Hospitals weathered one of their most challenging years in 2022, with median operating margins staying in the red throughout most of the year. Those money problems proved to be a major factor shaping last year’s M&A transactions — financial pressures influenced 28% of hospital M&A deals last year, up from 15% in 2022, a new report showed.
On New Year’s Day, two Missouri health systems — St. Louis-based BJC HealthCare and Kansas City-based St. Luke’s Health System — officially completed their merger. The combined health system comprises 28 hospitals and hundreds of clinics serving 6 million people, and it is expected to generate $10 billion in annual revenue.
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
Hospital M&A activity has been returning to pre-pandemic levels this year, according to a new report. There were 18 M&A transactions in Q3, compared to seven in Q3 2021 and 10 in Q3 of last year. The reason why M&A activity is regaining its momentum is because hospitals are seeking partnerships to grow and protect their long-term financial sustainability — the report found financial distress was the driving factor behind nearly 40% of deals announced during Q3.
California passed a law last year aimed at controlling rising healthcare costs that gave the state the ability to scrutinize healthcare deals of a certain size involving California companies. What impact can it have?
Hospital M&A activity remained strong during the first quarter of 2023, according to a new report from Kaufman Hall. Hospitals and health systems announced 15 M&A transactions in the first quarter of 2023, which almost matches the 17 transactions announced in the fourth quarter of 2022.
M&A activity among health systems picked up last year — key trends included cross-market mega-mergers and academic medical centers expanding their community hospital networks. Despite tough economic conditions, Kaufman Hall experts expect this activity to continue growing in 2023.
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Butler Health System and Excela Health, both based in Pennsylvania, have merged to form a five-hospital system that is now the third largest in western Pennsylvania. The new health system will generate more than $1 billion in revenue and serve a population of 750,000, the organizations said.
Inflation and shrinking operational margins are among the key factors that will influence hospitals and health systems’ strategies in 2023. To deal with this, more hospitals will merge with other systems, predicted Tina Wheeler, Deloitte’s leader for its healthcare sector.
Leaders should be proactive about investing in IT to avoid costly issues in the future. Examine existing technology for potential risks and redundancies, assess system performance, and establish forward-looking goals and benchmarks.
While M&As bustle among providers, the average U.S. health system acquirer is leaving a whopping $30 million annually on the table, according to a new report.
Gabby Everett, the site director for BioLabs Pegasus Park, offered a tour of the space and shared some examples of why early-stage life science companies should choose North Texas.