Issue link: https://beckershealthcare.uberflip.com/i/1430054
17 CFO / FINANCE Expect megamergers, larger deals to continue across healthcare industry: Kaufman Hall By Alia Paavola A lthough there were fewer merger and acquisition deals announced in the third quarter, the total transacted revenue and average seller size by revenue was higher, according to an analysis from health- care consultant Kaufman Hall. In the third quarter, there were seven trans- actions involving 20 hospitals announced. is included two megamergers, in which the smaller partner has annual revenues of more than $1 billion. One of the megamerg- ers is the planned combination of Salt Lake City-based Intermountain Healthcare and Broomfield, Colo.-based SCL Health, which would create a 33-hospital system with $11 billion in revenue. Another megamerger announced was in Illi- nois. Evanston, Ill.-based NorthShore Univer- sity HealthSystem and Naperville, Ill.-based Edward-Elmhurst Health announced plans to merge into a nine-hospital system with $4 bil- lion in revenue and 25,000 employees. Another notable transaction in the quarter was Nashville, Tenn.-based HCA Health- care's acquisition of five hospitals in Utah from Dallas-based Steward Health Care. For the seven transactions announced in the third quarter, the total transacted revenue was $5.2 billion. This brings the total transacted revenue for 2021 through the third quarter to $22.4 billion. The to- tal transacted revenue through the third quarter is nearly the same as prior years despite only having half of the number of deals announced. Kaufman Hall also found that the average seller size by revenue from Jan. 1 to Sept. 30 was $659 million, more than double the av- erage of $329 million over the past six years. "e trend we have seen throughout 2021 — a smaller number of transactions, but a high- er level of large and megamerger transactions — is one we expect to continue," Kaufman Hall said. n Lurie Children's welcomes internationally recognized surgeon-scientist Thomas Inge, MD, PhD, as its next Surgeon-in-Chief. Renowned for his expertise in pediatric bariatric surgery and research, Dr. Inge's surgical outcomes research has been continuously funded by the National Institute of Diabetes and Digestive and Kidney Diseases since 2005. He has collaborated broadly to address key questions pertaining to pediatric obesity and surgical treatment, and has authored over 150 peer-reviewed publications and published nearly 60 reviews, editorials, books and book chapters. Dr. Inge joins Lurie Children's from Children's Hospital of Colorado, where he served as Associate Surgeon- in-Chief and member of the hospital's Executive Leadership Team. Ann & Robert H. Lurie Children's Hospital of Chicago LCH-2414 Inge Beckers Ad_HALF PAGE H_F.indd 1 LCH-2414 Inge Beckers Ad_HALF PAGE H_F.indd 1 10/27/21 11:23 AM 10/27/21 11:23 AM "The trend we have seen throughout 2021 — a smaller number of transactions, but a higher level of large and megamerger transactions — is one we expect to continue." Kaufman Hall