In “Hospital M&A Volume Reaches Decade-Plus Low,” Modern Healthcare reported that only 55 hospital and health system transactions reached the letter of intent or definitive agreement stages in 2022, which is the lowest number since at least 2009.
Health care partner Neil Olderman commented on the dip in transactions, explaining that hospital merger and acquisition activity is not what it was like in the recent past because of a more aggressive regulatory environment, especially at the state level.
Olderman explained that many prospective targets that were ﬁnancially healthy suffered during the COVID-19 pandemic, which has led to more joint ventures and strategic partnerships rather than outright acquisitions. “Many deals have been terminated during the diligence phase before deﬁnitive documents were signed, where before there was more of an appetite to push ahead…. Now we see a trend toward ﬁnding a more perfect ﬁt,” he added.
The full article is available for Modern Healthcare subscribers.