After several years of rapid consolidation, healthcare mergers and acquisitions lulled in 2019, with several major deals falling apart in the early stages of talks.
In the Midwest, Sanford Health nixed its deal to form an $11 billion system with UnityPoint Health. Partners HealthCare ditched its plan to acquire Rhode Island health systems, dropping its bids to acquire Care New England as well as Lifespan. In Texas, Baylor, Scott & White Health and Memorial Hermann Health System also ended their talks to form a regional powerhouse before reaching a definitive agreement.
“The literature on corporate M&A shows that the savings people thought they were getting from eliminating redundancies haven’t panned out,” said Joe Lupica, chairman of Newpoint Healthcare Advisors. “Both parties can find ways to accomplish virtually all of the goals of integration without transfer of ownership.”