InSight

Exit and Growth Strategies for Middle Market Businesses

Q4 Healthcare M&A Update

By Catherine Patience | Nov 07, 2014

HEIPG-PipetteM&A activity for North American based target companies in the healthcare sector for Q3 2014 included 299 closed deals and total deal value of approximately over $14 billion, according to data provided by S&P Capital IQ. M&A Activity in the quarter was down by 11% versus Q2 2014 from 333 to 299 deals closed. The average total deal value also fell by nearly 200% from $379 million to $165 million. 

New data from Frost & Sullivan’s, an industry research group, “Analysis of Mergers and Acquisitions Trends in the United States Healthcare Provider Industry” reveals that M&A deals in the post-acute care, surgical and emergency center segments are expected to drive M&A activity in the U.S. healthcare provider industry. According to the report, the upward trend is also being driven by other factors having a negative impact on healthcare providers’ bottom line. This includes the charges levied on hospitals that get admissions due to hospital-acquired conditions, the Hospital Readmissions Reduction Program that imposes penalties on hospitals with high readmission rates, and value-based purchasing that ties hospitals’ performance to reimbursement rates for Medicare patients.

Read the Entire Healthcare 4th Quarter Newsletter Here

 


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