Healthcare Services Continues To See Elevated Activity
While debate continues over the repeal and replacement of Obamacare, the US Health Services industry continues to be a hotbed of activity as Q1 2017 deal volume ticked up by 0.9% and 2.6% over prior year and prior quarter. Deal value however saw a sharp decline primarily as reporting for this sector was not as forthcoming with $7.9 billion disclosed, resulting in a decline of 49.3% and 58.2% over prior year and prior quarter. The shift towards value based reimbursements continues to have an effect on health systems M&A activity as they look to exercise more control over referral streams and ancillary services. This was evidenced by the 48 transactions among Physician Groups which experienced the greatest deal volume growth of 109% and 78% over prior year and prior quarter.