Healthcare Services | Fourth Quarter 2021

January 2022 – Healthcare M&A activity in 2021 was a record-breaking year with more than 2,100 transactions, totaling more than $456 billion in announced M&A deal value, according to preliminary figures from Irving Levin Associates Inc. Transactional growth was achieved across almost all sectors and buyers ranged from small local investors to international private equity and venture capital firms. Significant drivers of deal activity include: (i) demographic changes, resulting in an older population requiring increased utilization of home health and hospice services and personalized physician care, (ii) the rise of substance use disorders and stress from the COVID-19 pandemic, and (iii) the shift to value-based care, pushing providers to adopt patient engagement and care coordination solutions. Due to rising demand, even with COVID still impacting the U.S. economy, investors, both strategic and financial, seek to capitalize on the robust healthcare market. The year saw sharply higher deal growth in the physician practice, digital health, diagnostics, and distribution sectors.

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