Mergers and acquisitions of health care providers increased in both deal volume and value in 2014 according to the latest data from Irving Levin Associates.
Except for the laboratories, MRI and dialysis sector, all health service sectors saw M&A growth in 2014 compared to the previous year. These sectors included behavioral health care, home health and hospice, hospitals, managed care, physician medical groups, and rehabilitation and other services. Overall, there were 752 transactions [18% annual increase] for the year, valued at $62 billion compared to $52.7 billion in 2013.
The hospital sector saw 100 deal transactions in 2014, a 14% increase over 2013. However, the number of hospitals involved in the deals fell to 178 in 2014, likely due to two big mergers that occurred in 2013 [Tenet Healthcare/Vanguard Systems and Community Health Systems/Health Management Associates].
M&A in the physician medical group sector grew to almost $3.2 billion in 2014.
Newly published report: 2014 health care services M&A market sees growth in deal volume and value of transactions, according to Irving Levin Associates. Business Wire news release, Mar. 31, 2015. http://www.businesswire.com/news/home/20150331006369/en/Newly-Published-Report-2014-Health-Care-Services#.VRwWILGZGSo
2015 Health care services acquisition report. 21st ed. Irving Levin Associates, 2015. Purchase details: http://www.levinassociates.com/hardescription
Chart 2.9: Announced hospital mergers and acquisitions, 1998-2013. In. Trendwatch Chartbook, American Hospital Association, 2014. http://www.aha.org/research/reports/tw/chartbook/2014/chart2-9.pdf
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