• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

  • Opinion
  • Health IT
    • Behavioral Health
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Patient Engagement
    • Population Health Management
    • Revenue Cycle Management
    • Social Determinants of Health
  • Digital Health
    • AI
    • Blockchain
    • Precision Medicine
    • Telehealth
    • Wearables
  • Life Sciences
  • Investments
  • M&A
  • Value-based Care
    • Accountable Care (ACOs)
    • Medicare Advantage

Healthcare M&A Market Braces for a Cautiously Optimistic 2024

by Fred Pennic 12/28/2023 Leave a Comment

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

What You Should Know:

– Despite a 13% decline in deal volume compared to 2022, PwC’s latest Health Services Deals Outlook paints a cautiously optimistic picture for 2024.

– While a cautious optimism prevails, several factors suggest that 2024 could be a dynamic year for healthcare M&A. Adaptability, resourcefulness, and a focus on value creation will be key for dealmakers navigating the evolving landscape.

Fueling the Fire

 While headwinds like high-interest rates and regulatory concerns remain, several factors point towards a potentially vibrant M&A landscape:

– Abundant Capital: Record levels of cash on hand, coupled with investments nearing exit windows, create the potential for significant deal activity.

– Strategic Imperatives: Both corporates and private equity firms seek business reinvention and portfolio transformation, often driven by M&A.

– Creative Approaches: The emergence of non-traditional deal structures like continuation funds and co-investor partnerships shows investor adaptability

Beyond Volume

– Lower Valuation Multiples: While deal volume dipped, the decline in disclosed deal values primarily reflects larger transactions impacted by financing challenges. This presents value-seeking opportunities for investors.

– Resilient Sector: Macroeconomic indicators, including robust healthcare venture capital fundraising, point towards the sector’s continued attractiveness for investment.

Key Drivers

– Carve-outs on the Rise: Incumbents facing nontraditional competition and conglomerates streamlining operations drive this trend.

– Cross-Sector Collaboration: Nonprofit health systems seek external expertise in areas like VBC, partnering with for-profit entities for mutual benefit.

– Generative AI: The potential for disruption and productivity gains across healthcare functions is being closely monitored, but regulatory uncertainties persist.

Challenges to Navigate

– Regulatory Scrutiny: Continued oversight of specific transactions and industry concentration remain concerns, particularly for private equity.

– Reimbursement Woes: Rising labor and supply costs exceeding government-approved rate increases could lead to liquidity challenges for some providers.

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

Tagged With: Healthcare Mergers & Acquisitions

Tap Native

Get in-depth healthcare technology analysis and commentary delivered straight to your email weekly

Reader Interactions

Primary Sidebar

Subscribe to HIT Consultant

Latest insightful articles delivered straight to your inbox weekly.

Submit a Tip or Pitch

Featured Interview

Reach7 Diabetes Studios Founder Chun Yong on Reimagining Chronic Care with a Concierge Medical Model

Most-Read

Bayer Exits Radiology AI Market, Discontinuing Calantic and Blackford

Bayer Exits Radiology AI Market, Discontinuing Calantic and Blackford

Oracle Health Launches AI Center of Excellence for Healthcare

Oracle Health Launches AI Center of Excellence for Healthcare

Particle Health Addresses Integration to Epic Data Despite Dispute

US Court Allows Particle’s Antitrust Claims Against Epic to Proceed

Epic Launches Comet: A New AI Platform to Predict Patient Health Journeys

Epic Launches Comet: A New AI Platform to Predict Patient Health Journeys

Preparing for the ‘Big Beautiful Bill’: How Digitization Can Streamline Medicaid Eligibility & Social Care Delivery

Preparing for the ‘Big Beautiful Bill’: How Digitization Can Streamline Medicaid Eligibility & Social Care Delivery

Evernorth Health Services Invests $3.5B in Shields Health Solutions

Evernorth Health Services Invests $3.5B in Shields Health Solutions

KLAS Report: Oracle Health Faces Customer Losses and Declining Satisfaction

KLAS Report: Oracle Health Faces Customer Losses and Declining Satisfaction

Tempus AI Acquires Digital Pathology Leader Paige for $81.25M

M&A:Tempus AI Acquires Digital Pathology Leader Paige for $81.25M

Mira Launches Ultra4™, the First At-Home Hormone Monitor with Lab-Quality Insights

Femtech: Mira Launches Ultra4™, the First At-Home Hormone Monitor with Lab-Quality Insights

How Healthcare CIOs Can Solve the Unstructured Data Crisis and Reduce Storage Costs

How Healthcare CIOs Can Solve the Unstructured Data Crisis and Reduce Storage Costs

Secondary Sidebar

Footer

Company

  • About Us
  • Advertise with Us
  • Reprints and Permissions
  • Submit An Op-Ed
  • Contact
  • Subscribe

Editorial Coverage

  • Opinion
  • Health IT
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Population Health Management
    • Revenue Cycle Management
  • Digital Health
    • Artificial Intelligence
    • Blockchain Tech
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • Value-Based Care
    • Accountable Care
    • Medicare Advantage

Connect

Subscribe to HIT Consultant Media

Latest insightful articles delivered straight to your inbox weekly

Copyright © 2025. HIT Consultant Media. All Rights Reserved. Privacy Policy |