Physician medical group merger and acquisition (M&A) activity dipped slightly in the third quarter from the second quarter and from the same period a year ago, according to new data from HealthCareMandA.com, an investment research source provided by Norwalk-based Irving Levin Associates Inc.
Hospital M&A activity also slowed last quarter, HealthCareMandA.com reported.
There were 28 M&As nationally among physician groups in the third quarter, down 10 percent from the second quarter and 15 percent from third quarter 2016. The highest level of M&A activity in several years occurred in the first quarter, at 59 deals. While deal volume fell, spending increased 91 percent compared with the second quarter, to $1.45 billion.
The number of hospital acquisitions slipped to 15 in the third quarter, down 32 percent from the 22 publicly announced acquisitions in the second quarter of 2017, and down 21 percent from the 19 deals in the year-ago third quarter. None of the transactions disclosed a purchase price in the third quarter.
The largest acquirers were not-for-profit hospitals and health systems, with eight acquisitions announced by seven buyers. St. Luke’s University Health Network, a not-for-profit system in Pennsylvania, announced two acquisitions, as did publicly traded HCA Healthcare.
“Despite the lower number of hospital deals in this quarter, some sizable health systems merged or were acquired,” stated Lisa Phillips, editor of the Health Care M&A Report, which publishes the data. “We expect to see a few more of these large mergers in the fourth quarter.”
