Issue link: https://beckershealthcare.uberflip.com/i/1543326
22 RCM LEADER What to expect from hospital M&A in 2026: Kaufman Hall By Andrew Cass H ealth systems will continue to "look beyond traditional inpatient services for new growth opportunities," in 2026, according to a Jan. 15 report from Kaufman Hall. Kaufman Hall said that health systems are increasingly pursuing non- acute and capability-based partnerships. e firm pointed to two examples from 2025. e first was St. Louis-based Ascension's June announcement that it entered an agreement to acquire ASC operator AmSurg, which has more than 250 facilities across 34 states. e second was Grand Rapids, Mich.-based-based Corewell Health's laboratory joint venture with Quest, which was announced in September and finalized Jan. 5. e partnership created Diagnostic Lab of Michigan and reflects health systems' growing interest in non- acute, capability-based collaborations. Kaufman Hall expects continued interest in these types of deals in 2026. In 2026, Kaufman Hall also expects large and national health systems — particularly for-profit operators and Catholic systems — to continue divesting non-core assets, "based on a growing realization that scale alone is no longer a sufficient growth or margin strategy, particularly without scale at the market or regional level." e percentage of transactions involving a divestiture was 45.6% in 2025, according to the report. For-profit systems were the seller in 11 deals, but the acquirer in only one. "is is a signal of the financial challenges facing hospitals in the current environment and illustrates a shi in for-profit entities' investments to other healthcare services subsectors or an exit in general," the report said. Kaufman Hall said uncertainty surrounding the extension of the enhanced ACA subsidies that expired at the end of 2025 and the anticipated effects of the One Big Beautiful Bill Act beginning in 2027 will weigh on strategic planning and capital deployment decisions this year. e firm predicts the trend of a high percentage of transactions involving financially distressed organizations will continue. Kaufman Hall also said there are indications that states may be taking a more conciliatory approach to healthcare transactions, "especially in instances where financial distress raises the prospect of a hospital closure." n How Novant Health is evolving its revenue cycle structure By Andrew Cass W inston-Salem, N.C.-based Novant Health is evolving its revenue cycle structure to accelerate access to care and bring new technology and innovation into daily operations. Novant Senior Vice President and Chief Revenue Officer Heather Dunn said the system has reorganized its revenue cycle teams around the patient's entire financial journey, "creating clear accountability and enabling faster, more consistent service." "Our new model aligns work within five centers of excellence — access, clinical revenue operations, consolidated business office, shared services and transformation — so we can operate more efficiently and adapt quickly to the changing needs of our patients," Ms. Dunn told Becker's in an emailed statement. Ms. Dunn said that by centralizing key functions and embracing new technologies, Novant is "building a system that continuously improves and delivers greater clarity, convenience and support for our patients, our teams and the communities we serve." Amid those efforts, Novant added revenue cycle executives to its leadership team in January. Arjun Bhatia was named vice president of revenue cycle transformation, joining from Marietta, Ga.-based Wellstar Health System, where he served as assistant vice president of revenue cycle. Misty Brackett was named vice president of consolidated business office, joining from Chattanooga, Tenn.-based Erlanger Health System, where she served as vice president of revenue cycle. They join a leadership team that also includes revenue cycle vice presidents Melissa Masterton and Kelly Black, as well as senior director of corporate coding and utilization review Natalie George. Ms. Dunn said in a LinkedIn post that the unified leadership team will lead the transformation efforts and challenge the status quo. "With clarity of vision and a deep commitment to excellence, they will help propel us into our next chapter and elevate how we serve our patients, our providers and our team members," she said. n