You don't need to be an accountant to realize that healthcare merger and acquisition activity has been adding up in recent months.
However, the latest report on transactions from Irving Levin Associates documents the increase, showing a 21% rise in healthcare deals announced in the first quarter of 1994, which includes a 33% rise in acute-care hospital deals.
For the first quarter, the New Canaan, Conn.-based firm said 123 healthcare mergers and acquisitions were announced. Of those, 28 involved hospitals; four were psychiatric facilities; 11 were rehabilitation facilities; 18 were home-care businesses; 13 were long-term-care facilities; 13 were medical groups; 11 were laboratories, imaging centers or dialysis centers; 10 were HMOs; and 15 fell into the "other" category.
The two biggest transactions were the $1 billion acquisition of Dallas-based Epic Healthcare Group by Healthtrust-The Hospital Co. With that deal, Healthtrust became a 115-hospital chain, the second-largest investor-owned hospital company.
Another large hospital deal announced in the first-quarter was National Medical Enterprises' sale of 46 psychiatric hospitals to Charter Medical Corp., Macon, Ga. Santa Monica, Calif.-based NME is expected to receive about $180 million.
The other mega-deal was the four-way merger of T2 Medical, Curaflex Health Services, HealthInfusion and Medisys into Coram Healthcare Corp.
Although purchase prices aren't disclosed on many of the hospital deals, Irving Levin reported on the following hospital purchase prices:
Clay Memorial Hospital, Green Cove Springs, Fla., for an estimated $500,000 to Vencor, Louisville, Ky.
Cleveland (Texas) Regional Medical Center for $13.1 million to Dynamic Health, Tampa, Fla.
Doctors Hospital, Sarasota, Fla., for an estimated $23 million to Columbia/HCA Healthcare Corp., Louisville.
Medical Center Hospital, Huntsville, Ala., for $55 million to Huntsville Hospital. Columbia/HCA was the seller.
Medical College Hospital of Ohio, Toledo, to The Toledo Hospital. The agreement is for a lease with an option to purchase for $60 million.
North Detroit General Hospital for $2 million to Quality Health Plan, a Detroit-area physician group.
Ojai (Calif.) Valley Community Hospital for $4.1 million to Brim Healthcare, Portland, Ore.
A 50% interest in Rapides Regional Medical Center, Alexandria, La., for $50 million to Columbia/HCA.
Sierra Gateway Hospital, Fresno, Calif., for $4.2 million to Summit Care Corp., Burbank, Calif.
St. Francis Hospital, Memphis, Tenn., for an estimated $100 million to American Medical International, Dallas.
Symmes Hospital, Arlington, Mass., for $4 million to Lahey Clinic/AdvantageHealth, Woburn, Mass.
Winthrop (Mass.) Hospital for $2.4 million to Boston University Medical Center and East Boston Neighborhood Health Center.
Atlantic Shores Hospital, Daytona Beach, Fla., for $4.8 million to Halifax Hospital Medical Center, Daytona Beach. Seller was Ramsay Health Care, New Orleans.