 |
|
|
|
| Healthcare Provider Post-COVID-19 Strategies |
| Q2 2020 Healthcare Capital Markets Report |
|
|
|
|
M&A Activity Expected to Surge as Independent
Health Systems Look for Partners
|
|
|
A recent report estimated approximately 27% of health systems had used over 50% of their reserves by mid-June. While this was largely driven by the decrease in elective procedures amid the COVID-19 pandemic, one likely effect will be a surge in merger and acquisition activity. The second quarter 2020 M&A transaction volume fell to a 5-year low as health systems focused on managing financial and operational challenges caused by the pandemic. The increase in activity as we move into 2021 will be led by independent health systems seeking to secure partnerships as part of their post-COVID-19 recovery plans.
|
|
|---|
|
|
|
July 2020 M&A Spotlight: Wyoming Medical Center
Acquired
|
|
|
Commentary by: Eric Murphy, Managing Director, Global Healthcare Services
On July 14, 2020, Banner Health acquired Wyoming Medical Center for $157 million. The medical center, located in Casper, WY, specializes in radiology, intensive care, pediatrics and neuro care.
|
|
|---|
|
|
|
Five No-Regret Strategies Health Systems are
Employing for Sustainable Results
|
|
$472M+ in MOB Transactions Closed in July 2020
|
|
|
Forty-eight medical office building transactions closed in July, totaling over $472 million and 1.790 million square feet. California had the most medical office building transactions with 9 (18.8% of total), followed by Georgia and Florida with 4 each (8.3% of total). The average deal size was $11 million. The largest transaction was the acquisition of the 219,000-square-foot Mercy Wellness Center by Mercy in Oklahoma for $106.5 million.
|
|
|---|
|
|
|
|
|
|
|
Todd Perman, CCIM
Vice Chairman
Global Healthcare Services
404.806.2511
212.850.5453
|
Global Healthcare Services
Newmark Knight Frank
3424 Peachtree Road
Suite 800
Atlanta, GA 30326
|
|
|---|
|
|
All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark Knight Frank has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark Knight Frank. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark Knight Frank, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.
|
|
|
|
|
|
