12 hospital M&A trends to know

An increasing number of hospitals targeted by mergers and acquisitions (M&A) is one of several consolidation trends recently identified by a tracking firm.

The LevinPro HC U.S. Hospital M&A: Quarterly Activity report, issued July 30, identified a range of healthcare deal trends. Here are the top 12 findings:

1. Thirty-seven hospitals were acquired in Q2 2026, the most since Q2 2024.
2. Since 2020, hospital M&A annual activity has never returned to the levels seen in the pre-COVID era
3. Not-for-profit systems are expanding, while for-profit systems are contracting.
4. The average net patient revenue of acquired hospitals in the first half of 2026 was 16% more than in the same period in 2025.
5. Academic medical centers have emerged as major buyers of community hospitals over the past decade.
6. From Q1 2021 to the Q2 2026, 43% of deals were for smaller facilities and organizations with less than $100 million in revenue.
7. From 2015 to 2019, only 9% of transactions were for hospitals with less than $100 million in revenue.
8. From Q1 2021 to Q2 2026, 17% of all deals were for large institutions with more than $500 million in revenue.
9. From 2015 to 2019, 62% of deals were for large institutions that topped $500 million in revenue.
10. The number of hospital deals (involving one or more hospitals) have trended down since the post-COVID peak in 2023.
11. The number of nonhospital deals involving other provider types steadily increased from 2021 to 2025.
12. The most popular nonhospital M&A targets have been physician groups, which accounted for 27% of all health system activity since 2021 and reached 38% in the first six months of 2026.