Deal Volume Dips While Value Soars in First Quarter

In the Front Range urban corridor of Colorado, where most Coloradans live, five health systems dominate the landscape. Only a fraction of hospitals are still independent. Executives there say any further consolidation among the industry giants is likely to encounter heavy scrutiny from antitrust regulators.

Across the country, a historically fragmented hospital market is organizing around a select group of for-profit and not-for-profit systems. And that means competition has increased for fewer acquisition targets that still remain on the market.

“There aren't a lot of independents left,” said Michael Slubowski, president and CEO of the Denver-based Sisters of Charity of Leavenworth Health System, which operates 11 hospitals in Colorado, California, Kansas and Montana. The remaining independents aren't necessarily feeling any urgency to find a partner. As an acquirer, he said, “if you're not first to market, you're going to find it hard” to find deals.

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Sourcde: Modern Healthcare