Despite challenging macroeconomic conditions and market uncertainty, healthcare services M&A remained stable, with preliminary numbers showing a modest 3% increase in deal volume. The chart above shows the year-over-year change based on transaction data captured in our LevinPro HC platform. At the time of writing, deal volume for healthcare services in 2025 stands at 1,477, compared with 1,434 in 2024. And we expect more deals to surface in the upcoming barrage of quarterly and annual reports.
Activity in the Behavioral Health Care sector surged in 2025, with a 42% increase in deal volume year over year. The sector benefited from a variety of tailwinds, including high demand for services and a push to integrate behavioral health and primary care into a single model. This trend can be seen in M&A deals, such as US Pediatric Partners’ acquisition of Hope Services in April 2025 and 1Care Hospice’s purchase of Reset Behavior Health in 2024.
With the shift to outpatient care and the adoption of value-based care models, most investors would bet on the Outpatient Surgery Center sector, but the reality was different in 2025. Between labor shortages and rising operating and equipment costs, outpatient surgery centers became a risky investment in 2025, with deal activity dropping by 35%, the largest year-over-year decline.
The Hospital market was the most volatile in 2025, so the 10% decrease in deal volume was not surprising. Health systems and hospitals have faced significant headwinds in the reimbursement environment this year: the One Big Beautiful Bill signed by President Trump over the summer is set to slash Medicaid funding, and the ACA’s enhanced premium tax credits are officially expiring next week. No wonder health systems had to pause or shift M&A strategies.
We’re going to explore the trends and deals in greater depth in our upcoming Health Care Services Acquisition Report, so make sure to subscribe.
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