While hospital merger and acquisition deals in the second quarter of 2015 slid when it came to volume, the total dollar amount of the deals jumped on a few major takeovers, according to new research by PricewaterhouseCoopers.
Hospital deals were up a combined $1.5 billion in the quarter compared to the same period last year, largely on the $1.75 billion bid by Ventas Health for Ardent Health Services, according to the report.
"Overall, deal volume in the hospital sector continues to garner attention in both the for-profit and not-for-profit arenas based on a variety of ongoing factors, including market/geographic forces, financial stability and strategic alternatives," the report said.
Other big deals in the quarter include Spectrum Health's $56 million takeover of Pennock Health Services and Adventist Health's $100 million acquisition of Lodi Health.
Like in earlier years, nonprofit hospitals are attractive to systems looking to add to their roster.
"Approximately 11 percent of total 2014 health care transactions were for not-for-profit targets, and hospitals accounted for more than half. Similarly, hospitals and health systems accounted for 72 percent of not-for-profit acquirer deals in 2014," the report said.
But while big hospital deals marked the quarter, the managed care sector was active in the quarter, and the Supreme Court's decision to uphold Obamacare subsidies in its landmark King v. Burwell ruling is only expected to spur more deals in the near future.
"Payers' increased confidence in the future regulatory landscape have offered a platform for more aggressive deals strategies," the report said.
While the seven deals announced in the quarter were less than the eight announced in the first quarter, the report said first-half total for 2015 was more than 31 percent higher than in the first half of 2014.
Aetna's $37 billion acquisition of Humana was announced in the quarter, as well as Centene Corp. plan to buy Health Net for $6.8 billion.
Deals in long-term care, home care and physician practices all decreased slightly in the quarter, though the 64 long-term care deals show how active that market is. The $730 million acquisition of Reliant Hospital Partners by HealthSouth Corp., however, boosted the total value of deals in home health care.
Pharmacies represented another major mover in the second quarter, led by two acquisitions by CVS Corp. The pharmacy chain announced plans to buy Target's pharmacy business for $1.9 billion in June. Earlier, in May, CVS bought pharmacy services provider Omnicare for $12.7 billion.
Twitter: @HenryPowderly