From Jan. 1, 2007 through June 30, 2012 there were a total of 432 recorded transactions in which a buyer targeted a non-profit organization either as a merger partner or an outright acquisition target, according to an Irving Levin Associates report.
The majority of those deals involved the hospital sector, followed in descending order by long-term care, behavioral healthcare, home healthcare, biotechnology and other services.
During the five-and-a-half-year period covered in the report, hospital systems and pharmaceutical products were the targets in the majority of the largest deals that involved the sale of a non-profit healthcare organization or asset, according to the report.
Here are the top nine healthcare transaction deals based on dollar value from Jan. 1, 2007 to June 30, 2012 where a non-profit was targeted:
1. Vanguard Health Systems in Nashville, Tenn., acquired Detroit Medical Center in 2010 for $1.22 billion.
2. Cerberus Capital Management, a private equity firm in New York City, acquired Boston-based Caritas Christi Health Care in 2010 for $830 million before renaming it Steward Health Care System.
3. Royalty Pharma AG in New York City acquired royalty interest in Lyrica, a drug used to relieve neuropathic pain, in 2007 for $700 million from Northwestern University in Evanston, Ill.
4. Royalty Pharma AG acquired royalty interest in Remicade, a biologic drug used to reduce symptoms of rheumatoid arthritis, in 2007 for $650 million from New York University.
5. Ascension Health in St. Louis acquired Alexian Brothers Health System in Arlington Heights, Ill., in 2011 for $645 million.
6. Health Management Associates in Naples, Fla., acquired Mercy Health Partners in Toledo, Ohio, a subsidiary of Catholic Health Partners in Cincinnati in 2011 for $532.4 million.
7. Trinity Health in Novi, Mich., acquired Loyola University Health System in Maywood, Ill., in 2011 for $475 million.
8. Adventist Health Systems in Altamonte Springs, Fla., acquired University Community Health in Tampa Bay, Fla., in 2010 for $355 million.
9. Banner Health in Phoenix acquired Sun Health Corp. in Sun City, Ariz., in 2007 for $316 million.
Correction: An earlier version of this article included 10 healthcare transactions. However, the tenth transaction listed, between Pittsburgh-based Highmark and Pittsburgh-based West Penn Allegheny Health System, is currently under litigation. In addition, the total deal value was incorrect. The West Penn Allegheny Health and Highmark deal would be worth $475 million if it were to finalize.
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The majority of those deals involved the hospital sector, followed in descending order by long-term care, behavioral healthcare, home healthcare, biotechnology and other services.
During the five-and-a-half-year period covered in the report, hospital systems and pharmaceutical products were the targets in the majority of the largest deals that involved the sale of a non-profit healthcare organization or asset, according to the report.
Here are the top nine healthcare transaction deals based on dollar value from Jan. 1, 2007 to June 30, 2012 where a non-profit was targeted:
1. Vanguard Health Systems in Nashville, Tenn., acquired Detroit Medical Center in 2010 for $1.22 billion.
2. Cerberus Capital Management, a private equity firm in New York City, acquired Boston-based Caritas Christi Health Care in 2010 for $830 million before renaming it Steward Health Care System.
3. Royalty Pharma AG in New York City acquired royalty interest in Lyrica, a drug used to relieve neuropathic pain, in 2007 for $700 million from Northwestern University in Evanston, Ill.
4. Royalty Pharma AG acquired royalty interest in Remicade, a biologic drug used to reduce symptoms of rheumatoid arthritis, in 2007 for $650 million from New York University.
5. Ascension Health in St. Louis acquired Alexian Brothers Health System in Arlington Heights, Ill., in 2011 for $645 million.
6. Health Management Associates in Naples, Fla., acquired Mercy Health Partners in Toledo, Ohio, a subsidiary of Catholic Health Partners in Cincinnati in 2011 for $532.4 million.
7. Trinity Health in Novi, Mich., acquired Loyola University Health System in Maywood, Ill., in 2011 for $475 million.
8. Adventist Health Systems in Altamonte Springs, Fla., acquired University Community Health in Tampa Bay, Fla., in 2010 for $355 million.
9. Banner Health in Phoenix acquired Sun Health Corp. in Sun City, Ariz., in 2007 for $316 million.
Correction: An earlier version of this article included 10 healthcare transactions. However, the tenth transaction listed, between Pittsburgh-based Highmark and Pittsburgh-based West Penn Allegheny Health System, is currently under litigation. In addition, the total deal value was incorrect. The West Penn Allegheny Health and Highmark deal would be worth $475 million if it were to finalize.
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