Many hospitals changed hands
2007 sees surge in mergers and acquisitions continue
CHICAGO -- More than 200 hospitals were involved in merger or acquisition deals in 2007, continuing a surge in hospital deal making that began three years earlier, according to Modern Healthcare's 14th annual hospital merger and acquisition report.
The report appears in the Jan. 21 issue of the weekly healthcare business news magazine.
"Our report confirms what communities are experiencing all across the country," said Modern Healthcare Editor David Burda. "Their local hospitals aggressively are seeking new owners or hospital partners."
Hospitals are pursuing mergers or acquisitions for a variety of financial purposes, Burda said. Some are looking to reduce their costs through operating efficiencies.
Others are seeking greater revenue by strengthening their bargaining position with health insurers and other payers.
And large systems and chains are shaking up their hospital portfolios to improve their overall financial performance.
According to the report, there were 103 separate deals announced or completed in 2007 involving 214 individual hospitals.
Those figures include one deal involving 52 hospitals.
By comparison, there were 107 separate deals announced or completed in 2006 involving 331 individual hospitals.
But one deal alone in 2006 accounted for 172 of those 331 facilities.
The 10-page report provides details of each transaction, including type of deal, deal status, amount and location.
Transactions occurred in 36 states and the District of Columbia.