Data collected for Modern Healthcare's 19th Annual Mergers & Acquisitions Report show the number of hospital deals climbing more than 18% to 109 in 2012, up from 92 deals recorded for 2011.
At the same time, with 10 not-for-profit hospital owners agreeing to deals that change the ownership of more than 160 hospitals in 2012, the number of hospitals in M&A deals rose to 352, up from the 212 the previous year.
Angela Humphreys, an attorney in the healthcare practice at Bass, Berry and Sims, says, “2012 continued to be a year of increased consolidation.”
Although the year had its fair share of vanilla acquisitions of not-for-profit hospitals by not-for-profit and for-profit buyers, “the M&A landscape was marked by a number of nontraditional transactions,” Humphreys says.
Included in the nontraditional category would be acquisitions by Duke LifePoint, the for-profit joint venture partnership between not-for-profit Duke University Health System, Durham, N.C., and LifePoint Hospitals, Brentwood, Tenn., as well as a joint venture formed between for-profit Health Management Associates, Naples, Fla., and not-for-profit Integris Health, Oklahoma City, to jointly own five acute-care hospitals in Oklahoma.