• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

  • Opinion
  • Health IT
    • Behavioral Health
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Patient Engagement
    • Population Health Management
    • Revenue Cycle Management
    • Social Determinants of Health
  • Digital Health
    • AI
    • Blockchain
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • M&A
  • Value-based Care
    • Accountable Care (ACOs)
    • Medicare Advantage
  • Life Sciences
  • Research

Q1 Hospital M&A Activity Hits Historic Low Amidst Economic Uncertainty

by Fred Pennic 04/09/2025 Leave a Comment

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

What You Should Know:

– Mergers and acquisitions (M&A) activity for hospitals and health systems in the United States experienced a significant slowdown in the first quarter of 2025, according to a recent analysis by Kaufman Hall.

– The number of announced transactions reached a historic low, with only five deals recorded. Four out of the five transactions involved financially distressed organizations revealing broader market volatility and economic uncertainty, including concerns about tariffs and potential policy changes.

Q1 2025 Health M&A Activity

While hospital and health system M&A activity had been on an upward trend since 2021, Q1 2025 saw a sharp reversal. The five announced transactions represent the lowest figure in recent history, even falling below the low point observed during the COVID-19 pandemic.  

Furthermore, the transactions in Q1 2025 were characterized by smaller deal sizes. There were no “mega mergers,” and the average size of the smaller party involved in the transactions was considerably lower than in previous years. This combination of fewer transactions and smaller deal sizes resulted in a total transacted revenue significantly below recent trends.  

In terms of acquirer types, Q1 2025 saw a mix, including for-profit, religiously affiliated, and not-for-profit entities. The downturn in hospital and health system M&A activity aligns with broader trends in global and U.S. M&A markets. Global data indicates a rise in deal value driven by a few large deals, but a decrease in the overall number of transactions. U.S. data also reflects a decline in M&A activity. 

Health M&A Slowdown Key Drivers 

This slowdown is attributed to economic volatility and uncertainty, including factors such as:

  • Concerns about a potential global trade war due to tariffs.  
  • Geopolitical uncertainty related to conflicts.  
  • Policy proposals at the state and federal levels that could impact the healthcare sector.
  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

Tagged With: Healthcare Mergers & Acquisitions

Tap Native

Get in-depth healthcare technology analysis and commentary delivered straight to your email weekly

Reader Interactions

Primary Sidebar

Subscribe to HIT Consultant

Latest insightful articles delivered straight to your inbox weekly.

Submit a Tip or Pitch

Featured Insights

2025 EMR Software Pricing Guide

2025 EMR Software Pricing Guide

Featured Interview

Paradigm Shift in Diabetes Care with Studio Clinics: Q&A with Reach7 Founder Chun Yong

Most-Read

Medtronic to Separate Diabetes Business into New Standalone Company

Medtronic to Separate Diabetes Business into New Standalone Company

White House, IBM Partner to Fight COVID-19 Using Supercomputers

HHS Sets Pricing Targets for Trump’s EO on Most-Favored-Nation Drug Pricing

23andMe to Mine Genetic Data for Drug Discovery

Regeneron to Acquire Key 23andMe Assets for $256M, Pledges Continuity of Consumer Genome Services

CureIS Healthcare Sues Epic: Alleges Anti-Competitive Practices & Trade Secret Theft

The Evolving Role of Physician Advisors: Bridging the Gap Between Clinicians and Administrators

The Evolving Physician Advisor: From UM to Value-Based Care & AI

UnitedHealth Group Names Stephen Hemsley CEO as Andrew Witty Steps Down

UnitedHealth CEO Andrew Witty Steps Down, Stephen Hemsley Returns as CEO

Omada Health Files for IPO

Omada Health Files for IPO

Blue Cross Blue Shield of Massachusetts Launches "CloseKnit" Virtual-First Primary Care Option

Blue Cross Blue Shield of Massachusetts Launches “CloseKnit” Virtual-First Primary Care Option

Osteoboost Launches First FDA-Cleared Prescription Wearable Nationwide to Combat Low Bone Density

Osteoboost Launches First FDA-Cleared Prescription Wearable Nationwide to Combat Low Bone Density

2019 MedTech Breakthrough Award Category Winners Announced

MedTech Breakthrough Announces 2025 MedTech Breakthrough Award Winners

Secondary Sidebar

Footer

Company

  • About Us
  • Advertise with Us
  • Reprints and Permissions
  • Submit An Op-Ed
  • Contact
  • Subscribe

Editorial Coverage

  • Opinion
  • Health IT
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Population Health Management
    • Revenue Cycle Management
  • Digital Health
    • Artificial Intelligence
    • Blockchain Tech
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • Value-Based Care
    • Accountable Care
    • Medicare Advantage

Connect

Subscribe to HIT Consultant Media

Latest insightful articles delivered straight to your inbox weekly

Copyright © 2025. HIT Consultant Media. All Rights Reserved. Privacy Policy |