Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Healthcare M&A transactions hit record low in Q1, Kaufman Hall says

Driven by the COVID-19 pandemic, the healthcare industry continued to see fewer mergers and acquisitions in the first quarter of 2022, with only 12 transactions recorded, according to an April 7 Kaufman Hall report.

Five things to know:

1. The number of mergers and acquisitions is the lowest of any first quarter since Kaufman Hall started tracking the transactions in 2016. The first quarter of 2016 had 25 transactions; 2017 had 27; 2018 had 30; 2019 had 27; 2020 had 29; and 2021 had 13.

2. In previous years, the low number of transactions had been offset by more "mega" transactions — those that occurred when the seller had revenue greater than $1 billion — but there were no mega transactions in this quarter. In four of the transactions, the smaller party's average revenue was less than $100 million.

3. There were several transactions in which for-profit health systems were the seller, accounting for seven of the deals. Just one transaction had a for-profit buyer.

4. National health plans are continuing to move into care delivery, especially home healthcare. This includes UnitedHealth Group's Optum division, which plans to acquire home-based health operator LHC Group.

5. Kaufman Hall anticipates the transaction pace among health systems to speed up as healthcare organizations move beyond the pandemic.


You can unsubscribe from these communications at any time. For more information, please review our Privacy Policy
.
 

Copyright © 2025 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Articles We Think You'll Like

Featured Whitepapers

Featured Webinars