Application rationalization shouldn’t be a cleanup project — it should be a pillar of the M&A investment thesis, with clear ROI tied to cost savings, risk mitigation, and innovation readiness.
There were only five hospital M&A transactions during the first quarter of 2025 — a slump caused the Trump administration’s flurry of new policies and the resulting economic uncertainty. Hospitals are putting off mergers for the time being, though some are forming joint ventures as a defense mechanism against financial uncertainty. Many are instead shedding assets to cope with the current macroeconomic environment.
Two hospital-at-home providers, DispatchHealth and Medically Home, announced their plan to merge. Once combined, the company will provide in-home care across 50 major metropolitan areas and partner with nearly 40 health systems.
Beyond the branded products currently sold by Mallinckrodt and Endo, the companies say the combined business will also have a strong foundation in rare and orphan diseases. Generic medicines will be spun out as a separate company.
The MedTech industry has demonstrated remarkable resilience in navigating uncertainty, and 2025 promises to be a pivotal year as the election supercycle concludes and AI regulatory frameworks become clearer.
This year will likely see a high rate of divesture among hospital M&A deals, according to Anu Singh, managing director at Kaufman Hall. He also predicted that health systems will continue to pursue partnerships with a broader array of organizations, such as payers and venture firms, to solve challenges.
Belgian sleep diagnostics company Sunrise announced the acquisition of Dreem Health, a California-based sleep clinic. This has allowed Sunrise to provide its telehealth-based sleep care in California, Iowa, Maryland and Washington, with plans to be available nationwide next year.
Experts agree that the incoming Trump administration will likely shake things up in the prescription drug world — most notably when it comes to research and development, drug pricing and PBM reform.
After several quarters with little to no exit activity in the medtech space, several startups made exits in the second quarter of 2024, according to a new report.
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.
This week, health data platform Arcadia acquired CareJourney, a health analytics firm designed to facilitate participation in value-based care contracts. The deal combines Arcadia’s data platform, analytics and workflow tools with CareJourney’s trove of data on cost, quality and benchmarks.
While it it’s too early to judge the success of Kaiser Permanente’s Risant Health, the company’s first two acquisitions show a commitment to adjoining organizations with a strong focus on population health — as well as a dedication to spreading Kaiser’s value-based care delivery models across the country.
Novant Health called off its planned $320 million acquisition of two CHS-owned hospitals in North Carolina. The decision came after an appellate court granted the FTC an emergency injunction to block the deal — the agency had been challenging the deal for more than a year.
NeuroFlow acquired Owl, a provider of measurement-based behavioral health care. These types of consolidations will drive the future of behavioral health care, according to NeuroFlow CEO Chris Molaro.
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.