Healthcare M&A Deals Remain Strong Despite Regulatory Uncertainty
Healthcare merger and acquisition deal volumes have continued to hold steady in the face of an uncertain regulatory environment, with transaction volumes surpassing pre-pandemic levels.
As of May 15, there have been 445 announced transactions, totaling $64 billion in deal value, according to a recent report from PwC. One standout megadeal was the $17.9 billion Walgreens Boots Alliance/Sycamore transaction, which represented approximately 28% of the total disclosed value.
Impact on Different Sectors
Analysis of the last twelve months reveals that the “other services” category, encompassing contract research organizations, ambulatory surgical centers, home infusion, and medical office buildings, saw the highest number of deals at 474, with a combined value exceeding $31 billion. This was followed by physician groups ($11.3 billion) and labs/diagnostics ($7.6 billion).
Investor interest has notably increased in autism, addiction, and outpatient psychiatric platforms. Behavioral health deal flow surged by over 35% year-on-year in the first quarter of 2025, with autism deals reaching their highest quarterly count since 2020.
Multiple compression has been observed across seven subsectors, including home health/hospice, labs/imaging/pharmacy, skilled nursing facilities/assisted living facilities/long-term acute care hospitals, outsourcing, ambulatory care/rehab/dental, managed care, and acute care. Managed care companies, in particular, are now trading approximately 19% lower than a year ago due to factors such as higher medical-loss-ratio readings and concerns surrounding mergers and acquisitions overpayments.
Overall Trend in M&A Activity
A recent analysis by Kaufman Hall highlighted the impact of market volatility and economic uncertainty, driven by factors like tariffs and potential policy changes under the new administration. This has led to a cautious approach in healthcare decision-making, described as a “chill” on the industry.
Jeff Lagasse is the editor of Healthcare Finance News. Contact him at [email protected]. Healthcare Finance News is a HIMSS Media publication.
