Healthcare Mergers & Acquistions – 2012 Trend Data

Irving Levin Associates has released summary data on health care M&A activity during 2012. Deal volume for hospitals showed an uptick of 2.2% over 2011 — 94 deals, up from 92 in 2011. However, dollar value of the deals declined  77.2%, from $8.3 billion in 2011 to $1.9 billion in 2012. In the health services market overall, the number of deals was up 8.9%, but total dollar value was down 31.5%.

Significant growth in deal dollar value was seen for the home health/hospice, physician medical groups, behavioral health, and managed care sectors. For the entire health sector – both technology [biotech, ehealth, devices, and pharma] and health services – the deal dollars shrank 38% while deal volume grew 5.9%.

Source: Health care M&A spending falls nearly 40% in 2012, lowest year on record since 2003, according to Irving Levin Associates, Inc. Business Wire, Jan. 21, 2013. http://www.businesswire.com/news/home/20130121005788/en/Health-Care-MA-Spending-Falls-40-2012.

Posted by AHA Resource Center, (312) 422-2050, rc@aha.org

Mergers and acquisitions: 92 transactions in 2011

Modern Healthcare publishes an annual list of hospital merger and acquisition transactions that identifies the buyer, seller, name and size of hospitals involved, and the $ cost.  Also included is a trend chart showing year-by-year counts of the total number of deals and of facilities involved.  The number of transactions has stayed fairly steady over the past 5 or 6 years, although the number of facilities involved jumps around more from year to year.

Source: Barr, P.  Dealing them in: annual M&A report shows industry changes drive another year of growth.  Modern Healthcare;42(5):S1-S7.  Click here to access the magazine: http://www.modernhealthcare.com/  Posted by AHA Resource Center, (312) 422-2050, rc@aha.org

Hospital Merger & Acquisition Deals Up 12% in 2011

Levin Associates has just released its annual data on the number and dollar volume of mergers and acquisitions in 2011 for the health care sector. For hospitals there was a 12% increase in deals –86 deals compared to 77 in 2010. However, dollar value of the hospital deals declined 27%, dropping from $10.793 billion in 2010 to $7.868 billion in 2011.

M&A activity for physician medical groups was up 60%, involving 107 groups in 2011 versus 67 the previous year. Value of physician group deals grew to $465 million, a 9% rise over the previous year.

For the entire health care sector, including other health services, biotech, e-health, managed care, medical devices and pharmaceuticals, spending on deals rose 11% to $227,371,000,000 in 2011, but the number of deals was down to 980, a decrease of 3%.

Source: Health care M&A spending rises 11% in 2011 according to new report from Irving Levin Associates, Inc. Irving Levin Associates press release, Jan. 25, 2012. http://www.levinassociates.com/pr2012/pr1201mamq4

Posted by the American Hospital Association Resource Center, (312) 422-2050, rc@aha.org.