Healthcare M&A Surges to $73.5 Billion During Q2 2011, Up 44%

Merger and acquisition activity in the health care industry surged to $73.5 billion during the second quarter of 2011, up 44% from Q1 according to data from Levin Associates.

During the quarter, 243 mergers and acquisitions took place and as far as dollar volume is concerned, M&A activity is on track to break all previous records in the market despite the fact that hospitals continue to digest and wrestle with the implications of health care reform.

“One conclusion they have drawn is, come what may, there is strength in numbers,” said Stephen M. Monroe, managing editor at Irving Levin Associates, Inc. in a statement.  “Accordingly, they are buying other hospitals and physician medical groups to build up local and regional systems, implement ACOs—accountable care organizations—and share financial risk and reward through a more diversified provider network.”


During the first half of 2011, the number health care M&A deals reached 472 with a combined total of nearly $125 billion.

“Annualizing these figures supports the prediction that 2011 will end with approximately 950 deals worth $250.0 billion, which would set a new record in dollars spent on M&A in the health care industry,” said the company in a statement.