Blog and News

Article commentary by: Eric Murphy, Managing Director, Global Healthcare Services

New Generation Health has acquired Genesis Healthcare's real estate and operations of six skilled nursing facilities located in California, Nevada and Washington.

  • Headquarters: Pennsylvania

  • Number of Beds: N/A

  • Industry: Clinics/Outpatient

  • Services: Long Term Acute Care

  • Acquired By: New Generation Health

  • Acquisition Announced: February 1, 2020

  • Type: Acquisition

  • Deal Amount: Undisclosed Amount

temp-post-image

Source: PitchBook Data, Inc., Newmark Knight Frank
M&A Deals represent Hospital/Inpatient Services and Clinics/Outpatient Services transactions

Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Fifty-eight medical office building transactions closed in February, totaling more than $463 million and 2.18 million square feet. California had the most medical office building transactions with nine sales (15.5% of total), followed by Texas with seven sales (12.1% of total). The average deal size was $10.7 million. The largest transaction was the only portfolio transaction of the month: Urban Edge acquired Kingswood Plaza II, a 109,623 square foot building for $76 million. The largest single property transaction was ShareMD’s acquisition of an approximately 490,000 square foot facility in Florida ...

Read more

Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Fifty-one medical office building transactions closed in January, totaling over $371 million and 1.64 million square feet. Texas had the most medical office building transactions with 8 (15.7% of total), followed by California with 7 sales (13.7% of total). The average deal size was $9.5 million at $321 per square foot. The largest single property transaction was Crescent Heights’s $54.25 million acquisition of the Wilshire Center Building, followed by the Taj Mahal Medical Center’s $42 million acquisition by Healthcare Realty Trust. There were 11 portfolio transactions; Welltower’s acquisi...

Read more

Article commentary by: Jay Miele, Senior Managing Director, Global Healthcare Services

A recent article in Accounting Today highlighted the magnitude of balance sheet impact that the lease accounting changes (codified in ASC 842) are having on companies’ balance sheets. Chief among the myriad of changes is the capitalization of operating leases longer than one year on the balance sheet as lease liabilities. Previously, only finance leases (formerly termed capital leases) were reflected on the balance sheet. In the healthcare industry, the average lease liability increased 1,817% as a result of the change. This impact, together with the complicated and arduous implementation process of...

Read more

Article commentary by: Eric Murphy, Managing Director, Global Healthcare Services

VillageMD acquired Summit Medical Group Arizona, a subsidiary of Summit Health Management. The group provides specialized surgical solutions including breast surgery, neurology, internal medicine and related general surgery options.

  • Headquarters: Glendale, AZ

  • Number of Beds: Not Provided

  • Industry: Hospital/Inpatient Services

  • Services: Specialized surgical solutions

  • Acquired By: VillageMD

  • Acquisition Announced: January 30, 2020

  • Type: M&A

  • Deal Amount: Undisclosed Amount

temp-post-image

Source: PitchBook Data, Inc., Newmark Knight Frank
M&A Deals represent Hospital/Inpatient Services and Clinics/Outpatient Services transactions

Article commentary by: Chris Gordon, Senior Managing Director, Global Healthcare Services

A recent survey shows a growing trend of fear and concern amongst healthcare CFOs related to the cost of care versus the tightening revenue model for reimbursement of treatment. Organizations are being forced to recreate themselves and look for more progressive models to implement digital and ambulatory care while at the same time decreasing their cost of delivery models. To fuel this investment, providers are turning more and more to specialty financing and having greater scrutiny on their fixed asset costs, especially their real estate, and whether or not or how to build new facilities.

Report written ...

Read more

Article commentary by: Chris Witcher, CCIM, Associate Director, Global Healthcare Services

For independent entrepreneurial-minded physicians that want to scale their practice, finding balance between practicing medicine and “running your business” takes an intentional effort. It's essential to understand where your practice stands, where you want the practice to go, how you will get there, and the team you need to assemble to execute.

Article written by: David Burch, Medical Economics, January 23, 2020

Most people struggle to balance a single full-time job, but what if that single job carried the weight of two, three, or even four careers all at once? Would it even be possible?

Just...

Read more

Article commentary by: Eric Murphy, Managing Director, Global Healthcare Services

Overall, the number of mergers and acquisitions remained consistent in 2019 compared to 2018. However, M&A is becoming more strategic in nature rather than just financially driven. We are seeing more partnerships where hospitals are looking to grow in a certain specialty, or one system has a health plan and the other is strong in value-based care. The trend to look for in the coming years is how the mergers are complementary and benefit both parties.

Article written by: Susan Morse, Healthcare Finance, January 23, 2020

In 2020, the hospital-to-hospital merger or partnership is about complementary resources - one ...

Read more

Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

106 medical office building transactions closed in December, totaling over $1.4 billion or 5.026 million square feet. California had the most medical office building transactions with 16 (15.1% of total), followed by Texas with 11 sales (10.4% of total). The average deal size was $16 million. Welltower’s $786 million acquisition of a Hammes Partners 29-building portfolio was the largest portfolio transaction; Westbrook Partners $33.9 million acquisition in San Diego was the largest single property transaction during the month, according to Real Capital Analytics.

temp-post-image

Source: Real Capital Analytics, as of ...

Read more

Article commentary by: Eric Murphy, Managing Director, Global Healthcare Services

Methodist Le Bonheur reached an agreement to acquire Saint Francis – Hospital and Saint Francis Hospital – Bartlett from Tenet Healthcare. Both the hospitals, associated physician groups, and six MedPost urgent care centers are included in the purchase.

  • Headquarters: Memphis, TN

  • Number of Beds: Not Provided

  • Industry: Hospital/Inpatient Services

  • Services: Community medical services including heart and vascular, orthopedic and women’s care

  • Acquired By: Methodist Le Bonheur Healthcare

  • Acquisition Announced: December 13, 2019

  • Type: M&A

  • Deal Amount: Undisclosed Amount

temp-post-image

Source: PitchBook Data, Inc., Newmark...

Read more

Download Our
Brochure

Sign Up for Our Newsletter

2019 Healthcare Real Estate Outlook