Hospital merger and acquisition activity was down slightly in the first half of 2014, compared with the first half of 2013, according to the latest analysis by Kaufman Hall, an independent management consulting firm.
Of the 43 transactions so far in 2014, 40 involved acquisition of not-for-profit organizations—33 by other not-for-profit organizations and seven by for-profit organizations. The total operating revenue of the acquired organizations was $10 billion. The transactions occurred across a broad range of acute-care segments, including not-for-profit, for-profit, rural, urban, and academic health centers, the firm reported. In the first half of 2013, there were 46 such transactions.
“Mergers and acquisitions continue to be an important method for healthcare organizations to achieve the economies, infrastructure, geographic coverage, and other attributes needed for a value-based delivery system,” Michael Finnerty, managing director of Kaufman Hall, said in a statement.
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