Healthcare Merger and Acquisition Revenues Totaled $8.3B in Q3 2022

  • Exterior of a computed tomography scan in a hospital bright room

Source: Rev Cycle Intelligence

Healthcare merger and acquisition activity was low in the third quarter of 2022, with just ten transactions generating $8.3 billion in revenue, according to Kaufman Hall’s latest M&A Quarterly Activity Report.

Activity declined from Q2 when 13 transactions generated a record high of $19.2 billion.

However, the trends were consistent with merger and acquisition activity running below pre-pandemic levels. In addition, the number of transactions and revenue volumes were up compared to Q3 2021.

While Q3 2022 saw ten merger and acquisition deals, Q3 2021 saw seven. The average size of the smaller party in Q3 2022 transactions was $834 million, compared to $619 million in Q3 2021. In Q2 2022, the average size of the smaller party was nearly $1.5 billion.

Two of the ten transactions in Q3 2022 were considered mega transactions, meaning that the smaller entity’s annual revenues exceeded $1 billion. These transactions included Pure Health’s $500 million equity investment in Ardent Health Services and Prime Healthcare’s acquisition of nine hospitals and two medical office buildings from Medical Properties Trust, Inc.

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People's Choice Hospital specializes in managing the unique environment of a hospital with its complicated communication and documentation systems. PCH is led by practicing physicians and hospital administrators with expertise in financially distressed facilities.