Hospitals and health systems have faced historic financial challenges over the past several years. As a result, mergers and acquisitions (M&A) continue to play a strong role across the healthcare industry. In 2024, 72 hospitals announced M&A deals and 34 more have been finalized so far in 2025. What makes today's M&A environment particularly notable is the number of distressed transactions and divestitures. According to a report from Kaufman Hall, approximately 31% of mergers and acquisitions in 2024 involved a financially distressed party, while roughly 63% were divestitures — both record-setting figures. Rather than the transformative megamergers that once defined healthcare consolidation, today's deals are smaller, more targeted, and often driven by survival rather than growth strategy. If you lead an organization that’s pursuing M&A activity, chances are you're extending a lifeline to a struggling health system — while also strengthening existing service lines or expanding your geographic footprint. These types of targeted acquisitions can bring obvious advantages to your organization, like reducing costs and improving access to care. But to realize any of those benefits, you’ll first need to successfully manage newly acquired staff through the transition.