The recent COVID-19 regulations have put a hold on many healthcare deals, but the uncertainty over the health-care sector’s future has not dampened the trend. The new rules will only make conditions more challenging for larger systems and smaller organizations looking for partners. Those companies will likely have to rethink their plans for expansion. Here are some of the potential benefits of the changes: They will lower the cost of health care, increase access to quality care and improve the overall patient experience.
In the third quarter of 2017, health-care mergers and acquisitions reached a record high, but the pace of dealmaking slowed down. The number of deals was largely unchanged from the previous quarter, but the value of healthcare transactions rose significantly. In all, there were 219 deals announced, representing $43 billion in combined value. Of those, ten were megadeals, accounting for $43 billion. That’s a strong quarter for the health-care industry.
The health-care IT sector reported a record-high number of transactions in September, putting it on pace to have the second highest number of deals this year. Consumer demand for innovative remote care and IT tools will continue to be driven by pandemic fears. The medical supply and device sector saw a similar upswing, closing nearly 300 transactions this year. And, despite a dwindling deal volume in September, this sector is already on pace to exceed three-hundred billion in total value by the end of 2022.
While healthcare deals are a growing industry, uncertainty over tax rate changes and high valuations could affect deal volume in 2021. Nonetheless, it’s important to note that a record number of health care deals is expected in 2021, and this pace is projected to continue into 2022. If tax rate changes don’t cause a significant disruption in the economy, it will likely increase even further. The fourth quarter of this year will mark a record year for health care deals, according to the latest reports from KPMG and FocalPoint Partners.
The healthcare industry is experiencing an unprecedented level of growth, with a record number of transactions in the fourth quarter alone. With the influx of new technologies and innovative medical devices, the amount of deals in the industry has doubled since 2010, and the dollar amounts are staggering. As more companies look to enter the health sector, the market is undergoing a transformation. The future of healthcare deals is bright. There are few risks associated with these mega-deals.
In the third quarter, the sector experienced an increase in activity. With a few new deals announced in September, the sector is expected to surpass its Q3 total of 79 transactions. With more deals planned for 2020, the sector is expected to surpass $3 billion this year. And the trend is likely to continue throughout this year, with the numbers still increasing. This is a good sign for the industry. So, the current trends in the healthcare M&A market indicate that it will remain healthy in the coming year.
In September, physician practices and services saw 36 deals. This sector ended the third quarter with 79 total transactions. In addition to these, there are still a number of deals under consideration. For example, five of the companies involved in women’s health were acquired. During this period, the industry will see a growth in transactions in the ophthalmology and reproductive health sectors. For instance, Webster Equity Partners has acquired Santa Monica Fertility in late 2019, Reproductive Gynecology & Infertility in August 2021, and Institute for Human Reproduction.
The physician practices and services sector saw 36 deals in September. The sector has now reached a total of 79 transactions. There are several more deals on the way. With this increased volume, the sector is expected to see four times as many deals as last year. The industry is dominated by large providers and hospitals with lower costs and higher profits. The physician practices and services sector has the most healthcare deals this year. These companies also offer many other benefits to their patients.
In the third quarter of 2019, the industry saw 36 deals. The sector finished the third quarter with 79 total transactions. With additional deals under consideration, the industry is projected to reach over 400 deals this year. A few of the most notable healthcare deals occurred in September. In September alone, three ophthalmology clinics were acquired by Webster Equity Partners, while five others were sold by other private equity firms. Among the sectors, the physician practices and services sector is a hot spot for M&A.
