Healthcare transactions soared in 2nd quarter

July 14, 2022

Healthcare transactions in Q2 of 2022 reached a historic high of $19.2 billion in total transacted revenue, due largely to the planned merger of Advocate Aurora Health and Atrium Health according to Kaufman Hall’s Quarterly Mergers and Acquisitions Report.

This more than doubles the total transacted revenue of $8.5 billion in Q2 2021, which had a similar number of announced transactions.

This quarter also continued the trend of “mega” transactions with two deals featuring a smaller party or seller with annual revenues in excess of $1 billion, as well as two other announced transactions involving a smaller party with annual revenues in excess of $500 million. This signals what may be a long-term shift in hospital and health system M&A toward fewer, but ultimately larger transactions.

Recent partnerships around the provision of skilled nursing and long-term care provide an example of a new phase of healthcare partnerships with hospitals and health systems seeking transactions that offer consumers access to new services or enhance the delivery of services that require specialized skillsets.

Kaufman Hall release