Healthcare M&A Report: 2019 Trends & 2020 Expectations Before & After COVID-19

May 18, 2020

2019 Trends & 2020 Expectations

Healthcare Mergers and Acquisition (“M&A”) activity continued its march forward in 2019, with deal volume decreasing slightly but remaining relatively consistent with the record-setting 2018. When excluding mega-deals, the dollar value of healthcare transactions has increased every year since 2012.

Among the major transaction trends in 2019 were mega-deals, cross-industry integrations, private equity firms driving multiples up, disruptive partnership models, and continued interest from payors buying providers.

Providers continue to seek consolidation to gain market share and to take advantage of the economies of scale necessary to meet the goals of the “triple aim”, namely, increase access to care, decrease cost, and improve the quality of care.

The COVID-19 pandemic, changing technology requirements, and the implementation of value-based payments and alternative payment models continue to drive uncertainty in the industry. However, while buyers tend to proceed cautiously in the face of uncertainty, large changes affecting healthcare providers have historically been accompanied by an increase in M&A activity. With the healthcare industry and the country responding to the ongoing COVID-19 outbreak, the market downturn it has caused, and an upcoming presidential election, 2020 is shaping up to be a turbulent year for healthcare M&A.

Leveraging VMG Health’s expertise as the leading provider of healthcare transaction and valuation services, this annual report examines the healthcare M&A landscape before and after COVID-19. We analyze transaction activity, regulatory changes, reimbursement outlook, post COVID-19 M&A outlook, and other industry dynamics driving M&A, across several prominent healthcare verticals. Namely:

  • COVID-19: M&A Before and After
  • Ambulatory Surgery Centers
  • Diagnostic Imaging Centers
  • Acute Care Hospitals
  • Physician Medical Groups
  • Post-Acute Care
  • Behavioral Health Facilities
  • Urgent Care Centers
  • Dialysis Facilities
  • Private Equity Healthcare M&A (All Sectors)