Health system M&A slows in Q3, Tenet continues hospital sell-offs: 4 takeaways

Hospital and health system transactions slowed in the third quarter of 2018, after a record-breaking level of mergers and acquisitions in 2017, according to a Kaufman, Hall & Associates report.

Advertisement

Here are four takeaways:

1. There were 18 transactions in the quarter, compared to 29 deals in the third quarter of 2017.

2. There were 68 transactions year-to-date, compared to 87 deals through the third quarter of 2017.

3. Total revenue from transactions through the third quarter of 2018 reached $10.7 billion.

4. Companies continued selling off for-profit assets in the third quarter. For instance, Dallas-based Tenet Healthcare announced its intent to sell three Chicago-area hospitals in order to focus on regions where it has a larger presence and greater market share.

“While there is a moderate drop in M&A activity, we are continuing to see providers engage in larger, more strategic partnerships needed to develop, access or combine the resources required to transform legacy business models and support innovation,” said Kaufman Hall Managing Director Anu Singh. “We expect to continue to see large-scale organizations pursue partnerships because they realize that while their ability to remain independent may exist, the path to long-term relevance and growth may require broader partnerships and collaborations.”

More articles on transactions/valuation:
Voters asked to approve $800M for JPS Health Network projects: 3 insights
4 quotes from UnitedHealth leaders on strong Q3 results
Decatur Radiology acquired by Envision (AmSurg) — 4 insights

Advertisement

Next Up in ASC Transactions & Valuation Issues

Advertisement