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Hospital M&A Continued to Grow in Second Half of 2010

Hospital merger and acquisition activity continued grow in the second half of 2010, which accounted for 62 percent of activity in the full year, according to a release by Irving Levin Associates.

Last year's total of 77 deals was 33 percent higher than in 2009, when there were 52 deals, and represented the highest number since 2001, when there were 82 deals.

In 2010, there were nine deals in the first quarter, 20 in the second quarter, and 24 each in the third and fourth quarters.

Last year, $12.6 billion was committed to hospital M&A, an 86 percent increase from the $1.8 billion committed in 2009. The 2010 level was the second highest in the decade, behind 2006, which logged $35.5 billion.

"The M&A market continues to recover from the wake of damage left by the Great Recession," the report states. "If the second half of 2010 is any indication, it seems the hospital sector is heading for an active 2011."

Largest transactions of 2010
The five largest hospital transactions reported in 2010 were:
Community Health Systems (proposed) for Tenet Healthcare, $7.3 billion offered in Q4.
Vanguard Health Systems for Detroit Medical Center, $1.3 billion in Q2.
Cerberus Capital Management for Caritas Christi Health Care, $830 million in Q2.
Prospect Medical Holdings, a management buyout, $363 million in Q3.
University Community Health for Adventist Health Systems, $355 million in Q3.

Yearly hospital mergers and acquisitions, 2001-2010
2001: 82 deals with $3,108,119,000 committed
2002: 56 deals with $3,403,681,000 committed
2003: 37 deals with $2,341,550,000 committed
2004: 59 deals with $9,706,390,000 committed
2005: 50 deals with $2,905,729,000 committed
2006 55 deals with $35,533,500,000 committed
2007: 61 deals with $9,257,130,000 committed
2008: 60 deals with $2,580,600,000 committed
2009: 52 deals with $1,678,800,000 committed
2010: 77 deals with $12,611,395,000 committed
Total: 589 deals with $83,126,894,000 committed

Read the release from Irving Levin Associates on hospital mergers and acquisitions.

Read more coverage of hospital mergers and acquisitions.

- The Biggest Players in 2010 Healthcare M&A

- 4 Things to Consider Before Putting Your Hospital on the Market

- Hospital Mergers on the Rise Across the Country

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