By Kathryn Mayer
Health services mergers and acquisitions total deal value rose 152 percent to $12.3 billion during the first quarter of 2014 over last year, according to new analysis from PricewaterhouseCoopers.
Brett Hickman, partner and PwC’s U.S. health care
deals leader, said the booming M&A activity is “an indication of renewed confidence in the industry as the dust settles from the implementation of the Affordable Care Act.”
“Several indicators that we track point to robust M&A activity for the rest of the year. The impetus for greater alignment and size remains unchanged in the hospital sector – and for managed care deals, an increase is likely as these companies work to meet the required ACA milestones. Combined with positive signs we’re seeing in the other health services sectors, we’re optimistic that there will be heightened deal activity in 2014.”
Long-term care facility companies led deal activity, according to the analysis, with 68 deals with a total announced value of $5.5 billion in the quarter. “Long-term care
deals highlighted in the quarter, in conjunction with positive operating trends, will continue to build confidence in decision makers and help support strong M&A trends in this sector,” the PwC report said.
Originally published on BenefitsPro.com