Consolidation of hospitals slowed a bit last year but the size of the deals was of the “mega-merger” variety in which even the seller had $1 billion in annual revenues, Forbes reports, citing a new analysis.
Consulting firm Kaufman Hall’s analysis of 2021 mergers, acquisitions between hospitals and health systems shows “the number of transactions was down but the size of the transactions was up.”
“Eight of the 49 transactions announced in 2021 (16.3%) were ‘mega mergers,’ in which the smaller partner or seller has average annual revenues over $1 billion,” Kaufman Hall said. “This was nearly double the percentage from 2020 (8.9%) and the highest in six years.”
Among the more notable deals in the report involved one of the nation’s largest investor-owned health systems in Tenet Healthcare, which sold five hospitals and affiliated doctor practices in south Florida to Steward Health Care for about $1.1 billion, doubling the size of “Steward’s presence” in the state, the consulting firm said. Read more.
