Q1 2024 saw a significant rise in the number of hospital M&A deals compared to the past three Q1s. Experts believe this M&A activity will continue to climb throughout this year and next — motivated by both financial distress and hospitals’ desire to improve strategic business lines like value-based care and digital healthcare services.
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.
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
The hospital sector's financial performance in November showed signs of continued stabilization and growth, according to Kaufman Hall’s latest monthly report. Hospitals should "take advantage of the relative stability and re-embrace strategic growth if they hope to see continued success in 2024," stated Erik Swanson, one of the report's authors.
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.
Hospitals’ operating margins are still in a worse place than they were before the pandemic, but 2023 is ending as a much more stable year for hospital finance than 2022, according to a new report from Kaufman Hall. Because this year hasn't had any large Covid-19 surges, hospitals have seen less variability in patient volumes. This has helped them allocate their resources more efficiently and decrease their reliance on expensive contract labor.
During past recessions, the healthcare sector remained relatively immune to economic downswings — but things are different now that a sweeping labor shortage and lower patient volumes have been added to the mix.
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 finances worsened in July as volumes dropped, according to a new report. Following four months of growth, hospitals' median year-to-date operating margin index fell 1.3%, down from 1.4% in June. Hospital finances still remained in a better place than they were last year, given hospitals’ median operating margins were -0.98% in July 2022.
M&A activity among hospitals and health systems increased in Q2 of 2023 — there were 20 deals in Q2 compared to 15 deals in Q1, according to a new report. This surge brought Q2’s M&A activity levels in line with those observed before the pandemic. Q2’s 20 deal marks the highest number of announced transactions for hospitals and health systems since Q1 of 2020.
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.
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Hospital revenues and volumes are on an upswing, but growing expenses are still offsetting gains in these areas, especially as cases caused by the Delta Covid-19 variant continue to rise.
The total number of mergers and acquisitions in healthcare fell below historic figures for the second quarter of the year, but was offset by higher deal values. Trends in the space also appear to be shifting, with an increasing number of regional partnerships occurring among health systems as opposed to acquisitions of independent hospitals.
Hospital operating margins increased from January to March, but are still narrow, leaving hospitals in a financially vulnerable state, a new report from Kaufman Hall shows. In addition, volumes are still down and expenses continue to rise.
Though the number of merger and acquisition deals in the first quarter of 2021 fell below historical averages, the size of the deals was far bigger than the same period last year, a new report from Kaufman Hall shows. The total transacted revenue was $8.8 billion, the second-highest Q1 figure in the last five years.
A new report from Kaufman Hall examines two potential financial situations for hospitals in 2021 — one optimistic, and the other bleak. Hospitals could lose between $53 billion and $122 billion depending on which scenario plays out.