Merger and acquisition activity in healthcare services generally, and among hospitals particularly, bounced back in the second quarter compared with a slow first quarter of 2004 and second quarter of 2003, according to a report by Irving Levin Associates, New Canaan, Conn. Money flowing to service providers from the Medicare modernization act is spurring the dealmaking, the research firm said. Levin said 110 deals were announced in healthcare services in the second quarter, up from 87 deals in the first quarter and 91 deals in the year-ago quarter. Healthcare services also captured a far greater share in dollar terms of the overall healthcare M&A market, which includes technology and pharmaceuticals, Levin said. As reported in the cover story of this week's Modern Healthcare, hospital deal volume has risen sharply in the past six months. Levin said 18 deals hospital deals were announced in the second quarter, vs. seven deals in the first quarter and four in the year-ago quarter. Behavioral health, laboratories/MRI/dialysis and home health also saw strong growth. -- by Vince Galloro
M&A action picks up for hospitals: report
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