Becker's Healthcare January 9, 2025
While average hospital margins stabilized last year, consolidation trends show health systems are still facing significant financial challenges.
In 2024, the percentage of transactions with a financially distressed hospital hit an all time high and the average annual revenue of the distressed hospital inched up from $219 million in 2022 to $401 million last year, according to a new report from Kaufman Hall. The previous record was set in 2023.
The profile of “mega merger transactions” is also changing. Previously, mega mergers were between two organizations with similar revenue, but in the last year there were multiple instances of the smaller party merging with a significantly bigger one.
“Mega-mergers used to be between organizations of similar size, but that changed...
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