Sutter Health is acquiring Allina Health in a deal that would create a $26 billion nonprofit health system spanning California, Minnesota and Wisconsin. The deal reflects a broader wave of hospital consolidation as providers pursue scale to manage rising costs and fund tech investments.
The number of hospital M&A deals may have fallen from Q1 to Q2 of this year, but that doesn’t mean that the hospital M&A space is lacking vitality, according to a new Kaufman Hall report. Rather, it means that the hospital M&A is shifting its emphasis from scale to strategy.
Small practices play a critical role in healthcare delivery, but they cannot continue to absorb ever-increasing administrative demands without consequences.