It’s been a slow time for hospital mergers, Chief Healthcare Executive reports.
In the first six months of 2022, there have been 25 hospital deals announced, according to Kaufman Hall, a consulting firm. That’s a smaller number than in previous years. In 2021, there were 49 hospital consolidations, down from 79 in the previous year.
Hospital analysts expect the pace of hospital deals to pick up eventually. Experts say the pace of deals has slowed partly due to the COVID-19 pandemic, which has diverted attention from long-range planning and strategy.
However, several announced deals have dissolved in the past year.
Some have collapsed due to regulatory opposition. The FTC has been applying more scrutiny to hospital deals involving transactions in competing markets. President Biden has directed regulators to take a close look at mergers, including hospital consolidations, to preserve competition. Read more.
