Hospitals seek growth via outpatient facilities

BVR's Healthcare Value Wire reports on a white paper from financial advisory firm Ponder & Co. that says hospital M&A activity is expected to be strong this year, but hospitals are shifting their sights. Up to now, much of the focus has been on acquiring inpatient, acute-care hospitals, but these are no longer the "money makers" of a health system. Instead, large outpatient centers and other clinical integration groups have become bigger pieces in the M&A game.

The report also reveals that:

  • There are still likely to be many large, nonprofit transactions this year;
  • For-profit chains may be less aggressive with M&As; and
  • Regional system mergers will increase.

Note: The valuation of outpatient facilities is covered in the BVR/AHLA Guide to Healthcare Valuation, which includes chapters on valuing ambulatory surgical centers, dialysis clinics, and imaging centers. There is also an Online Symposium on Healthcare Valuation, which includes some sessions on outpatient facilities. One of the upcoming webinars will be Valuing Urgent Care Centers (June 24), with Elliot Jeter (VMG Health).