|Increase in Healthcare M&A Activity Continues in 2018|
Increase in Healthcare M&A Activity Continues in 2018
The number of hospital
and health system partnership transactions continues to climb, with a total of
50 transactions announced in the first half of 2018, according to a recent analysis
by Kaufman Hall.
particularly strong among not-for-profit hospitals and health systems, with 16
of 21 transactions announced in the second quarter involving acquisitions by
such organizations, compared to five transactions by for-profit acquirers. When
combined with first-quarter results, more than 76 percent of deals announced in
the first half of 2018 involve not-for-profit acquirers, while less than 24
percent involve for-profit acquirers.
hospital and health system leaders nationwide are moving aggressively to
broaden their organizations’ base and expand their presence, extending
capabilities across larger geographies in order to address continued
uncertainty in the industry,” said Anu Singh, managing director at Kaufman
Hall. “Partnerships provide them the size and enhanced positioning within their
markets to help ensure that these legacy organizations can continue their
missions of providing vital care in the communities they serve.”
Here are four additional
findings from the report:
announced in the second quarter are among larger organizations with revenues
between $500 million to $1 billion.
transactions announced in the second quarter involved religious-affiliated
organizations acting as acquirers, and one involved a religious-affiliated
transactions involved academic health systems acquiring other organizations.
involved less than fully integrated transactions with the establishment of
management services agreements.
—Adapted from “Hospital Merger and Acquisition Activity Continues
to Rise, According to Kaufman Hall Analysis,”
Kaufman, Hall & Associates, July 12, 2018.