INSIGHT: Health-Care Consolidation Strong in 2019—Expect Even Stronger 2020

Bloomberg Law Health Law & Business

Gary W. Herschman and Anjana D. Patel, Members of the Firm in the Health Care & Life Sciences practice, in the firm’s Newark office, co-authored an article in Bloomberg Law Health Law & Business, titled “INSIGHT: Health-Care Consolidation Strong in 2019—Expect Even Stronger 2020.”

Following is an excerpt:

Last year ended strong with 187 health-care transactions announced or closed in December, making it the most active month of 2019.

The continued proliferation of technologies to improve patient care, the accelerating development of biomedical innovation, and the sustained focus on delivering high-quality, low-cost care through value-based approaches drove investment activity in 2019 with the overall closed/announced deals for 2019 reaching 1,588 through December, a healthy increase from 2018, reflected by the following figures:

  • Long-term care remained the most active area of investment for 2019 at 295, up from 207 deals in 2018.
  • Healthcare IT & software accounted for 203 deals in 2019, up from 141 in 2018.
  • Physician practices and services accounted for 219 deals in 2019, substantially up from 2018.
  • Life sciences transactions announced or closed increased to 174, a significant increase from the prior year.
  • Hospital/health systems saw a decrease transactions in 2019, with only 131 deals announced or closed.