The 10 main goals of mergers and acquisitions in the healthcare sector in 2022


In early 2020, there was a massive pandemic-induced drop in healthcare mergers and acquisitions. But the industry quickly rebounded, carrying momentum from the second half of 2020 – which saw a flurry of deals – to 2021, which saw an accelerated pace of activity.

In the first half of 2021, 872 mergers and acquisitions transactions in the healthcare sector were closed, up 15% compared to the 738 transactions in the second half of 2020, Baker Tilly reported.

“You don’t have to be a scientist to see that we are in a healthy climate for mergers and acquisitions,” Don McDaniel, CEO of Canton & Company and health economist, entrepreneur and leader in advisory services. “I think this is, by most accounts, a benchmark year in terms of overall M&A. No matter what industry you focus on; I think we’re going to keep seeing this, we won’t see. decreased appetite. ”

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There are a few factors driving a frenzy of M&A activity, including companies looking for scale and growth as well as private equity firms and SPACs looking to invest capital. . In the hospital sector, there have been fewer consolidations but much larger transactions in 2021, and this is a trend that is expected to continue.

In particular, the shift to digital and virtual care during the COVID-19 pandemic has meant that hospital operators are grappling with rapid changes that are set to fundamentally change the industry.

“I think there is a real calculation that the future could be fundamentally different from the past, accelerated by COVID-19,” McDaniel said. “With the revenues of hospitals, the percentage of outpatients is higher than that of inpatients, and it will accelerate. Hospitals will have to figure out how to play with consumers in this new world. “

RELATED: Hospitals Saw More Mega Mergers in the Last Quarter. Kaufman Hall explains why

Nathan Ray, who leads healthcare mergers and acquisitions for West Monroe, sees many healthcare industries as ripe for increased activity, including the employer benefits market and care navigation.

And of course, the industry needs to keep an eye on retail giants Amazon and Walmart as they continue to take steps to expand their healthcare ambitions, industry analysts say.

In this report, we’ll walk you through some key targets that may be in the crosshairs of M&A deals, such as the fast-growing digital pharmacy Alto Pharmacy, which is rumored to go public soon thanks to a PSPC deal. , and Ascension and AdventHealth health systems, which are now up for grabs following the outcome of their joint venture.

One company removed from this list was Athenahealth, as it is now out of the M&A market. As recently as last week, private equity firms Bain Capital and Hellman & Friedman bought out the health tech firm for $ 17 billion.

As always, we hope you enjoy this report and invite you to contact us with any questions or comments.


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