October 14, 2022 – According to Healthcare Finance News, merger and acquisition activity between hospitals and health systems is low in the third quarter of 2022, with only 10 announced transactions.
Those 10 announced transactions were below the numbers from Q1 and Q2, which the report says is “consistent with the trend of falling below pre-pandemic deal numbers.”
The report says, “According to Kaufman Hall, portfolio realignment has been a significant trend among the for-profit sector, with for-profit sellers rebalancing their portfolio holdings to concentrate on core assets and markets. That trend toward portfolio realignment continued into Q1 of this year, when the percentage of transactions involving a for-profit seller reached an all-time high of 58%.”
Analysts are expecting the trends of portfolio realignment and focused regional growth to continue, and are also anticipating growth in partnership models that can offer new sources of capital and new capabilities.