Healthcare Finance News July 2, 2020
There was only a slight year-over-year dip in transactions recorded during the second quarter, suggesting a continued strategic rationale.
The COVID-19 pandemic is having a profound effect on hospital finances, exemplified by data showing that operating EBITDA margins fell a dramatic 174% in April, and remained down 9% year-over-year in May. So far, though, mergers and acquisition activity hasn’t taken as serious a blow. Transaction volumes are down from the norm, but only slightly, suggesting the public health crisis may be strengthening the rationale for future partnerships.
According to second-quarter data from Kaufman Hall, there were 14 transactions announced in the quarter. That’s a dip from the 29 transactions recorded in Q1, but year-over-year it’s not a significant change from...