Healthcare DIVE January 17, 2025
Last year was a record year for health system divestitures, and Kaufman Hall expects to see more in 2025.
Dive Brief:
- Last year was a record year for health system divestitures and hospital deals involving a distressed health system, according to a recent report by Kaufman Hall.
- Divestitures “skyrocketed” in 2024, with asset sales accounting for 45 of 72 announced deals, according to the consultancy. The percentage of distressed health systems pursuing M&A also reached new highs, rising from 28% in 2023 to more than 30% last year.
- Notably, “significantly larger organizations” than in years past are seeking deals due to financial distress, with the average deal size of the seller hitting $401 million, according to the report. This...