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Hospital M&A Activity Still Down But Execs Expect Uptick in 2021

Analysis  |  By Jack O'Brien  
   October 15, 2020

The Hammond Hanlon Camp LLC research was released just over a week after Kaufman Hall's latest M&A analysis.

M&A activity among hospitals and health systems in 2020 still trails the pace set in 2019, though many executives expect an uptick in 2021, according to a Hammond Hanlon Camp LLC (H2C) analysis released Thursday.

During the quarter, 18 transactions were announced, down from 22 announced deals in Q3 2019. Similarly, managed care deals were down 63% year-over-year.

Year-to-date, there have been 57 hospital deals, down from 66 announced transactions this time last year.

Overall, quarterly healthcare M&A activity was up 9% compared to Q3 2019, though year-to-date deals are down 7% compared to 2019.

The analysis attributes the decline in transactions to a slow Q2, marked by the effects of the ongoing COVID-19 pandemic.

Related: Atrium Health, Wake Forest Baptist Health Complete Merger

H2C said its health system clients have indicated that they "are refocusing their attention on strategic growth" going forward.

Related: Advocate Aurora, Beaumont Health End Merger Talks

The H2C research was released just over a week after Kaufman Hall's latest M&A analysis.

Related: Despite Pandemic, Healthcare M&A Activity Stays Apace

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.


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