Drop in deals: Hospital mergers activity has slowed down
The number of mergers and acquisitions is well below the transactions seen a year ago.
The pace of hospital mergers has slowed down.
In the first half of the year, only 13 hospital mergers and acquisitions have been announced, according to Kaufman Hall, a healthcare consulting firm. In the first half of 2024, there were 31 mergers.
We saw eight mergers in the second quarter of 2025, up from five in the first quarter of the year.
It’s still early, but it’s hard to see the number or mergers in 2025 surpassing or even matching the 72 deals reported in 2024.
Hospitals initially expected to see plenty of mergers in 2025. There was optimism about the economy and expectations of a more relaxed regulatory environment under President Trump.
But hospitals have braced for higher costs with tariffs and there has been more uncertainty with the economy. Hospitals also denounced the big sprawling tax package, for steep cuts in Medicaid. Health systems say hospitals could end up cutting services or even closing.
Analysts see the chance for a slow-down in merger activity this year. But they say some struggling hospitals may look to pursue mergers to ensure their long-term viability.
