Hospital mergers and acquisitions experienced a significant increase in the third quarter of 2024, surpassing the previous quarter by 79% and showing a 25% rise compared to the same period last year.

This information comes from a report by Cain Brothers, a division of KeyBanc Capital Markets. The report suggests that this trend will continue into 2025 due to ongoing financial pressures on healthcare systems.

During this quarter, there was a notable shift as several for-profit hospitals converted to nonprofit status. This was largely driven by divestitures from Steward Health Care and Tenet Healthcare, both based in Dallas. Tenet Healthcare sold a total of 14 hospitals this year, including five in the third quarter. Steward Health Care, which had over 30 hospitals before filing for bankruptcy, transferred ownership of nearly all its facilities during the same period.

In addition to this, national health systems are increasingly divesting hospitals to regional systems, and standalone hospitals are actively seeking partnerships with larger organizations to secure capital investments and gain access to integrated care networks. This evolving landscape reflects the ongoing transformation within the healthcare sector as organizations adapt to changing economic conditions.