NEW YORK — On February 3, 2020, Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive financial advisor to ProCare LTC (“ProCare” or “the Company”) on a strategic investment in the Company by Sverica Capital Management LP (“Sverica”), a private equity investment firm.
Of the many things to have emerged from the COVID-19 pandemic, the rise in the use of telehealth may be one of the most profound. Because the term “telehealth” is not yet universally defined, we mean here the business processes and technologies that enable, or should enable, consumers to access healthcare providers, obtain care, enable providers to remotely monitor chronic conditions, or, in more serious cases, gain well-curated referral to the appropriate care provider(s).
At H2C, we frequently get this question from our clients: “What is our cost of capital?” It’s an important question that would seem to have a straightforward answer. But like many important questions, the answer requires context and knowledge.
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive financial advisor to Tower Health (“Tower” or “the System”) on the monetization of a 23-asset medical office and healthcare real estate portfolio.
The growing trend toward community-based, integrated care continues to gain momentum, and this trend may even be accelerating in the midst of the pandemic. One of the more recent developments in community-based care is the formation and expansion of Programs for All-Inclusive Care for the Elderly, or “PACE,” also known in the mid-Atlantic states as “LIFE,” or Living Independence for the Elderly.
Since the coronavirus outbreak emerged in the United States earlier this year, much of what has occurred in health care to date has been in direct response to the immediate demands of the crisis environment. These actions range from the initial scramble for medical supplies and efforts to diagnose and treat patients to the explosion in demand for telehealth services to help limit the spread of disease and the global race to discover ...
This is H2C’s first quarterly medical office building (“MOB”) report since the impact of the COVID-19 pandemic played out through an entire quarter of activity. Notably, H2C had one of its most active quarters in advising health systems in their monetization and disposition efforts, with over $200 million in transaction volume advised.
Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive investment banker and financial advisor to PACE of the Southern Piedmont in its sale to Kintegra Health and Lutheran Services Carolinas. PACE stands for Program of All-Inclusive Care for the Elderly.
Despite the COVID-19 pandemic’s unprecedented disruption to healthcare delivery, private equity firms are actively looking to continue deploying capital. Hammond Hanlon Camp LLC (“H2C”) conducted nearly 75 discussions with healthcare-focused private equity investors across the country this spring. While new deal flow among private equity investors decreased significantly between March and May, most private equity firms ...
As hospitals and health systems consider strategic shifts in response to COVID-19—such as building out telehealth offerings to meet demands for virtual care and seeking ways to increase liquidity to manage the financial stress associated with the pandemic—many should contemplate the trapped value in their owned real estate portfolios.
Data from Hammond Hanlon Camp LLC’s (“H2C”) mergers and acquisitions (“M&A”) database shows 120 transactions were announced in Q2 2020, a 25 percent decline over Q1 figures. This increased the year-to-date total to 281, which represents a 14 percent decrease versus year-to-date 2019, when 328 transactions were announced. Much of the decline can be attributed to the post-acute sector, which experienced an active first half of 2019. Some interesting trends emerged in other sectors as well.
Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive financial advisor to Advanced Home Care (“AHC”), a post-acute healthcare company owned by 13 not-for-profit healthcare systems in the Southeast, in the sale of its medical equipment business to AdaptHealth Corp. (“AdaptHealth”), a leading provider of home medical equipment and supplies, and its home health and specialty infusion segments to BrightSpring Health Services (“BrightSpring”), a private company backed by KKR.
Prior to COVID-19, the future looked bright for orthopedics, one of the fastest-growing healthcare segments and a market described as “white hot” less than a year ago. Globally, experts projected the orthopedics market would grow from $52.8 billion in 2017 to $66.2 billion by 2023, driven by demand for orthopedic care from aging-yet-active Baby Boomers, increased awareness of small-joint implant options, and technological...
