In our new LevinPro HC Stat of the Week, we’re exploring the M&A activity from health systems so far this year. Nearly half of all transactions announced by a health system were for a physician group, as organizations look to build out their networks and keep referals in-house. Some notable deals include Medical University of South Carolina‘s acquisition of Palmetto Primary Care Physicians for $110 million or Hartford HealthCare‘s purchase of Consulting Cardiologists in Wallingford, CT.
Nearly every health system has been focused on growing its outpatient care network, and that shows in our M&A stats. Multiple organizations, from Vanderbilt University Medical Center to HCA Healthcare, have acquired a freestanding emergency room or urgent care center this year, primarily in markets like Florida and Texas.
The largest overall health system deal was Universal Health Services’ (UHS) $835 million acquisition of Talkspace, the popular telehealth platform. UHS already has a significant presence in inpatient behavioral health, with nearly 350 facilities nationwide, but Talkspace will help supplement that revenue stream and bring more patients into its ecosystem. While other health systems are focusing on building their outpatient networks through brick-and-mortar locations, UHS is taking a different approach by leaning into telehealth and digital health instead.
