Health-Care Industry Mergers Bring a Wave of Credit Business to Banks

By Goodwin, William | American Banker, March 1, 1994 | Go to article overview

Health-Care Industry Mergers Bring a Wave of Credit Business to Banks


Goodwin, William, American Banker


Consolidation in the healthcare industry has generated a steady stream of financing business for banks, and the deal flow shows no sign of letting up.

The financings range from relatively modest-sized deals to transactions in the billions of dollars.

On Monday, for example, a clinical laboratory on the West Coast and a nursing home operator on the East Coast announed separate bank financings totaling $150 million.

In both cases, the funds will be used mainly for acquisitions.

Billion-Dollar Deals

On a much larger scale, HealthTrust Inc. is lining up roughly $1 billion in new bank financing as part of its pending acquisition of Epic holdings Inc. Just weeks ago, Columbia Healthcare Corp. completed a $3 billion refinancing with its banks, tied to its merger with HCA-Hospital Corporation of America.

Right now, the onsolidation sweeping the $900 billion health-care industry is taking place mainly in the for-profit sector. But if universal health-care coverage is adopted, a new round of consolidation could also grip the not-for-profit sector, said Elliott Jones, managing director of Chase Manhattan Bank's health-care group.

That means health-care financings could be one of the hottest bank businesses for years to come.

Standard & Poor's Corp. said mergers and acquisitions in the health-care field would likely be the main factor influencing the industry's debt ratings for the foreseeable future.

Many Below Investment Grade

About 80% of the health-care companies rated by S&P are below investment grade, though it's hard to predict how consolidation would affect the industry's ratings profile, S&P said in a report issued Monday.

"Over the next several years, the desire to grow - in one way or another - will contribute to generally low but possibly volatile ratings for industry participants," S&P analyst Michael Kaplan said in the report. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Health-Care Industry Mergers Bring a Wave of Credit Business to Banks
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.