Daily Briefing

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Around the nation: Hospital M&A hit 6-year high in Q1


According to a new report from Kaufman Hall, hospital mergers and acquisition (M&A) reached a six-year high in the first quarter of 2026, in today's bite-sized hospital and health industry news from Georgia, Illinois, and Maryland. 

  • Georgia: According to a new CDC brief, cases of extensively drug-resistant shigella infections increased from 0% in 2011 to 8.5% in 2023 — increasing shigella's risk as a public health threat. Shigellosis is a diarrheal illness caused by bacteria that spreads through fecal-oral transmission or sexual contact. Between Jan. 1, 2011, and Oct. 20, 2024, there were 16,788 isolated cases of drug-resistant shigella infections. Although previous outbreaks of drug-susceptible strains primarily occurred in children, new data showed that drug-resistant cases primarily occurred in adults. The median age of affected patients was 41, and 86.2% were men. Roughly one-third of patients were also hospitals. Currently, there are no FDA-approved oral treatments, but antibiotics are indicated for severe illness and to reduce the spread of the disease. (Taylor, Becker's Hospital Review, 4/14)
  • Illinois: According to a new report from Kaufman Hall, hospital M&A reached a six-year high in the first quarter of 2026. In Q1, there were 22 healthcare M&A transaction announcements, the most recorded within the sector since early 2020. The deals were worth a combined $14.5 billion in transacted revenue, which was the highest recorded by Kaufman Hall since it started tracking hospital deals in 2018. The average annual revenue of the smaller party was $657 million, the second highest since 2018. The average revenue was boosted by a trio of megamergers, including a proposed deal between Sutter Health ($20 billion in revenue) and Allina Health ($6 billion in revenue). According to Kaufman Hall, the M&A activity in Q1 2026 highlights a rebound in hospital transactions after a near-freeze in dealmaking in the first half of 2025 due to policy and market-related challenges. "This quarter's trends reflect an industry undergoing transformation," said Kris Blohm, managing director and co-leader of Kaufman Hall's M&A practice. "Health systems are repositioning by withdrawing from underperforming or non-core markets, building capital to invest in new capabilities, proactively seeking partners to increase resilience or enhance access to care and services, and placing big bets on new combinations of resources and capabilities." (Muoio, Fierce Healthcare, 4/10; Kaufman Hall report, 4/9)
  • Maryland: FDA is requiring Eli Lilly to conduct several postmarketing studies to assess potential safety risk associated with its newly approved GLP-1 medication Foundayo. According to FDA, additional data is needed to evaluate risks associated with the drug, including major adverse cardiovascular events, drug-induced liver injury, medullary thyroid cancer, and delayed gastric emptying. Lilly is required to complete multiple studies, including trials for pediatric populations, pregnancy exposure, and long-term outcomes. The company is also required to participate in several registries, including a 10-year pediatric registry assessing the growth, development, and adverse events among patients being treated for obesity. Currently, Foundayo is approved for use in adults who are obese or overweight with weight-related conditions, but ongoing studies are needed to better understand the drug's long-term safety profile. (Jeffries, Becker's Hospital Review, 4/15)

Building a Best-in-Class Hospital M&A Function

Prevent negative outcomes and increase the value of each deal with a well-organized M&A function that has an accountable leadership structure, a disciplined deal-making process, and a system for continuous improvement.


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