Typically, merging entities aim to lower healthcare costs and improve quality of care through M&A transactions, reports RevCycleManagement.
A merger or acquisition may also occur when a smaller health system can no longer operate on its own without financial support from an acquirer.
Hospital merger and acquisition activity saw a slight decline during the first year of the COVID-19 pandemic. The trend continued in 2021, but transaction sizes grew, with 16 percent of sellers having over $1 billion in annual revenue. Merger activity hit an all-time low in the first quarter of 2022, as the number and size of transactions fell.
Even as healthcare mergers and acquisitions continue to be common practice, the industry remains divided on the impact these deals have on practice management and patient care quality. Read more.
