Between 2000 and 2009, a total of 597 hospital deals were completed, for a total of $74.3 billion, according to the data. In nearly 48 percent of the deals completed during the 10-year period ended Dec. 31, 2009, the purchaser was a nonprofit, and in more than 27 percent of the deals, the buyer was a publicly traded company. In the remaining 25 percent of deals, the buyer was privately held. In roughly 60 percent of the deals, the seller was a nonprofit entity; in 24 percent the seller was publicly traded and in 16 percent the seller was privately held.
From a geographic perspective, many of the deals over the past decade targeted hospitals in California, Florida, Pennsylvania, Illinois, Tennessee, Alabama, Texas, Georgia and Louisiana. The acquirers were heavily concentrated in Tennessee, Texas, California, New York, Pennsylvania, Illinois, North Carolina, Indiana, Florida, Georgia, Michigan and Ohio, according to the data.
In each of the 25 largest hospital deals (by price) over the past decade, the target of the acquisition or merger was a company with annual revenues of more than $215 million at the time of its acquisition. Overall, the hospitals and companies targeted in all of the deals were producing annual revenues that ranged from $1.5 million to $25 billion.
The largest deal of the decade (ended Dec. 31, 2009) was a private equity mega-deal to purchase HCA for $33 billion, announced in 2006. Other large deals were Community Health Systems’ purchase of Triad Hospitals for $6.8 billion in 2007 and Triad Hospitals’ acquisition of Quorum Health Group for $2.4 billion in 2000.
Read the Irving Levin Associates news release on hospital merger and acquisition data.
