Announced Hospital M&A Activity Report Q1 2018
The most first quarter transactions in past 10 years Q1 2018 recorded 36 announced transactions, marking the most active first quarter in the past ten years, surpassing Q1 2013’s previous high of 34 announced transactions, tying for the second-highest of any quarter in the past ten years behind Q4 2012’s 40 announced transactions.
Announced transactions involving teaching hospitals and academic medical centers (AMCs) saw an increase in Q1 to nearly 31% of the announced total (transactions involving AMCs represented 27% of the total in 2017, and 20% of the total in 2016)
For-profit divestitures continue to drive the increased transaction volume, comprising 44% of announced transactions. Of the for-profit divestitures, publicly-traded hospital operators accounted for more than two-thirds of the volume, with Tenet Health, CHS, LifePoint Health and QHC all announcing the divestiture of multiple hospitals during the quarter.
HCA was the only publicly-traded for-profit hospital operator to announce an acquisition of a not-for-profit hospital or health system in Q1 2018.
Median and average revenue and bed count for target facilities decreased in Q1 2018 relative to 2017, with a profile most resembling 2016’s reduced transaction volume on smaller facilities.