7 ways COVID-19 could affect healthcare M&A

Hospitals are facing extreme financial pressures due to COVID-19 that will have lasting effects on the healthcare merger and acquisition market, according to investment banking firm Juniper Advisory.

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Seven ways COVID-19 could affect healthcare M&A: 

1. More sellers than buyers will make up the post-pandemic market.

2. Hospitals that maintain some sense of solvency during the pandemic may have a larger appetite for M&A.

3. Competitors, like private equity firms and telemedicine companies, are rapidly growing as hospitals become entrenched in their COVID-19 responses. 

4. Independent hospitals are working with peers in their market to best optimize care for patients, and health systems are using their scale to transfer patients, staff and supplies between facilities. 

5. Resuming business after the pandemic will be difficult as staff retention and financial performance worsen, and buyers and sellers who can jump back into clinical services will be more attractive in M&A deals.

6. In general, current business combinations are still set to close as planned. 

7. Some development teams at hospitals are still exploring partnerships despite the challenges.

More articles on healthcare industry transactions:
West Virginia hospital on brink of closure secures buyer
North Carolina health systems call off partnership talks
New York hospital to split with Ascension after 18 years

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