A significant increase in the number of announced healthcare transactions in Q2 2023—20, as compared to 15 transactions announced in Q1 2023—brought the quarter in line with pre-pandemic activity levels. This was true not only with respect to the number of announced transactions, but also with respect to the total transacted revenue for the quarter. The average size of the smaller party by annual revenue remained elevated, although the higher number of total transactions slightly diluted the impact of three “mega mergers” announced in the quarter (transactions in which the seller or smaller party has annual revenues in excess of $1 billion), KaufmanHall notes in a new report.
The three “mega merger” transactions announced in Q2 2023 included the following:
- Froedtert Health and ThedaCare announced a letter of intent to combine as a single organization in Wisconsin (April 11, 2023)
- Kaiser Foundation Hospitals and Geisinger Health announced the launch of Risant Health, a not-for-profit organization created by Kaiser Foundation Hospitals, with Geisinger as its first member (April 26, 2023)
- BJC HealthCare and St. Luke’s Health System signed a non-binding letter of intent to form an integrated, academic, Missouri-based health system (May 31, 2023). Read more.
