Key M&A Trends in 2024

• 72 hospitals involved in M&A deals
• 45 organizations participated in divestitures
• 30.6% of transactions involved financially distressed organizations
• Average seller revenue reached $401 million

Hospital Financial Performance

• Operating margin index at 4.6% in November 2024
• Declining patient volumes across departments
• Increasing expenses despite lower volumes
• Persistent workforce challenges and higher labor costs

Evolution of Healthcare Partnerships

• Shift from equal-sized megamergers to size-disparate mergers
• Notable transactions: Nuvance-Northwell, Summa-HATCo, Cone-Risant
• Emergence of new partnership models
• Focus on value-based care transformation

Future Industry Outlook

• Expected continuation of portfolio realignment
• Anticipated regulatory environment changes post-election
• Shift toward strategic versus scale-focused transactions
• Increasing emphasis on predictive analytics for financial planning

Impact on Healthcare Organizations

• Growing financial pressure on larger institutions
• Need for strategic partnerships
• Focus on operational efficiency
• Importance of financial planning and analytics

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