Hospital and health system merger & acquisition activity in Q1 2025 reflected the overall market volatility and economic uncertainty surrounding tariffs and potential policy changes from the new administration, affecting healthcare with a chill on decision-making. Only five transactions were announced this quarter. This low level of activity reflected broader malaise in M&A markets across industries, both globally and in the U.S., as discussed below. Although there was a very small number of transactions announced in Q1, it is worth noting that four of the five transactions involved financially distressed acquirees.  

The appetite for M&A activity still exists, and for some organizations, remains essential to their survival. It is difficult, however, for organizations to focus on strategic growth opportunities in a constantly evolving and uncertain political and economic environment, where to create a current financial performance and valuations could be quickly undone by an economic downturn or an unfavorable regulatory or legislative change. Resumption of more normal patterns of M&A activity will depend on greater certainty around the many factors that are unsettling decision-making today.

Read the the latest M&A Quarterly Activity Report!