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7 healthcare transactions were megamergers in 2020

In 2020, there were seven hospital and health system mergers involving two companies with more than $1 billion in annual revenue, according to an analysis by consulting firm Kaufman Hall. This compares to three megamergers announced in 2019. 

In total, there were 79 announced deals in the hospital and health system industry, down from 92 deals announced in 2019. 

Of the 79 deals announced in 2020, 37 percent of them involved a for-profit partner. In 2019, 23 percent involved a for-profit partner.

According to Kaufman Hall, although the pandemic was a factor driving the decline in announced deals, it may also serve as a catalyst for innovative strategic partnerships.

"It appears that COVID-19 has actually confirmed the strategic rationale underlying many transactions that were already underway, and may be acting as a catalyst for innovative strategic partnerships and tactical transactions," Kaufman Hall said. "The pandemic has accelerated the need for strategic initiatives that address the opportunities of industry transformation and that reward well-thought-out alignment opportunities." 

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