National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Not-for-Profit Health Systems Drive M&A
More than three-fourths of M&A deals announced during the first half of 2018 involved not-for-profit acquirers, according to the latest analysis by Kaufman Hall.
“Not-for-profit hospital and health system leaders nationwide are moving aggressively to broaden their organizations’ base and expand their presence, extending capabilities across larger geographies in order to address continued uncertainty in the industry,” said Anu Singh, managing director at Kaufman Hall. “Partnerships provide them the size and enhanced positioning within their markets to help ensure that these legacy organizations can continue their missions of providing vital care in the communities they serve.”
A total of 50 transactions were announced in the first half of 2018, according to Kaufman Hall. In the second quarter alone, not-for-profit systems led 16 of 21 transactions.
During that period, two transactions involved organizations with revenue between $500 million to $1 billion. In California, Adventist Health and Providence St. Joseph announced plans to integrate clinical operations in six counties in the northern part of the state, through creation of a new joint operating company. And in Pennsylvania, Summit Health’s two hospitals, 33 outpatient specialty and primary-care practices, and other facilities will become part of WellSpan Health’s not-fot-profit, community-based system of care.
In addition, Community Health Systems (CHS) was involved in three transactions announced in the second quarter in Oklahoma, Florida, and West Virginia, continuing the company’s divestiture program. Each of the CHS deals involved a not-for-profit acquirer.
For questions, comments or concerns, please contact Jennifer Duell Popovec
