The American Hospital Association has released a report finding 551 community hospitals — or 10 percent of all community hospitals in the country — were involved in a merger or acquisition between 2007 and 2012, which the AHA claims has benefited patients and the community.
"Much that has been written and said about hospital mergers and acquisitions is misleading," the report said. The "overwhelming majority" of transactions expanded hospitals and systems into new areas or occurred in areas with competition from more than five hospitals, according to the AHA. In scenarios where that wasn't the case, the mergers "provided tangible benefits to the community," such as better access to technology, expanded services or employee retention.
"The transactions themselves have been modest," the report notes, averaging between one and two hospitals acquired in each deal. Transaction activity hit a peak in 2012 with 71 transactions involving 130 hospitals.
AHA's totals excluded acquisitions by private equity or physician groups. Private equity deals have more than doubled in the past four years, leaping from 33 in 2009 to 84 in 2012. High-value private equity deals are on the rise as well — just four deals in 2009 were valued at $50 million or more, whereas 12 in 2012 were valued above that threshold.
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"Much that has been written and said about hospital mergers and acquisitions is misleading," the report said. The "overwhelming majority" of transactions expanded hospitals and systems into new areas or occurred in areas with competition from more than five hospitals, according to the AHA. In scenarios where that wasn't the case, the mergers "provided tangible benefits to the community," such as better access to technology, expanded services or employee retention.
"The transactions themselves have been modest," the report notes, averaging between one and two hospitals acquired in each deal. Transaction activity hit a peak in 2012 with 71 transactions involving 130 hospitals.
AHA's totals excluded acquisitions by private equity or physician groups. Private equity deals have more than doubled in the past four years, leaping from 33 in 2009 to 84 in 2012. High-value private equity deals are on the rise as well — just four deals in 2009 were valued at $50 million or more, whereas 12 in 2012 were valued above that threshold.
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