NORWALK, CT – February 28, 2012 – Over $86.3 billion was committed to fund the 590 hospital takeovers that were announced during the 10-year period ended December 31, 2011, according to Deal Search Online.  Earlier in the decade activity was sluggish due to a recession but the market rebounded and grew to the level of $35.5 billion in 2006. A similar response is occurring now as the M&A market continues to recover from the wake of damage left by the Great Recession, but general uncertainty is playing a role as well. In addition, larger hospitals and systems have been acquiring smaller ones in an attempt to gain pricing power and to prepare for the full implementation of health care reform.

Hospital Mergers and Acquisitions, 2002 to 2011
Year	Number of Deals	Dollars Committed
2002	56	$3,403,681,000
2003	37	$2,341,550,000
2004	59	$9,706,390,000
2005	50	$2,905,729,000
2006	55	$35,533,500,000
2007	61	$9,257,130,000
2008	60	$2,580,600,000
2009	51	$1,813,600,000
2010	75	$10,792,632,000
2011	86	$7,938,260,000
Total	590	$86,273,072,000

In 2011, the hospital sector posted a 10-year high in deal volume with 86 M&A transactions. The total dollars committed was $7,938,260,000, nowhere near the mammoth number that 2006 posted for the 10-year high, however. Large deals in the second quarter of 2011 were significant contributions to the annual total.

The five largest hospital transactions reported in 2011, according to Deal Search Online, are listed in the table below.

Five Largest Hospital Deals Of The Past 12 Months	Value	Quarter
1.    Highmark acquired West Penn Allegheny	$1.475 billion	Q2:11
2.    HCA acquired the remaining interest in HealthONE	$1.45 billion	Q2:11
3.    Ascension Health acquired Alexian Brothers	$645.0 million	Q2:11
4.    Health Management Associates acquired Mercy Health Partners	$525.0 million	Q3:11
5.    Trinity Health acquired Loyola University Health System	$475.0 million	Q1:11

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