Is Hospital M&A Waning
By: Eb LeMaster and Jake Aygun
(HFMA January 2015)
The number of announced hospital mergers and acquisitions (M&As) dropped significantly in 2014 from prior years, and volume for the full calendar year 2014 will likely be the lowest since 2009 (see the exhibit below). As we detail, there are several major trends that affect these numbers, a combination of which may explain the decline and why the pace of hospital M&A transactions has slowed.
However, statistics on announced transactions do not tell the full story. These facts seem counterintuitive in light of the significant media coverage related to consolidation and affiliations, and the fact that a leading industry source reports that almost 90 percent of hospitals are considering M&As. Is hospital M&A really waning?