Fewer hospital mergers and acquisitions so far in 2021 is offset by a high percentage of "mega-merger" transactions, according to a new analysis.
Seven transactions involving 20 hospitals took place during the third quarter of 2021, with transacted revenue totaling $5.2 billion, according to a quarterly report released Wednesday by consulting firm, Kaufman Hall.
This year's transactions have involved large health systems that have merged or were acquired by other large systems. The average revenue of selling organizations was $659 million in 2021, more than double the average of $329 million between 2015 and 2020.
Noted transactions include the planned merger of Utah-based Intermountain Healthcare and Colorado-based SCL Health, which would create a $11 billion system with 33 hospitals across six states.
So far, 34 transactions have been announced this year compared to 62 during the same period in 2020. The number of deals this year were less than half the annual average of 73 that took place between first and third quarters over the past six years.