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: Q1 2024 Trends

  • U.S. healthcare services M&A activity in Q1 2024 saw a 10.8% decrease in volume compared to Q1 2023, reaching 174 transactions.
  • Despite the overall decline, physician medical groups remained the second-largest segment by transaction volume, highlighting continued consolidation in the sector.
  • The trend towards smaller, add-on deals within physician services suggests a shift in M&A strategy.

Focus on Outpatient Care

  • The healthcare industry continues to prioritize outpatient care due to factors like:
    • Increased cost-effectiveness for both providers and patients.
    • Growing specialization within the medical field.
    • A focus on preventative care and early intervention.

M&A Outlook

While facing challenges like staffing shortages and stricter regulations, the pace of M&A activity is expected to pick up in the healthcare sector. This is driven by:

  • Anticipated interest rate decreases.
  • Rising valuations of public healthcare companies, making them more attractive acquisition targets.
For more information on healthcare M&A trends, visit Healthcare M&A News. 

If you have any questions, please contact our contributors:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com