posted November 11, 2020
H2C has been privileged to serve as financial advisor to some of the nation’s leading not-for-profit healthcare systems. In 2020, H2C guided clients through an uncertain market and delivered outstanding results, including achieving the lowest taxable long-term rate on record for a not-for-profit healthcare system. Below are select H2C financial advisory transactions.
posted November 3, 2020
Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive real estate and financial advisor to a nationally recognized, not-for-profit health system based in the Midwest (“System”) in connection with its $135 million acquisition of seven medical office buildings (“MOB”) throughout its primary market area.
posted October 29, 2020
This is H2C’s second quarterly medical office building (“MOB”) report reflecting the full impact of the COVID-19 pandemic. While COVID-19 continues to weigh on transaction volumes, with volumes totaling only $1.6 billion, marking the lowest quarterly transaction volume since Q1 2014, the MOB sector continues to show remarkable resilience in pricing. Average cap rates saw a slight decline of five basis points in Q3 2020, with the average cap rate for MOBs falling to 6.55 percent.
H2C Perspective • Investor Relations During COVID-19: What Healthcare Leaders Should Consider
October 22, 2020
Even before COVID-19, regularly communicating a healthcare organization’s objectives, performance, strengths, and challenges—whether financial or operational—was critical to establishing trusted relationships with the investor community. Now, with uncertainty going forward due to COVID-19, proactively communicating with investors should be a top-of-mind strategy for health system leaders.
October 15, 2020
Data from the Hammond Hanlon Camp LLC (“H2C”) mergers and acquisitions (“M&A”) database shows 173 transactions were announced in Q3 2020, a 9 percent increase over Q3 2019 figures. This increased the year-to-date total to 454, which represents a 7 percent decrease versus year-to-date 2019, when 486 transactions were announced. Much of the year-to-date decline can be attributed to a slower Q2 2020, which saw a 28 percent decrease in volume year-over-year amid the start of the coronavirus pandemic.
October 8, 2020
CHICAGO — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, through its wholly owned subsidiary, H2C Securities Inc., served as the exclusive financial advisor to NorthShore University HealthSystem (“NorthShore”), Evanston, Ill., on the issuance of $517.1 million in tax-exempt bonds, consisting of $380.4 million in fixed rate bonds and $136.7 million in variable rate demand bonds.
October 7, 2020
As of this writing, no one knows what the economic consequences of the COVID-19 pandemic will be. But if there is to be a pandemic-related recession—and if the recession looks something like the last one—the results of H2C’s stress testing suggest that four key factors will be critically important to hospitals and health systems...
October 6, 2020
ATLANTA — Oct. 6, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to Centra Health (“Centra”) on its sale of Rivermont Schools (“Rivermont”), the leading special education provider in Virginia, to Salisbury House, LLC (“Salisbury”).
October 1, 2020
ATLANTA — Oct. 1, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to St. Luke’s Hospital (“St. Luke’s”), a regional health provider in Maumee, Ohio serving Greater Toledo, on the system’s acquisition by McLaren Health Care (“McLaren”), a fully integrated health network based in Grand Blanc, Michigan. St. Luke’s will become McLaren’s first hospital outside of Michigan.
September 30, 2020
NEW YORK— Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to a privately held joint venture that is developing a 48-bed, 51,580-square-foot inpatient rehabilitation facility (“IRF”) in Phoenix, Ariz., to be known as “Reunion Rehabilitation Hospital Phoenix” (the “Property” or “Project”).
September 24, 2020
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.
September 23, 2020
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).
September 16, 2020
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.
September 15, 2020
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.
September 9, 2020
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.
August 20, 2020
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 ...
August 18, 2020
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.
August 11, 2020
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.
July 17, 2020
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 ...
July 15, 2020
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.
July 10, 2020
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.
June 29, 2020
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.
June 23, 2020
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...
June 9, 2020
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.
May 28, 2020
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...
May 19, 2020
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”).
May 12, 2020
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.
May 5, 2020
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.
March 20, 2020
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.
March 16, 2020
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.
Feb. 4, 2020
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.
Jan. 31, 2020
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.
Jan. 28, 2020
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.
Jan. 14, 2020
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.
Nov. 26, 2019
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, through its wholly-owned subsidiary, H2C Securities Inc. ("H2C"), served as the exclusive financial advisor to John Muir Health (“JMH”), based in Walnut Creek, Calif., in connection with the private placement of JMH’s $45.55 million Series 2019A tax-exempt bonds (“Series 2019A Bonds”).
Nov. 22, 2019
SAN DIEGO — Nov. 22, 2019 — More than 6,000 people attended HLTH, the industry’s largest health innovation conference, this past October, and Hammond Hanlon Camp LLC (“H2C”) was there, reporting live from our LinkedIn company page.
