Wolters Kluwer December 2, 2022
While mergers and acquisitions in healthcare organizations may be down today, the majority are trending larger, presumably spurred on by the inevitability of value-based care. According to the latest edition of Kaufman Hall’s M&A Quarterly Activity Report, the second quarter of 2022 reached a record high in healthcare merger and acquisition revenue, with 13 transactions generating $19.2 billion.
In 2021, of the heftiest percentage of “mega merger” transactions announced, the seller or smaller partner reported more than $1 billion in annual revenue since 2015. And although these massive unions hold the promise of lowering costs by sheer economies of scale, they also bring unique challenges for large hospitals and health systems. With hundreds of hospitals and thousands of nurses under...