Market Overview

Hospital M&A Activity Slows in Q2:2018


Hospital M&A Activity Slows in Q2:2018

Acquisition activity in the hospital market slowed in the second quarter of 2018, according to data from

PR Newswire


Hospital M&A activity slowed in the second quarter of 2018, according to new acquisition data from The number of publicly announced hospital acquisitions dropped to 15 in the second quarter, down 42% from the 26 acquisitions in the first quarter of 2018, and down 32% from the 22 announced deals in the year-ago second quarter. Only two of the 15 transactions disclosed a purchase price in the second quarter of 2018, totaling $120.25 million. The transaction volume only includes those mergers and acquisitions that have reached the definitive agreement stage.

The sellers in the second quarter 2018 included seven not-for-profits, five private hospitals and three owned by publicly traded hospital chains. Community Health Systems sold two hospitals in two separate transactions, while HCA Healthcare sold one. Of the 15 sales, 11 involved the sale of a single hospital site, while four included two or more hospitals. "The hospital M&A market definitely slowed down in the second quarter. Some health systems are digesting their previous acquisitions, while the divestiture programs of some of the public companies have begun to taper off," stated Lisa Phillips, editor of the Health Care M&A Report, which publishes the data.

On the acquirer side, 12 of the 15 acquisitions were announced by not-for-profit buyers, with just two from private companies, and Global Medical REIT was the only public company announcing a hospital deal in the quarter. "The announcement in July by Apollo Global Management of its $5.6 billion acquisition of LifePoint Health certainly made up for lost ground in the second quarter," 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 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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Lisa Phillips, Editor
Phone: (203) 846-6800
Fax:(203) 846-8300



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