The findings reinforce those of Kaufman Hall’s second quarterly report, which found a much less dramatic decline than expected in M&A activity during the pandemic, and predicted a strengthening in the rationale for strategic partnerships, leading to a potential uptick in M&A activity. In addition, health systems have pursued new models of care, forms of population management, and collaboration across existing verticals and new market innovators, even before the pandemic, according to Singh. He says this change in the industry strengthened the rationale for transformation-focused partnerships in many instances.

"Health systems that are able to access additional resources will be better positioned to respond to COVID-19 outbreaks, from using multiple facilities to safely treat COVID and non-COVID patients to redeploying staff," he said. "In addition, health systems with a broader geographic footprint may find it easier to withstand the financial and operational pressures of the pandemic than their stand-alone counterparts. The pandemic may have altered the timing, pace or scope of partnership discussions, but industry forces are a more powerful driver, as the Q3 activity supports."

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