Haven Behavioral Hospital of Albuquerque Credit: Haven
Haven Behavioral Healthcare is purchasing and converting an existing long-term acute care hospital in Boise, Idaho, to a 72-bed inpatient psychiatric hospital. The $19 million being spent is uncharacteristically large for an organization of Haven's size, according to MedEquities, but it's in keeping with an acquisition pace that was high in 2017.
A Kaufman Hall analysis published late last year said merger and acquisition activity in 2017 outpaced that of 2016, with financial drivers taking a backseat to strategic imperatives, such as achieving economy of scale. New York, Pennsylvania and Illinois led the way in M&A activity during the year.
Founded in 2006, Haven Behavioral Healthcare operates six inpatient psychiatric hospitals in Arizona, New Mexico, Ohio, Pennsylvania and Texas and provides inpatient psychiatric stabilization and treatment to adults experiencing acute symptoms of depression, anxiety, psychosis or other severe behavioral problems.
Haven is doing this through a $19 million, three-year loan from MedEquities Realty Trust.
The financing includes $7.7 million for the immediate purchase of the existing property, with another $11.3 million that will be drawn to fund the conversion of the facility to a psychiatric hospital.
When the planned renovation is completed, MedEquities has the exclusive right to buy the property for a purchase price equal to the outstanding loan balance in a sale-leaseback transaction.
Neither Haven nor MedEquities named the hospital Haven is acquiring and Haven did not immediately respond to request for comment.