Healthcare industry deal volume is expected to ramp up in the second half of 2019, with continued interest in physician practices, according to Bloomberg Law.
Bloomberg Law consulted several healthcare investment experts and obtained a list of deals announced or closed this year from investment bankers ECG Management Consultants and Provident Healthcare Partners.
Five takeaways:
1. A whopping 111 healthcare industry deals transpired in January, 85 each in February and March, and 83 in April.
2. Investor-driven platforms are increasingly striking deals with physician practices.
3. Strong consolidation candidates include practices specializing in ophthalmology, dermatology, orthopedics, gastroenterology, radiology, urology, OB-GYN, vein surgery or primary care. Dermatology deals are especially attractive to investors.
4. The hospital and health system sector saw a major drop in transaction activity after the first quarter.
5. Hospitals in mid-America are taking a serious look at their strategic options for long-term viability, so the hospital and health system sector may be the exception to stronger deal volume in the second half of the year.