Trend | Strategic Partnerships Mergers and Acquisitions

Announced hospital M&A transactions, 2009 - Q1 2019

Trend | Strategic Partnerships Mergers and Acquisitions

Announced hospital M&A transactions, 2009 - Q1 2019

The first quarter of 2019 marked a 10-year low in quarterly announced acute care hospital merger and acquisition transactions, according to a Ponder & Co. report on mergers and acquisitions. It also marked the first quarter since quarter three of 2016 with less than 20 announced transactions.

One driver of the slowdown is the reduced pace of for-profit divestitures since an active selloff period in 2017 and 2018. Although for-profit healthcare organizations have sold their most isolated and disparate assets during the active 2017-18 period, it is likely that for-profit divestitures will continue as these systems further evaluate and reposition their portfolios, but at a slower pace with less urgency.

The report notes that the slowdown is not a sign that hospital merger and acquisition activity is nearing an end. Reasons include the need to grow at rates that exceed expense inflation and to address payment challenges, technology and capital needs and uncertain value-based payer models.




Related Articles | Strategic Partnerships Mergers and Acquisitions

Column | Leadership

6 questions about healthcare integration in the 2020s

The question about whether to integrate was answered more than a decade ago. The questions now are, “How do we take full advantage of integration?” and “What do we integrate next and how?”

White Paper | Value-Based Payment

Hospitals and health systems remain optimistic, overall, about APMs

An August HFMA survey, sponsored by GHX, found that, overall, hospitals and health systems are optimistic about seeing improvements in coordination and collaboration with partners in risk-based payment models over the next five years. The findings suggest organizations are moving ahead unabated in their value-based payment strategies.

News | Coronavirus

Hospitals lead October job gains in healthcare sector

Hospitals were the biggest gainer in October jobs among healthcare organizations, although they have not restored all jobs shed earlier this year.

Column | Leadership

2020 is challenging us to re-imagine integrated healthcare

The recovery plan healthcare organizations use to address the impact of COVID-19 and other factors that have damaged the financial foundations of healthcare delivery are likely to involve increased integration.