By the end of 2021, health care services transaction volume was brisk, as buyers and sellers adjusted to increasing clarity around the effects of the pandemic on the businesses of the target and the synergies with the buyer, Weaver reports. While immediate concerns about capital gains tax increases abated, ongoing financial pressure on certain health care segments and independent physician groups led to a new wave of consolidation and new affiliations driven by health systems, payers, and private equity.
In 2022 and beyond, Weaver expects health systems and private equity-backed platforms to continue consolidating to achieve more scale, and to re-invest in digital technology and alternate sites of care. Health care segments negatively affected by the pandemic will likely stabilize in the long run. These are likely to benefit from natural demand growth driven by aging demographics, increased demand for underserved segments such as mental health, and a favorable regulatory and reimbursement environment. Read more.
