with Joslin Diabetes Center to explore acquiring the specialty diabetes hospital. In a release, both hospitals said the agreement is the first step toward a definitive agreement that would bring Joslin into BILH permanently, extending a clinical affiliation that Beth Israel Deaconess Medical Center has had with Joslin for several decades. Many speciality institutions have signed onto larger networks in recent years. Mass. Eye and Ear was acquired by Mass General Brigham (formerly known as Partners HealthCare) in 2018. In addition, New England Baptist, which specializes in orthopedics, was brought on as part of Beth Israel Lahey Health when the broader network was formed in 2019.
A local health-care management company has sold its controlling stake in Bakersfield Heart Hospital to a Tennessee-based group, the 47-bed facility announced Friday. According to a news release, Surgery Partners Inc. bought a majority interest in the medical center from Hospital Management Group. Terms of the deal were not disclosed. Surgery Partners, founded in 2004, owns and operates surgical hospitals, ambulatory surgery centers and physician practices. The company has more than 180 locations across 30 states.
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