Some organizations’ plans to divest may reflect increasing financial pressures also captured in the McKnight’s 2022 Outlook Survey.
“It’s been two years of pressure now.
“Higher expenses have collided very unfavorably with the market stresses presented by the ongoing COVID situation,” she said.
For others, Cochran added, finding a way out is no longer voluntary.
Cochran doesn’t expect any major players to abandon the industry, predicting most deals in 2022 will involve organizations with fewer than 50 facilities.
“We have been in discussions with a large number of sellers who are seeing attractive pricing in the market and are asking us if now is a good time to sell,” she said.
Historically low interest rates have helped motivate certain buyers, even as the industry has struggled to regain its operational and financial footing.
In addition to making everything — including wages — more expensive, inflation also could lead to interest rate increases, making it more expensive to borrow money.Inflation is at a 40-year high, hitting 7% over the last year, according to a Consumer Price Index report issued Wednesday.
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