Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Small Business

    Hospital Merger, Acquisition Activity Accelerates

    By
    Nathan Eddy
    -
    August 26, 2015
    Share
    Facebook
    Twitter
    Linkedin
      health it and M&A

      Strong hospital merger and acquisition activity continued in the second quarter of 2015, according a report from Kaufman, Hall & Associates,, a provider of strategic, capital, financial, and transaction advisory services and software tools.

      The firm identified 26 hospital and health system transactions in the second quarter of 2015, up from 23 transactions recorded in the first quarter.

      A total of 49 transactions were announced in the first half of 2015, a noteworthy increase from the 43 transactions announced in the first half of 2014.

      “One of the key drivers of hospital and health system mergers, acquisitions, and partnerships is a desire to position the organization for value-based health care,” Kit Kamholz, managing director of Kaufman, Hall & Associates, told eWEEK. “IT is critical to a successful value-based platform—for example, the ability to exchange information among providers, ensure evidence-based practice, understand population health status and risk, identify and meet consumer needs, and engage patients and caregivers, among many other capabilities.”

      He explained the critical role of IT means that IT capabilities and complementarity will be a key and likely increasing consideration as organizations assess partnership options.

      The report said mergers, acquisitions, and other forms of partnerships continue to be a critical approach to developing the capabilities needed for value-based care, reducing costs, and enhancing competitive positioning.

      The hospital transactions announced in the first half of 2015 reflect this variety of form, structure, and strategic purpose, the report noted.

      “We believe that hospital and health system M&A transactions will continue at a strong pace as organizations seek the scale and capabilities to achieve the goals of value-based care and to reduce costs,” Kamholz said. “We expect that over time fewer transactions will involve financially struggling organizations being acquired by financially healthy ones and that a growing number of transactions will involve a coming together of financially strong organizations to better manage population health.”

      The transactions occurred across a broad range of acute-care segments, including not-for-profit, for-profit, rural, urban, and academic health centers, according to the report.

      Of the 49 transactions in the first half of 2015, 42 involved the acquisition of a not-for-profit organization – 34 by other not-for-profit organizations, and eight by for-profit organizations.

      The total operating revenue of organizations acquired in the first half of 2015 was more than $12.0 billion, up from $10.0 billion in first half 2014.

      The largest deal announced in the second quarter of 2015 was Ventas’ acquisition of Ardent Medical Services from Welsh, Carson, Anderson & Stowe for $1.8 billion, the report found.

      Avatar
      Nathan Eddy
      A graduate of Northwestern University's Medill School of Journalism, Nathan was perviously the editor of gaming industry newsletter FierceGameBiz and has written for various consumer and tech publications including Popular Mechanics, Popular Science, CRN, and The Times of London. Currently based in Berlin, he released his first documentary film, The Absent Column, in 2013.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×