Acute care hospitals (ACHs) diagnose, treat, and care for patients with a wide range of conditions including severe episodes of illness resulting from disease or trauma. According to the national health expenditure data published by CMS, spending on hospital services accounts for the largest percentage of total personal health expenditures in the United States. With well over 4,000 facilities nationwide, the acute care hospital industry has experienced headwinds in recent years with declining inpatient admissions due to the migration of care to outpatient settings, new regulatory requirements, required investment in information technology, reimbursement pressure and rising costs. As a result of the challenges faced, the acute care hospital industry has gone through a wave of consolidation and engaged in a multitude of other ancillary transactions. With most of these trends expected to continue for the foreseeable future, the acute care hospital industry is poised to continue to see significant transaction activity.
At VMG Health, we have extensive experience working with the pre-eminent health systems in the United States on all types of transactions that involve acute care hospitals. Types of engagements include:
In addition to providing services for transactions involving acute care hospitals themselves, we also work with them on in-market or other ancillary transactions including, but not limited to, physician practices, ASC’s, imaging centers, radiation therapy centers and other outpatient services. Furthermore, VMG has been involved in hundreds of hospital department carve outs and valuation engagements.
Determining the FMV of an ACH is reliant upon numerous variables and can be quite complex. Key factors that can determine the value of an ACH include the following: