2021 was a record setting year in worldwide merger and acquisition activity across multiple industries, and healthcare was a big part of that, reports Managed Healthcare Executive.
One global report cites healthcare and pharmaceutical deals totaled $288 billion in 2021 which was a 38% increase over 2020. Several of these healthcare mergers were initiated by SPACs and this is a trend expected to continue in the first half of 2022 – based on potential regulatory changes that may be enacted later in the year. But that is not the only reason to expect an upswing in healthcare industry M&A.
The healthcare buying escalation is expected to also reach physician practices. The potential for growth and regular cash flow represented by these practices can be very attractive to private equity firms. One of the key potential benefits for practice owners who entertain an acquisition will be in the area of lessening administrative hurdles so they can focus on patient care. Private equity also provides an infusion of cash that can be used to purchase new equipment and upgrade facilities. Read more.
