Health care deals were down in early 2022 compared to the same period in 2021, but there are sectors showing strength despite inflation and supply chain issues, according to a report from PwC, Medical Economics reports.
In health services, deal volume decreased 9% from the fourth quarter of 2021 to the first quarter of this year, but volume is strong when comparing the last 12 months ending May 15 to the prior year period. Deal volume across all health service subsectors increased 5% in the year ending May 15, as compared to the previous twelve months. However, the value of those deals was 17% lower for the period.
Increases in deal volume is being driven by roll-up transactions as the industry tries to consolidate fragmented subsectors of health care, according to the report. These transactions are meant to create system that can deliver higher quality, patient-centric care using more digital tools.
Overall health services deal volumes are trending above the longer-term average and are expected to rebound in the coming quarters. Cash from private equity and corporations remains at unprecedented levels and will drive competition for the assets. Read more.
