Hospital Mergers and Acquisitions Drop in First Quarter, Analysis Shows
July 29—Industry analysts reported 15 hospital merger and acquisition (M & A) deals in the first quarter of 2013, compared with 22 transactions in the previous quarter and 25 in the year-ago period, representing a 42 percent year-over-year decline.
Report authors at Irving Levin & Associates attribute the drop to uncertainty created by weakening inpatient volumes and Medicare payment reductions. Trends also reflect market uncertainty about the impact of the Affordable Care Act, a Levin analyst says.
According to a press release, long-term care represented the dominant sector in second quarter M&As with 53 announced deals. Across all healthcare sectors, deal volume was up 10 percent versus the previous quarter, but down 15 percent in comparison with the same quarter a year ago.
Publication Date: Monday, July 29, 2013