Tenet Healthcare reported a strong third quarter, with net profit rising to $472 million and revenue reaching $5.12 billion, up 1.2% year-over-year. The company continues to reshape its portfolio, selling 14 hospitals for nearly $4.8 billion, while focusing on high-acuity services and expanding its ambulatory business. Adjusted EBITDA increased 14.5% to $978 million, prompting an uplift in the 2024 financial outlook.
Healthcare M&A activity declined by 2.8% in Q3 2024, reaching its lowest level since Q3 2020, influenced by high borrowing costs and regulatory scrutiny. Notable transactions included Orlando Health's acquisition of three Florida hospitals from Steward Health Care for $439.4 million, part of Steward's divestiture following bankruptcy. The Professional Services sector led in transaction volume, particularly in dentistry, while private equity funding in announced deals fell to 7%.
In Q3 2024, healthcare mergers and acquisitions in the U.S. saw a 2.8% decline, continuing a downward trend. Notable transactions included TowerBrook Capital's $8.9 billion acquisition of R1 RCM Inc. and Orlando Health's $439.4 million purchase of three Florida hospitals from Steward Health Care. Despite high borrowing costs and regulatory scrutiny, the hospital sector experienced a 50% increase in activity, driven by divestitures from Steward Health Care.
Healthcare mergers and acquisitions surged in Q3 2024, with 27 deals announced, the highest since Q3 2017. Notably, four "mega mergers" involved sellers with revenues exceeding $1 billion, while total transacted revenue reached $13.3 billion, the highest in eight years. Despite financial challenges, established health systems are acquiring struggling hospitals, highlighting a trend of consolidation in the sector.
Hospital and health system merger and acquisition activity surged in Q3 2024, reaching its highest level since 2017, largely driven by the bankruptcy of Steward Health Care and several mega mergers. Notable transactions included Health Care Systems of America taking over eight Steward hospitals and Orlando Health acquiring Brookwood Baptist Health. This trend highlights both the challenges faced by financially distressed hospitals and the opportunities for larger health systems to expand their reach and improve care coordination.
Healthcare mergers and acquisitions surged to $13.3 billion in Q3 2024, marking the highest activity level since Q3 2017, driven largely by transactions related to the Steward Health Care bankruptcy. Among 27 announced deals, four were classified as "mega mergers," including significant acquisitions by Orlando Health and Prime Healthcare. The overall transaction volume reflects a trend of portfolio realignment among large health systems, with notable divestitures aimed at reducing debt and enhancing operational efficiency.
In Q3 2024, hospital merger and acquisition activity surged, with 27 transactions announced, the highest for that quarter since 2017, driven largely by the Steward Health Care bankruptcy. Total transacted revenue reached $13.3 billion, including four mega-mergers, as health systems adapt to community needs and financial challenges. Despite the high transaction volume, many struggling organizations face difficulties in finding partners, raising concerns about potential hospital closures.
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