Nov. 21, 2019
The third quarter is historically a slow period of transaction activity, and Q3 2019 is no exception in terms of medical office building (“MOB”) dollar volume. In Q3, $2.7 billion in MOB transaction volume across 363 properties was recorded, compared with $3.1 billion across 300 properties in Q2
Nov. 6, 2019
Healthcare mergers and acquisitions (“M&A”) increased 12 percent from Q2 to Q3 2019 and outpaced Q3 2018 activity by 41 percent, research by Hammond Hanlon Camp LLC (“H2C”) shows. In Q3 2019, 214 transactions were recorded, compared with 191 in Q2 2019 and 152 in Q3 2018. HCIT transactions and continued strong physician practice management and ambulatory surgery center volume helped to drive growth.
Oct. 18, 2019
Hammond Hanlon Camp LLC (“H2C”) is pleased to share that Bill Hanlon’s article for The Governance Institute, featuring key considerations for healthcare leaders in determining whether direct investment in health tech startups is the right move, is the cover article for the Institute's "System Focus" newsletter.
Oct. 2, 2019
CHICAGO — Hammond Hanlon Camp LLC (“H2C”) won HFMA’s Helen Yerger/L. Vann Seawell Best Article Award for outstanding editorial achievement for its article on new lease accounting standards in healthcare, published in hfm magazine in December 2018. The article is one of three articles to win this award in FY 2019.
Sept. 17, 2019
A growing chorus of voices warns of recession. The United Kingdom may already be in one. So, what might happen to hospitals in the event of another recession like the “Great Recession” that began at the end of 2007 and whose effects lasted through 2011?
Aug. 29, 2019
In part one of H2C’s Seller Strategies Series, H2C outlined notable changes to the tax law and potential implications for healthcare real estate owners and sellers. Part two of this series evaluated Section 1031 Exchanges under the new tax law and Delaware Statutory Trust investing, which are often correlated and can offer sellers attractive solutions for capital gains tax deferment. This third and final installment outlines Opportunity Zone Investing, a new and exciting tax deferral strategy introduced under the new tax law.
Aug. 22, 2019
Tax law changes have created potential challenges as well as opportunities for sellers of healthcare real estate. In this three-part series from Hammond Hanlon Camp LLC (“H2C”), H2C presents key information as well as transactional strategies that may offer sellers the ability to mitigate potential tax consequences.
Aug. 21, 2019
SAN DIEGO — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to a privately owned healthcare real estate investment company on the sale of a three-building medical office portfolio located in Springfield, Mass. (the “Pioneer Portfolio”).
Aug. 16, 2019
Following a blockbuster year of healthcare information technology (“HCIT”) fundraising, 2019 is on track to meet or exceed prior periods, with $4.2 billion in funding already secured, Hammond Hanlon Camp LLC (“H2C”) research shows. This compares with $3.4 billion for the first six months of 2018. While transaction value continues to climb, the number of transactions has decreased, with 360 HCIT transactions expected in 2019, down from 376 in 2018 and 363 in 2017.
Aug. 13, 2019
Tax law changes have created potential challenges as well as opportunities for sellers of healthcare real estate. In this three-part series from Hammond Hanlon Camp LLC (“H2C”), H2C provides a summary of several notable changes to the tax law and present transactional strategies that may offer sellers the ability to mitigate potential tax consequences. The series will explore changes to capital gains and income tax rules that resulted from...
Aug. 8, 2019
SAN DIEGO — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, through its wholly-owned subsidiary, H2C Securities Inc. ("H2C"),
served as the exclusive financial advisor to Hawai’i Pacific Health (“HPH” or the “System”) in the issuance of Series 2019 Bonds totaling nearly $48.1 million to refinance existing debt. The fixed-rate, tax-exempt bonds...
Aug. 1, 2019
Healthcare mergers and acquisitions increased 10 percent from Q1 to Q2 2019 and outpaced Q2 2018 activity by 18 percent, research by Hammond Hanlon Camp LLC (“H2C”) shows. In Q2 2019, 192 transactions were recorded, compared with 174 in Q1 2019 and 163 in Q2 2018, with behavioral health continuing to be the sector driving growth.
posted July 31, 2019
As H2C predicted in its first-quarter medical office building (“MOB”) report, the second quarter saw strong transaction volume of $3.1 billion, with 300 MOBs trading hands. A large portion of the activity was attributed to Welltower Inc.’s (“Welltower’s”) closing of the 55-property CNL Healthcare Properties (“CNL”) portfolio, which CNL put under contract in early Q1, for $1.25 billion.
