The shift to value-based care and an abundance of cash in the market are some of the drivers impacting healthcare mergers and acquisitions. These and other trends have been strong over the past few months and are expected to continue, impacting transaction planning for buyers.
If you are considering acquiring a healthcare business in 2023, here are seven things you need to know.
1. Value-based care is becoming a key driver in healthcare M&A
Value-based care
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Healthcare Private Equity | PE | M&A| News, Analysis, Insights
PwC’s Health Services 2023 Deals Outlook – Volume Remains Resilient Against Headwinds
What You Should Know:
- While megadeals, trading multiples and overall deal values in the health services sector have not been immune to interest rate hikes and recessionary fears, PwC’s 2023 Health Services Deals Outlook report released recently forecasts a strong year ahead.
- Increasing transaction volumes and players embracing value-based care—coupled with large levels of corporate cash and private equity dry powder—are leading to continued expansion for deal volumes in 2023.
Trends
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PE Firms Rebrand Prison Healthcare Companies, But Care Issues Continue
What You Should Know:
- A new report, “Private Equity Firms Rebrand Prison Healthcare Companies, But Care Issues Continue,” by the Private Equity Stakeholder Project (PESP) focuses on healthcare company Wellpath and the regulatory risks that the company continues to take in local jails and prisons.
- Wellpath is owned by private equity firm H.I.G. Capital and is among the largest healthcare companies serving U.S. prisons and jails. Wellpath has had a litany of staffing and access to
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HLTH22 Day 3 News Summary
DispatchHealth Raises $330M for Hospital-at-Home Care
DispatchHealth, a provider of in-home medical care raises $330M led by Optum Ventures with support from current investors such as Humana (NYSE: HUM), Oak HC/FT, Echo Health Ventures and Questa Capital. New investors included Adams Street Partners, the Olayan Group, Silicon Valley Bank, Pegasus Tech Ventures and Blue Shield of California. Patients and their care partners can request DispatchHealth medical care via phone, mobile app, or
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Haystack Oncology Launches with $56M for Post-Op Cancer Detection Tech
What You Should Know:
- Haystack Oncology ("Haystack"), an oncology company that applies the next generation of circulating tumor DNA (ctDNA) detection technology raises $56M in Series A financing led by Catalio Capital Management ("Catalio"), which co-founded Haystack through its private equity and structured equity investment vehicles. Additional investors include Bruker, Exact Ventures, the venture arm of Exact Sciences and Alexandria Venture
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HLTH22 Day 1 News Summary: Google, Maven, Highmark, LG, Others
Venture Capital, Private Equity Funding
Maven Clinic Secures $90M to Advance End-to-End Family Care Platform
Maven Clinic, the largest virtual clinic in women’s and family health raises $90 million Series E funding bringing its total funding to $300M. Maven plans to use the latest round of funding to advance its end-to-end family care platform to enable deeper personalization to meet the diverse needs of women and families everywhere.
Curavit Raises $5M for Digital Therapeutics
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Rock Health Reveals 4 2022 Digital Health M&A Trends to Watch
What You Should Know:
- The choppy waters of this year’s market have forced a significant slowdown in digital health investment, but buyers and builders alike are seizing the moment to consider mergers and acquisitions (M&A) as strategic opportunities.
- In their latest report, Rock Health explores the sell-side and buy-side dynamics that are making conditions ripe for M&A activity and dig into four M&A approaches being pursued by acquirers in this market moment.
Key
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JPMorgan Establishes Life Sciences Private Equity Division
What You Should Know:
- J.P. Morgan Asset Management announced the establishment of a new life sciences private equity team, Life Sciences Private Capital.
- The new team will focus on investing in both early and growth-stage healthcare companies across multiple strategies aligned to specific market opportunities, with a focus on novel therapeutics and technologies in several target areas including Genetic Medicine, Oncology, Neurodegenerative Disease, Rare Diseases, Autoimmunity,
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The Desire for Cost Savings Driving Key Trends in Healthcare Market
The healthcare market underwent significant changes during the pandemic as patients rethought how they received care, including opting for more telehealth and deferred elective procedures, but patient care is now normalizing as patients return to the office. However, payers are working to reduce the cost of care to reel in healthcare costs and keep premiums lower to remain competitive, driving key changes.
Ambulatory Surgery and Home Care
Surgeries are increasingly moving away from
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KLAS-Bain: Post-Pandemic Investment Priorities for Healthcare Providers
What You Should Know:
- Competition in the provider IT space shows no signs of abating: Early-stage capital, big tech, and scale EMR players continue crowding into more segments. This has significant implications for providers as they transition into a new disruptive period, for software players as they fine-tune go-to-market models for the current environment, and for private equity investors as they look to invest behind winning themes.
- A new report by KLAS Research and Bain &
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