Hospitals and health systems announced 16 transactions in the third quarter of 2026, representing $8.2 billion in total transacted revenue, according to Kaufman Hall’s Q3 2026 M&A report. Deal volume was on par with the third quarter of 2025.
Here are four more things to know:
1. Multiple mega mergers, defined as deals in which the smaller party has more than $1 billion in annual revenue, were announced for the third consecutive quarter.
2. Those deals pushed the average seller size to $586 million. Chattanooga, Tenn.-based Erlanger Health System, a $1.6 billion system, announced plans to merge with Prisma Health by the end of 2026, which would extend Prisma’s footprint into East Tennessee. Divestitures made up five of the quarter’s 16 deals, and three involved financially distressed sellers.
3. Salt Lake City-based Intermountain Health acquired two facilities from Brentwood, Tenn.-based Surgery Partners as it expands into western markets such as Southeast Idaho, according to the report. Surgery Partners sold the facilities as part of a plan to narrow its focus on ASCs “to be better positioned for long-term growth.” In Colorado, Intermountain also contributed assets to a joint venture with AdventHealth in Denver.
4. At the current pace, 2026 is on track for the highest number of annual transactions since the COVID-19 pandemic began. It could also set a record for mega mergers.
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