The number of hospital and health system merger and acquisition deals declined in the first quarter of this year, but the average transaction size soared, according to an analysis from healthcare industry consultant Kaufman Hall.
Five things to know about hospital merger and acquisition activity in the first quarter:
1. There were 13 hospital and health system deals announced in the first quarter of this year, down from 29 deals in the same period a year earlier.
2. The smaller number of transactions in the first quarter of 2021 was offset by a higher number of "mega" transactions in which the smaller partner or seller had average annual revenue of more than $1 billion, according to the report.
3. There were several transactions in the first quarter of this year with seller revenue of $500 million to $1 billion.
4. Average seller size revenue was $676 million in the first quarter of this year, the third-highest quarterly figure for average seller size Kaufman Hall has recorded in the last decade.
5. First-quarter merger and acquisition activity included several significant transactions. Chicago-based CommonSpirit Health announced it plans to sell 14 hospitals to Duluth, Minn.-based Essentia Health.
Read the full Kaufman Hall report here.