Q3 Hospital M&A Activity Reaches 2024 High

CHICAGO - October 3^rd, 2024 - Twenty-seven hospital merger and acquisition transactions were announced in the third quarter of 2024, the highest Q3 volume seen since 2017, according to Kaufman Hall's latest M&A report. Almost half the activity in the third quarter resulted from the Steward Health Care bankruptcy, including one of four mega-mergers for the quarter. Total transacted revenue for Q3 2024 reached a high of $13.3 billion.

Kaufman Hall experts expect large national health systems to continue adjusting their portfolios to support investments and meet changing community needs. Many health systems are expanding into new geographic areas for opportunities to partner with others.

"While the increasing number of transactions in Q3 2024 is getting us back to a normal level of activity, we are observing various challenges and opportunities in the market," said Anu Singh, managing director and Mergers & Acquisitions practice leader with Kaufman Hall. "The motivations for entering into transactions and partnerships vary. As we are seeing the number of strategic transactions accelerate, we are also seeing some organizations that face financial challenges are struggling to find a partner."

Hospital Financials Stable

Hospital financial performance in August remained relatively stable, according to Kaufman Hall's most recent National Hospital Flash Report. While hospitals experienced higher patient volume, revenue and expenses both declined on a volume-adjusted basis.

"Patients are spending less time in the hospital and are requiring less intensive care," said Erik Swanson, senior vice president and Data and Analytics Group leader with Kaufman Hall. "High-performing hospitals are also making strides in streamlining their patient discharge process for more efficient care transitions."

The National Hospital Flash Report draws on data from more than 1,300 hospitals from Syntellis Performance Solutions, now part of Strata.

About Kaufman Hall

Kaufman Hall provides management consulting solutions to help society's foundational institutions realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods, rigorous analytics, and industry-leading solutions into their strategic planning and financial management processes, with a focus on achieving their most challenging goals.

Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; performance improvement; treasury and capital markets management; mergers, acquisitions, partnerships, and joint ventures; and real estate.

CONTACT: Nina Gabel, [email protected], (540) 209-1325

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