All Featured Insights

Explore how hospitals and health systems are navigating persistent financial headwinds through strategic mergers, partnerships and realignment. The 2025 M&A Review, offers expert insights on evolving deal structures, capital constraints and the growing role of scale and specialization.

Following a modest uptick in hospital and health system M&A activity in Q2 2025, with eight announced transactions, Q3 continued to trend upwards, with 15 transactions announced—an activity level more in line with historical observations.

Q2 2025 showed a modest uptick in hospital and health system M&A activity over Q1, with eight transactions announced. Partnerships and affiliations in other areas – including rural healthcare and ambulatory services – remains robust.

Only five hospital and health system M&A transactions were announced in Q1 2025, reflecting an environment of economic uncertainty and volatility. Financial distress was a driver in many of the announced transactions, continuing a trend from 2024.

The numbers from hospital and health system M&A activity in 2024 confirm the unevenness of recovery and the challenges that many organizations continue to face. The percentage of transactions involving a financially distressed party and the percentage of transactions involving a divestiture both reached record highs.

With 27 announced transactions, Q3 had the highest level of activity thus far in 2024. Total transacted revenue of more than $13 billion was the highest Q3 total in the last eight years.

M&A activity in Q2 2024 slowed from a very busy Q1, with 11 announced transactions. Several large transactions in the quarter, however, generated an average seller size by revenue that significantly exceeded year-end averages dating back to 2017.