Hospital M&A Volume Up, Value Down in 3Q
The volume and value of hospital mergers and acquisitions increased in the third quarter of 2013 when compared with the same period in 2012, although the fundamental reasons for the market consolidations are essentially the same, according to a PwC report. Healthcare sector churn is far from settled.
The volume and value of hospital mergers and acquisitions increased in the third quarter of 2013 when compared with the same period in 2012, although the fundamental reasons for the market consolidations are essentially the same, PricewaterhouseCoopers says in a new report (PDF).
The total number of hospital merger and acquisition transactions globally increased from 12 in Q3 2012 to 19 in Q3 2013, an increase of 58.3%. Conversely, for the first nine months of 2013, overall deal volume dropped 6.6%—from 60 in YTD12 to 56 in YTD13. Overall deal value increased significantly from $38 million in Q3 2012 to $12.3 billion in Q3 2013. This is the result of hospital system acquisitions valued at more than $1 billion in Q3 2013. Excluding those mega-deals, PWC says the remaining transactions were smaller and may not have disclosed deal value information based on these being private or not-for-profit transactions.
The merger and acquisition activity was led by Community Health Systems Inc.'s $7.6 billion acquisition of Health Management Associates and the completed merger in September of Scott & White Healthcare and Baylor Health Care Systems.
- CFO Exchange: Smartphones Poised to Disrupt Healthcare, Says Topol
- Consumerism Drives Healthcare Branding, Rebranding Efforts
- CNO on Hospital Redesign: 'You Can't Over-Communicate'
- How Digital Strategy Shapes Patient Engagement at Boston Children's Hospital
- PA Ranks See 'Phenomenal Growth,' Lack of Diversity
- 3 Traits Personality Assessments Can't Reveal
- Half of All Primary Care, Internal Medicine Jobs Unfilled in 2013
- Carondelet to Pay $35M to Settle Fraud Allegations
- Antibiotic Overuse a 'Huge Threat' to Patient Safety, Says CDC
- CHS Hacked, 4.5M Patient Records Compromised