Healthcare M&A: Glance Back...Look Ahead

In their recently released report, finance firm, Berkery Noyes, sized up healthcare M&A in 2012.  Highlights included:

• 21% increase in transactions (vs. 2011)
• Slight increase in transaction value (5%): $11.36B to $11.96B
• Increase in Healthcare IT segment deals by 11%
• Substantial interest in the mobile application sub-sector  

M&A activity in 2013 is predicted to be robust according to Irving Levin Associates, a research and publishing firm.  Various investment and consulting experts suggest that healthcare acquisition targets will likely include:

• Hospitals
• Physician Practices (by Hospitals)
• Skilled Nursing Facilities
• Small Home Healthcare Companies

Dermatology Associates of Tyler Get a Partner

Candescent Partners, LLC with co-investors Eagle Private Capital and Harbert Mezzanine Partners announced the acquisition of Dermatology Associates of Tyler.  The East Texas-based provider of medical and cosmetic dermatological services currently has four offices, including a pathology lab and surgery center.  Dr. Lawrence Anderson co-founded the business in 1996 and post-transaction will lead a staff of 10 doctors as the practice continues to grow. >>Read more 

DermOne Acquisition Arm Stretches to NC

 Leading dermatology services provider, DermOne Dermatology Centers completed two acquisitions in late 2012.  Formerly known as Accredited Dermatology founded by Dr. Rami Geffner, DermOne features a network of 35 locations.  Another New Jersey location was added with the practice of Dr. Isaac Mordecai, a specialist in medical and cosmetic dermatology.  Additionally, DermOne acquired Atlantic Dermatology of Wilmington, NC under the leadership of Dr. Jonathan Crane.  DermOne CEO, Ron Geraty noted that, 

“...With the acquisition of Atlantic, we are launching our efforts to grow beyond our core markets in New Jersey and Pennsylvania and see this as the first of many steps toward becoming a national company...”  >>Read more

ATI Bridges East & Midwest with Acquisition

The Motion Hand & Physical Therapy moniker changed on October 1 with its acquisition by ATI Physical Therapy.  The 10-clinic practice increases ATI’s office count to 190 and extends their coverage into Ohio.

“We are especially excited about our expansion into Ohio as it will bridge the geographical gap between our Midwest and East Coast divisions.” according to Greg Steil, ATI CEO.

CompHealth Sizes Up Merger Activity

Monday's announcement that Aetna will buy Coventry Health Care underscores the trend in health care consolidation.  CompHealth, a Salt Lake City-based health care staffing firm, offers an interesting visual to illustrate the industry's merger activity based on a 2011 survey.  >>View: Healthy Growth?

Some of the findings for 2012:

• 75% of hospitals and health systems considering merger or acquisition
• 52% of merger deals valued < $50M
• Top reason for deal cancellation:  Culture Incompatibility

Source:  EMR Daily News

Hill-Rom Reaches Outside DME

...Acquires Aspen Surgical
Hill-Rom, a hospital bed and equipment supplier since 1939, enhanced its existing surgical platform with the acquisition of privately-held Aspen Surgical for $400M.  Aspen Surgical is a leader in surgical and specialty medical products including scalpels, operating room disposables and instruments and wound care products.  
Hill-Rom's move should be a positive one as growth of the disposable medical supplies market is anticipated based on aging demographic patterns, extended insurance coverage by Affordable Care Act, and rising incidence of disease and disorders.  The market is forecast to increase 4.3% annually to $47B in 2016.

"With the addition of Aspen Surgical, Hill-Rom is well positioned for growth and geographic expansion in our surgical business, particularly in the safety product segments," said John J. Greisch, President and CEO of Hill-Rom.

Source:  Deanna Pogorelc, MedCity News  >>Read more

Recent M&A Activity on Par with Q2, 2011

The recently published The Health Care M&A Report reveals a busy Q2, 2012.  Preliminary figures indicate that while total acquisition dollars dipped, the absolute number of deals matched that of an active Q2, 2011 ($75B). The health care technology segment accounted for over 60% of the $61B spent on deals from April-June, 2012.  The technology segment includes medical devices, pharmaceuticals, e-Health, biotechnology.  Sectors in the health care services segment include rehabilitation, labs, managed care, physician groups, hospitals, etc.  >>Read more
Source:  Irving Levin Associates