As the coronavirus pandemic continues to devastate the finances of U.S. hospitals and health systems, experts predict a short-term rise in strategic M&A dealmaking and interest from private equity to scoop up flagging physicians offices. The pandemic “provides a potential war chest if you’re thinking about going out and acquiring struggling providers,” Christopher Whaley, a researcher at policy think tank the RAND Corp., said in an interview. Hospitals and providers have deferred elective or nonessential care in an effort to stop the spread of the virus and conserve much-needed resources, cutting off a lucrative line of business that is expected to cost the industry over $161 billion by June. Larger hospitals and health systems may be well-positioned to weather the downturn and use strategic M&A to boost revenues, Whaley said. Smaller systems, on the other hand, may be forced to sell or close their doors.
Read the full article: ‘A Potential War Chest’: COVID-19 Pandemic May Spur M&A among US Hospitals //
Source: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/a-potential-war-chest-covid-19-pandemic-may-spur-m-a-among-us-hospitals-58731002