Hospital and Health System M&A activity ramped up in Q3
CHICAGO – October 14th, 2025 – Mergers and acquisitions for hospitals and health systems in the third quarter of 2025 rose to 15 announced transactions, according to the latest analysis from Kaufman Hall, a Vizient company. Analysts say this indicates recovery from lower activity levels early in 2025 and suggests momentum toward a continued uptick heading into the last quarter of 2025.
“Now that the One Big Beautiful Bill has passed, hospitals and health systems have more policy clarity to inform their growth strategies,” said Anu Singh, managing director at Kaufman Hall. “We expect that organizations will continue to seek resilience and growth by investing beyond the hospital and building their capabilities in areas like outpatient care, labs, and health plan management.”
In Q3, transacted revenue totaled $8.9 billion, including the first two mega mergers of 2025. Eight transactions involved financially distressed parties.
Caution Ahead for Hospitals
Hospitals’ financial and operational performance decreased slightly this month as expenses, bad debt, and charity care continue to rise, according to Kaufman Hall’s most recent National Hospital Flash Report.
“The slight declines in patient volume and the continued rise in uncompensated care indicate some uncertainty ahead, and hospitals should focus on building resilience now,” said Erik Swanson, managing director and leader of the Data and Analytics Group at Kaufman Hall. “The increase in expenses continues to pressure organizations. While hospitals can’t influence external forces like the rising costs of raw materials or the uncertainty in global trade, they can explore strategies to contain these costs.”
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.