Top 5 Hospital M&A Deals in 2024
The past year has been full of exciting developments in the hospital M&A market. From financial pressures to regulatory challenges, 2024 set the stage for a dynamic year of dealmaking in 2025. Health systems are realigning portfolios, seeking partnerships, and exploring new ventures to navigate these changes.
Steward Health Care made a significant impact on the market in 2024. The Dallas-based system filed for Chapter 11 bankruptcy in May, putting all 31 U.S. hospitals up for sale. This led to numerous transactions throughout the year, with Steward involved in 11 out of 27 hospital M&A deals in the third quarter alone.
General Catalyst and Summa Health also made headlines with their business spinoff Health Assurance Transformation Corporation (HATCo). This venture aims to transform healthcare through technology implementation, despite initial industry skepticism.
Risant Health’s acquisition of Cone Health added to the excitement of the year. Following the purchase of Geisinger Health, Risant is expanding its value-based care network and eyeing more opportunities for growth in the coming years.
Longitude Health made waves by bringing together four nonprofit health systems to form a for-profit entity. This new venture, focused on pharmaceutical development, care coordination, and billing, is expected to face tough competition in these areas.
The ongoing saga between Yale New Haven Health and Prospect Medical Holdings serves as a cautionary tale in dealmaking. A dispute over a 2022 agreement to buy three Connecticut hospitals has raised concerns about the future of the deal and its impact on patient care.
Overall, the past year showcased the diverse and ever-evolving landscape of hospital M&A. From major acquisitions to disputed sales, these developments offer insights into the current trends and challenges facing the industry.