posted July 12, 2019
Ambulatory investment, including investment in ambulatory surgery centers (“ASCs”), continues to be viewed as a critical strategic move among healthcare organizations, especially large health systems, H2C research shows. Last year, Tenet Healthcare Corp. increased its investment in an ASC chain even as it divested other assets. Meanwhile, a recent poll shows 48 percent of hospitals and health systems plan to make additional ASC investments.
posted July 9, 2019
According to an August 2018 Reuters/Ipsos poll, 70 percent of those surveyed support Medicare for All (“M4A”), including more than half of Republicans surveyed. This followed a June 2017 survey by the Kaiser Family Foundation that found a majority of Americans favored a single-payer health system. In this survey, as well as countless articles and opinion pieces addressing the subject of healthcare reform, cost is far and away the central issue driving Americans’ interest in change.
June 14, 2019
A final rule that expands access to telehealth as a basic benefit for Medicare Advantage members, beginning in 2020, opens the door for seniors to receive telehealth services from their home as well as senior living facilities, community health centers, and more. But will it be enough to spur increased adoption of telehealth from healthcare providers?
May 31, 2019
Capital partnerships were a hot topic at the BOMA International Medical Office Buildings + Healthcare Real Estate Conference, where leaders for Hammond Hanlon Camp LLC (“H2C”) led two panel discussions and spoke with experts from across the industry.
May 30, 2019
Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to WakeMed Health & Hospitals, a Raleigh, N.C.-based health system (“WakeMed” or the “System”), in the issuance of $207.7 million in Series 2019A tax-exempt, fixed-rate bonds, $79.0 million in Series 2019B variable-rate demand bonds (“VRDBs”), and $79.0 million in Series 2019C VRDBs (collectively, the “Bonds”). The proceeds of the Bonds will be used to fund projects on two of the health system...
May 24, 2019
NEW YORK — Following a strong year for the medical office building (“MOB”) sector, 223 properties transacted in the first quarter of 2019, for a total dollar volume of $1.7 billion—the lowest quarterly dollar volume since the first quarter of 2014 across the lowest number of properties since the first quarter of 2016.
May 23, 2019
Small hospital and health system transactions dominated healthcare merger and acquisition (M&A) activity in the first quarter of 2019, as more than half of the transactions involved targets with less than $100 million in revenue, research by Hammond Hanlon Camp LLC (“H2C”) shows. verall, Q1 2019 M&A activity was 20 percent lower than in Q1 2018, but still strong, with 178 transactions, compared with 223 transactions in Q1 2018.
April 23, 2019
The first quarter of 2019 was actually quite active for hospital and health system M&A, albeit for smaller-sized and, oftentimes, more rural transactions. Research by Hammond Hanlon Camp (“H2C”) shows more than half of the transactions announced in the first quarter of 2019 involved targets with less than $100 million in revenue.
April 18, 2019
More than one out of five rural hospitals are at high risk of closing unless their financial situations improve, a recent study found. It’s a situation that impacts 430 hospitals nationwide—and the challenges these hospitals face are daunting.
March 22, 2019
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, through its wholly-owned subsidiary H2C Securities Inc. (“H2C”), served as the exclusive financial advisor to Mercy Iowa City (“Mercy”) on a year-long, multiphase process to restructure and strengthen the system’s balance sheet. The series of transactions reduced overall debt while adding unrestricted liquidity...
March 21, 2019
Private equity investment continues to fuel merger and acquisition (“M&A”) activity in behavioral health, with a 10 percent increase in behavioral health transactions from 2017 to 2018, H2C data shows. But while the demand for behavioral health services makes these investments attractive, the difficulties of care delivery often are greater than anticipated.
March 19, 2019
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, through its wholly-owned subsidiary H2C Securities Inc., served as the exclusive financial advisor to John Muir Health (“JMH”), based in Walnut Creek, California, in connection with the issuance of $87.025 million in Series 2018A tax-exempt, fixed-rate bonds.
March 18, 2019
The post-acute care market has witnessed significant M&A activity in recent years. H2C expects this trend to continue into 2019 as favorable macro-level tailwinds, the removal of benefit restrictions around Medicare reimbursement, and a fragmented competitive landscape continue to drive consolidation. Both private equity firms and strategic players will be active participants, either by making platform investments or adding scale through tuck-ins.
March 15, 2019
Join Rich Bayman, Principal, Hammond Hanlon Camp LLC (“H2C”), and two other leading industry professionals during a special Irving Levin Associates webinar, “Hospital M&A in a Changing Healthcare Economy,” on Thurs., March 21, at 1 p.m. ET. Rich will be joined by Bobby Guy, Shareholder, Polsinelli, and Robert Jaeger, Vice President, Ponder & Co., during a panel discussion moderated by Lisa Phillips, Editor, HealthCareMandA.com.