H2C M&A YEAR IN REVIEW

Strategic M&A Shapes Healthcare Deal Activity in 2021

February 2022

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Hospital and health system mergers and acquisitions fell to their lowest point in over a decade in 2021, but there was no shortage of creative thinking across sectors as organizations sought to take advantage of strategic opportunities in a rapidly evolving environment.

Eight unique transactions—spanning a diverse array of organizations and structures—stand out.

Behavioral health joint venture in Michigan. H2C Securities Inc. (“H2C”) advised Bronson Healthcare on the development of a behavioral health joint venture with Acadia Healthcare, one of the nation’s largest operators of behavioral health facilities.

Growth opportunity for Illinois health system. H2C served as the financial advisor to Southern Illinois Healthcare Enterprises on its acquisition of Harrisburg Medical Center in Harrisburg, Ill., creating a stronger, four- hospital system serving a 16-county region.

Corporate acquisition of health data analytics company. H2C advised Advanced Plan for Health, a population health analytics and informatics provider, on its sale to Virgin Pulse, a Marlin Equity portfolio company. The acquisition will better position Virgin Pulse to deliver measurable health outcomes through predictive modeling at both the individual and group level.

Corporate carve-out of supply chain business. H2C advised Vizient on its acquisition of Intermountain Health’s supply chain business, Intalere. The move enhances Vizient’s position as a healthcare supply chain leader while enabling Vizient to meet the growing needs of its diverse membership and customer base.

Venture capital investment in health technology company. H2C served as the exclusive financial advisor to 83bar, a patient journey management platform, on an equity investment from HealthQuest Capital, a healthcare- focused venture growth fund, that will accelerate 83bar’s growth.

Financing of digital healthcare workforce platform. H2C advised 

HomeCare.com/ShiftMed—a post-acute staffing platform that contracts with healthcare providers to link them with workers, including home-based workers, on demand via a mobile app—on a $45 million fundraising round to expand the company’s geographic market growth. Lead investors were Panoramic Ventures with participation from Healthworx, the corporate development and innovation arm of CareFirst BlueCross BlueShield; Route 66 Ventures; and existing investors (Blue Heron, 3TS, and Motley Fool Ventures).

Divestiture of noncore assets. H2C served as the exclusive advisor to Centra Health on its divesture of four skilled nursing facilities to Cascade Capital and its continuing care retirement community to Lifespire. The divestitures improved profitability and resulted in improved balance sheet strength.

Strategic partnership. H2C served as the exclusive financial adviser to Vizient in its partnership with Aya Healthcare, which announced a definitive agreement to acquire Vizient’s contract labor management business unit and transition it to Vaya Workforce Solutions, a new subsidiary of Aya Healthcare

About H2C Securities Inc. ("H2C")

H2C is a strategic advisory and investment banking firm committed to providing superior advice to public and private healthcare and higher education institutions and related organizations throughout the United States. H2C’s professionals have a long track record of success in mergers and acquisitions, capital markets, and real estate transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value.

Securities and services offered through H2C Securities Inc., member FINRA/SIPC, a registered broker-dealer and an indirect subsidiary of Fifth Third Bank, National Association. All rights reserved. Securities and services offered through H2C Securities Inc.: Are Not FDIC Insured; Offer No Bank Guarantee; May Lose Value; Are Not Insured by any Federal Government Agency; Are Not a Deposit. 

For more information, visit h2c.com

 

About H2C Mergers & Acquisitions 

H2C’s M&A Services team is dedicated to serving healthcare and healthcare- related organizations and higher education institutions. Our commitment to exceed our clients’ expectations begins with senior leadership on every engagement and continues with independent and objective strategic advice. Our belief in the markets and in the power of competition has resulted in loyal clients and long-term relationships.

Extensive Relationships. In-Depth Experience. 

​H2C brings more than 30 years and billions of dollars in transaction experience to M&A engagements, with deep experience in working with healthcare organizations, higher education institutions, and related organizations of all types and size as well as private equity investors and venture capital-backed companies.

 

Let us put our experience to work for you. Contact us today.