Hospital M&A Activity Slows in Q1:2017, According to Data from HealthCareMandA.com

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Acquisition activity in the hospital market declined in the first quarter of 2017, according to data from HealthcareMandA.com

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The largest group of acquirers were not-for-profit hospitals and health systems, with 11 acquisitions announced by nine buyers.

Hospital M&A activity slowed in the first quarter of 2017, according to new acquisition data from HealthCareMandA.com. The number of hospital acquisitions decreased to 19 in the first quarter, down 17% from the 23 publicly announced acquisitions in the fourth quarter of 2016, and a 30% decrease from the 27 announced deals in the year-ago first quarter. All but four of the transactions did not disclose a purchase price. The largest acquisition price announced was for $25 million, as the Health Care Authority of the City of Anniston (AL) acquired Stringfellow Memorial Hospital in that city.

The largest group of acquirers were not-for-profit hospitals and health systems, with 11 acquisitions announced by nine buyers. Wheeling Hospital in West Virginia and Fairview Health Service in Minnesota each announced two acquisitions. Two real estate investment trusts (REITs) closed one acquisition apiece for standalone hospitals. “The hospital sector has been greatly affected by the uncertainty surrounding the ‘repeal and replace’ efforts by the Congressional Republicans,” stated Lisa Phillips, editor of the Health Care M&A Report, which publishes the data. “Until the legislative issues are settled, mergers and acquisitions in this sector will stay soft.”

Among the sellers, two financially troubled publicly traded hospital companies divested 15 hospitals through five announced deals. Community Health Systems sold 13 hospitals, and its spinoff, Quorum Health, sold two. “Strategic acquisitions between large health systems are still possible, but the majority of hospital deals in the next quarter will be driven by finances,” commented Phillips.        

All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the HealthCareMandA.com investment research source. For more information, or to order the report, call 800-248-1668. Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing M&A markets.

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Kate Wentworth
Irving Levin Associates
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