Healthcare Valuation Blog

On October 12, American Renal Associates announced it was was being acquired by an affiliate of private equity firm Nautic Partners for...

On September 29th, Providence Service Corporation announced it was purchasing Simplura Health Group for $575m. According to the press...

Non-profit health systems are increasingly interested in making minority investments in other NFPs within their service area as a means...

In what we believe is the first stand-alone ACO acquisition with a publicly-disclosed purchase price, HealthLynked Corp has purchased...

Unsurprisingly, within the broader healthcare services industry, trade names have the most value within retail-oriented segments like...

Occasionally we'll hear a selling owner of an ambulatory surgery center cite valuations of publicly-traded companies or multiples from recent M&A activity involving large national operators like Surgical Care Affiliates, AmSurg, or Covenant Surgical Partners as support for a 10-12x multiple in a deal for a single facility. While these valuations are not completely unheard of, they're definitely the exception rather than the rule. For example, a newer facility in a great marke

We ranked the 30 largest healthcare services and information technology deals of 2018, according to our database, by valuation multiple. The lowest reported price to EBITDA multiples (10x or lower, sorted alphabetically) are listed below. Aurora Diagnostics: Sonic Healthcare Limited announced it entered into an agreement to acquire Aurora Diagnostics, one of the leading providers of anatomical pathology services in the U.S., in December. Aurora is a frequent acquirer of hosp

We ranked the 30 largest healthcare services and information technology deals of 2018, according to our database, by valuation multiple....

For those of you who’ve been involved in a transaction where the only asset transferred is a certificate of need, you’ve probably found...

On Monday, December 3, 2018, the Department of Health and Human Services (HHS) – in collaboration with the Departments of the Treasury and Labor, the Federal Trade Commission, and several offices within the White House – released a report detailing recommendations for improving choice and competition in the healthcare industry. The report identifies areas where the Administration believes federal and state rules restrict choice and competition. It also identifies actions the

One of the questions we get asked a lot is how valuations have changed over time. While we usually answer this question with only anecdotal evidence, here we’ve tried to answer it with data. There are a couple of issues with doing this type of analysis: Finding a large enough sample for each year Ensuring the relative comparability of the sample used from year to year Where possible, adjusting for other key factors that influence the valuation multiples, such as size In or

One of the many benefits of tracking healthcare transactions closely and maintaining a very large database of deals where we can get reliable price to EBITDA and revenue multiples is that it provides insight into profit margins for segments where other financial benchmarking information is sparse. Starting with this sample of healthcare transactions where financial terms were disclosed publicly, we eliminated general acute care hospitals and physician practices since they ty

The most important component of a valuation of an accountable care organization (or other multi-provider network that relies on risk-based shared savings models) is the revenue forecast, which involves “probability-adjusting” future shared savings payments in some manner. Under the Medicare Shared Savings Program (MSSP), an ACO that meets its minimum savings rate (MSR) is entitled to a percentage of the total savings below its financial benchmark, which typically amounts to

CMS' offers a helpful online tool that shows provider market saturation levels at the national-, state-, and county-levels for the following health services: Ambulance (Emergency, Non-Emergency, Emergency & Non-Emergency) Cardiac Rehabilitation Programs Chiropractic Services Clinical Laboratory (Billing Independently) Federally Qualified Health Centers Home Health Independent Diagnostic Testing Facilities (Part A and Part B) Hospice Long-Term Care Hospitals Ophthal

Earlier this year, radiation therapy provider SightLine Health reached a $11.5m settlement with the DOJ in a lawsuit alleging it knowingly violated the federal physician self-referral and anti-kickback laws. Financial Arrangement According to the complaint, SightLine’s operating model was to build a radiation therapy center in a new market, and “syndicate” ownership of the center among referring physicians (primarily urologists). Sightline would keep 20% ownership of the JV