Healthcare M&A Volume Stabilizes in Q3:24, According to Acquisition Data from LevinPro HC | PR Newswire

Healthcare merger and acquisition activity remained stable in the third quarter of 2024, with 498 deals announced, according to new acquisition data from LevinPro HC. Activity in Q3:24 was virtually on par with the second quarter, when 499 transactions were announced. However, it is a drop of 4% compared with activity in the third quarter of 2023, when 520 deals were announced.

NEW CANAAN, Conn., Oct. 11, 2024 /PRNewswire-PRWeb/ — Healthcare merger and acquisition activity remained stable in the third quarter of 2024, with 498 deals announced, according to new acquisition data from LevinPro HC. Activity in Q3:24 was virtually on par with the second quarter, when 499 transactions were announced. However, it is a drop of 4% compared with activity in the third quarter of 2023, when 520 deals were announced.

“There’s been a noticeable stabilization in healthcare M&A activity this quarter, despite significant pressures weighing on the sector.”

Activity in sectors such as Physician Medical Groups and Other Services drove much of the volume in the third quarter, with 112 and 140 deals, respectively. Demand for healthcare real estate, such as medical outpatient buildings and properties, continues to drive high deal volume in the Other Services as it has for the past several years. Activity in the Behavioral Health Care and Laboratories, MRI and Dialysis sectors during Q3:24 have decreased 28% and 32% from the previous quarter, respectively. Home Health & Hospice saw the largest decline, with 18 deals announced during the third quarter, a 40% decrease from the 30 deals announced in the prior quarter. M&A in healthcare services sectors remained sluggish in the third quarter due to ongoing financial pressures in the industry.

The health technology markets maintained stable M&A activity in Q3:24, with just a 1% increase over the second quarter of 2024, and 5% below the third quarter of 2023. Although the Biotechnology sector saw a decline in M&A of 28%, activity in the health technology sectors was mostly driven by Pharmaceutical deals, which increased by 36% from 14 deals in Q2:24 to 19 deals in Q3:24. The eHealth sector also was on the up-and-up, with a 5% increase in M&A activity over the previous quarter.

The Hospital sector saw a slight increase, with 21 deal announcements in the third quarter of 2024, compared to 17 announced during Q2:24. The largest Hospital deal of the third quarter by price was Tenet Healthcare Corporation’s $910 million cash sale of its majority stake in Brookwood Baptist Health to Orlando Health, which has been scaling up its presence across several markets throughout the year.

Deal value in the third quarter totaled about $44 billion, a decline of nearly 8% compared with the approximately $47.8 billion spent in the second quarter, based on disclosed prices. Despite the recent decline, the spending in Q3:24 was still 6% higher than the $41.5 billion disclosed in the third quarter of 2023. The largest deal by price was TowerBrook Capital Partners’ and Clayton, Dubilier & Rice’s $8.9 billion acquisition of R1 RCM, a Chicago, Illinois-based revenue cycle management company focused on transforming the patient experience and financial performance of healthcare providers.

“There’s been a noticeable stabilization in healthcare M&A activity this quarter, despite significant pressures weighing on the sector,” said Avery Swett, Editorial Analyst at Irving Levin Associates, which publishes the data on its LevinPro HC platform. “While challenges remain in areas like Behavioral Health and Home Health, we’re seeing resilient demand for Physician Medical Groups and healthcare real estate, which continue to fuel deal flow. Looking ahead, the lower- and middle-market segments, driven by private equity and larger health systems, are likely to remain active as they navigate ongoing industry consolidation.”

All quarterly results are published in The Health Care M&A Report, which is part of the Irving Levin Associates and LevinPro investment research source. For information, or to order the reports, call 203-846-6800. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.

Media Contact

Dylan Sammut, Irving Levin Associates, 203-846-6800, sammut@levinassociates.com, www.levinassociates.com

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