The digital health and post-acute sectors announced major deals as a lawsuit in Pennsylvania raises questions about another.
Here's a look at the top healthcare deals this week.
VitalHub acquires care navigation software company
VitalHub, a Toronto-headquartered company offering software for care coordination, case management and other services, announced the acquisition of care navigation technology provider Strata Health. VitalHub paid approximately $13.4 million in cash and $9.9 million in stock in up-front consideration, plus possible performance-based consideration, according to a news release. The deal will enable VitalHub to expand into the electronic referral market, the companies said.
Related: General Catalyst to invest $1B into healthcare companies
PE firm to acquire AdvancedMD for $1.1B
Private equity firm Francisco Partners said Wednesday it planned to acquire medical software company, AdvancedMD for $1.12 billion, according to a Securities and Exchange Commission filing from payment technology company Global Payments, which acquired AdvancedMD in September 2018. The deal is expected to close by the end of the year.
CareTrust REIT buys 31 nursing homes
CareTrust REIT and a joint venture partner inked a $500 million deal to buy 31 skilled nursing facilities in Tennessee and Alabama from American Health Partners in Franklin, Tennessee, the company announced Tuesday.
The San Clemente, California-based real estate investment trust said in a news release the acquisition will include 3,290 licensed beds across 30 locations in Tennessee and one in Alabama. CareTrust expects the transaction to close in the fourth quarter of this year.
Deals drama: Prospect Medical and Crozer
Pennsylvania Attorney General Michelle Henry filed a civil lawsuit Tuesday against Prospect Medical Holdings for its alleged mismanagement of Crozer Health facilities.
The lawsuit raises questions about Prospect Medical's plan to sell Crozer to real estate company CHA Partners. Under the letter of intent announced in August, Crozer would transition to nonprofit status. Prospect said in October 2023 it would find a buyer within a year, and the attorney general's office agreed to pause ongoing litigation against Prospect to let it concentrate on potential transactions.
Two Wisconsin providers to merge
Black River Memorial Hospital and Krohn Clinic, both in Black River Falls, Wisconsin, signed a definitive agreement to merge. The newly formed organization, Black River Health, would comprise two facilities across the street from each other. The deal, which is slated to close Dec. 30, is a merger of equals with no money changing hands, a spokesperson said.
Related: New Froedtert ThedaCare Health CEO steps in
Quote of the week
“At the end of the day, we're trying to prove that there is value in bringing diverse voices to the table. These people deserve to be a participant in this, and it should not just be the folks in finance and on Wall Street that benefit.”
— Christina Farr, co-founder of the newly launched clinician-led Scrub Capital
