Healthcare Market Monitor
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Mergers & Acquisitions Capital Raise Strategic Advisory Healthcare Market Monitor Q2 2021 CTIVITY Q2 2021 M&A A Mergers & Acquisitions Capital Raise Strategic Advisory Highlights Total M&A Volume: Q2 2020 vs. Q2 2021 ▪ In Q2 2021, total Healthcare M&A volume was up 94.5% compared to Q2 1,200 nd 2020. YTD volume through the 2 quarter isalso up 80.2%. 1,020 M &A Volume 1,000 ▪ Large sales in the senior / assisted living, hospitals and eHealth segments helped drive the aggregate deal value to increase 93.9% in Q2 2021 over Q1 800 2021, reaching$110B. 566 Notable ▪ Deal volume throughout the sector is being driven by capital availability, 600 494 Transactions regulatory shifts, evolving competitive dynamics, promising technologies and commitments to patient-centricity. Additionally, the Biden 400 administration has been pushing for government-backed health coverage 254 further attractinginvestors. 200 Public Indexes - Q2 2020 Q2 2021 YTD Q2 2020 YTD Q2 2020 M&A Volume by Segment: Q2 2020 vs. Q2 2021 HCA Overview 120 Q2 2020 107 100 Q2 2021 100 88 Services 80 70 60 55 60 50 40 35 32 E xperience 26 23 21 15 20 11 10 11 11 13 5 5 0 Behavioral eHealth Home Health / Hospitals Labs / Managed Care Other Services Physician Post-acute Senior / Assisted C ontact Us Health Care Hospice Diagnostics Medical Groups Care/Rehab Living Source: CapitalIQ, Healthcare M&A News 2 ELECT OTABLE CTIVITY S , N M&A A Mergers & Acquisitions Capital Raise Strategic Advisory $ in millions Announced Transaction Date Category Target Acquirer/Investor Short Description Value Provides services including radiology, ultrasounds, primary care, Jul-21 Labs & Diagnostics DNF Medical Centers Cardona Medical Center, Inc. $109.4 laboratory tests and more M &A Volume Substantially all of the Assets and certain Jul-21 Other Services Cano Health, LLC Operates medical centers that provide primary care services $300.0 Liabilities of Doctors Medical Center, LLC Offers home hospitalization programs to manage episodic risk Jun-21 Home Health Care Contessa Health, Inc. Amedisys, Inc. $250.0 initiatives Notable Transactions Provides outsourced healthcare services to hospitals and healthcare Jun-21 Labs & Diagnostics Alliance Healthcare Services, Inc. Akumin Corp. $820.0 providers Jun-21 Hospitals Five General Acute Hospitals in South Florida Medical Properties Trust, Inc. Operates five acute care hospitals in Florida $900.0 Public Indexes Offers a patient engagement platform that prompts proactive Jun-21 ehealth Twistle, Inc. Health Catalyst, Inc. $169.8 conversations with patients Jun-21 Hospitals 5 hospitals of Tenet Healthcare Corporation Steward Health Care System LLC Operates five hospitals $1,100.0 HCA Overview Develops and operates hospitals that treat mental illness and Jun-21 Hospitals Springstone, Inc. Medical Properties Trust, Inc. $950.0 substance abuse Jun-21 ehealth CIOX Health Datavant, Inc. Facilitates and manages the movement of health information $7,000.0 Services Harrison Street Real Estate Operates 24 senior housing facilities which focus on assisted living and Jun-21 Senior / Assisted Living 24 Class A Senior Housing Properties Portfolio $1,200.0 Capital, LLC memory care Jun-21 Other Services 14-property medical office portfolio Healthpeak Properties, Inc. Comprises of 14 medical offices $371.0 E xperience Provides technology solutions that help healthcare providers reduce Jun-21 ehealth Sentry Data Systems, Inc. Craneware plc $400.0 care costs, manage compliance and improve outcomes Jun-21 Labs & Diagnostics Intrinsic Imaging LLC WCG Clinical, Inc. Operates a medical imaging core lab $92.1 C ontact Us May-21 Hospitals Redmond Park Hospital, LLC AdventHealth Provides inpatient and outpatient programs in Georgia and Alabama $635.0 Source: CapitalIQ, Healthcare M&A News 3 ELECT OTABLE CTIVITY CONT S , N M&A A ( .) Mergers & Acquisitions Capital Raise Strategic Advisory $ in millions Announced Transaction Date Category Target Acquirer/Investor Short Description Value May-21 ehealth OODA Health, Inc. Cedar Cares, Inc. Provides payment administration to the healthcare sector $425.0 M &A Volume Computer Programs and May-21 ehealth TruCode, LLC Designs and develops medical coding software $77.5 Systems, Inc. May-21 Senior / Assisted Living All Assets of Henry Ford Village, Inc. Sage Healthcare Partners Operates a senior living community $76.3 Notable Eastside Medical Center/Cartersville Medical Transactions May-21 Other Services Center/Coliseum Health System/Coliseum Piedmont Healthcare, Inc. Operates acute care medical centers $950.0 Center Develops an online patient revenue platform for patients to manage May-21 ehealth VisitPay LLC R1 RCM Inc. $298.0 their own account Public Indexes Apr-21 Senior / Assisted Living