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Kaufman Hall: Healthcare M&A dips 38% year over year during Q3

Healthcare mergers and acquisitions activity slowed down slightly during the third quarter of 2018, according to a recent analysis by strategic and financial consulting firm Kaufman, Hall & Associates.

Here are five things to know:

1. Eighteen transactions took place during the third quarter of 2018, a 38 percent decrease from the 29 deals recorded during the same period in 2017. Year-to-date transaction totals reached 68 during the third quarter, compared to the 87 deals that took place during the same period one year prior.

2. The total revenue from the 18 deals reported during the third quarter amounted to $10.7 billion.

3. The quarter's biggest transaction was private equity firm Apollo Health's proposed $5.6 billion acquisition of Brentwood, Tenn.-based LifePoint Health. Under the deal, LifePoint Health will merge with RCCH HealthCare Partners, also in Brentwood. The second biggest deal was the proposed merger between Houston-based Memorial Hermann Health System and Dallas-based Baylor Scott & White Health, which would create a 68-hospital system.

4. The period also saw a number of high-profile divestitures from some of the industry's largest for-profit hospital operators. Dallas-based Tenet Healthcare cemented plans to exit the Chicago market with the sale of three hospitals. Community Health Systems in Franklin, Tenn., also announced plans to sell two hospitals in Arkansas during the third quarter of 2018.

5. Texas remains the most active state in terms of deal-making in 2018, with five announced transactions thus far. Two of the five transactions were announced during the third quarter.

To access the full report, click here.

More articles on transactions and valuations:
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Breaking through planning and execution paralysis: Executing strategic initiatives during healthcare mergers and acquisitions
CVS Health-Aetna deal OK'd by Justice Department

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