Report: Hospital mergers and acquisitions in 2018 were fewer but larger
Florida had seven announced deals worth about $3.6 billion, and Pennsylvania had six deals worth about $2.2 billion. (Pixabay)
The number of hospital mergers dipped about 22% in 2018 but grew in overall size as part of a broader trend toward megamergers, according to a new report.
In all, hospitals announced a total of 90 transactions in 2018, down from 115 in 2017, according to a report (PDF) from Kaufman Hall. The firm began monitoring hospital M&A in 2000. About 20% of the acquisition deals were considered distressed transactions.
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Texas led the nation for M&A last year, clocking eight hospital deals with a total value of deals estimated to be about $6.8 billion. Most notably, the report points to Baylor, Scott & White’s planned merger with Memorial Hermann will bring together two Texas-based systems and combine Dallas/Fort Worth and central Texas markets with the Houston market.