The deals practice at PricewaterhouseCoopers provides a periodic report on the volume of mergers and acquisitions in the health care sector. In this report on the First Quarter 2014, PwC notes that the number of hospital mergers and acquisitions is experiencing a short-term slowdown. This may be related to the large-scale deals in 2013 involving Tenet and Community Health Systems. PwC states that “our outlook for hospital deal activity in 2014 continues to be optimistic as the impetus for greater alignment and size remains unchanged” (page 3). Hospitals are said to be endorsing the “bigger is better” philosophy.
PwC also reports interesting comparative statistics related to physician practice acquisitions by hospitals and health systems.
HOSPITAL & HEALTH SYSTEM acquisition of physician practices accounted for:
- 51% of all practice acquisitions in 2011
- 14% of all practice acquisitions in 2013
PwC expects this trend of a greater percentage of acquisitions by physician practice management companies to continue.
Source: PricewaterhouseCoopers. Q1 2014 US Health Services Deals Insights, May 2014. Click here: http://www.pwc.com/us/en/healthcare/publications/healthcare-m-a-insights.jhtml Posted by AHA Resource Center (312) 422-2050, rc@aha.org
Filed under: Future trends, Health facility merger, Physicians, Posted by Kim Garber | Tagged: Health facility mergers, Hospital consolidation, Physician practice acquisitions |
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