Among the top 38 buyers in 2010 healthcare M&A, 37 spent $1 billion or more on either single or multiple deals , according to Irving Levine Associates.. The combined 124 deals of these 37 companies were worth $120.7 billion. From Jan. 2010 to Nov. 2010, a total of 118 buyers announced two or more mergers or acquisitions in the healthcare industry, which accounted for 378 deals all together.
The top ten buyers of the year were all pharmaceutical companies, which also accounted for half of the 38 buyers listed, according to ILA. Sanofi-Aventis, an international pharmaceutical company, topped the list with its 12 deals totaling $22.4 billion. Other top buyers include Merck, Abbott Laboratories, Teva Pharmaceutical and The Carlyle Group — which spent $24.3 billion on 13 deals combined.
The following hospital companies were among the 38 top buyers in 2010 healthcare M&A:
Universal Health Services — $2.9 billion — 1 deal
King of Prussia, Penn.-based Universal acquired Psychiatric Solutions, the largest operator of owned or leased freestanding psychiatric inpatient facilities with more than 11,000 beds in 32 states, Puerto Rico and the U.S. Virgin Islands.
Vanguard Health — $1.3 billion — 2 deals
Nashville, Tenn.-based Vanguard acquired Detroit Medical Center. It also acquired West Suburban Medical Center in Oak Park, Ill., and West Lake Hospital in Melrose Park, Ill.
In Nov. 2010 alone, the hospital industry saw five deals for a combined price of $188,250,000. There were nine deals between physician medical groups with a combined price of $50 million, along with six deals between long-term care facilities rounding out to $27.95 million.
The following recent hospital transactions were mentioned in the report:
- Prime Healthcare Acquires Alvarado Hospital in San Diego
Victorville, Calif.-based Prime Healthcare Services acquired Alvarado Hospital in San Diego. Prime acquired Alvarado from Plymouth Health, a privately held, Los-Angeles-based company that owned and operated the hospital since Jan. 2007. No purchase price was disclosed.
- MedCath Completes Sale of Texsan Heart Hospital to San Antonio Health System
Charlotte, N.C.-based MedCath Corporation completed the sale of the assets of Texsan Heart Hospital in San Antonio to Methodist Healthcare System, also in San Antonio. The transaction was announced in Nov. 2010 and officially completed Dec. 31, 2010. Under terms of the transaction, MedCath sold substantially all of the assets of Texsan Heart Hospital for a purchase price equal to approximately $78.5 million, plus retention of working capital.
- North Country Health Services to Merge with Sanford Health System
North Country Health Services in Bemidji, Minn., and Sanford Health in Fargo, N.D. and Sioux Falls, S.D., announced plans to merge. Non-profit Sanford Health has 30 hospitals and more than 18,000 employees — the largest employer in North and South Dakota. NCHS is an acute-care hospital with approximately 80 beds.
Learn more about Irving Levine Associates.
Read more about 2010 and hospital M&A:
-This Week in Transactions: Dec. 31 - Jan. 7
- 3 Questions to Ask Before Merging or Selling Your Hospital
- 4 Things to Consider Before Putting Your Hospital on the Market
The top ten buyers of the year were all pharmaceutical companies, which also accounted for half of the 38 buyers listed, according to ILA. Sanofi-Aventis, an international pharmaceutical company, topped the list with its 12 deals totaling $22.4 billion. Other top buyers include Merck, Abbott Laboratories, Teva Pharmaceutical and The Carlyle Group — which spent $24.3 billion on 13 deals combined.
The following hospital companies were among the 38 top buyers in 2010 healthcare M&A:
Universal Health Services — $2.9 billion — 1 deal
King of Prussia, Penn.-based Universal acquired Psychiatric Solutions, the largest operator of owned or leased freestanding psychiatric inpatient facilities with more than 11,000 beds in 32 states, Puerto Rico and the U.S. Virgin Islands.
Vanguard Health — $1.3 billion — 2 deals
Nashville, Tenn.-based Vanguard acquired Detroit Medical Center. It also acquired West Suburban Medical Center in Oak Park, Ill., and West Lake Hospital in Melrose Park, Ill.
In Nov. 2010 alone, the hospital industry saw five deals for a combined price of $188,250,000. There were nine deals between physician medical groups with a combined price of $50 million, along with six deals between long-term care facilities rounding out to $27.95 million.
The following recent hospital transactions were mentioned in the report:
- Prime Healthcare Acquires Alvarado Hospital in San Diego
Victorville, Calif.-based Prime Healthcare Services acquired Alvarado Hospital in San Diego. Prime acquired Alvarado from Plymouth Health, a privately held, Los-Angeles-based company that owned and operated the hospital since Jan. 2007. No purchase price was disclosed.
- MedCath Completes Sale of Texsan Heart Hospital to San Antonio Health System
Charlotte, N.C.-based MedCath Corporation completed the sale of the assets of Texsan Heart Hospital in San Antonio to Methodist Healthcare System, also in San Antonio. The transaction was announced in Nov. 2010 and officially completed Dec. 31, 2010. Under terms of the transaction, MedCath sold substantially all of the assets of Texsan Heart Hospital for a purchase price equal to approximately $78.5 million, plus retention of working capital.
- North Country Health Services to Merge with Sanford Health System
North Country Health Services in Bemidji, Minn., and Sanford Health in Fargo, N.D. and Sioux Falls, S.D., announced plans to merge. Non-profit Sanford Health has 30 hospitals and more than 18,000 employees — the largest employer in North and South Dakota. NCHS is an acute-care hospital with approximately 80 beds.
Learn more about Irving Levine Associates.
Read more about 2010 and hospital M&A:
-This Week in Transactions: Dec. 31 - Jan. 7
- 3 Questions to Ask Before Merging or Selling Your Hospital
- 4 Things to Consider Before Putting Your Hospital on the Market