SYS-CON MEDIA Authors: Kevin Benedict, Gilad Parann-Nissany, Michael Bushong, Eric Brown

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Number of Hospital Transactions Grew in 2013 According to New Kaufman Hall Analysis

Hospital merger and acquisition activity in the U.S. continued to grow in 2013, according to a new analysis by Skokie, IL-based Kaufman Hall. In 2013, 98 hospital and health system combinations were announced, an increase of 3 percent over the previous year and 51 percent over 2010. The level of activity shows consolidation continuing to occur among not-for-profit hospitals and health systems as they position themselves for value-based payment and population health management.

Of the 98 transactions announced in 2013, 87 involved acquisition of not-for-profit organizations—70 by other not-for-profit organizations and 17 by for-profit organizations. The total operating revenue of the acquired organizations was $32.3 billion, comprising $18.5 billion from the 87 acquired not-for-profit organizations and $13.8 billion from the 11 acquired for-profit organizations. Ninety-two percent or $12.7 billion of the $13.8 billion in operating revenue of organizations acquired in for-profit transactions came from two transactions: Health Management Associates/Community Health Systems and Vanguard Health Systems/Tenet Healthcare Corporation.

“Our analysis confirms that hospitals and health systems are continuing to pursue partnership arrangements as one approach to accessing the enhanced infrastructure necessary to provide care successfully in the changing environment,” says Michael Finnerty, Managing Director, Kaufman Hall.

Using Kaufman Hall’s database, the analysis includes reported combinations of acute-care hospitals in the U.S., including mergers, acquisitions, joint ventures, and member substitutions. The total number does not include specialty hospital, long-term acute-care hospital, or surgical center transactions; minor asset sales from closed hospitals; affiliations or management service agreements; or international transactions.

About Kaufman Hall

Kaufman Hall is an independent consulting firm that offers integrated strategic, capital, and financial advisory services and software tools to healthcare organizations of all types and sizes. Our goal is to help hospitals and health systems achieve best practice strategic financial management that produces tangible, measurable, and improved financial results. To learn more, visit

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