Hospital and health system M&A activity among the highest Q2 levels since 2019

CHICAGO – July 13, 2026 – Hospitals and health systems were involved in 18 announced M&A transactions in the second quarter of 2026, continuing the momentum in Q1 and ranking among the highest levels of Q2 M&A activity since 2019, according to the latest analysis from Kaufman Hall, a Vizient® company.

“The strong pace of M&A activity continued through the second quarter while the profile of the organizations pursuing partnerships and the underlying strategic rationale continued to shift,” said Courtney Midanek, managing director and co-leader of Kaufman Hall’s M&A practice. “Health systems are no longer simply reacting to market pressures; they are proactively pursuing partnerships to drive capability-driven growth and long-term sustainability.”

Transacted revenue totaled $7.7 billion, representing a significant rebound from Q2 2025 levels. Three mega mergers–transactions in which the smaller organization has annual revenue in excess of $1 billion–contributed to an increase in average seller size in Q2 reaching $428 million.

Notably, two-thirds of Q2 transactions involved independent systems proactively seeking a partner, furthering Q1 observations of strategic positioning among health systems.

Additionally, a growing wave of larger partnerships is evident, as more scaled organizations are increasingly pursuing partnerships to advance growth, expand capabilities, and support long-term strategy.

“Healthcare M&A demonstrated meaningful evolution this quarter,” said Kris Blohm, managing director and co-leader of Kaufman Hall’s M&A practice. “Organizations are now evaluating options earlier in their strategic planning cycles, seeking complementary capabilities rather than waiting until partnerships become necessary. We’re witnessing proactive positioning over reactive consolidation.”

Hospital outpatient growth continues to reshape care delivery while cost pressures persist

Hospital outpatient volumes continue to grow year-over-year in May 2026, as care increasingly shifts outside the hospital, according to Kaufman Hall’s most recent National Hospital Flash Report.

Despite evolving care delivery models, cost pressures continue to challenge hospital finances, as expenses such as labor, non-labor and purchased services remain elevated through May compared to last year.

“Health systems must adapt their portfolios and operations to support the future of care delivery,” said Erik Swanson, managing director and leader of the Data and Analytics Group at Kaufman Hall. “Reevaluation of organizational strategies and resource allocation may also unlock new opportunities to maximize effectiveness going forward.”

The National Hospital Flash Report draws on data from more than 1,300 hospitals from Strata Decision Technology, LLC.

About Kaufman Hall, a Vizient Company

Kaufman Hall, a Vizient® company, provides management consulting solutions to help society’s foundational institutions realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods, rigorous analytics, and industry-leading solutions into their strategic planning and financial management processes, with a focus on achieving their most challenging goals.

Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; performance improvement; treasury and capital markets management; mergers, acquisitions, partnerships, and joint ventures; and real estate.

FOR IMMEDIATE RELEASE: Mon., July 13, 2026

Media Contact:
Nancy Matocha
Nancy.matocha@vizientinc.com