Sixteen hospital mergers and acquisitions were posted in the third quarter of 2011, nine fewer than the same quarter in 2010, according to Levin Associates' Healthcare M&A Monthly report.
The number of Q3 deals was 48 percent less than last quarter's 31 deals, according to the report.
The largest deal of the quarter was the joint venture between LHP Hospital Group and Sacred Heart Health System, which are teaming up to acquire Bay Medical Center in Panama City, Fla. The transaction is currently valued at $155 million.
The second largest deal with a revealed price is between Chesterfield, Mo.-based Mercy and Logan Medical Center, a 25-bed hospital in Guthrie, Okla. The acquisition is valued at $7.2 million — a price to revenue multiple of 32x and corresponding price to EBITDA multiple of 7.2x.
Overall, there were 217 transactions in the healthcare industry (including hospital transactions) in Q3 with a combined value of $58.4 billion. Levin analysts say the fundamental factors driving healthcare M&A remain in place and that the market "has a bright future," according to the report.
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The number of Q3 deals was 48 percent less than last quarter's 31 deals, according to the report.
The largest deal of the quarter was the joint venture between LHP Hospital Group and Sacred Heart Health System, which are teaming up to acquire Bay Medical Center in Panama City, Fla. The transaction is currently valued at $155 million.
The second largest deal with a revealed price is between Chesterfield, Mo.-based Mercy and Logan Medical Center, a 25-bed hospital in Guthrie, Okla. The acquisition is valued at $7.2 million — a price to revenue multiple of 32x and corresponding price to EBITDA multiple of 7.2x.
Overall, there were 217 transactions in the healthcare industry (including hospital transactions) in Q3 with a combined value of $58.4 billion. Levin analysts say the fundamental factors driving healthcare M&A remain in place and that the market "has a bright future," according to the report.
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