Hospital transactions were up in 2015, according to a Kaufman, Hall & Associate, with a significant increase since 2010, as reported in Executive Insight.
There were 112 hospital transactions in 2015, picking up in the second half of the year. The transactions include mergers, acquisitions and partnerships as hospitals seek strategic advantages. Here are eight key concepts from the report.
1. There were 28 transactions in the fourth quarter of 2015, up significantly from 29 transactions in the fourth quarter of 2014.
2. Overall, transactions were up 28 percent in 2015 over 2014. There were only 66 hospital transactions in 2010, significantly lower than the 112 last year.
3. Twenty-eight of the transactions last year included a for-profit acquiring entity. There was one transaction that included a not-for-profit and for-profit organization jointly acquiring another organization.
4. Eighty-three transactions last year included a not-for-profit acquiring entity.
5. Faith-based organizations was the acquiring entity for 19 transactions and the acquired entity in 14 transactions.
6. The three largest hospital management companies involved in the transactions include Community Health Systems with eight transactions, LifePoint Health — or Duke LifePoint Healthcare — with six transactions; and Prime Healthcare with five transactions.
7. Providence Health & Services based in Renton, Wash., merged with Irvine, Calif.-based St. Joseph Health System. Providence had $12 billion in revenue and St. Joseph had $5.6 billion in revenue. The merger makes the new entity one of the largest not-for-profit healthcare systems.
8. Community Health Systems is spinning off 38 hospitals in smaller communities with less than 50,000 residents into a new company — Quorum Health Corporation which does $2.1 billion. CHS will focus on larger hospitals in urban communities.