Sonata Senior Living Portfolio Fortress Investment Group LLC Comprises of senior living properties $64.0 Offers long-term acute care hospitals and inpatient rehabilitation Apr-21 Hospitals Kindred Healthcare, LLC Humana Inc. $5,700.0 facilities HCA Overview Apr-21 Labs & Diagnostics Round Hill Health Partners LLC Maitri Health Technologies Corp. Offers labs and testing solutions $71.5 Apr-21 ehealth PeriGen, Inc. Halma plc Designs and develops perinatal and fetal monitoring software solutions $58.0 Services Apr-21 Hospitals Lake Health Beachwood Medical Center Montecito Medical Operates an acute care hospital $58.3 Operates as a telemedicine provider that connects doctors with Apr-21 ehealth PlushCare, Inc. Accolade, Inc. $435.0 patients Texas Medicaid and Medicare-Medicaid Plan E xperience Comprises Medicaid and Medicare programs and insurance and Apr-21 Managed Care (MMP) Contracts and Certain Operating Assets Molina Healthcare, Inc. $60.0 related products of Cigna Apr-21 Labs & Diagnostics Seven plasma centers in the U.S. Grifols, S.A. Operates seven plasma donation centers $55.2 C ontact Us Operates as a senior home care company that connects professional Apr-21 Home Health Care SH Franchising, LLC Advocate Aurora Enterprises $187.0 caregivers with seniors who wish to live at home Source: CapitalIQ, Healthcare M&A News 4 EAL POTLIGHT IFE OINT EALTH TO CQUIRE INDRED EALTHCARE D S : L P H A K H Mergers & Acquisitions Capital Raise Strategic Advisory ▪ Announced June 2021 ▪ LifePoint Health and Kindred Healthcare announced that they have entered into a definitive merger agreement under which Transaction LifePoint willacquire KindredHealthcare. M &A Volume Overview ▪ LifePoint Health provides healthcareservices in growingregions, rural communities andsmalltowns. ▪ Kindred Healthcare is a post-acute healthcare services company that operates long-term acute-care hospitals and provides services across the UnitedStates. Notable Transactions ▪ The combination of LifePoint Health and Kindred Healthcare creates a leading community healthcare platform and benefits from a full array of complementary services Transaction supporting patients across the healthcare continuum; standardized care at the bedside that advances clinical, quality and compliance excellence; opportunities to develop and Announced Considerations Public Indexes expand critical behavioral health services across the country; and investments in June 2021 services and technology for patients in newand existingmarkets. ▪ LifePoint expects that the transaction between two companies offering complementary services will improve healthcare outcomes and access without increasing costs for patients. HCA Overview ▪ LifePoint isset to invest $1.5 billionover threeyears across the combinedorganization. ▪ The purchase adds 62 long-term acute care facilities, 25 inpatient rehabilitation Data Points facilities, more than 100 acute rehabilitation facilities and 2 behavioral facilities to LifePoint. to be acquired by Services ▪ The resulting organizationwill staff roughly77,000 employees across the United States. ▪ “Adding Kindred Healthcare to LifePoint is one of the most significant demonstrations, in our company’s history, of LifePoint’s commitment to our deeply rooted mission of E xperience Making Communities Healthier. Kindred’s focus on healing and hope, provided through Other Details its long-term acute care hospitals, rehabilitation centers and most recently its behavioral health services – an important and growing need across the country – is highly complementary to the current LifePoint network”, said David Dill, president and chief C ontact Us executive officer of LifePoint. Source: Company press releases, S&P CapitalIQ, Reuters 5 EAL POTLIGHT UMANA TO CQUIRE INDRED AT OME D S : H A K H Mergers & Acquisitions Capital Raise Strategic Advisory ▪ Announced April2021 ▪ Humana (NYSE:HUM) and Kindred at Home announced that they have entered into a definitive merger agreement under which Transaction Humana will acquire the remainingstake in Kindred atHome. M &A Volume Overview ▪ Humana is a for-profit health insurance company based in Kentuckyand rated as the third largest health insurance company in the nation. ▪ Kindred at Home is one of the nation’s largest providers of home care services. Over the last 50 years their care has grown to 775 locations across 40 states. Notable Transactions ▪ Humana isdeepening its investment in becoming a care provider as well as a payer, with a particular focuson the quickly growingadult population in the UnitedStates. Transaction ▪ Senior living providers may interpret the Kindred at Home transaction as further proof that large insures are looking to own more of the care continuum, in order to better Announced Considerations Public Indexes control costs and outcomesfor