Issue link: https://beckershealthcare.uberflip.com/i/1467576
85 TRANSACTIONS 2021 physician group acquisitions up 119% By Laura Dyrda T he number of physician group acquisitions last year grew signifi- cantly over 2020, according to a report from professional service network PwC. Five things to know: 1. There were 407 physician group deals from Nov. 15, 2020, to Nov. 15, 2021. Over the same month-to-month period in 2017 to 2019, there were about 200 to 250 deals per year. 2. Physician group deals rocketed 119 percent year over year and to- taled $5.5 billion. 3. Private equity and corporate buyers are driving demand for health- care deals across all sectors, and multiples are close to where they were at the end of 2020. 4. While the number of physician group deals increased, the volume of hospital deals dropped 16 percent, to 66 deals last year. 5. The mean enterprise value to earnings before interest, taxes, de- preciation and amortization multiple for healthcare deals last year was 15.2x. n California physician sells ASC to management company By Patsy Newitt The Modesto (Calif.) Surgery Center has been sold to an ASC management company and a group of surgeons. The physician owner was seeking an exit strategy and a buyer that could provide resources to grow and recruit, according to ASCs Inc., which represented the seller. The sale was announced Feb. 15. The center is a single-specialty ASC. n $13.7M California medical office building sold By Patsy Newitt R eal estate investor Anchor Health Properties purchased a medi- cal office building in Vallejo, Calif., for $13.65 million, North Bay Business Journal reported April 4. The 60,000-square-foot building is 99 percent occupied. Kaiser Perma- nente leases 82 percent of the building for its psychiatry department, hearing center, behavioral health education and hospice offices. Anchor Health Properties also recently purchased a 50,000-square-foot facility in Agoura Hills, Calif., with two ASCs and multiple physician of- fices, according to the Business Journal. n The healthcare deals in the FTC's crosshairs By Laura Dyrda H ealthcare deals are heating up as costs rise to provide healthcare services without a similar increase in pay. e Federal Trade Commision is keeping a close eye on industry transactions to halt any anticompetitive behavior. Four healthcare deals under scrutiny: 1. e proposed merger between Lifespan and Care New England is on the rocks aer the FTC and Rhode Island Attorney General Peter Neronha said they would sue to challenge the deal Feb. 17. e merged entity would own eight of the state's 13 hos- pitals and 80 percent of hospital beds in the market if the deal goes through. Mr. Neronha raised concerns that the merger would increase healthcare costs. 2. e FTC approved a final order in January impos- ing strict limits on future mergers by DaVita, a dialy- sis service provider, stating its acquisition of Salt Lake City-based University of Utah Health's dialysis clinics would be anticompetitive. DaVita was required to sell three dialysis clinics to Sanderling Renal Services and won't be able to enforce noncompete agreements or other employee restrictions under its final agreement with the FTC. DaVita must also obtain prior approval to acquire new ownership in any Utah-based dialysis clinic for the next 10 years. 3. e FTC is examining Oracle's planned $28 bil- lion deal to acquire Cerner. Its 15-day deadline for reviewing the deal under the Hart-Scott-Rodino Act ended Feb. 22. Cerner stockholders allege Cerner had insufficient or incorrect information in its disclosures. 4. Last September, the FTC requested information about a merger between Southfield, Mich.-based Beaumont Health and Grand Rapids, Mich.-based Spectrum. e two health systems signed a formal agreement to merge and create a 22-hospital system. e FTC said it would take longer than usual to approve the deal due to a backlog of merger filings in all industries. n