Three out of four healthcare organizations surveyed last year said they were considering a merger or acquisition deal, according to an infographic created by CompHealth.
A growing number of hospitals are joining with large organizations as well as merging services in anticipation of the need to lower costs and increase efficiency under federal healthcare reform. Here are additional statistics from hospitals surveyed in 2011 showcasing the specifics of M&A deals in the healthcare industry:
1. Forty-nine percent of healthcare organizations believe quality of care will improve as a result of the current M&A activity.
2. Just over half (51 percent) said the cost of care will decrease as a result of the M&A activity.
3. Fourteen percent of the healthcare organizations reported they are exploring deals worth $100 million or more in the next 12 to 18 months.
4. Fifty-six percent of respondents have a team dedicated to mergers and acquisitions.
Here are the dollar values of M&A deals hospitals expect to pursue in 2012:
5. Less than $10 million — 24 percent
6. $10 million to $49.9 million — 28 percent
7. $50 million to $99.9 million — 9 percent
8. $100 million to $500 million — 12 percent
9. More than $500 million — 2 percent
Here are the top reasons M&A deals are canceled as reported by the healthcare organizations surveyed:
10. Culture — 49 percent
11. Political/governance considerations — 41 percent
12. Agreement on valuation — 39 percent
13. Access to capital — 25 percent
14. Mistrust between parties — 24 percent
15. Medical staff issues — 24 percent
16. Community considerations — 19 percent
17. Integration — 15 percent
18. Resolution of regulatory compliance issues — 10 percent
19. Regulatory compliance issues — 9 percent
20. Identifying the target — 6 percent
While respondents listed primary care (64 percent) as the most relevant specialty to merger and acquisition opportunities, a variety of other specialties were also cited as important.
21. Orthopedics — 57 percent
22. Cardiology — 54 percent
23. Hospitalists — 50 percent
24. General surgery — 47 percent
25. Cardiovascular — 44 percent
26. Oncology/hematology — 42 percent
27. Internists — 34 percent
28. Imaging/radiology — 33 percent
29. Women's health — 32 percent
30. Neurology — 29 percent
31. Neurosurgery — 28 percent
32. Emergency medicine — 28 percent
33. Pulmonology — 28 percent
34. Pediatrics — 26 percent
35. Anesthesia — 20 percent
36. Geriatrics — 19 percent
37. Neonatology — 15 percent
38. Nocturnalists — 8 percent
Central Baptist Hospital to Manage Russell County Hospital in Kentucky
Mercy Health, Capella Healthcare to Merge Arkansas Hospitals
A growing number of hospitals are joining with large organizations as well as merging services in anticipation of the need to lower costs and increase efficiency under federal healthcare reform. Here are additional statistics from hospitals surveyed in 2011 showcasing the specifics of M&A deals in the healthcare industry:
1. Forty-nine percent of healthcare organizations believe quality of care will improve as a result of the current M&A activity.
2. Just over half (51 percent) said the cost of care will decrease as a result of the M&A activity.
3. Fourteen percent of the healthcare organizations reported they are exploring deals worth $100 million or more in the next 12 to 18 months.
4. Fifty-six percent of respondents have a team dedicated to mergers and acquisitions.
Here are the dollar values of M&A deals hospitals expect to pursue in 2012:
5. Less than $10 million — 24 percent
6. $10 million to $49.9 million — 28 percent
7. $50 million to $99.9 million — 9 percent
8. $100 million to $500 million — 12 percent
9. More than $500 million — 2 percent
Here are the top reasons M&A deals are canceled as reported by the healthcare organizations surveyed:
10. Culture — 49 percent
11. Political/governance considerations — 41 percent
12. Agreement on valuation — 39 percent
13. Access to capital — 25 percent
14. Mistrust between parties — 24 percent
15. Medical staff issues — 24 percent
16. Community considerations — 19 percent
17. Integration — 15 percent
18. Resolution of regulatory compliance issues — 10 percent
19. Regulatory compliance issues — 9 percent
20. Identifying the target — 6 percent
While respondents listed primary care (64 percent) as the most relevant specialty to merger and acquisition opportunities, a variety of other specialties were also cited as important.
21. Orthopedics — 57 percent
22. Cardiology — 54 percent
23. Hospitalists — 50 percent
24. General surgery — 47 percent
25. Cardiovascular — 44 percent
26. Oncology/hematology — 42 percent
27. Internists — 34 percent
28. Imaging/radiology — 33 percent
29. Women's health — 32 percent
30. Neurology — 29 percent
31. Neurosurgery — 28 percent
32. Emergency medicine — 28 percent
33. Pulmonology — 28 percent
34. Pediatrics — 26 percent
35. Anesthesia — 20 percent
36. Geriatrics — 19 percent
37. Neonatology — 15 percent
38. Nocturnalists — 8 percent
More Articles on Hospital Transactions:
5 Questions to Discover Cultural Compatibility in a Hospital TransactionCentral Baptist Hospital to Manage Russell County Hospital in Kentucky
Mercy Health, Capella Healthcare to Merge Arkansas Hospitals