The total volume of hospital transactions increased by 58.3 percent in the third quarter of 2013 to 19 deals, compared with 12 transactions in the third quarter of 2012, according to a PwC report.
Overall hospital deal value also went up from $38 million in the third quarter of 2012 to $12.3 billion this year, according to the report. Franklin, Tenn.-based Community Health Systems' $7.6 billion announced acquisition of Naples, Fla.-based Health Management Associates contributed to the increase in deal value.
Overall healthcare services deals saw a drop year-over-year, with volume down 4.6 percent and value down 25 percent, according to the report. Both payers and providers have remained cautious about deal activity based on investment theses of convergence as they consider the financial results of the Medicare Pioneer Accountable Care Organization Model's first performance year, according to the report.
Earlier this year, CMS released data showing all 32 Pioneer ACOs improved quality and patient satisfaction in their first performance year, but 12 did not achieve significant savings. Following the release of the results, nine of the Pioneer ACOs decided to leave the program.
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