Health Care M&A Deal Volume and Value Grew in Q2:2016; First Half of 2016 Tops H1:15, According to HealthCareMandA.com

FOR IMMEDIATE RELEASE

Lisa Phillips

Editor

800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com

NORWALK, CT – July 13, 2016 – Health care merger and acquisition activity gained strength in the second quarter of 2016. Compared with the first quarter of 2016, deal volume rose 11%, to 396 transactions. Deal volume was also higher, up 15%, compared with the same quarter the year before. Combined spending in the second quarter reached $88.2 billion, an increase of 9% compared with the approximately $80.7 billion spent in the previous quarter, according to HealthCareMandA.com.

 

In the first half of 2016, deal volume reached 754 transactions, up 5% compared with the first half of 2015 (721 deals). Spending in the first half of 2016 reached $168.9 billion, a 4% increase compared with the same period in 2015 ($162.4 billion).

 

Health care services represented 60% of the second quarter’s transaction total, slightly lower than the 62% share reported in the previous quarter, but equal to the 60% share recorded in the second quarter of 2015. Investor interest in the services sectors was generally strong. Deal volume in the Behavioral Health Care sector, with 17 transactions, was higher than the previous (113%) and year-ago quarters (183%). Similarly, the Long-Term Care sector posted 87 transactions in the second quarter, higher than the previous (5%) and year-ago quarters (13%).

 

On the technology side, transaction growth across three sectors, Biotechnology, eHealth and Pharmaceuticals, outpaced the first quarter. The eHealth sector was booming, with 57 transactions, up 58% versus the first quarter and 68% over the second quarter in 2015. The growing emphasis on benchmarking and population health management, not to mention revenue cycle management and electronic health records, will keep this sector growing for several more quarters.

 

“A few factors influenced deal volume in the second quarter of 2016,” said Lisa E. Phillips, editor of HealthCareMandA.com. “The passage of the Medicare Access and CHIP Replacement Act of 2015 (MACRA) ensured that the changes in the healthcare marketplace begun by the Affordable Care Act are going to continue. It’s very clear that those who practice value-based care will get the carrots, while providers who stick with fee-for-service will get the sticks.”

 

For more information on HealthCareMandA.com or The Health Care M&A Information Source, or for a membership to any of Irving Levin Associates’ services, please call 800-248-1668. Irving Levin Associates, Inc., established in 1948, is headquartered in Norwalk, Connecticut and is online at www.levinassociates.com.  This privately held corporation publishes annual and quarterly research reports, monthly and weekly newsletters, and maintains merger and acquisition databases on the health care and senior housing markets. If you would like to receive future releases, please email pressreleases@levinassociates.com.

 

 

Q2:16

Q1:16

Q2:15

Sector

Deals

Deals

Change

Deals

Change

Services

 

 

     

Behavioral Health Care

17

8

113%

6

183%

Home Health & Hospice

12

18

-33%

6

100%

Hospitals

22

27

-19%

24

-8%

Laboratories, MRI & Dialysis

11

8

38%

15

-27%

Long-Term Care

87

83

5%

77

13%

Managed Care

5

8

-38%

9

-44%

Physician Medical Groups

27

19

42%

23

17%

Rehabilitation

7

10

-30%

6

17%

Other

51

40

28%

41

24%

   Services subtotal

239

221

8%

207

15%

 

 

 

 

 

 

Technology

 

 

 

 

 

Biotechnology

32

31

3%

34

-6%

eHealth

57

36

58%

34

68%

Medical Devices

25

31

-19%

30

-17%

Pharmaceuticals

43

39

10%

39

10%

   Technology subtotal

157

137

15%

137

15%

 

 

 

 

 

 

Grand Total

396

358

11%

344

15%