AI adoption has begun to shape M&A activity within the healthcare RCM and HCIT spaces, where dealmaking activity has been particularly strong in recent years: Between January 2020 and March 2023, over 725 RCM and HCIT transactions closed and more than $150 billion traded hands in these transactions.
Investments into RCM and HCIT firms that leverage AI reached a new high in 2022, generating $37 billion in transaction value, based largely on transactions involving Change Healthcare, Nuance Communications and CloudMed. Even beyond these mega-deals, it’s clear that there is increased interest in this part of the market, as M&A deals involving AI represented 21% of all first quarter 2023 transactions compared to 11%-12% in each of the prior three years, Middle Market Growth reports. Read more.
