Mergers and acquisitions activity in 2022 can be described in two phases. The first half of the year was characterized by continued growth from 2021, and the second half of the year was characterized by an economic slowdown. The inflection point occurred on June 16, 2022, when the Federal Reserve began the first of the four 75 basis point interest rate hikes. Nevertheless, the healthcare services’ M&A activity stood out for its resilience. Despite a 36.0% year-over-year decrease in volume for M&A transactions, when aggregated for all subindustries the value for healthcare services’ M&A increased by approximately 5.0%.

This annual report examines the healthcare M&A landscape in 2022 and the 2023 outlook by leveraging VMG Health’s expertise as the leading provider of healthcare transaction and valuation services. We analyze transaction activity, regulatory changes, reimbursement outlook, M&A outlook, and other industry dynamics driving M&A across several prominent healthcare verticals.