There were 25 hospital and health system transactions in the third quarter of 2019, up from the 19 announced in the second quarter of this year, according to a recent report by financial consulting firm Kaufman Hall.
Five things to know:
1. Total revenue from the 25 transactions reported in the third quarter reached $8.14 billion.
2. Academic medical centers were acquirers in two of the 25 announced transactions in the third quarter; religiously affiliated health systems were acquirers in four and for-profit systems were acquirers in three.
3. Kaufman Hall spotlighted two significant transactions for the quarter. The first was Southfield, Mich.-based Beaumont Health's announcement that it would acquire Summa Health, a four-hospital system in Akron, Ohio. With Beaumont's eight hospitals, the acquisition would result in a system with combined revenue of $6.1 billion. The second big transaction was Medical Properties Trust's $1.55 billion investment in the real estate interests of 16 hospitals operated by Los Angeles-based Prospect Medical Holdings.
4. There have been 71 transactions announced this year.
5. The Kaufmann Hall report also highlighted the emerging trend of health systems partnering with health plans to reduce care costs and administrative hassles and operate more efficiently.
To access the full report, click here.