Kaufman Hall released its third-quarter report following hospital mergers and acquisitions Oct. 12.
Eight things to know:
- Announced transactions were lower than the first and second quarters of 2022 with only 10 reported transactions. The amount of transactions was similar to the third quarter of 2021, which saw seven transactions, and consistent with the trend of activity being lower than pre-pandemic levels.
- There were two "mega" transactions, in which smaller party annual revenues exceeded $1 billion, this quarter: United Arab Emirates-based integrated healthcare platform Pure Health's $500 million minority equity investment in Nashville, Tenn.-based Ardent Health Services and Medical Properties Trust's sale of nine hospitals and two medical office buildings to Ontario, Calif.-based Prime Healthcare.
- UChicago Medicine's acquisition of a controlling interest in Altamonte Springs, Fla.-based AdventHealth's Great Lakes Region was the largest strategic transaction of the quarter.
- Transactions amounted to an average smaller party size of $834 million, compared to the 2021 year-end average of $619 million.
- Total transacted revenue was $8.3 billion, compared to $5.2 billion in the third quarter of 2021.
- Of the 10 announced transactions, two were acquired by for-profit health systems, four were acquired by an academic institution or university, three were acquired by nonprofit health systems and one was acquired by a religiously affiliated organization.
- There was a continued trend of for-profit health systems selling specific, stand-alone assets.
- Portfolio realignment, focused regional growth and partnership model growth are trends Kaufman Hall anticipates going forward.