PwC: Hospital Deal Volume Down, Value Up in Q1

Hospital deal volume decreased by nearly 43 percent to 12 transactions in the first quarter of this year, according to a PwC report.

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However, total hospital deal value rose from $320 million in the first quarter of 2013 to $388 this year, according to the report. That increase was largely driven by the $369 million acquisition of Bethesda, Md.-based Chindex International announced in February, according to the report. Chindex is an American company that provides services in China through a network of private primary care hospitals and affiliated ambulatory clinics.

Overall, the softened deal activity during the first quarter “doesn’t necessarily indicate a slowdown,” according to the report. “Hospitals (both for-profit and not-for-profit) across many geographies within the U.S. continue to assess strategic alternatives, specifically addressing their market position, long-term strategy and the recent large transactions which have reinforced a ‘bigger is better’ mentality within the hospital sector,” the report states.

More Articles on Hospital Transactions:
CHS Calls Off Bert Fish Merger Deal
Massachusetts Approves Partners’ Acquisitions, But With Conditions
7 Recent Hospital Transactions and Partnerships 

 

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