It’s Not Just a Private Equity Game – Traditional Health Systems Are Consolidating, Too
Levin Associates attended AHLA’s Health Care Transactions Conference on April 17-19, 2023, and the insights shared below are from panel discussions our writer observed in person. Healthcare investments among private equity firms have attracted a lot of attention in recent years but they’re far from the only players looking to consolidate the market. Traditional not-for-profit health systems are pursuing mergers and acquisitions too, with an emphasis on cross-market deals. Health systems are facing financial threats. Traditional health systems are looking to develop stronger economies of scale because right now, there is a revenue problem. Hospitals are facing serious financial constraints,... Read More »
A Growing Trend: Health Systems Collaborating with Private Equity
Are traditional health systems and private equity-backed groups natural competitors? Maybe not. Levin Associates’ proprietary deal database, which tracks mergers and acquisitions in real time, shows the fast pace at which both sides have been consolidating the medical marketplace over the past decade. The data also shows a new trend taking hold: Rather than competing against each other, health systems and PE firms are forming partnerships. Many experts in the healthcare industry anticipate this trend is here to stay. Levin Associates attended AHLA’s Health Care Transactions Conference on April 17-19, 2023, and the insights shared below are from panel discussions our writer observed in... Read More »
Hospitals Partnering with Private Equity: A Strategic Realignment
Levin Associates attended AHLA’s Health Care Transactions Conference on April 17-19, 2023, and the insights shared below are from panel discussions our writer observed in person and from follow-up conversations with panelists. Partnerships with private equity-backed groups and other non-traditional healthcare entities have created new opportunities for hospital systems to be even more strategic about their operations. One of the recurring themes discussed at the AHLA conference was that many traditional health systems are dealing with cash flow problems – and that partnerships with third-party groups represent a potential solution. As referenced in our previous article “A Growing Trend:... Read More »
BJC HealthCare, Saint Luke’s Health System Begin Merger Talks
Two Missouri-based health systems have begun merger negotiations. On May 31, BJC HealthCare of St. Louis and Saint Luke’s Health System of Kansas City announced they have signed a non-binding letter of intent to form an integrated, academic health system in the state. The letter of intent was unanimously approved by both health systems’ Boards of Directors. Combined, this new organization will have $10 billion in revenue. BJC HealthCare is one of the largest nonprofit integrated academic healthcare systems in the country, providing services to residents primarily in the greater St. Louis, southern Illinois and southeast Missouri regions. With net revenues of $6.3 billion and more... Read More »
Hospital Market Status & Review: Spring 2023 Update
As we approach the halfway point of 2023, we thought it’d be worthwhile to examine the state of the hospital M&A market so far. Through mid-May, strategic buyers and investors announced 30 hospital deals, 16 of which were in the first quarter, according to data captured in the LevinPro HC database. Considering the number of mergers already in the letter-of-intent stage, deal activity is on pace to beat the volume from 2022. Health systems and hospitals were battered with headwinds in 2022, such as staffing issues and operating expenses, forcing hospitals to partner with a more extensive system or network. But another challenge has been competing in the outpatient care market, which has... Read More »Schedule a demo
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