{"id":64046,"date":"2025-07-14T05:15:18","date_gmt":"2025-07-14T05:15:18","guid":{"rendered":"https:\/\/www.europesays.com\/us\/64046\/"},"modified":"2025-07-14T05:15:18","modified_gmt":"2025-07-14T05:15:18","slug":"hospital-health-system-ma-falls-in-q2-as-medicaid-cuts-loom-report","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/64046\/","title":{"rendered":"Hospital, health system M&#038;A falls in Q2 as Medicaid cuts loom: report"},"content":{"rendered":"<p>        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.healthcaredive.com\/static\/img\/play.svg?500116090725\" alt=\"\"\/><br \/>\n        Listen to the article<br \/>\n        2 min<\/p>\n<p>            This audio is auto-generated. Please let us know if you have <a href=\"https:\/\/www.healthcaredive.com\/contact\/\" rel=\"nofollow noopener\" target=\"_blank\">feedback<\/a>.<\/p>\n<p>Dive Brief:<\/p>\n<ul>\n<li>Mergers and acquisitions between hospitals and health systems were <a href=\"https:\/\/www.kaufmanhall.com\/insights\/research-report\/ma-quarterly-activity-report-q2-2025?utm_source=agcy&amp;utm_campaign=ma-report&amp;utm_medium=pr&amp;utm_term=q2-250710\" rel=\"nofollow noopener\" target=\"_blank\">down in the second quarter<\/a>\u00a0compared to recent years, as impacts from new healthcare policy and trade uncertainty came into focus, according to a report by Kaufman Hall.<\/li>\n<li>Eight transactions were announced in the second quarter, the lowest in the quarter since at least 2017, according to the healthcare consultancy. About half of the transactions were divestitures.<\/li>\n<li>Hospital and health system M&amp;A is expected to accelerate, although it \u201cmay return at a slower pace than it fell\u201d as the sector absorbs the impacts from federal policy changes, including cuts to<strong>\u00a0<\/strong>Medicaid, the report said.<\/li>\n<\/ul>\n<p>Dive Insight:<\/p>\n<p>No mega-mergers, or transactions in which the annual revenue of the smaller party exceeds $1 billion, were announced in the second quarter. That pushed the average seller size down to $175 million, \u201crelatively low\u201d compared to recent year-end averages,\u00a0according to Kaufman Hall.<\/p>\n<p>Other metrics were low, including total transacted revenue in the quarter, which hit $1.4 billion. The metric is the lowest second-quarter result since at least 2017. The next lowest quarter was 2018, which logged $3 billion in transacted revenue across deals.<\/p>\n<p>Second-quarter hospital M&amp;A hits lowest level in years<\/p>\n<p>Hospital and health system transactions announced in Q2, 2017-2025<\/p>\n<p>Still, the number of deals in the second quarter was a modest uptick from the five deals announced in the first quarter, according to Kaufman Hall.\u00a0<\/p>\n<p>Deal numbers were probably low in the first quarter as market volatility and economic uncertainty from the Trump administration\u2019s new tariffs had a <a href=\"https:\/\/www.kaufmanhall.com\/insights\/research-report\/ma-quarterly-activity-report-q1-2025\" rel=\"nofollow noopener\" target=\"_blank\">chilling effect on M&amp;A<\/a>, according to Kaufman Hall. The potential of significant cuts to Medicaid also likely dampened deals.<\/p>\n<p>Those cuts were realized after <a href=\"https:\/\/www.healthcaredive.com\/news\/trump-signs-reconciliation-bill-medicaid-cuts\/752259\/\" rel=\"nofollow noopener\" target=\"_blank\">President Donald Trump signed a reconciliation bill in early July<\/a> with over $1 trillion cuts in healthcare spending over the next decade. Most of those cuts will be concentrated in Medicaid, with providers bracing for <a href=\"https:\/\/www.healthcaredive.com\/news\/gop-reconciliation-bill-provider-impact\/749338\/\" rel=\"nofollow noopener\" target=\"_blank\">hits to their revenue<\/a>\u00a0as the uninsurance rate rises.<\/p>\n<p>That chilling effect has consequently bled through into the first half of the year, according to the consultancy.<\/p>\n<p>\u201cBusiness challenges and uncertainty about federal and state policies have affected both the divestitures and affiliations we\u2019re seeing in the market,\u201d said Anu Singh, managing director at Kaufman Hall. \u201cNow that some of the policy uncertainty has resolved, we expect providers will refocus their strategy and transformation efforts, which could spark greater activity in future quarters.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Listen to the article 2 min This audio is auto-generated. Please let us know if you have feedback.&hellip;\n","protected":false},"author":3,"featured_media":64047,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[210,1141,1142,67,132,68],"class_list":{"0":"post-64046","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-health-care","8":"tag-health","9":"tag-health-care","10":"tag-healthcare","11":"tag-united-states","12":"tag-unitedstates","13":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114849888623144954","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/64046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=64046"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/64046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/64047"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=64046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=64046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=64046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}