A 17% spike in healthcare mergers and acquisitions during Q2 from the previous quarter signaled the first increase in merger activity in two years, according to a market
research report published by Irving Levin Associates. Once again, merger communication campaigns are expected to become a top marketing priority. (This merger activity also is
expected to trigger hiring increases in the second half of 2000)
Reminiscent of merger trends four years ago, the hospital sector is leading the charge, responsible for 31 deals and 23% of all healthcare mergers. These transactions
represent 45 acute care facilities that have a combined total of 7,400 beds and generate more than $1.6 billion in annual revenue.
By contrast, the managed care sector experienced a 50% decrease in M&A activity during Q2, stemming from concerns about how the Supreme Court would rule on lawsuits against
HMOs and preparations to withdraw from several Medicare markets.
(Irving Levin Associates, http://www.levinassociates.com)
|
Q2 Healthcare M&As
|
|||
|
sector
|
Q2:00
|
Q1:00
|
Change
|
| hospitals |
31
|
22
|
+41%
|
| Physician | |||
| Groups |
20
|
18
|
+11%
|
| Behavioral | |||
| Healthcare |
16
|
6
|
+167%
|
| Longterm Care |
13
|
12
|
+8%
|
| Managed Care |
8
|
16
|
-50%
|