Hospital M&A activity was booming in Q2! Interesting to note, no doubt, dynamics of the payor mix of the target hospitals, considering the possibility of cuts to the eligible Medicaid enrollees embedded in the American Health Care Act 2017 legislation.
The announced transaction activity in Q2 2017 reached levels not seen since Q4 2014 when an equal amount of transactions were announced. HCA announced four acquisitions totaling seven hospitals in the quarter, a burst of activity following its announced JV with UCF College of Medicine in Q1 2017 to develop a new hospital in the Orlando area and the acquisition of Forest Park assets in Texas in Q2 2016. Steward Healthcare’s acquisition of 20 IASIS hospitals in six states marks another major transaction, following its acquisition of eight CHS hospitals in three states.
