Hospitals, long term care and managed care commanded 46% of the total merger activity in Q4, according to Irving Levin Associates, a research healthcare publishing firm in New
Canaan, Conn. Given this slower activity, communicators need to focus on developing post merger identities and strengthening recently combined corporate cultures.
Hospitals led consolidation trends with 29 deals that accounted for one-fifth of all M&As (see chart below). The physician medical group sector declined the most from a
year ago, dropping to 15 deals from 43. The managed care merger activity has remained flat.
Healthcare mergers and acquisitions continue a downward spiral with 16% fewer deals occurring in Q4 of 1999 than in the previous quarter. M&A activity has reached its
lowest level since Q2 of 1995, according to Stephen M. Monroe, managing editor of Irving Levin Associates.
(Irving Levin Associates, Stephen M. Monroe, 800/248-1668)
1999 M&A Market Trends
| Sector | Q4 '99 Deals | Q4 '98 Deals |
| Hospitals | 29 | 24 |
| Long-Term Care | 20 | 37 |
| Managed Care | 16 | 18 |
| Home Health | 16 | 12 |
| Physician Groups | 15 | 43 |