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Learn why healthcare strategic partnerships falter and how to improve outcomes with credible business cases, aligned incentives, durable structures, rigorous due diligence, and simpler, effective agreements from real-world deal 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.

In healthcare today, organizations can face opportunities across geographies and sectors, each with their own unique benefits and risks. But like a fruit tree at harvest time, these opportunities can be time sensitive.

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.

Evolving industry dynamics will prompt further consolidation among not-for-profit life plan communities, especially as organizations look to add scale to their platforms. This activity will have strategic implications for LPC organizations of all sizes.

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.

Various industry pressures have accelerated an evolution of laboratory businesses in recent years, with particular impacts on labs owned by health systems. As a result, many systems are...

Hospital and Health System Transactions In the final quarter of 2022, we noted an uptick in transaction activity with 17 announced transactions. That activity level was almost matched...

With 17 announced transactions, the fourth quarter of 2022 was one of the most active quarters we have seen since the COVID-19 pandemic began near the end of Q1 2020. Four of the 17...