Economic uncertainty contributes to slow start for hospital M&A
CHICAGO – April 8TH, 2025 – Mergers and acquisitions activity for hospitals and health systems in the first quarter of 2025 slowed considerably, according to Kaufman Hall’s latest analysis. Only five transactions were announced—the lowest such figure in recent history—with four of them involving financially distressed organizations.
“The low number of M&A transactions involving hospitals and health systems mirrors global trends across industries. Economic uncertainty around tariffs and healthcare policy has likely contributed to a relatively quiet quarter.”
-Anu Singh, Managing Director, Kaufman Hall
Hospitals’ Volumes Stay Steady
Hospitals’ financial and operational performance through February 2025 remains stable, according to the most recent National Hospital Flash Report from Kaufman Hall, a Vizient company.
“In the early months of 2025, volumes remain strong across the board. Emergency department (ED) visits are rising, which is leading to challenges with ED boarding for many organizations. Data also show that inpatient revenue is growing while outpatient revenue has slowed, which points to the rapid growth in outpatient care in the last few years reaching its peak.”
– Erik Swanson, Managing Director and Data and Analytics Group Leader, Kaufman Hall
The National Hospital Flash Report draws on data from more than 1,300 hospitals from Strata Decision Technology, LLC.
About Kaufman Hall, a Vizient Company
Kaufman Hall, a Vizient company, provides management consulting solutions to help society’s foundational institutions realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods, rigorous analytics, and industry-leading solutions into their strategic planning and financial management processes, with a focus on achieving their most challenging goals.
Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; performance improvement; treasury and capital markets management; mergers, acquisitions, partnerships, and joint ventures; and real estate.
CONTACT: Toby Howard, THoward@MessagePartnersPR.com, (571) 201-7409