Market Monitor: Healthcare

Market Monitor: Healthcare

Read Market Monitor

Market Monitor: Healthcare

Making the right decisions for your business starts with having the most accurate and current information available. Our Healthcare Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

M&A in Healthcare Services: YTD July 2024 Trends

  • As of July 2024, the U.S. healthcare services sector has recorded 406 M&A transactions, marking a 7.5% decline compared to the same period in 2023.

Physician Medical Group M&A Trends for 2024

  • The number of physician medical group transactions has decreased year-to-date compared to July 2023. Despite this decline, physician services remain the second most active segment in healthcare services, with a focus on smaller add-on acquisitions rather than larger platform deals.

Strong M&A Activity in Behavioral Healthcare

  • The Behavioral Healthcare sector is experiencing robust M&A activity, driven by increasing demand for mental health services and growing awareness of their importance. This sector remains highly attractive, with significant interest from investors and providers aiming to expand their service offerings and geographic reach.

Impact of Market Conditions on Future M&A Activity

  • Despite ongoing challenges such as staffing shortages and increased regulatory scrutiny, the pace of M&A activity is anticipated to accelerate. Expected interest rate decreases and rising public company valuations are likely to drive increased M&A activity in the coming months.

If you have any questions, please contact our contributors:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com