Hospital merger and acquisition activity slowed in the second quarter, compared with the first quarter and the year-ago period, while in the broader healthcare services market deals increased 58%, according to a new report. Thirteen hospital deals were announced in the second quarter, compared with 17 in the first quarter and 18 in the 2001 second quarter, according to the report, by Irving Levin Associates, New Canaan, Conn. The dollar value of the quarter's 133 healthcare services deals, which includes hospitals, totaled $9.6 billion, powered by increased activity in home health, managed care and long-term care, the report said. Post-acute providers have adjusted to reimbursement changes triggered by a 1997 federal budget law and now are pursuing acquisitions as a strategy for growth, the report said. Meanwhile, managed-care deals are being prompted by premium increases of 10% or more in the past two years. -- by Vince Galloro
Deals fall among hospitals, climb in overall market
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.