Top 5 Hospital M&A Deals of 2024
The hospital M&A market has seen its fair share of ups and downs this past year. Financial pressures have been pushing organizations to seek out deals, while increased regulatory scrutiny has made closing those deals more challenging. As we head into 2025, the activity in this sector is expected to remain strong, with health systems realigning portfolios, looking to partnerships for financial support, and exploring new, multi-organizational ventures.
Let’s take a look back at five key hospital and health system deals that made waves in the M&A world this year.
Steward Health Care made headlines in 2024 when it filed for Chapter 11 bankruptcy and put all 31 of its U.S. hospitals up for sale. This move led to a flurry of transactions throughout the year, with Steward involved in a significant portion of hospital M&A deals. General Catalyst also made a big move by acquiring Summa Health for its business spinoff HATCo, aiming to transform healthcare through new technology initiatives.
Risant Health, fresh off its purchase of Geisinger Health, expanded its portfolio by adding Cone Health to its value-based care network. And Longitude Health made waves by uniting four nonprofit health systems to launch a for-profit entity, focusing on pharmaceutical development, care coordination, and billing solutions.
The ongoing saga between Yale New Haven Health and Prospect Medical Holdings serves as a cautionary tale in the M&A world, showcasing the challenges that can arise post-agreement. If unresolved, disputes like this can negatively impact strategic plans and patient care.
Overall, 2024 was a year of significant deals that highlighted the evolving landscape of hospital M&A. From major acquisitions to disputed sales, this year showcased where the industry is headed in the coming years.
