An Empirical Study of the Determinants of Location of Hospital Mergers and Acquisitions: 1997-2016

Abstract

The present paper examines characteristics related to the two parties involved with hospital mergers and acquisitions and how these affect the location of the merger or acquisition. Using a dataset provided by Levin Associates, we study announcements of this phenomenon between 1997 and 2016. We find that private and publicly traded hospitals have been more engaged in interstate hospital M&As, as compared to nonprofit hospitals. We also find that nonprofit and publicly traded firms are increasing their rates of rural M&A activity over time. We offer areas for further research based on our literature review, the findings, and the changing dynamics of the hospital market. Our findings should be of interest to researchers, policy makers, and the public.