News: Hospital mergers slow in 2020 due to COVID-19

CDI Strategies - Volume 15, Issue 3

Last year saw less than 80 hospital mergers, down from 92 in 2019, according to a Kaufman Hall report. COVID-19 may have slowed hospital consolidation but the outbreak “did not substantially alter” merger and acquisition activity last year, HealthLeaders Media reported.

Notably, more “megamergers” took place in 2020, according to the study, with seven such deals up from three in 2019.

While the frequency of hospital mergers may not have been affected by the pandemic, the report indicated that hospital mergers in 2021 could have an “emphasis on addressing broader societal issues” and focus on a “growing diversity of partners and partnerships.”

The analysis indicated that organizations are more inclined to “strengthen intellectual capital resources to be nimbler” during a crisis and pivot to “modes of providing care more efficiently, effectively, or uniquely” compared to traditional market times.

Additionally, telehealth use will likely remain at pre-pandemic levels and elective procedures may be “slow in recovering.’

Editor’s note: This article was originally published in HealthLeaders Media. To read the Kaufman Hall report, click here.

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