Q3 Hospital M&A Activity Reaches 2024 High
CHICAGO - October 3rd, 2024 - Twenty-seven hospital merger and acquisition transactions were announced in the third quarter of 2024, the highest Q3 volume seen since 2017, according to Kaufman Hall’s latest M&A report. Almost half the activity in the third quarter resulted from the Steward Health Care bankruptcy, including one of four mega-mergers for the quarter. Total transacted revenue for Q3 2024 reached a high of $13.3 billion.
Kaufman Hall experts expect large national health systems to continue adjusting their portfolios to support investments and meet changing community needs. Many health systems are expanding into new geographic areas for opportunities to partner with others.
“While the increasing number of transactions in Q3 2024 is getting us back to a normal level of activity, we are observing various challenges and opportunities in the market,” said Anu Singh, managing director and Mergers & Acquisitions practice leader with Kaufman Hall. “The motivations for entering into transactions and partnerships vary. As we are seeing the number of strategic transactions accelerate, we are also seeing some organizations that face financial challenges are struggling to find a partner.”
Hospital Financials Stable
Hospital financial performance in August remained relatively stable, according to Kaufman Hall’s most recent National Hospital Flash Report. While hospitals experienced higher patient volume, revenue and expenses both declined on a volume-adjusted basis.
“Patients are spending less time in the hospital and are requiring less intensive care,” said Erik Swanson, senior vice president and Data and Analytics Group leader with Kaufman Hall. “High-performing hospitals are also making strides in streamlining their patient discharge process for more efficient care transitions.”
The National Hospital Flash Report draws on data from more than 1,300 hospitals from Syntellis Performance Solutions, now part of Strata.
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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.
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