During a relatively normal transaction environment for the majority of the first quarter, average medical office building (“MOB”) cap rates reached a historic low of 6.62 percent. However, because transaction data is a lagging indicator of activity, H2C has grounded its insights around first-quarter MOB activity with observations obtained through current marketing of MOB portfolios in a COVID-19 environment.
Hospitals and health systems are essential pillars in their communities, often serving as one of their community’s largest employers and an important driver of the local economy. For not-for-profit healthcare organizations, maintaining independence and autonomy through local control of this essential community resource is frequently a priority. However, the pressures independent hospitals and health systems have...
NEW YORK — May 19, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to Advanced Home Care, Inc. (“Advanced Home Care”), a post-acute healthcare company owned by 13 not-for-profit healthcare systems in the Southeast, for the sale/leaseback of its regional headquarters building in High Point, N.C. (the “Property”).
Data from the Hammond Hanlon Camp LLC (“H2C”) mergers and acquisitions (“M&A”) database shows 160 transactions were announced in Q1 2020. Volume remained steady year-over-year in the behavioral health, managed care, and laboratory sectors. Hospital and health system transactions, meanwhile, dipped slightly, with only 20 transactions reported, compared with 24 in Q1 2019.
The coronavirus has completely disrupted the operations of not-for-profit hospitals and health systems and the financial markets that healthcare providers use to fund their operations and strategic growth. Market turmoil has changed the relative value and attractiveness of various financing structures, presenting new opportunities that will lead many issuers to modify traditional financing strategies.
The crisis created by the coronavirus outbreak has profoundly disrupted capital markets activity and negatively altered credit outlooks for not-for-profit hospitals and health systems, presenting credit concerns for healthcare leaders. As leaders navigate a rapidly changing environment, they should stress test their organization’s capital position as well as financial covenants under existing borrowing agreements to understand the essential implications. They should also proactively discuss their approach to mitigating financial challenges with bond investor, banks, and rating agencies.
Last year, an analysis by Hammond Hanlon Camp LLC (“H2C”) regarding the potential impact of a recession on the nation’s acute care hospitals suggested that the 2008 to 2011 recession had little, if any, impact on hospitals’ operating financial performance. Our analysis—based on a review of California hospital data from 2006 to 2013, just before the Affordable Care Act took hold—concluded by stating that future recessions are unlikely to be so kind.
Last week’s extreme volatility in global equity and fixed-income markets was a stark contrast to the favorable environment health systems enjoyed in 2019. The S&P 500 declined 10 percent last week and is now 20 percent off of its highest levels hit less than a month ago. The 30-year U.S. Treasury Bond yield dropped to an all-time low of 0.98 percent on Monday and closed at just 1.56 percent on Friday, still near a historic low.
Despite a second year of declining transaction volume, real estate investment trusts (“REITs”) found medical office building (“MOB”) acquisitions in a supply constrained market and accounted for more than 22 percent of the MOB dollar volume in 2019, a 3 percent increase over 2018, an analysis by Hammond Hanlon Camp LLC (“H2C”) shows. Meanwhile, private equity investors—while fewer in number than REITs—accounted for the majority of MOB transaction dollar volume as usual, with $7 billion in volume.
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to Franciscan Missionaries of Our Lady Health System, a Baton Rouge, La.-based health system (“FMOLHS” or “the System”), in the issuance of $78 million in Series 2019A taxable, fixed-rate direct placement bonds and $150 million in Series 2019B taxable, fixed-rate public bonds.
Healthcare mergers and acquisitions (“M&A”) volume across all major sectors rose 8 percent in 2019, with 768 transactions announced or closed in 2019, compared with 705 in 2018, data from Hammond Hanlon Camp LLC (“H2C”) shows.
Just as hospitals and health systems must gain the trust of the communities they serve as providers of care, so, too, must they establish trusted relationships with the investor community, including investors, lenders, credit providers, and rating agencies. In this article, Hammond Hanlon Camp LLC (“H2C”) and Hall Render share five best practices healthcare organizations should consider in developing their investor relations strategy.