Hospital M&A Volume Up, Value Down in 3Q
While the value and volume of healthcare mergers and acquisitions will vary from quarter to quarter, Farrell says the underlying catalysts will remain in place for the foreseeable future.
"You see the same themes, which is health systems or large national players looking to find lower cost settings of care outside of the hospital," he says. "Once again, coming full circle you have people looking at taking at-risk contracts and accepting more of a population health view and where they do that they want to make sure they are capable of providing care in the lowest possible care setting."
The current healthcare sector churn is far from settled. "As long as there is still some significant uncertainty from the payer/provider perspective, you are going to have people placing their bets on the roulette table on where they think things will shake out," he says. "We had the technical glitches with the insurance exchange implementation, and the effectiveness and structure of the ACOs are still an undecided area. Many people are still considering where they think the sectors individually are going to head. We see transition activity that represents that uncertainty."
John Commins is a senior editor with HealthLeaders Media.
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