Welcome to HealthcareBanker.com

Thank you for visiting HealthcareBanker.com a news aggregator of middle-market mergers and acquisition activity in the healthcare industries. This site addresses investment banking topics dealing with M&A, Capital Raising, Borrowing/Lending and other Corporate Development and Finance activities within the Healthcare Services, Healthcare IT, Medical Device, and Life Science industries.

Friday, April 15, 2016

Avoiding the Man: Smaller Healthcare Providers Growing Through Bolt-On Acquisitions Unnoticed

Small, Piecemeal Mergers in Health Care Fly Under Regulators’ Radars

(from NY Times) 

Federal officials are expected to argue in court starting Monday that a large hospital merger in the Chicago area could hurt consumers and should be stopped. It would be the latest in a series of efforts by regulators to push back against a wave of consolidation among major health care providers.

But a frenzy of smaller transactions is also profoundly changing the landscape, many of which face little regulatory resistance.

The deals are often for a couple of doctors here, or a hospital there, making them too small to attract much attention. But as those deals add up, they are creating groups that in some cases dominate local or regional markets. And they are raising questions about whether the gaze of antitrust officials is directed in the right place.

Monday, April 11, 2016

Now That ACA Is Here To Stay Will Healthcare M&A Slow Down

Health Care Deals Thrive, but Dealmakers Predict Significant Slowdown in Future Activity

(from M&A news)

Expectations for M&A in the health care industry have plummeted over the last year, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). Dealmakers polled in March gave the sector a 3-month composite score of 53.2 and a slightly higher 12-month composite score of 59.8. (See related chart).

A year ago, they gave health care a 3-month score of 91.2, the highest ranking ever received on the MMP for any sector. As recently as August, transaction pros gave health care a 3-month score of 78.1. In recent years, consolidation in the sector has been driven by the Affordable Care Act, as providers have been under pressure to achieve cost efficiencies. Over time, the impact of ACA is expected to lessen. Some poll respondents expressed uncertainty about the future of the ACA, due to the upcoming presidential election.