Overall, the number of mergers and acquisitions remained consistent in 2019 compared to 2018. However, M&A is becoming more strategic in nature rather than just financially driven. We are seeing more partnerships where hospitals are looking to grow in a certain specialty, or one system has a health plan and the other is strong in value-based care. The trend to look for in the coming years is how the mergers are complementary and benefit both parties.
For independent entrepreneurial-minded physicians that want to scale their practice, finding balance between practicing medicine and "running your business" takes an intentional effort. It's essential to understand where your practice stands, where you want the practice to go, how you will get there, and the team you need to assemble to execute.
106 medical office building transactions closed in December, totaling over $1.4 billion or 5.026 million square feet. California had the most medical office building transactions with 16 (15.1% of total), followed by Texas with 11 sales (10.4% of total). The average deal size was $16 million.
December 2019 M&A Spotlight: Saint Francis Hospital Acquired
Written by: Eric Murphy, Managing Director, Global Healthcare Services
Methodist Le Bonheur reached an agreement to acquire Saint Francis - Hospital and Saint Francis Hospital - Bartlett from Tenet Healthcare. Both the hospitals, associated physician groups, and six MedPost urgent care centers are included in the purchase.
