Hospital transactions suddenly sped up in May 2017. Deals are now coming from the private equity-sponsored segment, while the publicly traded chains are mostly unwinding their 2013 acquisitions.
Hospital deal volume in the first quarter of 2017 slipped further on concerns about repealing the Affordable Care Act.
Mergers and acquisitions in the Rehabilitation sector continued the climb that began in 2014, with a 21% increase in deal volume since 2015.
Real estate investment trusts (REITs) have taken an interest in the hospital sector, where there seems to be no end to the supply of struggling standalone hospitals.
The Rehabilitation sector is still fairly fragmented, but consolidation is coming. Some 40 deals have been announced in 2016, a 21% increase compared with 2015’s then-record of 33 deals. This year saw a ramp-up in the number of deals announced by REITs and private equity firms, too.