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The Healthcare Facility Space Just Got A Little Smaller

DVA, FMS, MD, HCA, MOH, LH, BX, DGX, ACHC, UHS

The healthcare facility space lost one of its 10 largest players on Monday when Blackstone Group LP (NYSE: BX) announced a $3.2 billion buyout of TeamHealth Holdings Inc (NYSE: TMH). News of the deal sent TeamHealth shares climbing 16.3 percent in early Monday trading.

Benzinga Pro first reported that Blackstone was the leading candidate to buy TeamHealth back on October 18.

The TeamHealth takeover now leaves the following 10 stocks as the largest companies in the space by market cap:

  • HCA Holdings Inc (NYSE: HCA): $28.2 billion.
  • Fresenius Medical Care AG & Co. (ADR) (NYSE: FMS): $25.1 billion.
  • Laboratory Corp. of America Holdings (NYSE: LH): $12.8 billion.
  • Davita Inc (NYSE: DVA): $11.8 billion.
  • Universal Health Services, Inc. (NYSE: UHS): $11.5 billion.
  • Quest Diagnostics Inc (NYSE: DGX): $11.3 billion.
  • MEDNAX Inc (NYSE: MD): $5.7 billion.
  • HealthSouth Corp (NYSE: HLS): $3.7 billion.
  • Acadia Healthcare Company Inc (NASDAQ: ACHC): $3.1 billion.
  • Molina Healthcare, Inc. (NYSE: MOH): $2.9 billion.

With the healthcare facilities M&A frenzy showing no signs of ending anytime soon, traders continue to speculate on the next possible target. The smaller names within the top 10 make for the easiest potential acquisitions.

According to Factset, there were 158 M&A deals in the health services sector in the first three quarters of 2016, down from 225 deals in the first three quarters of 2015.



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