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The hospital and health system mergers involved even larger players in 2018, with the average sales figure of sellers reaching $ 409 million, says a new report.

The size of the health system vendor "has grown at a compound annual growth rate of 13.8% since 2008 Says Kaufman, Hall & Associates in its annual report on mergers and acquisitions in the health sector. The report defines the vendor as the smallest of the two health systems involved in the operation, according to Kaufman Hall's report on mergers and acquisitions in the health sector.

The trend is that health care providers are seeking to compete with national health insurance companies and ambulatory care providers in their markets. Last month, pharmacy giant CVS Health finalized the acquisition of Aetna, the country's third largest health insurer, for $ 69 billion.

"We are witnessing a movement of strategic growth, motivated in part by the need to acquire expertise and resources to manage the industry-wide changes facing hospitals and systems. of health, "said Kaufman Hall General Manager, Anu Singh, in a statement accompanying the" This includes the evolution of payment and care delivery models and the search for greater value-added but also the emergence of new competitors that bring significant capital resources and strong capabilities in digital technology and customer experience in healthcare. "

Hospitals and health systems are banding together to rule out these new players who have access to significant capital like CVS and the UnitedHealth Group's Optum health services business.

The Kaufman Hall report shows 7 transactions in 2018 involved hospital and health system vendors with annual revenues of $ 1 billion or more . As an example, Dallas-based Baylor Scott & White Health and the Houston-based Memorial Hermann Health System agreed in 2018 to merge to form a system of 68 hospitals with a combined market share of attracts patients from the Gulf of Mexico to Oklahoma.

Unlike mergers of major providers and publicly traded insurers, hospital and health system operations are dominated by non-profit organizations. "A non-profit system has been the buyer in 75% of transactions in 2018, following closely the figures of 2015 and 2016," says the Kaufman Hall report.

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Photo Credit: Getty Royalty FreeGetty

The hospital and health system mergers involved even larger players in 2018, with the average sales figure of sellers reaching $ 409 million, says a new report.

The size of the health system vendor "has grown at a compound annual growth rate of 13.8% since 2008 Says Kaufman, Hall & Associates in its annual report on mergers and acquisitions in the health sector. The report defines the vendor as the smallest of the two health systems involved in the operation, according to Kaufman Hall's report on mergers and acquisitions in the health sector.

The trend is that health care providers are seeking to compete with national health insurance companies and ambulatory care providers in their markets. Last month, pharmacy giant CVS Health finalized the acquisition of Aetna, the country's third largest health insurer, for $ 69 billion.

"We are witnessing a movement of strategic growth, motivated in part by the need to acquire expertise and resources to manage the industry-wide changes facing hospitals and systems. of health, "said Kaufman Hall General Manager, Anu Singh, in a statement accompanying the" This includes the evolution of payment and care delivery models and the search for greater value-added but also the emergence of new competitors that bring significant capital resources and strong capabilities in digital technology and customer experience in healthcare. "

Hospitals and health systems are banding together to rule out these new players who have access to significant capital like CVS and the UnitedHealth Group's Optum health services business.

The Kaufman Hall report shows 7 transactions in 2018 involved hospital and health system vendors with annual revenues of $ 1 billion or more . As an example, Dallas-based Baylor Scott & White Health and the Houston-based Memorial Hermann Health System agreed in 2018 to merge to form a system of 68 hospitals with a combined market share of attracts patients from the Gulf of Mexico to Oklahoma.

Unlike mergers of major providers and publicly traded insurers, hospital and health system operations are dominated by non-profit organizations. "A non-profit system has been the buyer in 75% of transactions in 2018, following closely the figures of 2015 and 2016," says the Kaufman Hall report.