Gary W. Herschman and Kevin J. Ryan, Members of the Firm in the Health Care and Life Sciences practice, in the firm’s Newark and Chicago offices, co-authored an article in the Bloomberg BNA's Health Law Reporter, titled “Hospital and Health System Deals Mark Busy March.”

Following is an excerpt (see below to download the full version in PDF format):

March was a very active month for health-care industry transactions, demonstrating a healthy ramp-up from the beginning of 2018, and confirming that 2018 will be a banner year for health-care M&A activity.

This consolidation frenzy is no surprise, as mega-players continue to make major announcements showing their hands, and how they view the future of the industry—including Amazon, CVS, Walmart, etc.—and as United/Optum continues to bulk up across the outpatient sector (with ASCs, urgent care, and dozens of large multidisciplinary physician groups).

While Health-Care IT and Long-Term care saw a slight dip from previous months in 2018, the hospital and physician sectors saw increases from February transactions. This was particularly true in the Hospital sector. There is no doubt that already large hospital systems will get bigger as they navigate antitrust barriers—through cross-border mergers and affiliations and adding some smaller players that have remained independent thus far.

M&A activity in the hospital and health system market saw the largest number of transactions of any sector in March. On the heels of a strong start to the year, over 30 deals were either announced or closed in March 2018, compared to 16 deals in March 2017, an increase of 69 percent year-over-year. These deals included acquisitions, strategic affiliations and dispositions. The continued strong volume in the hospital sector M&A market has the potential to result in another record year in deal activity, with 46 deals announced or closed YTD March 2018 compared to 34 YTD March 2017, an increase of 35 percent year-over-year.

Resources

Jump to Page

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.